Redlands California Estate Planning Blog

Many people in California consider how they can best protect their assets now and provide for their families in the future. Trusts provide important mechanisms not only to pass on wealth between generations without relying on the probate system but also to realize significant tax savings during a person's life. Therefore, many people wish to create trusts to provide for their children or other loved ones in the future. However, some people are concerned that if their children grow up knowing that a substantial trust fund is waiting for them, they may feel less incentive to succeed academically and in their careers.

As a result of these concerns and other fears about privacy, many people opt to create silent trusts. When a trust is created, the trustees responsible for its administration have a duty to notify the beneficiary and provide information about its management. However, this requirement may frustrate people's desires to plan more discreetly for the future. While some people may delay creating these trust funds, others don't want to miss out on years of tax benefits. Silent trusts can provide a solution: During the trust's creation, the creator explicitly waives the trustee's duty to provide information to the beneficiaries.

Parents in California may have an interest in establishing a legacy for themselves long after they depart this world. One way to do that is to ensure that their children have the money needed for a quality education. This goal may be accomplished by using a trust or by investing in a 529 plan. Before creating a trust, it is important for a parent to know what his or her money is intended to accomplish.

For instance, some parents may simply want to leave equal amounts for all of their children. In such a scenario, it may be best to create a separate trust for each child that only he or she can access. One downside is that a child may not use all the money in the trust or need more than is provided. Alternatively, parents may also simply want to create a general fund that each child can use as needed. This can be ideal for parents of children who have varying educational interests.

Veterans in California who were other-than-honorably discharged usually do not qualify for VA benefits. These veterans often need help for trauma related to their service, and suicide and substance abuse is common in this group. The VA has started a new program to allow these veterans to come to the VA for mental health care.

The VA reports that 115 veterans have used the program. This number is disappointing to many since it represents a small fraction of those who qualify. Some groups blame the VA for failing to reach out to veterans who may be in need of services. Of the 115 veterans who have participated in the program so far, 25 were in San Diego.

For many California families, trusts are an important tool to transfer wealth from one generation to another. They can be used to minimize the impact of probate, keep wealth transfers out of public view and even provide tax savings. However, it can be important for people with trusts to review them regularly to make sure that their documents and plans meet their current needs. In some cases, families are unhappy with the provisions of their trusts. However, by reviewing them in advance, individuals can make adjustments to improve their utility for their specific circumstances.

In some cases, the trusts weren't set up properly to begin with because the lawyer didn't understand what the family really wanted to get out of the document. In other cases, the language of the trust itself can be a problem. Provisions can be excessively vague or restrictive, leading to conflicts later on. Other trusts need to be changed because family circumstances have also changed, and those updates should be reflected in estate planning. In some situations, there is no problem with the trust itself, but other changes in the law have created better options for managing wealth.