Trust Administration can be a confusing and overwhelming process for family members or loved ones who are designated trustees. As a trustee, you are responsible for overseeing and distributing assets in the trust in an efficient and cost-effective manner. This can be extremely difficult if you are unfamiliar with financial management and the sometimes complex trust administration process.
The Hayes Law Firm provides detailed and extensive guidance on the process of developing the right trust for you and your specific needs. We also assist in the administration of the trust after the creator of the trust has passed. To begin the process, contact us today to schedule a personalized consultation or to answer any pressing questions.
What is a Trust?
A trust is a legal entity that allows a trustee to hold assets on behalf of a beneficiary. The creator of the trust will name the trustee that will look over the assets for the beneficiaries. This trustee can be the creator of the trust, but a successor trustee must be named in case of an unforeseen event.
Purpose of a Trust:
- A Trust can shield assets when a trustee is determining Medi-Cal eligibility. If someone isn’t the owner of the trust, and the trust owns the assets, the assets might not be taken into consideration when determining your Medi-Cal benefits.
- A Trust protects beneficiaries. Trusts prevent irresponsible spending, which commonly happens with large gifts of money. With the creation of a trust, the creator is ensuring that their gift of assets is not causing any financial harm to their loved ones.
- A Trust ensures that one’s assets are properly managed. Because the trustee is obligated to act in the best interests of the beneficiaries, by creating a trust, the owner can feel comfort in knowing that even if they were to become incapacitated or pass away, their assets would be protected and properly handled.
- A Trust can help shield assets from creditors, bankruptcy, and divorce. Because the beneficiaries aren’t the owner of the assets in the trust, the assets can’t be taken if a beneficiary gets bankrupt or gets a divorce.
- Trusts help to avoid probate and to reduce or eliminate estate taxes. If assets are in a trust, they don’t have to be included in the probate process.
If you think a trust is right for you and your loved ones, please contact us and our experienced attorney will gladly assist with the technicalities of creating and managing a trust.
What is the Trust Administration Process in California?
After the trust has been created, the trust administration process begins once the death of the owner occurs. It involves the management of the trust assets, the facilitation of transfers of the trust properties to the new owners, and the carrying out of the wishes of the deceased.
However, in certain cases, the process can differ with varying types of trusts. Because the successful navigation of the trust administration process is essential, we encourage you to contact us with any questions. Our experienced attorney will help to ensure that the wishes of the trust creator are fulfilled.
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Check out our previous post: Unintended Consequences of a Do-It-Yourself Estate Plan
This website is not intended to be a source of solicitation or legal advice. General information is made available for educational purposes only. The information on this blog is not an invitation for an attorney-client relationship, and website should not be used to substitute for obtaining legal advice from a licensed professional attorney in your state. Please call us at (626) 403-2292 if you wish to schedule an appointment for a legal consultation.
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