What is a trust account?

A trust account is a financial arrangement that allows an individual or organization to manage assets on behalf of another individual or organization. In California, a trust account is an account that is held for the benefit of a person or entity (known as the beneficiary) by someone else (known as a trustee). There are two types of trust accounts in California: revocable trusts and irrevocable trusts. A revocable trust is an agreement between a trustee and the beneficiary to manage the beneficiary’s assets. The beneficiary can change or revoke the trust at any time. A revocable trust allows the beneficiary to transfer or use money from the trust account without going through the court process. An irrevocable trust is an agreement between a trustee and the beneficiary to manage the beneficiary’s assets and protect them from creditors and taxes. In California, an irrevocable trust is an agreement that cannot be changed or revoked without permission from the beneficiary and possibly approval from a court. Trusts are important elements of estate planning in California. They can help protect a person’s assets and ensure that their wishes are followed after their death. A trust account is a financial arrangement that allows a trustee to manage assets on behalf of the beneficiary.

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