My sister has a trust and I think I want one. How do I go about creating a trust?

Your sister may have spoken to you recently about the benefits of creating a trust. You listened carefully and thought about how a trust might benefit your family. You may have done your own research and feel convinced that creating a trust is an important part of your future planning.

The Question Now Is How to Create It

In order to create or establish a trust, it is important to:

  • Name beneficiaries. Consider every person you want to benefit from the trust, and cite them in the document. This could include family, friends, and organizations.  
  • Name a trustee and a successor trustee. You may choose to be the trustee now, but you will also need to name someone as trustee after your death.
  • Decide how you will fund the trust. You need to decide which assets you want to include in your trust. This may include, money, property, or valuables
  • Designate special rules. If, for example, your children are still minors when you create the trust, you may want to limit how they spend the trust money until they reach a certain age.
  • Comply with all applicable California laws. You want to make sure that the trust is properly executed, so that it is legal and enforceable.

If you would like to learn more about creating a trust, we encourage you to read our FREE report, The Ten Things You Must Know Before Creating (or Amending) Your Will or Trust.