What is a trust?

A trust is a legal document that allows someone to manage assets on behalf of someone else. It can be used to provide financial support to an elderly person’s family, protect assets from creditors, or avoid probate taxes. In California, a trust is set up when an individual transfers assets to a third-party trustee for the benefit of a beneficiary. The trustee has a fiduciary duty to manage the assets in the best interest of the beneficiary, or the person to whom the assets belong. The trust document outlines the terms and conditions of the trust including who will receive the trust assets and how they will be distributed. It also dictates the trustee’s duties, such as investing the assets, keeping proper records, and making distributions. A trust may be revocable or irrevocable, depending on the wishes of the trust’s creator. A revocable trust allows the creator to change the terms or dissolve the trust, whereas an irrevocable trust is a permanent arrangement. In California, it is important for anyone creating a trust to seek legal advice from an experienced elder law attorney. An attorney can help ensure that the trust is properly structured and meets all legal requirements. An attorney can also provide advice on other estate planning tools, such as a will or a power of attorney, to ensure that your assets are properly managed.

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What is a trust?

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