Your trust attorney will help you fund your trust. However, if you don’t list all of the assets, they won’t go into the trust. You can protect your estate by having your trust attorney create a pour-over will. This document will allow the executor to transition any remaining property into the trust after your death. If you’ve accidentally left property out, the executor can add it to the trust as long as you create this document. Because the assets weren’t in the trust at the time of death, they will go through probate. Then, the executor can transfer and distribute them based on the terms of the trust. Ideally, you won’t leave any items out of the trust, and the pour-over will won’t be needed. However, it’s a powerful safety net to include in your estate plan in case you accidentally omit property.
Your trust attorney can help you create a revocable living trust as opposed to an irrevocable trust. A revocable trust allows you to change the terms of the trust if you wish. You have the option of removing or adding beneficiaries, changing how the assets are distributed, and more. As long as you are of sound mind, you can make the changes during your lifetime. Many California residents enjoy the control a revocable trust provides.
You also have the option of creating an irrevocable trust. You can only modify such a trust if you meet specific criteria determined by California law. There are some benefits of choosing an irrevocable trust. The trust is protected from creditors, meaning the assets are safe from legal judgments. The estate also won’t be subject to federal estate taxes if the assets are held in an irrevocable trust. Your California trust attorney can help you decide which option to choose.