Understanding Trusts in California
Trusts are powerful estate planning tools that allow you to manage, protect, and transfer your assets during your lifetime and after your death. While many people associate trusts with the very wealthy, the truth is that trusts are a core part of most California estate plans, especially for those who want to avoid probate, maintain privacy, and provide clarity for their loved ones.
At Cookman Law, we help individuals and families throughout California establish customized trusts that reflect their goals – whether that’s a simple revocable living trust or a more advanced structure like an A/B split trust or dynasty trust. Our approach ensures your assets are handled exactly how you intend, while minimizing legal, tax, and administrative complications.
What Is a Trust?
A trust is a legal arrangement that allows one party (the trustee) to hold and manage assets on behalf of another (the beneficiary). The person who creates the trust (the settlor or grantor) outlines how assets should be managed during their lifetime and distributed after death.
Trusts are used for a variety of purposes, including:
Common Types of Trusts We Use
Revocable Living Trusts
This is the foundation of most estate plans in California. A revocable living trust allows you to retain control over your assets while you’re alive, and seamlessly transfer them to your chosen beneficiaries after your death without going through probate.
Key benefits:
We help clients fund their trust correctly – making sure real estate, bank accounts, and other assets are titled appropriately so the plan works as intended.
A/B Split Trusts (Marital Trusts)
For married couples (especially those with larger estates) an AB trust can be used to reduce estate taxes and preserve wealth for children from prior relationships.
How it works:
- When the first spouse passes away, the trust “splits” into two parts: Trust A (Survivor’s Trust) and Trust B (Bypass or Decedent’s Trust).
- The B Trust captures the deceased spouse’s federal estate tax exemption.
- The surviving spouse retains control of their half, while the decedent’s portion is preserved for the next generation.
Is it still useful in 2026? While fewer families owe federal estate tax today due to higher exemption limits, an AB trust may still be an essential planning tool for certain clients who want to maintain control over their half upon their death. We can help you assess whether it’s right for your situation.
Dynasty Trusts (Legacy Planning)
A dynasty trust is a long-term trust designed to pass wealth across multiple generations while avoiding estate taxes at each level. It’s ideal for families who wish to:
In California, dynasty trusts can last up to 90 years (or longer, depending on structure). Our firm structures these trusts to balance flexibility and asset protection, while staying compliant with both state and federal law.
What They’re Saying…
What Can You Put in a Trust?
Almost any asset can be transferred into a trust, including:
Real estate
Life insurance (via an ILIT, or Irrevocable Life Insurance Trust)
Bank and brokerage accounts
Intellectual property
Business interests
Collectibles and family heirlooms
We’ll guide you through “funding the trust” to ensure all assets are properly titled –
without this step, the trust may not serve its purpose. And we don’t stop there: when you join our
Trust Maintenance Program, you get ongoing support as your life, family, and needs change.
Why Trust-Based Planning Matters in California
California’s probate process can be lengthy, expensive, and public. A revocable living trust allows your estate to bypass probate entirely, saving time, money, and stress for your loved ones. In most cases, a trust-based plan is more cost-effective in the long run than relying on a simple will alone.
Trusts also give you control – whether you’re planning for young children, second marriages, blended families, or complex assets, a well-drafted trust offers flexibility, protection, and peace of mind.
Let’s Build the Right Trust for Your Family
Every family is different. That’s why we don’t believe in one-size-fits-all plans. Whether you need a basic revocable trust or a more advanced strategy like an AB or dynasty trust, we’ll help you design a plan that reflects your goals and values.
Ready to take the next step?
Let’s talk about how we can create a trust-based estate plan that protects your legacy and makes life easier for those you love.