A Trust is essentially a relationship, or contract, among three parties:
- A Settlor who creates the Trust;
- A Trustee who manages the Trust assets; and
- A Beneficiary who receives the Trust assets.
Typically, when the Settlor (creator) dies, the Trustee (manager) is bound by the terms of the Trust to deliver the Trust assets to the Beneficiary.
In this way, a Trust looks a lot like a life insurance contract. When the insured person dies, the life insurance company is bound by the terms of the policy to deliver the insurance proceeds to the Beneficiary.
Under California Law, a Trust's assets will usually pass to the Beneficiary(ies), without having to submit to the jurisdiction (or oversight) of the probate court.
And avoiding probate court could save thousands of dollars. That's because California probate court cases typically take a long time (http://www.stephenslawgroup.com/Estate-Planning-Blog/2013/September/How-long-should-a-California-probate-case-take-.aspx)
and cost a lot of money (http://www.stephenslawgroup.com/Estate-Planning-Blog/2013/September/Probate-court-costs-how-much-.aspx).
For informational only; may NOT be relied upon as legal advice. For specific questions about your own Trust, please call 818.707.8200 to speak with an attorney about your case.