When someone passes away, their inheritance may appear unclear or disorganized, complicating the estate administration process.
Determining if a loved one had a valid trust becomes essential for asset distribution. A valid trust outlines the intended beneficiaries and the specific assets they receive. Without this clarity, disputes may arise among family members. Furthermore, executors can face challenges in managing the estate and ensuring a fair distribution of assets.
This article provides essential guidance on how to ascertain the existence of a trust in California, distinguishing it from a will, understanding its public record status, and finding trust documents.
Understanding Trusts vs. Wills
First, you want to determine whether the decedent had a will or a trust. These documents are vastly different, and they directly impact how beneficiaries receive their inheritance. Here are some key differences between the two. This information can help you understand how to proceed.
Trusts
A trust is a legal arrangement where a trustee manages assets for the beneficiaries specified in the trust document. Unlike a will, a trust can manage asset distribution during the trust creator’s lifetime and after their death, potentially avoiding probate.
Wills
A will outlines a person’s wishes regarding asset distribution after their death, and it must go through probate court to be validated and executed. Generally, trusts bypass probate if properly funded and administered.
Tips for Locating a Trust
If you are trying to determine whether a deceased loved one had a trust, follow these steps.
Search the Public Record
First, you can search the public record for evidence of a trust’s existence. Not all trusts, however, are made public.
If the decedent had a “testamentary trust,” you should be able to find public information about it. These are created within a will, and they become part of the public record after probate.
A “revocable living trust” is a private document. A person creates this trust during their lifetime, and they are not required to record its existence with the county. However, it can become irrevocable, meaning it could be recorded after the creator’s death.
Search for Physical Documents
A trust always starts as a legal document. The best way to determine its existence is to find the paperwork. Here are some tips for finding physical trust documentation.
- Search at Home
Check the decedent’s personal records, safe deposit box, or home office. You want to find the trust document or evidence of consultations with an estate planning attorney. - Consult with Professionals
An estate planning attorney can search legal databases and records for trust documents, and they can provide guidance on trust administration and asset distribution. - Contact Financial Institutions
Banks, investment firms, or insurance companies may have records of trust accounts or assets held in trust.
Getting Help from an Attorney
A good lawyer can offer comprehensive support, meticulous document review, and strategic advice, helping you navigate the complexities of trusts and estate planning in California. A dedicated firm can help you locate trust documents, understand trust administration, or resolve asset disputes.
OC Trial Group is here to help ensure your loved one’s wishes are honored with clarity and compliance. Contact us online or call our office at (949) 270-3424 to schedule a free consultation.