Trusts are generally not part of the public record because they don't require court involvement to be administered. Only the trustee and the trust document are needed to begin managing the trust, allowing assets to be distributed to beneficiaries without court oversight.
NAMING THE TRUST DIFFERENTLY
One way to protect your privacy is to name your Revocable Living Trust something generic instead of your actual name. Most Californians use their own name when naming their Revocable Trust.
To find out who owns the assets in a revocable trust, look to whoever is the trustee. If the trustee is also the grantor, then the grantor still owns and controls the assets. If the grantor assigned another person or entity as the trustee, the trust owns the assets, which are managed by the trustee.
Generally, a trust beneficiary named in irrevocable a California trust has the right to see a copy of the trust instrument. A beneficiary can also ask the trustee to provide a copy of the trust document.
A trustee is required by law to notify beneficiaries of a trust upon the settlor's death. The settlor is the person who created the trust. The trustee has 60 days from the settlor's death to provide the notification to the beneficiaries.
Unlike wills, which go through the public probate process, trusts typically do not become part of the public record. This can be particularly important for high-net-worth individuals or those who wish to keep the details of their estate and beneficiaries confidential.
Typically, a revocable trust with clear provisions for outright distribution might conclude within 12 to 18 months. However, in simpler cases, the process can take an average of 4 to 5 months without complications.
Once property has been transferred to a trust, the trust itself becomes the rightful owner of the assets. In an irrevocable trust, the assets can no longer be controlled or claimed by the previous owner.
As previously mentioned, trustees generally cannot withhold money from a beneficiary for no reason or indefinitely. Similarly, trustees cannot withdraw money from a trust to benefit themselves, even if the trustee is also a beneficiary.
Who can void a trust? Under California Probate Code §17200, a trustee or beneficiary of a trust may petition the court to determine the existence of the trust. This means that any potential, current, or previous beneficiary can file a petition to void a trust, as can a trustee or co-trustee.
A Trust becomes open to the public when the Trustee petitions the Court for an order regarding the Trust. A copy of the Trust must be attached to the petition and served on all persons who receive notice of the proceedings. Moreover, the Trust becomes part of a Court file and open to inspection by the public.
A secret trust arises when a testator of a will leaves a gift to someone (“the secret trustee”) with the intention that he or she holds it to make a gift to another person (“the beneficiary”). Secret trusts can be full or half in nature. Fully secret trusts are where the trust is not apparent from the face of the will.
A trustee typically has the most control in running their trust. They are granted authority by their grantor to oversee and distribute assets according to terms set out in their trust document, while beneficiaries merely reap its benefits without overseeing its operations themselves.
Depending on the complexity of the case, it may cost anywhere from a few thousand dollars to $100,000 or more to dispute the terms of a trust.
Blind Trusts
Golden State residents can also protect their real properties from prying eyes by establishing an anonymous limited liability company or LLC. If an LLC owns a real property, the grant deed provides a title to the LLC rather than to its individual owners or members.
Conclusion. Selling a home held within a trust in California requires careful planning, documentation, and adherence to legal requirements.
Establishing and maintaining a trust can be complex and expensive. Trusts require legal expertise to draft, and ongoing management by a trustee may involve administrative fees. Additionally, some trusts require regular tax filings, adding to the overall cost.
Rich people frequently place their homes and other financial assets in trusts to reduce taxes and give their wealth to their beneficiaries. They may also do this to protect their property from divorce proceedings and frivolous lawsuits.
The grantor can set up the trust so the money is distributed directly to the beneficiaries free and clear of limitations. The trustee can transfer real estate to the beneficiary by having a new deed written up or selling the property and giving them the money, writing them a check or giving them cash.
Selecting the wrong trustee is easily the biggest blunder parents can make when setting up a trust fund. As estate planning attorneys, we've seen first-hand how this critical error undermines so many parents' good intentions.
When you inherit a house in a trust, it means the property was placed in a trust by the previous owner for you to become the beneficiary. A trust is a legal arrangement where one party holds property for another's benefit. As a beneficiary, you're entitled to the property after the owner's passing.
Under California law, embezzling trust funds or property valued at $950 or less is a misdemeanor offense and is punishable by up to 6 months in county jail. If a trustee embezzles more than $950 from the trust, they can be charged with felony embezzlement, which carries a sentence of up to 3 years in jail.
Trusts also can be very useful for asset protection purposes if the creditors of the beneficiary are prevented from reaching the trust's assets. A trust can be an effective way to place assets outside the reach of creditors. However, not all forms of a trust will function as an asset protection device.
Being open and willing to make contributions and to engage demonstrates this. In other words, take what others say into consideration, show that you are listening actively, suggest your thoughts and feedback in a respectful way, and demonstrate that you are willing to be part of the team.