There are many different types of trusts that are used in particular situations. Some examples are: Living Trusts, Revocable Trusts, Family Trusts, Irrevocable Trusts, Life Insurance Trusts, Charitable Remainder Trusts, Charitable Lead Trusts, Intentionally Defective Grantor Trusts, House Trusts, Simple Trusts, A-B Trusts, A-B-C Trusts, QTIP Trusts, Marital Trusts, Bypass Trusts, Exemption Trusts, Contingent Trusts, Disclaimer Trusts, QPRT Trusts, Special Needs Trusts and the list goes on. New types of trusts continue to be created for new situations.
A trust is essentially a list of instructions for managing assets for the benefit of some person, persons or other beneficiaries (charities, pets, etc.). Because the main way to avoid probate in California is the use of a family trust, many people discover on the death of a loved one that they are a successor trustee and now need to manage a trust. Alternatively, many discover that some other family member is now managing a trust for their benefit. There are countless issues that arise when a trustee does not properly manage a trust.
A trustee is a fiduciary and has many responsibilities under the law. A trustee may be held personally liable for not managing a trust correctly. Therefore, if you have been or will be appointed trustee, or if someone else is the trustee of assets held for your benefit it is a good idea to for you to consult with an estate planning attorney to learn your duties, rights and options.
The term "Special Needs Trust" is used in several ways. Typically, it refers to a trust held for a disabled person or a person who cannot manage their own finances and includes provisions that do not impair that person's ability to qualify for and receive government assistance. A common example is a trust set up by parents to care for a disabled child throughout the child's lifetime. Special needs trusts can also be set up by a person receiving government aid who inherits property that will disqualify them for their benefits.