When people create a Trust, they are simply establishing a separate legal entity that will hold title to their assets. For example, if husband and wife create a Trust during their lifetimes (referred to as a living Trust, or revocable Trust), then they will change the title to their assets from themselves (as individuals) to […]
Definition of Trustee A trustee is the Trust manager, the person who calls the shots. But the trustee has limits on what they can do with the Trust property. The trustee cannot do whatever they want. They must follow the trust document, and follow the California Probate Code. More than that, trustees don’t get the […]
Definition of Trust Beneficiary A Trust beneficiary is the person who will enjoy the assets of the Trust. In legal jargon, trust and will attorneys refer to Trust beneficiaries as the “equitable owners” of the Trust. Beneficiaries will receive money and other assets from the Trust either outright (meaning being paid all at once) or in smaller […]
How does a trustee resign? That depends on the terms stated in the trust document. Most trusts will have a provision that describes how a Trustee may resign from acting as Trustee. In most cases, the Trustee will give written notice of their resignation to the Trust beneficiaries and to the successor Trustees. Whatever the […]
When the time comes to distribute assets to Trust beneficiaries, there are a number of ways to do so. When a Trust consists solely of cash, then the distribution is easy. The Trustee can write a few checks, make the Trust distribution, and end the Trust administration. How to Distribute Trust Assets to Beneficiaries Outright […]
If you ask any Trust beneficiary, they will tell you that closing a Trust administration is easy. The Trustee gives the beneficiaries all the assets, and they all live happily ever after. But Trustees often see the end of the Trust with far more reservation because of their potential future liability. You see, Trustees don’t want […]
One of the most common questions we receive from clients is: “how do we freeze the Trust assets?” After all, when you file a Trust contest, aren’t all the Trust assets frozen until the case is resolved? The answer is no. That rarely occurs. It sounds surprising, we know, but let us explain a bit […]
In California, a printed Will (that is any will that comes out of a printer) must be signed by the person creating it, and by two witnesses. If the Will is not signed by two witnesses, then it is invalid. Many people think they can have the Will notarized, but notarization does nothing to validate […]
If you were to crack open a copy of the California Probate Code and start reading from Section 16000 onward, you would find pages of rules discussing the duties of a California Trustee. The first duty, listed at Section 16000, is one of the most important: do what the Trust document tells you to do. […]
There are many assets that pass to children using a beneficiary designation form. A beneficiary designation is any form where beneficiaries are listed. For example, life insurance passes to the beneficiary listed on the life insurance policy. Individual retirement accounts and 401(k)’s pass to the people listed as beneficiaries on the account forms. Even certain […]
