• Konstantine Demiris

If I Create a Trust does that mean I will Avoid Court?

The answer in California is it depends. Unfortunately, depending on how drafting of the trust is done and how assets are titled you may have to go to court. Many people believe if they download a trust template or draft a trust and sign a trust agreement or declaration of trust that "everything" they own is in trust. Sometimes the trust will even say, that the person creating the trust intends everything they own to be in the trust. However, legally speaking that may not escape court action.

Unless all accounts and real property (and any other assets) are titled in the name of the trust, then the trust may considered to be unfunded. If the trust is not funded at all and if no assets are titled in the name of the trust, then it could potentially be possible to argue that there is no trust at all!

Also, the court may be needed to intervene when the administration of the trust is not properly being done. Also if a beneficiary contests the terms of a trust or wishes to compel action by the trustee, then court action may be necessary. In conclusion, simply creating a trust in California does not guarantee that you will be able to avoid court.

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