Residents of California are urged to leave a highly detailed plan for their heirs to follow. Doing so can help to avoid a great deal of legal and financial contention.
Decide on the form of your trust
Wills and trusts must be legally established in order to be binding. Your first task will be to decide the form of your trust. A living trust is in effect while you are still alive. A testamentary trust comes into effect after you pass. You can also choose between a revocable trust whose terms can be changed or an irrevocable one whose terms are inalterable.
List the beneficiaries
The next step will be to include all the people you wish to designate as your beneficiaries. You can leave an equal amount for all parties or decide on the specific portion each will receive. You can also decide which assets will go to whom. Trusts can also be set up for children to be delivered to them when they reach adulthood.
Appoint a trustee
Trust funds require a trustee to oversee them. This will be the person you appoint to manage the assets assigned to your beneficiaries. They will also be responsible for paying off all of your creditors. The person you appoint to this position needs to be responsible and trustworthy.
Notify your beneficiaries
The final step will be to notify your beneficiaries concerning the terms of your trust. You will also let them know whom you have appointed as the trustee. If there are any misgivings on anyone’s part, now is the time for them to speak. Otherwise, if legally received, the terms of the trust are binding.
