How to Set Up a Trust in California

It’s unfortunate, but we almost never plan to leave this earth at a certain time. Death and even severe disabilities come at unexpected times, and if they do, they can wreak havoc on not only your life, but your loved ones’ as well.

Thankfully, you can prepare for this situation by setting up a legal trust. This document will ensure your assets are handled the way you want.

Read on to find out how to set up a trust in California so you’re prepared.

Determine the Type of Trust You Want

Many people don’t know this, but there are two types of trusts: revocable living or irrevocable.

A revocable living trust allows you to maintain control over your assets during your lifetime. It can be changed, or as the name implies, revoked as well.

An irrevocable trust can’t be modified or revoked once you’ve established it. However, either is possible if you have the consent of the beneficiaries.

Choose a Trustee

The trustee is the person who’s responsible for managing the trust assets. They also distribute the assets according to the terms you’ve laid out in the trust.

You can appoint yourself as the initial trustee if you wish, and name a successor trustee to take over when you’re no longer able to manage the trust. Or you can name someone else from the start to have less responsibility on your plate.

Gather Information and Draft the Trust

Before creating a trust, you must collect information about your assets. This should include real estate, bank accounts, investments, and other valuable possessions.

Then, you can create the trust document yourself using specific software or online services. However, it’s highly recommended that you seek legal advice to ensure the document meets all legal requirements. Speaking to an estate planning lawyer can be a huge help.

Regardless of what you do, you must include details such as:

• The names of the beneficiaries
• The assets included in the trust
• The distribution of assets

To sign the trust document, you have to execute it in the presence of a notary public. That’s the only way to make it legally valid.

Transfer Assets to the Trust

For the trust to be effective, you must transfer ownership of your assets to the trust. This may involve changing titles, beneficiary designations, or other legal documentation.

If you have a revocable living trust, you won’t have to file with the state. However, other types of trusts may require filing with the California Secretary of State or other relevant authorities.

You can then inform your beneficiaries that you have created a trust and provide them with relevant details.

Know How to Set Up a Trust in California

Knowing how to set up a trust in California will save you lots of trouble in the future, especially if you have valuable assets that need to land in the right hands.

Do keep in mind that this is only a general guide, and the process may vary depending on your individual circumstances. Always seek professional advice from a trust estate attorney before creating legal documents like a trust.

To learn more about legal matters, keep reading our blog page.