Category: Trusts

There are two types of charitable trusts: charitable remainder trust (“CRTs”) and charitable lead trusts (“CLTs”). We’ll review each one briefly. 1. CRT has: at least annual distributions to one or more non-charitable beneficiaries; for life of such beneficiaries or for a term of years; with an irrevocable remainder paid or held for the benefit…

A residence trust is used to transfer a grantor’s residence into a trust in order to exclude any future appreciation of the residence from the grantor’s estate. These personal residence trusts (“PRTs”) are irrevocable and split interest in character. In essence, the transfer of the residence is a complete gift, while at the same time…

There is a trust defined by Code Sections 671-679 referred to as Grantor trust. A transfer to an irrevocable trust can be treated simultaneously as both (i) a completed transfer for estate and gift purposes and (ii) an incomplete transfer for income tax purposes. Therefore, it is possible to structure an irrevocable trust so that…

If you are unsure about what a trust is or the basics please refer to our earlier blog here. In order for a trust to be valid there must be property transferred to that trust. There are special considerations to take into account such as property taxes and due-on-sale clauses. Under Revenue and Taxation Code…

Simply put, a trust is an agreement in which one person (grantor/settlor) transfers assets (personal and/or real) to another person (trustee), and instructs the trustee to hold the property for the benefit of another person (beneficiary). In essences, it’s a contract. The trustee holds legal title to the assets of a trust, can enter into…