Irrevocable Trust Planning for Larkspur Residents

Start with the purpose—and the control you may give up

Begin by putting the reason for considering an irrevocable trust into concrete terms. You might be focused on how property will be managed, who may benefit from it, or how it could fit into a broader plan. The intended result matters: the name of the trust does not by itself establish what the arrangement will do.

Set that goal beside the practical change in control. Which property are you considering transferring? Who would make decisions about it under the proposed terms? What choices would remain yours, and what choices would be made by someone else? If you cannot describe those consequences in ordinary language, pause before treating the arrangement as a solution.

• Write down the property you are considering and why it is relevant to your goal.
• Identify the people who may benefit and the person or people expected to administer the arrangement.
• List the decisions you want to retain, as well as those you may be willing to hand over.

Compare the arrangement with your alternatives

The key question is not simply whether an irrevocable trust is available. It is whether its terms and practical consequences fit your objective better than another approach. Compare each option against the same considerations: control, the property involved, the people who may benefit, how administration would work, and the tax or benefit questions that matter to you.

A useful discussion separates your desired outcome from assumptions about what the trust will achieve. For example, someone considering a trust in connection with benefits should ask how the particular terms and property would be treated, rather than relying on the label “irrevocable.” Someone concerned about tax treatment should ask how the actual arrangement is treated under applicable rules. Tax treatment depends on the arrangement and applicable rules; no label alone establishes a particular result.

Examine administration and possible SSI effects

Before deciding, clarify who would administer the property, what decisions that role involves, and how the proposed terms direct the use of the property. Ask how the arrangement would operate in the circumstances that matter to you, rather than focusing only on the intended outcome. The answers can help reveal whether the proposed structure and responsibilities match your priorities.

If SSI is relevant, do not assume that irrevocable trust property is automatically excluded from a resource calculation. Some property in an irrevocable trust can count as a resource if payment could be made to or for the individual. The treatment therefore depends on the trust arrangement and the applicable rules. Discuss the specific terms and circumstances with an appropriate adviser before relying on a presumed benefit result.

Prepare focused questions before moving forward

Bring a short description of your goal, a list of the property under consideration, and the names or roles of the people you expect to benefit from or administer the arrangement. If you have proposed terms or documents, organize them with any questions they raise. This preparation can keep the discussion focused on the actual arrangement rather than assumptions about what a trust label means.

Ask what control you would give up, how the property would be administered, who could benefit under the terms, and what tax or SSI questions need further analysis. Ask what alternatives may fit the same objective and what practical consequences could follow if your priorities or circumstances change. Codi M. Dada Law Office P.C. serves clients from its Novato office and virtually throughout California.