During the process of creating an Anaheim living trust, you will be asked to make several important decisions. While every trust is unique, certain provisions are contained in nearly every instrument. One such provision is the “doomsday” or “catastrophe” clause. This provision addresses the rare, unlikely event that none of your named beneficiaries, or their eligible heirs, survives you. As a result, there is no one to receive your property, and the property would pass to the government in the event that you did not include this clause.
Now that you understand the purpose behind this important trust provision, you may be wondering how to address it. To whom do you leave your property when your entire family has pre-deceased you? This answer will depend upon your individual needs and goals. The following, however, is a list of commonly stated recipients of Anaheim revocable trust assets under a doomsday clause:
- Leave your property to a stated charity.
- Leave your property to friends or other loved ones.
- Leave your property to the individuals who would have received your property had you passed away without a Will.
- Leave your property to a school, institution, or university.
- Leave your property in some combination of the above.
As you draft your trust, your attorney can help you choose between the options that are available to you. There may be benefits and drawbacks to each choice. Our free guide, The Ten Things You Must Know Before Creating (or Amending) Your Will or Trust, offers additional information about important considerations relating to the trust drafting process.
While the likelihood of your entire family pre-deceasing you may be slim, it is important to prepare for this type of catastrophe regardless. To learn more, contact an experienced Anaheim estate planning attorney at the Law Office of James F. Roberts & Associates, APC, today at (714) 459-5481.