If you settle or otherwise resolve a trust or will litigation case, the amount you receive may be drastically reduced by taxes. There are a number of taxes that apply to trust and will assets, such as: Federal estate tax Income tax Real property tax Business personal property tax A host of other taxes. All […]
Revocable trusts established as part of an estate plan typically contain incapacity clauses, which direct a successor trustee to assume control of the trust assets if the person who established the trust becomes incapable of making financial decisions. The person who establishes a revocable living trust is referred to as the grantor or settlor. If […]
Despite its name, an irrevocable trust is not set in stone. Under the right circumstances, you can terminate, dissolve, or modify an irrevocable trust in California. However, doing so is usually not as simple as terminating or modifying a revocable trust. Under some circumstances, such as fraud or undue influence in the creation or revision […]
Follow Trust Terms The trustee has a duty to follow the Trust terms. In other words, do as they’re told. May sound obvious, but it’s remarkable how often trustees seem to get that one wrong. It is a basic trustee duty that can be found at California Probate Code section 16000. Too often individual trustees will […]
If you are a beneficiary of a Trust in California, you have legal rights. Below is a list of some of a California Trust beneficiary’s basic rights. Obtain Copies of Trust Documents Trust beneficiaries are entitled to receive copies of the Trust documents. Beneficiaries should receive copies of the Trust when either: The Trust (or […]
In California, married couples typically create a joint Trust—One Trust where both husband and wife are the settlors, beneficiaries, and trustees. They transfer all of their property into the joint Trust and the Trust is revocable during their lifetime. That means it can be changed or terminated while they both are alive. Nothing set in […]
Hire A Lawyer If you have a Trustee who refuses to follow the Trust terms, you are headed to court. The only way to force a Trustee to act, to do the right thing, is to file a petition in probate court and ask the judge to issue orders that will force the Trustee to […]
How Do You Divide Trust Assets Among the Trust Beneficiaries? When a Trust holds assets other than money, it can be difficult to divide the assets among the beneficiaries. For example, let’s say a Trust owns two houses; one is worth $500,000, and the other is worth $1 million. There are two beneficiaries and they […]
If you look at a Trust document created by a husband and wife, you will often see there are various sub-Trusts created after the first spouse dies. The purpose of these sub-Trusts is to divide up the assets, sometimes for tax purposes and sometimes for protection purposes. For example, when families have children from different […]
There are times when beneficiaries say that their trustee is claiming that the beneficiaries are harassing them. Whether it is harassment really depends on what the beneficiary is doing. If the beneficiary is asking for reasonable information such as accounting information and copies of trust financial records, none of that is harassment. Still, I’ve seen trustees […]
