Types of Trusts in California

If you are considering creating a trust in California, there are several types of trusts to choose from. Here are some of the most common types of trusts in California:

Living Trust

A living trust is a type of trust that is created during your lifetime. This type of trust can be either revocable or irrevocable, and the assets in the trust are managed by a trustee. A living trust can be used to avoid probate and provide for your beneficiaries after your death.

Testamentary Trust

A testamentary trust is a type of trust that is established in your will and comes into effect after your death. This type of trust can be used to provide for minor children or other beneficiaries who may not be able to manage their own assets. A testamentary trust can also be used to reduce estate taxes.

Irrevocable Trust

An irrevocable trust is a type of trust that cannot be changed or revoked once it is created. This type of trust is often used to protect assets from creditors or to reduce estate taxes. The assets in the trust are no longer considered part of your estate, which can reduce the amount of estate taxes your beneficiaries will have to pay.

Special Needs Trust

A special needs trust is a type of trust that is established to provide for the needs of a person with a disability. The assets in the trust are managed by a trustee and can be used to pay for things like medical expenses, education, and housing without affecting the person’s eligibility for government benefits.

Charitable Trust

A charitable trust is a type of trust that is established to benefit a charitable organization. This type of trust can provide tax benefits to the person creating the trust, as well as support for the charitable organization.

These are just a few of the many types of trusts available in California. It is important to consult with a knowledgeable attorney to determine which type of trust is best for your individual needs and circumstances.