What is trust planning?

Trust planning is a legal process that is used to help transfer assets and property from one person to another through the use of a trust instrument. Trusts can be used for a variety of reasons such as estate planning, to provide for a minor child, or to provide tax planning benefits. Trust planning in California involves creating a trust instrument, which is a written document that states who the grantor or settlor of the trust is, who the beneficiaries are, who the trustee is, as well as the instructions for how the trust is to be managed and what assets are to be transferred. Depending on the specific needs of the grantor, trust instruments can be drafted to provide specific directions on how the trust is to be managed, such as managing assets to minimize tax liability. Trust planning in California also involves creating a trust agreement which is a document that outlines the rights and obligations of the settlor and trustees. Lastly, trust planning may involve setting up a revocable trust where the grantor reserves the right to modify or revoke the trust.

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What is trust planning?

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