As your life changes, your estate planning documents may change as well. In some cases, you may find yourself needing to modify or even terminate a trust that you have created. Read on to learn more.
What is a Trust?
A trust is a contract between a third party and an estate. The person who creates the trust is referred to as the trustor. The person who receives the assets of the trust is the beneficiary. There is also a third party involved. This third party, known as a trustee, manages the trust on behalf of the beneficiary.
What Types of Trusts are Available in California?
- Revocable Trust: This is a popular choice, as it can be modified, changed, or terminated at any moment without the permission of the beneficiary.
- Irrevocable Trust: This requires a trustor to nullify their rights when it is created, meaning they have no more rights to the trust and cannot change or terminate it at all.
- Irrevocable Life Insurance Trust: This allows a trustor to remove their life insurance from their estate so that a beneficiary is free from any taxes placed on the policy.
- Testamentary Trust: This is created as part of a will and only becomes effective after the trustor passes away.
- Charitable Trust: There are two types of charitable trusts. A charitable leads trust allows the individual’s choice of charity to receive interest from their financial gift for a period of time. When it ends, the remaining may go to family or other beneficiaries. A charitable remainder trust allows charities to receive the trust’s assets at the end of its term. Until the end, the donor will receive interest on the gift.
- Special Needs Trust: This can be created for a loved one with a disability to ensure they receive the financial support they need throughout their life.
How do I Modify/Terminate a Trust?
If you wish to modify or terminate a trust, you should reach out to an experienced estate planning attorney. Estate planning is complex and delicate, and the smallest mistake can have major impacts. As a result, it is important that you do not take on the process alone. Our firm can help you modify and/or terminate your trusts. Reach out today to discuss your options with an experienced attorney.
Contact our Firm
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Offices of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Do not delay. Estate planning is a more urgent matter than you may think. You never know what the future holds. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.