Reviewing an Irrevocable Trust in Los Altos Hills

Start with the decision you are being asked to make

A proposed trust should be considered in light of its actual terms, not its label alone. Before deciding whether to proceed, write down the result you are seeking and what you understand you may be giving up or changing. Separate that goal from assumptions about tax treatment, benefits, or who will make decisions involving the property.

Ask which provisions address your goal and what each provision means for you in practice. If the decision depends on a particular tax or SSI result, treat that result as a question about this arrangement and the applicable rules—not as something established merely by calling the trust irrevocable. Trust tax treatment depends on the actual arrangement and applicable rules, and the label does not establish that assets are outside every tax or benefit calculation.

Map the property and the people named

As an optional preparation step, make a working list of the property being considered and who owns each item now. Note whether a transfer is proposed, and identify any questions you have about what the document says will happen to that property. This list helps keep the discussion tied to the specific arrangement; it is not a legal determination of what can or should be transferred.

Separately list beneficiaries and other people named in the draft. For each person, note the role the document appears to assign and any wording you do not understand. Connect each proposed transfer and each named person to the purpose you identified. If a provision seems to affect your ability to direct, use, or recover property, mark it for explanation rather than assuming what it permits.

• List the property under consideration and its current owner.
• Record the beneficiaries and other people named, using the roles stated in the draft.
• Mark unclear provisions about property, control, or the people involved.

Ask how administration is described

A useful review focuses on responsibilities, not just titles. Read the proposed document for language about who would manage property, what decisions the document addresses, and how it describes the roles of the people named. Ask for an explanation tied to the text when a responsibility or limit is unclear.

Keep two questions distinct: what does the document expressly assign, and what may require further authority or guidance? Do not fill a gap in the draft with an assumption about who can act. You can prepare a short list of examples of decisions you want to understand and ask how the proposed terms address them. This makes the administration discussion practical without presuming what authority any person has.

Treat tax and SSI as separate, fact-specific questions

If a projected tax result is part of the reason for considering the trust, ask what features of the proposed arrangement and what applicable rules inform that expectation. The word “irrevocable” by itself does not establish that trust assets are outside every tax calculation.

If Supplemental Security Income (SSI) is relevant to you or a proposed beneficiary, raise that separately and identify the circumstances you believe matter. Some property in an irrevocable trust can count as an SSI resource if payment could be made to or for the individual. Do not treat the trust’s label as a promise that property will be excluded from a calculation or that benefits will be preserved.

Prepare for a focused discussion before proceeding

Consider gathering the proposed document, your optional property and people lists, and a short explanation of the outcome you want. Write down questions about control, administration, tax treatment, and SSI if relevant. Note any facts you are unsure about rather than treating an expected outcome as settled.

A practical next step is to discuss the proposed terms before transferring property or relying on a projected tax or benefit result. Ask what the text assigns, what remains unclear, and what information is needed to assess the specific question. This helps you evaluate whether the proposed arrangement fits your objective and whether you understand the responsibilities and consequences described in the document.