Trust Attorney Orange County

A trust can be an obvious choice for your estate planning – which can save estate taxes, can protect your property and helps your heirs avoid probate.  But before jumping straight into a California living trust, there are many advantages and disadvantages to consider in terms of types, i.e., revocable vs. irrevocable, upcoming California tax implications and on and on.

A trust can be contested for many of the same reasons as a Will. Trusts do not “eliminate taxes,” but it is possible to minimize your estate tax liability through estate planning.  We often update our website with the state-of-the-art strategies that are effective for both individuals and families, as well as business owners or those with combined families. 

When it comes to a living trust, when we meet with clients, we will explore some fundamentals that will aid you in making the right direction.  We will discuss Trust disputes as well and how to avoid them, be it from the beneficiary perspective and/or Trustee(s)’ perspective and the steps for both parties.  Also, we will unwrap the following topics:

• Undue influence
• Lack of capacity
• Tortious Interference with a Testamentary Expectancy
• Accounting actions
• Breach of fiduciary duty
• Trustee Removal
• Lack of Execution Formalities
• Trust Construction, and surcharge actions.
• Are you needing litigation legal advice?  If so, you have found the right firm!

So basically, Trusts fall into two broad categories, “testamentary trusts” and “living trusts. Another distinction, you may have heard of already is a “revocable” or “irrevocable” trust.

But below are more types of trusts available.

1. Living Trust: (family trusts)
2. Revocable Trusts
3. Irrevocable Trusts
4. Testamentary Trusts
5. Married A-B Trusts
6. Qualified Terminable Interest Property (Q-TIP) Trusts
7. Special needs trusts for disabled beneficiaries
8. Generation-skipping trusts
9. Qualified Personal Residence Trusts (QPRT)
10. Pet Trusts
11. Charitable Remainder Trusts (CRT)
12. Irrevocable Life Insurance Trusts (ILIT)
13. Grantor Retained Annuity Trusts (GRAT)

They are the following:
• Trust Disputes
• Alleged fiduciary negligence
• Trustee mismanagement
• Trustee self-dealing
• Trust litigation
• Financial exploitation of the elderly
• Malfeasance in the administration of trusts and estates

First of all, what side of the estate plan are you on? Are you the Trustee or Beneficiary?

Let’s go over both roles, the expectations and answer some legal questions that may arise.

TIP: What causes litigation typically? Poor drafting of the initial documents and poor behavior of the people involved in the trust administration process. Many times, and by accident, the settlor created a prior living trust, then years later writes up a will that conflicts with some wishes in the living trust. Once the grantor dies, the documents come into effect. Which one supersedes?

Take away: ALWAYS consult the living trust before entering into another type of estate plan.

2nd take away: Have a trust attorney who is astute, works with hundreds if not thousands of clientele.

Hess-Verdon & Associates, PLC is the legal firm that people go to for help in fixing up all types of trusts. Our knowledgable and aggressive actions are necessary to ensure the settlor maintains their wishes on how the estate should be administered.

I am the beneficiary:

If you are the beneficiary, we understand you want to make sure the estate plans are lived up to the full extent of the law. If you find yourself having to litigate the management of the trust, our recommendation is to call us immediately. Many times we can discuss your situation on a Second Opinion basis, allowing you to know where you stand and what your rights are.

I am the Trustee:

If you are the Trustee, we are here to assist. It’s important to show your due diligence in the management of the trust. Many times, the beneficiaries’ demands are unreasonable and are based upon a lack of information or disclosure  by the Trustee.  You  were chosen as the Trustee to carry out the wishes of the settlor, but this can include many decisions that require legal and tax advice and not just common sense. Therefore, you need to be careful about your decisions to prevent the beneficiaries from criticizing your actions with the benefits of hindsight.