WHY DID THE TRUSTEE PAY ALL THAT MONEY TO HIMSELF? WHAT ARE TRUSTEE FEES? A trust is typically established by a document known as a declaration of trust will which is a document with instructions for how the trust assets are to be handled. The declaration of trust also identifies…
A Trust Can Be Set Aside and Disregarded if a Court Finds that a Trust Maker Lacked Capacity PRESUMPTION OF CAPACITY California law presumes that everyone has the mental capacity to make a trust. Thus, if someone challenges a trust in court for lack of mental capacity it is up…
How did that kid get so much money to blow! 18 is the age of majority When a child turns 18 years he or she is considered to be an adult under California law. In legal terms, children under age 18 are called “minors” and when they reach age 18…
Intro BE CAREFUL WHO YOU TRUST WITH YOUR TRUST Trust terminology basics A trust is created by a written document known as a declaration of trust, and is then funded by transfer of money into trust bank accounts and/or deeding or transferring of properties to the trust. The creator of…
My Sister is the Trustee and She Refuses to Pay My Share Trust terminology basics A trust is created by a written document known as a declaration of trust, and is then funded by transfer of money into trust bank accounts and/or deeding or transferring of properties to the trust. The creator…
Wills benefiting the attorney or caregiver are suspect Abuses in formation of wills and trusts In California over the last few decades there have been some situations whereby attorneys or caregivers have had wills or trusts prepared that benefit them. There was a famous case of a 95-year-old lady whose…
BULLETPROOF YOUR KIDS’ INHERITANCE What is a spendthrift trust? A spendthrift trust is a trust that is created for the benefit of a person who is often unable to control his or her spending and gives an independent trustee full authority to make decisions as to how the trust funds…
Taxation of Irrevocable Trusts – Tax rates can be high on permanent trusts IRREVOCABLE TRUST DEFINED The term “irrevocable trust” is commonly used by estate lawyers and financial planners to describe a trust which is permanent and cannot be changed or revoked. An example would be where you establish a…
Living Trust Taxation – The IRS ignores revocable living trusts LIVING TRUST DEFINED The term “living trust” is commonly used by estate lawyers and financial planners to describe a trust which is established during a person’s lifetime and which is revocable and changeable. Living trusts – are also known as…
I was just put in charge of a trust so what do I do? Trust Administration Basics for Newly Appointed Trustees Events triggering administration. Trust administration is needed when or both of the Trustors (i.e. persons who created the trust) passes away or resigns voluntarily or becomes legally incompetent. Basic…