What is a trust indenture?

A trust indenture is a legal document that outlines the terms of a trust agreement. It defines the roles and responsibilities of the parties involved, such as the beneficiary, trustee, and settlor. The trust indenture also sets forth the trust’s purpose, rules, and other provisions. In California, a trust indenture must be in writing and signed by all of the parties involved. Once executed, it becomes a binding agreement. Trusts have many advantages over other estate planning options, such as providing asset protection, avoiding probate, reducing estate taxes, and making it easier to manage assets. A trust indenture allows a settlor to define the terms of a trust, ensuring that their wishes are met and that the trust is carried out according to their instructions. It also allows beneficiaries to better understand their rights and obligations related to the trust. In California, trusts are regulated by the California Probate Code and the California Trust Law. Each trust indenture must comply with the applicable laws and regulations. Further, in order for a trust to be valid, all parties must act in accordance with the trust indenture. If the trust indenture is not followed, the trust may be declared void. It is very important to have a thorough trust indenture prepared in order to ensure the trust’s success.

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What is a trust indenture?

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