Q: I will be receiving property from a family trust. Is it better to establish my own trust now, or after the transfer?

A: In California, when dealing with property in a family trust, it's important to consider both tax implications and estate planning goals. If you're the successor trustee and sole beneficiary, establishing your own trust before the transfer can offer several benefits. This approach allows for a smoother transition of assets and may provide more control over how the assets are managed and distributed in the future.

However, setting up a trust before receiving the assets might involve some initial costs and paperwork. It's essential to weigh these costs against the potential long-term benefits. The decision largely depends on the specific nature of the assets in the trust and your personal financial situation.

It's advisable to consult with an estate planning attorney to review the details of the existing trust and discuss the best strategy for your circumstances. They can provide guidance tailored to your unique situation, ensuring that your estate planning aligns with your objectives and complies with California law. Remember, each situation is unique, and the right choice depends on your specific circumstances and goals.

A: Most estate planning attorneys would say to set up the trust before you make the distributions so you can transfer the assets directly to the trust, rather than transfer them to your personal accounts and then move your personal accounts into the name of the trust. But there could be tax implications depending on facts we do not have in your question. Speak with a trust administration or estate planning attorney for advice tailored to your particular situation. Best wishes!