Estate planning in California lets this state’s residents prepare for the future. For most people, setting up a trust is an essential part of the estate planning process. However, as you know, life is often full of unpredictability. By decanting your trust, life’s changes don’t have to affect your estate plan.
What trust decanting means
The word decant means to pour liquids in a way that doesn’t disturb any solid and unwanted particles inside these containers. Decanting keeps these unwanted particles out of drinkable liquids. Likewise, decanting trusts lets you remove or change unwanted aspects of trust terms.
When trust decanting can be a smart move
Some people in charge of trust administration decant a trust to protect themselves and their beneficiaries from creditors. You might be unaware but trusts that distribute assets to loved ones at certain ages can also open these entities to creditors. Decanting this trust in favor of a new one with more favorable distribution guidelines could be smart.
Another common reason to decant a trust involves this person’s beneficiaries. Some of life’s unpredictability happens when great relationships sour. If you originally left money to people you no longer get along with, decanting your trust can remove unwanted parties from receiving your assets.
Decanting a trust is also beneficial when your irrevocable trust has simple or complicated errors that need correcting. People also decant trusts when they move to a new state with different trust-related laws. Someone might also decant a trust in situations involving larger estates. Decanting massive estates can make them easier to manage.
If you plan on decanting your trust, you might be glad to know about the passing of the Uniform Trust Decanting Act in California. This act allows trustors and trustees to decant trusts without the involvement of beneficiaries or a court overseeing this process.
