Different Types of Trusts in California: What You Need to Know

California offers a variety of trust types to cater to different estate planning needs. Understanding them can help you make informed decisions about your assets and ensure your wishes are respected. Here's a closer look at some common trusts: revocable trusts, irrevocable trusts, special needs trusts (SNTs), and charitable remainder trusts (CRTs).

Revocable Trusts

A revocable trust, also known as a living trust, allows the grantor to retain control over the assets while they are alive. Changes can be made at any time, making this trust flexible and adaptable to life’s changes. It helps in avoiding probate and ensures privacy as the terms of the trust are not made public.

Irrevocable Trusts

Once established, an irrevocable trust cannot be altered without the beneficiary's consent. With this trust, assets are transferred out of the grantor’s estate, which can minimize estate taxes and protect the assets from creditors. It's a strong tool for those looking to preserve wealth.

Special Needs Trusts (SNTs)

An SNT is specifically designed to benefit individuals with disabilities. It allows them to receive financial support without affecting their eligibility for government benefits like SSI or Medicaid. This trust ensures long-term care without sacrificing vital assistance.

Charitable Remainder Trusts (CRTs)

CRTs are used to provide income to the beneficiaries for a specified period, after which the remainder of the assets is donated to a designated charity. This trust offers potential income tax deductions and estate tax benefits while supporting philanthropic goals.

Choosing the right trust is a significant step in estate planning. It can safeguard your legacy, manage taxes effectively, and ensure that your wishes are fulfilled. Considering the diverse options available, it's advisable to consult with a professional to understand which type of trust aligns best with your goals.

If you're ready to explore which trust type might suit your needs, reach out to us at the Law Offices of Yacoba Ann Feldman for personalized advice and planning. Contact us or call us at (818) 905-2424 today.