Irrevocable Trust Planning for Portola Valley Residents

Begin with the decision about control

Before deciding whether to use an irrevocable arrangement, be specific about what you want to accomplish and what control you may be willing to give up. Identify the property you are considering, who you want to benefit, and what you want to happen during administration. A general goal such as “protect these assets” is not enough to assess how a particular arrangement would work.

Consider whether you need access to the property, want to influence how or when beneficiaries receive benefits, or are trying to address a tax or public-benefit concern. These are questions to investigate, not results an irrevocable label guarantees. The terms and actual operation of the arrangement matter.

• What specific property are you considering, and why?
• Who should benefit, and what should the arrangement accomplish for them?
• What access, decision-making authority, or flexibility would you be reluctant to give up?

Make the proposal concrete with records

Gather a current list of the property you are considering and any documents that describe it, such as account or ownership records. Make a separate list of proposed beneficiaries and note the intended purpose for each. These are practical preparation steps, not legal filing or execution requirements.

If another person, adviser or existing document suggested the arrangement, bring the proposal and write down what you understand it to accomplish. Mark statements that sound absolute—such as “the property will never count” or “the trust cannot be changed”—so you can ask how the actual terms and circumstances affect them.

• List each proposed asset and the record that identifies it.
• Note intended beneficiaries and the purpose you have in mind.
• Write down assumptions about control, taxes, creditors or benefits that you want clarified.

Ask how the arrangement would be administered

Before proceeding, ask who would make decisions under the proposed terms, what administration would involve, and how the arrangement would respond to changes in your circumstances or a beneficiary’s needs. Discuss how the property would be handled and what practical limits could follow from giving up control.

A trust's tax treatment depends on its actual arrangement and applicable rules. Calling a trust irrevocable does not establish that its assets are outside every tax calculation. Ask what tax questions arise from the specific terms and property, and what information a qualified tax professional may need to evaluate them.

• Who would have authority over the property, and what decisions could they make?
• What records and ongoing administration would be needed?
• What tax treatment is expected, and on what features of the arrangement does that expectation depend?

Check benefit assumptions before acting

If eligibility for Supplemental Security Income is part of the reason for considering a trust, do not assume the property will be disregarded simply because the trust is described as irrevocable. For SSI, some property in an irrevocable trust can count as a resource if payment could be made to or for the individual. The proposed terms and the circumstances therefore need careful attention.

A trust does not promise creditor protection, universal tax exclusion, absolute unchangeability or preservation of benefits. Ask which specific concern the arrangement is meant to address and how the proposed terms could affect that concern. Do not transfer property on the basis of a general claim about what irrevocable trusts always do.

Discuss the proposal with Codi M. Dada Law Office P.C.

Codi M. Dada Law Office P.C. has one in-person office at 802 Grant Ave, Novato, California, and provides virtual services throughout California. To make a planning discussion productive, bring your property list, relevant records, beneficiary information and written questions about control, administration, taxes and any benefit concerns.

The useful next step is to review the proposed arrangement against your actual goals and property before deciding whether to proceed. If tax treatment or SSI eligibility is central to the decision, identify that concern explicitly so the relevant questions can be addressed with the appropriate professional.