What is a Trust? Securing Your Legacy with Our Trust Attorney in Santa Cruz 

In a community like Santa Cruz County, where high real property values and an established family history create a need for a financial future and legacy that will be successfully passed on, creating a simple will is often considered an effective way to transfer assets to those for whom they are intended. However, in California, using a simple will can create a lengthy, expensive, and public probate process. 

At our law office, Emily J. Buchbinder provides customized estate planning focused on establishing Trusts. Our objective is to provide residents of Santa Cruz, Capitola, and surrounding areas with an adequate and secure way to build financial security, privacy, and peace of mind. We provide sophisticated expertise as a boutique law firm and provide our clients with the "Attentive Service" they deserve. Emily J. Buchbinder is a Certified Legal Specialist (Estate Planning, Trust and Probate Law) by the California State Bar Board of Legal Specialization, so your planning will be overseen by an expert in her field. 

What is a Trust? The Foundation of Your Legacy 

A Trust is a fundamental estate planning tool: a legal arrangement allowing a person, known as the Settlor or Trustor, to transfer assets to another person or institution, the Trustee, who holds and manages those assets for the benefit of designated recipients, the Beneficiaries. 

For most families, a Revocable Living Trust (RLT) is the cornerstone of their estate plan. "Revocable" means you, as Settlor, can change or revoke the Trust anytime while alive and competent. "Living" means it is set up and active during your lifetime, providing management and protection not only after death but also during life. 

The Three Essential Roles in a Trust 

• Settlor/Grantor: The person who creates and funds the Trust. Initially, this is you. 
• Trustee: The person or entity responsible for managing the Trust's assets in accordance with the Trust's terms. Typically, the Settlor acts as the initial Trustee, maintaining complete control over the assets. You also name a Successor Trustee who is legally obligated to step in upon your death or incapacitation. 
• Beneficiary: The person or people who benefit from Trust assets. You are usually the primary beneficiary during your lifetime, with your loved ones as successor beneficiaries after your passing. 

Assets Included in a Trust 

A properly funded Trust holds the legal title to your most significant assets, ensuring they are managed and transferred outside of court supervision. People add various forms of property to their Trusts for a smooth transition. This includes Real Estate, such as your primary residence, vacation homes, and rental properties in Santa Cruz and elsewhere. It also covers financial assets, such as bank and Brokerage Accounts (checking, savings, money market, and investment accounts). Additionally, trust assets can include Business Interests, high-dollar Tangible Personal Property (such as jewelry and art collections), and potentially the proceeds of Life Insurance Policies (by naming the Trust as the beneficiary), allowing for the controlled distribution of assets to family members or friends. 

The Essential Benefits of Creating a Trust 

The advantages of creating a trust far exceed those of just drafting a will. A trust has numerous benefits for families and individuals in California, particularly those with valuable assets, because it provides stronger control, increased privacy, and added flexibility in how & when you manage & distribute your estate. 

1. Probate Avoidance:  The Primary Advantage in California 

This is why Santa Cruz residents choose a Trust. In California, if your gross estate (assets' value before debts) exceeds $184,500, probate is required if you rely only on a Will. For homeowners or those with moderate wealth, this threshold is crossed easily. 

Probate is an undesirable process because it is: 

• Costly: California sets statutory fees for both the Executor and the estate attorney. These fees are calculated as a percentage of the estate's gross value, not its net value. This mandatory fee schedule can significantly reduce the value of the inheritance your beneficiaries receive. 
• Lengthy: Even straightforward probate cases rarely take less than nine to eighteen months to complete, and often longer if there are disputes, court backlogs, or complex assets. 
• Public: Because probate involves court proceedings, all documentation, including asset inventories, debt payments, beneficiary names, and distribution details, becomes public record and is accessible to the public and potential creditors. 

By placing your assets in a properly funded Revocable Living Trust, you ensure they avoid probate. Your Successor Trustee will receive your Trust's assets upon your passing. Your Successor Trustee can carry out your wishes for the benefit of your Beneficiaries privately and efficiently, thus providing your family with maximum time savings and minimum legal liabilities while keeping their matters confidential. 

2. Planning for Incapacity 

A Will becomes effective only after an individual dies; however, a Revocable Living Trust is a working document that protects you and your assets in the event you become disabled before death. If, following an unexpected medical event (illness or accident), you have not prepared for the possibility of incapacity, your Successor Trustee can immediately intervene to manage your financial affairs (pay bills) and real property, without requiring a court's involvement. Without a Trust and other essential documents, your family would have to petition the court to establish a costly and emotionally draining Conservatorship just to manage your affairs. The Trust provides a private, seamless transfer of financial control to the person you choose. 

3. Ultimate Control Over Distributions 

A Trust offers the great advantage of letting you retain control over your assets for your entire life and beyond. With a Trust, you are able to specify the manner and the timing of giving your heirs their inheritance. For instance, you may decide to give money incrementally as your heirs reach certain ages: 25, 30, and 35. A Trust also protects assets from creditors of the heirs, from the risks of divorce, and from the heirs making unwise choices with the assets. Unlike a Will, which mandates distribution of the property immediately after probate, a Trust provides greater continuing control and protection to the grantor and beneficiaries.  

Why Santa Cruz Residents Must Consider Trusts 

Given high property values in Santa Cruz County, a Trust is essential for homeowners and those with significant savings. 

The $184,500 Threshold and Real Estate 

As noted, the probate threshold is easily exceeded by the value of most Santa Cruz homes. If you own a house or assets over $184,500, a Trust protects your beneficiaries from probate fees and delays. Without one, much of your estate could go to court and legal fees, not loved ones.

 

Protection from Prop 19 Challenges 

Local families wishing to transfer their primary residence to children and/or grandchildren while maintaining the benefits of Proposition 13 regarding the property tax basis must be very diligent in their planning now that Proposition 19 has changed the rules concerning property tax reassessment exclusions. There are many nuances to property taxes that are complex and require exacting precision. Establishing a trust with appropriate structural and strategic planning and documentation is the best approach to guarantee that future generations can benefit from these property tax advantages. The property tax concerns covered here cannot be adequately resolved by relying solely on joint tenancy or a will.  

State-Specific Nuances: Navigating California’s Trust Law 

Although a Trust mainly avoids Probate Court, its administration after death is governed by California law, especially the Probate Code. Expert help ensures compliance. 

A key California rule is the Notice of Proposed Trust  Administration

Under Probate Code § 16061.7, the Successor Trustee must notify all heirs and beneficiaries within 60 days after the Trust becomes irrevocable (usually at the Settlor’s death). This notice opens a 120-day window to contest the Trust. 

Trustees who fail to comply with the notice requirements may face potential liability, invalidated acts, and expensive litigation costs. To properly manage inventories, appraisals, notices, and distributions, the Trustee must understand both local and state laws.  

The Law Office of Emily J. Buchbinder: Your Partner in Simplified Trust Creation 

Make an appointment for your personalised consultation with the Law Office of Emily J. Buchbinder to create a trust that will safeguard your loved ones, protect your legacy, provide clarity about how to comply with complicated laws, and provide long-lasting peace of mind. 

Expert-Led, Customized Planning 

Our firm is founded on the principle of providing sophisticated legal counsel in a personalized setting. Founding attorney Emily J. Buchbinder’s designation as a Certified Legal Specialist in this field, a distinction held by only a small fraction of California attorneys, means you are receiving the highest level of proven competence. In addition, her LL.M. in Taxation (Master of Laws) provides us with access to great tax planning resources and expertise for creating Trusts to avoid or substantially reduce the gift, estate, and property taxes you are subject to. This type of tax-aware planning is more comprehensive than a typical firm, which can only provide standard, template documents; instead, we create your Trust document with you, to make sure it is specifically tailored to suit your individual needs and to reflect your specific objectives, be they regarding a complex blended family, special needs planning, or philanthropic desires. 

Clear Communication and Streamlined Administration 

A key commitment of our firm is to simplify the legal process. We understand that Trust administration can be daunting for a newly appointed Successor Trustee. That is why we provide support throughout the entire life cycle of your plan. 

• Guidance on Funding: We don't just draft the documents; we ensure your Trust is properly funded. A Trust that is not correctly funded, meaning assets are not correctly titled in the name of the Trust, is merely a collection of papers that will not avoid probate. We guide you through this critical process. 
  
• Compassionate Communication with Beneficiaries:  We prepare the named Successor Trustee for their future duties, clearly outlining the steps they must take. When someone passes and their Successor Trustee begins the job of administering their Trust, we will be there every step of the way to ensure every aspect of the process is handled according to the law, including sending out all required notices (like the mandatory 120-day notice), processing all debts and taxes properly and distributing the funds to the beneficiaries in a fair and equitable manner. By providing this proactive assistance to the Successor Trustee, we can greatly reduce the risk of conflict and confusion among the beneficiaries, simplify the legal process for everyone involved, and help maintain family peace during this difficult time.  

Frequently Asked Questions About Trusts 

Can I create a trust on my own, or do I need an attorney? 

While you can certainly use an online company to create standard Trust documents for you, this is not recommended, especially if you live in California. A self-prepared Trust will most likely be deficient or, even worse, improperly funded; thus, leading to costly legal difficulties that greatly increase any benefits you received for creating your own Trust in the beginning. The complexities of California probate and tax laws are such that even one mistake could subject your estate to a very lengthy, expensive court-administered probate proceeding, which is what you were trying to avoid by setting up your Trust. An experienced estate planning attorney ensures the Trust is legally sound, properly funded, and fully integrated with all of your assets. 

How long does it take to set up a trust? 

The timeline for creating a Trust depends on your unique circumstances and how quickly you can gather necessary information and execute the documents. Typically, the entire process, from your initial consultation to signing the final documents and completing the funding process, takes anywhere from four to eight weeks. Compared to the nine- to eighteen-month minimum timeline for California probate, this is a remarkably fast and efficient investment in your family’s future. 

What is the difference between a Will and a Trust in California? 

Wills differ from Trusts in that a Will does not help avoid probate; rather, it is simply a guide for the Probate Court to use when determining what to do with your estate. If your total assets exceed the threshold value of $184,500 (as determined by state law), a Will will create a situation where fees will be charged by the state, you will experience delays in receiving inheritance, and your estate will become a matter of public record. Conversely, a Trust is a legal document that allows a trustee to hold your assets during your lifetime and distribute them after your death according to your wishes, without having to go through the Probate process. Additionally, a Trust is an active document that can plan for your incapacity, while a Will only takes effect upon your death.  

Can I change or revoke my trust after I create it? 

Yes, if you establish a Revocable Living Trust, you maintain full control over your assets and the Trust terms. You can amend, modify, or fully revoke the Trust at any point, provided you are mentally competent. This flexibility allows you to update beneficiaries, change Successor Trustees, or add or remove assets as your life circumstances change over time, such as marriage, divorce, or the birth of grandchildren. 

What assets should I put into my trust? 

The general rule is that you should place any assets that do not automatically transfer ownership upon your death into your Trust. Your Real Estate (meaning your home or any real estate you own for investment & rental purposes), Bank Accounts, Investment Accounts, and other personal property owned solely in your name (without any beneficiary named), must all be identified to determine what you have in order to create a will/trust/probate for those assets. Additionally, if you have retirement accounts (such as 401(k)s or IRAs) and life insurance policies, they should be included in your review because they can pass outside of probate, but the beneficiary may still impact the overall structure of your trust.  

Secure Your Peace of Mind Today 

The evidence is clear: while approximately two-thirds of people recognize the need for an estate plan, far too few actually take the steps to complete a comprehensive one. Don’t wait until it is too late to secure the future you’ve worked so hard to build. 

A Trust is not a measure reserved only for the ultra-wealthy. It is a vital, accessible tool for any family in Santa Cruz looking to preserve their legacy, protect their loved ones from unnecessary court costs, and ensure that their most critical assets, especially their home, pass exactly as intended. 

The Law Office of Emily J. Buchbinder is here to guide you through this important process with clarity, compassion, and specialized expertise. We are dedicated to providing the customized legal strategies necessary to address your unique circumstances. 

Take the first step toward securing your peace of mind. Contact our firm today to schedule a confidential consultation with a Certified Legal Specialist and begin planning for your life and legacy. Call us today to talk with an attorney about the next steps.