Creating a living trust in California involves several key roles, each with specific responsibilities. Understanding these roles helps ensure the trust is administered correctly, your assets are protected, and your wishes are carried out.
1. Grantor(s) – The Trust Creator
The grantor is the person (or persons) who create the trust. In California, this could be you and your spouse. Other terms include:
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Creator
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Settlor
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Trustor
The grantor establishes the rules for the trust, decides who will receive the assets, and often serves as the initial trustee.
2. Trustee(s) – Current Trust Managers
The trustee manages the trust during the grantor’s lifetime. Responsibilities include:
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Administering the trust assets according to the trust document
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Making distributions to beneficiaries as outlined in the trust
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Ensuring compliance with California trust law
Trustees can be the grantor(s) themselves, a trusted individual, or a corporate trustee.
3. Successor Trustee(s) – Backup or Replacement Trust Managers
A successor trustee steps in if the grantor becomes incapacitated or passes away. Their responsibilities include:
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Managing the trust during incapacity
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Distributing assets after the grantor’s death per the trust instructions
Successor trustees can be:
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Adult children or relatives
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Trusted friends
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Licensed fiduciaries or corporate trustees
4. Beneficiaries – Who Receives the Trust Assets
Beneficiaries are individuals or organizations designated to receive trust property. Types include:
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Income Beneficiaries: Receive distributions of the trust’s income
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Primary Beneficiary: Usually the oldest income beneficiary unless another is specified
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Permissible Distributee: A beneficiary eligible to receive income or principal distributions
Descendants are direct family members such as children, grandchildren, or great-grandchildren. This term does not include collateral relatives like nieces or nephews.
5. Legal Representatives
A legal or personal representative may act on behalf of a minor or incapacitated beneficiary. Examples include:
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Guardians or conservators
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Executors or administrators
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Trustees or attorneys-in-fact under a durable power of attorney
For minor beneficiaries, the parent or custodian usually serves as the legal representative unless otherwise specified in the trust.
Final Thoughts
Understanding the roles in a living trust in California is essential for proper trust administration. Clearly defining grantors, trustees, successor trustees, and beneficiaries ensures your assets are protected, distributed according to your wishes, and that your loved ones are cared for.
If you’re creating a living trust or need guidance in California, contact Attorney Milda Goeriz at 858-764-2547 to schedule a consultation.
Coming up next: How does a Living Trust work?