Trusts

A trust is a legal arrangement in which a trustee holds and manages property for the benefit of one or more beneficiaries. The person who creates the trust (the settlor or grantor) defines the rules in a written trust agreement.

A revocable living trust is commonly used in California estate planning to avoid probate for assets funded into the trust, to provide continuity of management if you become incapacitated, and to distribute assets after death according to your wishes. Unlike a will, assets held in a properly funded trust generally do not pass through probate.

Irrevocable trusts may be used for tax planning, asset protection, charitable giving, or special needs planning, depending on your goals. Each type of trust has different tax and legal consequences.

Creating a trust is only part of the process—assets must be titled or beneficiary designations updated so they align with your plan.

This page is for general information only and is not legal advice. Contact Fay & Lawler, APC to discuss whether a trust fits your situation.