What is an inheritance trust?

An inheritance trust is a legal tool used in estate planning law in California. It is a type of trust that is set up for the purpose of holding inherited funds or assets for the benefit of an individual. This individual, called the beneficiary, can be either an adult or a minor. The trust can be set up with the help of an attorney and will typically outline how the assets are to be managed and distributed. As the grantor of the trust, the person setting it up can decide who the beneficiary is and how long the trust should remain in effect. The grantor is also responsible for paying the taxes associated with the trust and ensuring that the beneficiary receives their designated share of the assets. In some cases, the grantor will also name someone to act as a trustee if they are unable to personally manage the trust. This person is usually chosen because of their financial acumen and ability to uphold the provisions of the trust. The trust will remain in effect until the terms of the trust have been fulfilled.

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What is an inheritance trust?

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