Information for Trust Beneficiaries in California

Trusts play a vital role in estate planning, offering a way to manage and distribute assets according to the specific wishes of the grantor. The array of options that exist in structuring trusts can leave beneficiaries with a lot of questions. I have been assisting trust beneficiaries in California and beyond since 1980. My extensive experience in the nuances of trust law equips me to navigate the complexities of various trust structures and help beneficiaries protect their rights.

I serve Los Angeles, throughout San Fernando Valley, and all of southern California. Call (818) 892-7093 or contact me online today.

What Beneficiaries Should Know about Their Trust

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The complexities of a trust can be put into three general categories: 

• The terms: This includes distribution schedules, conditions of distribution, and any special provisions outlined. 
• The assets: I can help you identify the assets held within the trust, such as real estate, investments, or personal property, and understand how they are being managed and distributed.
• The trustee’s responsibilities: The trustee is who oversees distributing the trust’s assets to its beneficiaries. It’s important to know the specific responsibilities that were given to the trustee and to ensure transparency in their administrative actions. 

Your Rights as a Trust Beneficiary

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As a trust beneficiary, you have specific rights that can safeguard your interests and make sure you are treated fairly. 

• The right to information: You are entitled to request and receive information about the trust, its assets, and how it is being administered. 
• The right to an accounting: Trustees must provide periodic accounts detailing the trust’s financial transactions and activities for review by the beneficiaries. 
• The right to legal action: If you believe the trustee is not fulfilling their duties or the trust terms are being violated, you have the right to take legal action to protect your interests. 

Remember, the grantor set up the trust with the specific desire for you to benefit. It’s important to exercise your rights. Law Offices of Darrell C. Harriman is here to help you do that. 

Safeguarding Your Wealth: How Trusts Protect You

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It’s not uncommon for beneficiaries to feel frustrated by the gradual manner in which trust assets are often released. While it’s possible to set up a trust that will distribute all its assets immediately upon the grantor’s passing, quite a few trust structures are set up to pay out inheritances over time or at specified moments in the life of the beneficiary. One of the reasons is that this setup provides substantial legal protection to the trust beneficiaries. 

In legal terms, the trust is seen as a distinct entity from you as the beneficiary. That means the assets designated for you cannot be touched by creditors or through other legal action. This gives you, as the beneficiary, protections like these: 

• If you go through a divorce, your ex-spouse cannot access your trust assets as a part of the settlement. 
• If you are blamed for a car accident, the trust assets cannot be seized in a payout. 
• Trust assets are not counted towards your income in terms of eligibility for government programs. This can be particularly valuable for beneficiaries who are disabled or seeking to qualify for Medicare benefits. 

Through the strategic use of discretionary distributions, the trustee has the power to safeguard your assets by controlling when and how distributions are made. This level of control—when properly exercised—is designed for your benefit.