In California, trusts are created to protect assets and avoid the probate process. Many estate owners create trusts through estate planning practices and transfer assets into the estate to lower the value of their estate. This strategy is effective in protecting assets from creditors hoping to call in probate. A trust administration lawyer in Yucaipa, CA explains the role of the trust administrator and the successor.
Sending a Mandatory Notice to Beneficiaries
The trust administrator must send a notice to all beneficiaries about the existence of the trust. The beneficiary must file a trust contest within the deadline presented by the trust administrator. If the beneficiaries don’t file the contest, they have to sign documents to surrender their rights to the trust and its assets.
Providing Titles and Ownership Transfers to the Successor
When an irrevocable trust is established, the estate owner must identify a successor to take over the trust. When the estate owner dies, the trust administrator must provide titles and ownership transfers for all assets in the trust to the successor.
Paying the Estate Owner’s Debts
The successor must settle all debts owed by the estate owner. Once the trust is set up, the assets became the property of the trust, and the assets are protected by the probate court. However, the estate owner’s debts must be settled for the remainder of their estate to clear the probate court unscathed. The successor should follow the plan set up by the estate owner to settle their debts.
Distribute Assets According to the Estate Owner’s Will
All assets owned by the trust that are listed in the estate owner’s will must be distributed according to the estate owner’s will. The successor must follow the exact wishes of the estate owner when distributing the assets and properties that were transferred into the trust.
In California, trusts are a brilliant solution for protecting assets from the probate court. Creditors place liens against assets when an estate owner has outstanding balances, and the debts are settled when an estate enters probate. Estate owners who want to learn how to protect their assets and assign an administrator for their trust can contact a trust administration lawyer Yucaipa, CA through Betty Auton-Beck Professional Law Corporation right now.
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