Unfortunately, estate planning is not always taken as seriously as it should be or may not be considered at all. Failing to conduct any estate planning is the worst mistake that can be made and studies show that many Americans who have reached the age where they should have come up with an estate plan have not done so. There are several errors that can be made when estate planning, or failing to estate plan, so it can be useful to know what those mistakes are to avoid them.
Trusts are a popular estate planning vehicle in California. But trusts can be used for many purposes besides managing financial assets for the benefit of loved ones. In fact, California's Probate Code specifically says a trust can be established for any purpose that is not illegal or contrary to public policy. A good example of a specialized trust is the pet trust.
In California most wills go through probate proceedings without a significant dispute. Similarly, most trusts are administered without any controversy. But occasionally a conflict arises among family members, between family members and an executor or between family members and trustees. When this happens it is critical for a party to the dispute to knowledgeably assert their rights under the law.
In this blog we have on several occasions discussed the advantages of a revocable trust for estate planning purposes in California. A revocable trust is what the name implies: it can be modified or terminated at any time during the settlor's lifetime. But what about an irrevocable trust? Can it ever be modified or terminated?