What is a trust?

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A trust is a legal arrangement created by the settlor in which a trustee holds property as a fiduciary for one or more beneficiaries.  One major distinction between a will and a trust is that a trust is not subject to probate – meaning that the court is not involved in the supervision of the trustee and the provisions of the trust.

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Advantages of a trust

 

• Avoids probate (does not become public record)

• It is not subject to Medi-Cal Recovery

• Assures proper management of property

• Gift more than one person at the same time

• To hold property for a minor until he or she becomes an adult

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Contesting a Trust

 

Generally, the sole function of a trustee is to do what is in the best interests of the beneficiaries.  A trustee has what is known as a "fiduciary duty" to the beneficiaries of the trust.  A trustee has a duty to administer the trust with the skill and care as a person of ordinary prudence would use in dealing with his or her own property and to be loyal to the beneficiaries.  If the trustee fails to carry out the terms of the trust or falls short in his fiduciary obligations to the beneficiaries, then the trustee may be liable for breach of trust. 

 

Trust litigation may be necessary when the trustee has a conflict of interest, engages in self-dealing, is biased towards a particular beneficiary, or takes other actions in secrecy.  Please contact our office for more information. 

 

​​Do I need an estate plan? 

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An estate plan is the most affordable solution for our clients for two main reasons:

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1) Staying out of probate court will save you money.

2) Staying out of conflict will keep your family intact by preserving relationships among family members.  

 

An estate plan is a set of documents that every individual – single or married – should complete.  While most assume that they don’t have any assets, the fact of the matter is that they do.  Assets do not have to be enormous to require an estate plan, but an estate plan is necessary if your assets are going to be distributed appropriately. 

 

If you die without an estate plan, your property still needs to be distributed.  Your estate goes into probate, meaning it will be administered by the court.  The court will appoint someone to manage your estate.  This administrator is then responsible for distributing your assets in accordance with state laws.  While the administrator is supervised closely by the court, this supervision can be costly for an estate.  To pay creditors and court fees, portions of your estate could be auctioned rather than distributed to family. 

 

On the other hand, those who have a sound estate plan are satisfied to know where their assets are going, how much their beneficiaries will receive, and who will care for them in the future.  In addition, creating an effective estate plan early on can alert you to any potential trouble areas you may need to resolve, such as selecting beneficiaries, identifying assets, preparing a medical healthcare directive, as well as preparing for any unforeseen accidents or illnesses in the future. 

 

In order to best serve his clients, Hector provides effective estate planning services for a reasonable professional lawyer fee, saving all parties involved from having to pay expensive probate litigator fees in the future.