| Alan R. Horvath, Attorney at Law |
| Trust Revocation |
Trusts are either revocable or irrevocable. Revocable means you can change your mind, take back your assets and
terminate the trust at will. Irrevocable means you can not.
In California, a trust created during your lifetime is by default revocable, unless the trust states otherwise. While a
trust is revocable, the funds in it will, for many purposes, still be considered as yours. For example, any income from
the trust must be reported on your own personal tax return, and the change of ownership between you and the trust
will not trigger a property tax reassessment. Also, as long as the trust is revocable, any future beneficiary has no
legal rights based on what the trust says.
A trust you create becomes irrevocable on your death, and may also have been created that way originally by its
wording. An irrevocable trust has its own tax id and must file its own tax return. Furthermore, all beneficiaries, are at
that point entitled to regular accountings as to the assets of the trust and what is being done with them. This applies
even to beneficiaries who will only get a distribution after the death of some other individual,
terminate the trust at will. Irrevocable means you can not.
In California, a trust created during your lifetime is by default revocable, unless the trust states otherwise. While a
trust is revocable, the funds in it will, for many purposes, still be considered as yours. For example, any income from
the trust must be reported on your own personal tax return, and the change of ownership between you and the trust
will not trigger a property tax reassessment. Also, as long as the trust is revocable, any future beneficiary has no
legal rights based on what the trust says.
A trust you create becomes irrevocable on your death, and may also have been created that way originally by its
wording. An irrevocable trust has its own tax id and must file its own tax return. Furthermore, all beneficiaries, are at
that point entitled to regular accountings as to the assets of the trust and what is being done with them. This applies
even to beneficiaries who will only get a distribution after the death of some other individual,
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P.O. Box 81
37 Main St., Suite 202
San Andreas, CA 95249
37 Main St., Suite 202
San Andreas, CA 95249
| Phone: 209 754-5291 Fax: 209 754-5293 |
| ahorvathlaw@sbcglobal.net |
| Estate Planning By Phone for Any California Resident |