A testamentary trust, created within a will, offers a flexible way to manage assets after someone passes away, but the duration it can last is surprisingly variable, dictated not by a set time limit, but by the terms outlined in the will itself and, importantly, the Uniform Trust Code (UTC) which governs trusts in most states, including California where Steve Bliss practices estate planning.
What are the rules around trust durations?
Generally, a testamentary trust can last for a specific term, such as until a beneficiary reaches a certain age, completes an education, or even for multiple generations, effectively becoming a dynasty trust. California’s Rule Against Perpetuities, modified by the UTC, allows trusts to exist for up to 90 years, even after the death of the original beneficiaries, offering substantial long-term asset protection. However, a trust doesn’t *have* to last that long; it can be much shorter if the grantor (the person creating the trust) desires. Approximately 60% of estate planning clients are seeking options that benefit multiple generations, making long-term trust planning a frequently discussed topic with Steve Bliss and his team. The key is clear, unambiguous language in the will outlining the trust’s duration and distribution terms.
Can a trust last forever?
While a trust cannot technically last *forever* due to the Rule Against Perpetuities, it can be structured to effectively last for multiple generations, approaching a perpetual existence. This often involves a series of distributions to successive beneficiaries, with provisions for both income and principal, designed to preserve the wealth for future family members. A common strategy is to distribute income annually while maintaining the principal, allowing it to grow through investment and compounding, and then distribute the principal at specified intervals or upon the occurrence of certain events. The effectiveness of this strategy, however, relies heavily on careful drafting to avoid violating the Rule Against Perpetuities and ensure the trust’s longevity. It’s not uncommon for clients to request provisions for grandchildren’s education or even charitable giving extending decades into the future.
What happens if a trust isn’t properly structured?
I remember Mrs. Davison, a lovely woman who came to Steve after her husband passed away. He had a will with a testamentary trust, but it was drafted years ago by a general practitioner who didn’t specialize in estate planning. The trust was meant to provide for her grandchildren’s college education, but the language was vague and didn’t specify *when* those funds should be distributed. When the first grandchild turned 18, the executor distributed a lump sum, and predictably, it was quickly spent on a car and other immediate expenses. Mrs. Davison was heartbroken that the funds weren’t available for education as intended. This highlighted the importance of precise drafting and understanding the nuances of trust law. Approximately 30% of clients who come to Steve Bliss have pre-existing estate planning documents that require review and updates to ensure they meet their current needs and avoid such pitfalls.
How did proper planning make a difference?
Then there was Mr. Henderson. He came to Steve with a similar goal – providing for his grandchildren’s future. Steve worked with him to create a testamentary trust that outlined a phased distribution schedule. A portion of the funds would be available for each grandchild’s education, released in increments based on tuition and approved expenses. The remainder would be held in trust until they reached a certain age, providing a safety net for unexpected needs. When Mr. Henderson’s first grandchild needed help with a down payment on a house, the funds were readily available, providing a significant boost and ensuring the family’s financial security. This success showcased the power of proactive estate planning and the peace of mind that comes with knowing your wishes will be carried out effectively. It reinforces why Steve Bliss emphasizes the importance of tailored solutions and meticulous drafting for every client.
“A well-crafted testamentary trust isn’t just about distributing assets; it’s about safeguarding a legacy and providing for future generations.”
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “Can I use estate planning to protect assets from creditors?” Or “What is an executor and what do they do during probate?” or “How do I keep my living trust up to date? and even: “Will my wages be garnished during bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.