Trusts in California: Understanding the Basics

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TRUSTS
in
California
UNDERSTANDING THE BASICS
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TRUST?
What is a
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ITS A LEGAL RELATIONSHIP BETWEEN YOU, SOME OF
YOUR PROPERTY, SOMEONE YOU APPOINT TO MANAGE
THAT PROPERTY, AND THOSE YOU CHOOSE WHO CAN
BENEFIT FROM THE PROPERTY.
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THERE ARE MANY DIFFERENT SPECIFIC TYPES OF
TRUSTS, EACH WITH ITS OWN BENEFITS AND DRAWBACKS.
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How Do You Make a
TRUST?
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YOU CREATE A DOCUMENT, CALLED A DECLARATION OF
TRUST THAT CONTAINS
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YOU CREATE A DOCUMENT, CALLED A DECLARATION OF
TRUST THAT CONTAINS

• THE TRUST TERMS

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YOU CREATE A DOCUMENT, CALLED A DECLARATION OF
TRUST THAT CONTAINS

• THE TRUST TERMS
• THE NAME OF THE TRUSTEE

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YOU CREATE A DOCUMENT, CALLED A DECLARATION OF
TRUST THAT CONTAINS

• THE TRUST TERMS
• THE NAME OF THE TRUSTEE
• THE NAME(S) OF THE BENEFICIARY

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YOU CREATE A DOCUMENT, CALLED A DECLARATION OF
TRUST THAT CONTAINS

• THE TRUST TERMS
• THE NAME OF THE TRUSTEE
• THE NAME(S) OF THE BENEFICIARY
• AND YOUR SIGNATURE.

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What Is a
TRUSTEE?
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THE TRUSTEE MANAGES THE TRUST PROPERTY, VERY
SIMILAR TO THE WAY A CEO MANAGES A CORPORATION.

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YOU CAN CHOOSE AN INDIVIDUAL
OR AN ORGANIZATION TO BE THE TRUSTEE
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AS WELL AS NAME ALTERNATES OR BACKUPS.
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What Does The
TRUST OWN?
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THE PROPERTY THE TRUST OWNS IS KNOWN AS THE TRUST
CORPUS AND IT CAN INCLUDE ANY ASSETS THAT YOU OWN
AS AN INDIVIDUAL.
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CASH, REAL ESTATE, AND INVESTMENTS ARE COMMONLY
TRANSFERRED TO TRUSTS.
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Who Are The
BENIFICIARIES?
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ANYONE YOU CHOOSE
YOU CAN NAME YOURSELF, YOUR CHILDREN, OR ANYONE
ELSE AS THE BENEFICIARY OF YOUR TRUST.
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YOU CAN ALSO CREATE A TRUST TO BENEFIT A
CHARITABLE ORGANIZATION.
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Changing the
TRUST
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REVOCABLE OR IRREVOCABLE
You can change the terms of a revocable trust
whenever you like, but you cannot generally
change the terms of an irrevocable trust.
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Living or Testamentary
TRUST
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CREATE NOW OR AFTER YOU DIE.
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A TRUST YOU CREATE NOW IS KNOWN AS A LIVING TRUST
WHILE ONE THAT YOU CREATE THROUGH YOUR LAST WILL
AND TESTAMENT IS A TESTAMENTARY TRUST.
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EACH HAS ITS OWN USES, AND YOU ARE NOT LIMITED TO
CREATING ONE OR THE OTHER.
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Want to Know More About Trusts in California?
Trusts in California?
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