Reviewing an Irrevocable Trust in Mill Valley

Start with the purpose and the property

Write down the concern that led you to consider an irrevocable trust. Then identify the particular property you are thinking about including and what you hope the arrangement will accomplish. This gives you a concrete basis for discussing whether the proposed terms match your priorities, rather than relying on a general description of what an irrevocable trust might do.

For each asset, note its current owner, why it is being considered, and any practical need you may have to use or manage it. These are preparation questions, not legal conclusions about what a document permits. Ask specifically what the proposed terms would mean for your access, decision-making and ability to respond if your circumstances or priorities change. Do not treat the word “irrevocable” as a complete answer to those questions.

• What goal are you trying to address, and how would you know whether the arrangement fits that goal?
• Which property is under consideration, and what current use or access matters to you?
• What concerns would make you hesitate before moving ahead?

Identify the people and their assigned responsibilities

Make a list of everyone named or proposed for a role, including the person setting up the arrangement, the person responsible for administration, and the intended beneficiaries. Then use the document’s wording as the starting point for asking what each role involves. A title alone may not answer which decisions a person can make or what further authority a particular decision might require.

Focus the discussion on practical situations: who would handle ongoing administration, what decisions the document assigns, and who would receive information or benefit from the arrangement. Ask what the document says would happen if a named person could not serve. These questions help distinguish responsibilities belonging to a person named in the documents from matters that may need additional authority; the answers depend on the proposed terms and circumstances.

Optional preparation: bring the proposed or existing trust documents, a list of assets being considered, and notes identifying possible beneficiaries and decision-makers. Mark unclear provisions with questions. You do not need to resolve those questions before seeking a discussion.

• Who is expected to administer the arrangement, and what duties does the document assign?
• Which people are intended to benefit, and how does the document describe that benefit?
• Which decisions appear to belong to a named person, and which situations raise a question about further authority?

Ask separately about tax treatment and SSI

Tax treatment depends on the trust’s actual arrangement and applicable rules. Calling a trust irrevocable does not establish that its assets are outside every tax calculation. Before proceeding, ask how the proposed terms and each contemplated property transfer relate to the tax questions that matter in your situation. A trust’s label is not a substitute for examining its arrangement.

If SSI is relevant, ask specifically how the proposed terms and possible payments could affect the individual’s SSI resource analysis. Some property in an irrevocable trust can count as a resource for SSI if payment could be made to or for the individual. That statement concerns SSI; it is not a general rule about every public benefit program. Do not assume that irrevocability alone determines the result.

• Which tax questions arise from the actual proposed arrangement and property?
• For SSI, could payment from the trust be made to or for the individual?
• Which terms or possible payments need clarification before a decision?

Make the next step a focused review

Before deciding whether to proceed, compare the proposed arrangement with your stated goal, the property involved, the roles assigned, and the control or access questions that matter to you. Keep tax treatment and SSI questions distinct: the answer to one does not settle the other. If a material point remains unclear, identify the exact provision or scenario you want explained rather than assuming the trust’s name resolves it.

A useful next step is to gather the documents and questions you have prepared and discuss the proposed terms before making a decision about the arrangement. You can also note which facts remain unsettled, such as the property being considered or the person expected to administer the trust. This keeps the conversation centered on your actual proposal and on the responsibilities the documents assign.