A common question was presented to a column about trusts, according to the NWI Times in "Can an individual establish more than one trust?" The question was if a second trust wipes out the first trust.
The confusion over trusts is often created because most people are more familiar with the law of wills and a person cannot have more than one will. Creating a new will is an automatic revocation of any previous wills. However, trusts are not set up the same way.
It is possible for a person to have more than one trust. It is not uncommon when people want to accomplish different things with different trusts. However, the assets put into the trusts cannot be the same and most people have no reason to have more than one trust. What most people seek to accomplish with a trust, can best be done with only one.
Whether and how a trust can be revoked, depends on what type of trust it is. Some trusts are created to be revocable at any time, but an attorney should create the trust. The trust will also detail how and if it can be revoked.
Other trusts are created to be irrevocable. Sometimes they can be revoked but there are often tax penalties for doing so. It is usually advisable to amend an irrevocable trust where and how state law allows. If a trust is irrevocable, you may need to seek court approval to revoke the trust. We can assist you with this.
An estate planning attorney can advise you on creating an estate plan that fits your unique circumstances and could include a will and a trust.
One of the main goals of our law practice is to help families like yours plan for the safe, successful transfer of wealth to the next generation. Call our office today to schedule a time for us to sit down and talk about your estate plan, where we can identify the best strategies for you and your family to ensure your legacy of love and financial security. Our office is located in Santa Ana, CA but we serve all of California including Irvine, Orange, Tustin, Newport Beach, and Anaheim.
Reference: NWI Times (Feb. 18, 2018) "Can an individual establish more than one trust?"