The revocable trust is a popular estate planning vehicle in California. With a revocable trust an individual can avoid probate, protect the person's privacy, and provide for management of assets both during the person's lifetime and after death. To establish a trust, the first major step is to prepare and sign a trust document which sets out how the assets in the trust are to be managed, and under what circumstances income and principal are to be distributed to the beneficiaries.
Many people in California depend on Medi-Cal for their health care coverage. When a Medi-Cal recipient dies, the state has the legal right to recover from the recipient's estate the medical expenses made on their behalf. The state cannot seek reimbursement, however, if the Medi-Cal recipient left a surviving spouse or a minor, disabled or blind child.
In California, the revocable trust is a popular estate planning vehicle, in part because it provides for management of trust assets by a trustee during the settlor's life and after their death. A trust will typically provide that income generated by the trust assets will be paid to the beneficiaries at designated intervals. The trust may specify circumstances under which the trustee can pay trust principal to the beneficiaries, and may provide for lump sum payments of principal at designated times. A revocable trust may also give the trustee discretion about when to make payments to the beneficiaries.
This California estate planning blog has discussed trusts in the past. Generally, a trust is a legal device that protects a property right for a person while that property is held by another individual. Though trusts can serve a wide range of intents and purposes, they are generally grouped into one of two categories -- revocable or irrevocable.