Reviewing an Irrevocable Trust Proposal in Lindsay

Begin with the decision you are considering

Write down why you are considering an irrevocable trust and what you hope the arrangement will do. Then identify the property you are considering, the people you want to benefit, and what you need to know about who may manage the property and how it may be used. These are questions to examine in the proposed terms; the name of the trust does not answer them.

Be clear about any control or flexibility that matters to you. Ask what the proposed terms would change, what you expect to retain, and whether the arrangement fits your intended plan. If the answer is unclear, treat that as an open issue to resolve before deciding whether to make a change.

• Note the purpose of the proposed arrangement and its intended beneficiaries.
• List the property you are considering and what you do not intend to include.
• Write down which decisions about the property or its use matter most to you.

Compare the documents and property involved

The key comparison is between the proposed trust and the documents already addressing your plan. Gather the draft and relevant existing planning documents, then check whether they concern the same property or beneficiaries. Note any differences or provisions you do not understand. Ask whether the proposed arrangement changes the plan you intended, and which terms determine that result.

Prepare a separate list of the property you are considering and gather records that describe it. Use the list to ask how each item relates to the proposed terms, who would be involved in its administration, and who could benefit. These are preparation steps, not a conclusion about what should be transferred or how a particular document operates.

Keep the discussion focused on the decision before you: what would change if you used the proposed arrangement, and whether those changes address your stated purpose. If you are comparing alternatives, ask which documents and terms need to be considered together before choosing.

• Bring the proposed trust and relevant existing planning documents.
• Prepare a list of the property under consideration and the records describing it.
• Mark unclear or inconsistent terms and write down questions about beneficiaries and administration.

Examine tax treatment separately from the trust’s label

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. Identify the particular tax question you need answered and ask how the proposed terms and property bear on that question.

Avoid treating a desired tax result as automatic. Before proceeding, make a list of the tax concerns relevant to your decision and ask what features of the actual arrangement matter to each one. A label by itself does not settle the analysis.

• State the specific tax question you want to address.
• Ask how the proposed terms and the property involved affect that question.

Ask specifically about SSI if it matters to your plan

SSI resource treatment is a distinct question from tax treatment. Some irrevocable trust property can count as a resource for SSI purposes if payment could be made to or for the individual. Describing an arrangement as irrevocable does not, by itself, establish that its property is excluded from every benefit calculation.

If SSI is relevant, ask whether the proposed terms could permit payment to or for the individual and how that possibility affects the resource question. Do not assume that addressing one concern, such as taxes, also answers the SSI question. Keep each concern tied to the actual arrangement and the property being considered.

• Identify whether SSI is a concern in your decision.
• Ask which proposed terms may allow payment to or for the individual.

Discuss the proposal with the firm

Codi M. Dada Law Office P.C. has one in-person office in Novato and provides virtual services throughout California. For a discussion about an irrevocable trust proposal, organize the draft, relevant existing documents, your property list and the questions that matter to you. A useful next step is to identify the decision you are considering and the unanswered issues—especially control, beneficiaries, administration, tax treatment or SSI—before making a change.