Separate Property Trust Attorney in Los Angeles

The Importance of Establishing a Separate Property Trust

California is a community property state, meaning that most property owned by two married spouses is considered the joint property of either spouse and may be subject to asset division in the event of divorce. If a married person receives an inheritance, he or she would be wise to stop and think where such inheritance would be “deposited”—in a joint account (or if home, titled under both spouses’ names) and, as such, commingled into community property (this is known as the “crime of transmutation”)?

Alternatively, a married person can choose to have his/her inheritance “deposited” in a separate property trust, where it becomes earmarked as the sole and separate property of the recipient and is fully shielded from division in divorce, while also protected from probate at death.

Likewise, couples who plan to marry and plan to execute a prenuptial agreement would be wise to set up such trusts to be the receptacle of the very sole and separate property that the prenuptial agreement contemplates.

These are just a few reasons to consider establishing a separate property trust. If you would like to learn more about your estate planning options, please contact the Los Angeles separate property trust lawyer at the Law Offices of Maria N. Jonsson, PC. We proudly serve clients in Marina del Rey, Venice, and the surrounding areas with comprehensive estate planning services.

Benefits of a Separate Property Trust

As California is a community property state, if you and your spouse ultimately divorce, all property and assets that you share or that you have accumulated during the course of your marriage will be subject to asset division, with some exceptions. Separate property trusts can protect both you and your spouse in the event of a divorce. However, there are many other benefits of establishing this type of trust.

Separate property trusts can be used to:

• Clearly distinguish separate property solely belonging to either spouse in a marriage
• Protect children from a previous marriage and their right to inherit
• Protect personal assets from financial risks brought on by the other spouse
• Allow for the surviving spouse to still amend or revoke assets in his/her trust upon the death of the other spouse
• Ensure that new children (if a spouse remarries) do not have access to certain assets

Though there are a number of benefits to separate property trusts, they do require greater management during your lifetime, as each spouse will need to manage their own trust.

Contact the Law Offices of Maria N. Jonsson, PC to learn more or to speak to our Los Angeles separate property trust lawyer about your unique situation.