The holidays are a time when we gather with family and friends, share meals, reflect on the past, and plan for the future. And, while it may not come up naturally between dessert and coffee, this is actually one of the best times to talk about establishing a trust.
For many families, the holidays are the only time the entire extended family is together in one place. That makes it an ideal opportunity to have meaningful conversations about estate planning, wishes, and expectations. Establishing a trust isn’t just about paperwork—it’s about clarity, protection, and peace of mind for the people you love most.
How A Trust Protects You and Your Family
I shared the following experience in my book, The Inheritance Puzzle, because it perfectly illustrates the real-world power of thoughtful trust planning:
I had the privilege of assisting a woman in her 90s who owned a modest home, free and clear with no mortgage or other financial encumbrances. She had received in-home assistance for a decade, but the benefits of her long-term health insurance were almost exhausted. Her health was declining, and she was at a place in life where she really needed to sell her home and transition to assisted living. Unfortunately, her financial resources were all but depleted, and she was reliant on Medi-Cal, so that was a huge concern.
The challenge we encountered was how to ensure that she didn’t lose her Medi-Cal benefits when we purchased her home. Additionally, there was the matter of her two adult children, who were wards of the state and also dependent on Medi-Cal. They lacked the mental capacity to manage an inheritance, including her property and the money she wished to leave behind to provide for them.
Knowing this was a highly emotional concern for our client, we addressed this rather complex circumstance by reaching out to Heather Chubb, an attorney who has specific expertise in working with special needs trusts and Medi-Cal. Heather meticulously crafted a special needs trust to provide for the woman’s adult children. This special needs trust was designed to safeguard their Medi-Cal benefits and manage any potential inheritance on their behalf.
Simultaneously, Heather created multiple trusts that allowed the woman access to her assets without jeopardizing her own Medi-Cal coverage. This thoughtful planning resulted in a positive financial outcome as well as relief for our client’s emotional concerns.
At the time of writing my book, this woman was still residing in an assisted living facility, enjoying both happiness and improved health. Her adult children have the financial support they need and access to the resources they may require in the future, all while preserving their Medi-Cal benefits.
This story is a powerful reminder that trusts are practical, flexible tools that can make a life-changing difference for families facing real-world challenges.
What It Means to Establish a Trust
At its core, a trust is a legal arrangement where one party transfers assets to be held and managed for the benefit of others. When you establish a trust, you gain control over how, when, and to whom your assets are distributed—often while avoiding probate and maintaining privacy.
Trusts can be customized to fit nearly any family situation, from simple estate planning to highly specialized needs.
Reasons You Might Want to Establish a Trust
People choose to establish a trust for many reasons, including the ability to:
- Avoid the complications & expense of probate
- Avoid multiple probates if property is owned in multiple states
- Protect assets for children or beneficiaries if the surviving spouse remarries
- Prevent sharing assets with heirs you would rather disinherit
- Avoid property tax reassessment when you leave your house to your children
- Ensure your pets are provided for when you are gone
- Control distributions to financially irresponsible or immature beneficiaries
- Minimize estate and capital gains taxes
- Provide for and protect young beneficiaries
- Preserve disabled or special needs’ beneficiaries’ eligibility for government benefits
- Protect assets from legal judgments, creditors, or predators
- Support charities and receive tax benefits
- Manage life insurance proceeds
- Medi-Cal (Medicaid) planning to enable qualification if nursing home or long-term care is needed in the future
By establishing a trust, you can create a seamless transfer of your assets, sidestepping the delays and cost of probate and providing clarity for your beneficiaries.
Establishing a trust may not come wrapped in shiny paper or tied with a ribbon, but it is one of the most meaningful gifts you can give your family. It’s a gift of clarity, protection, and peace—not just for the future, but for today.
Frequently Asked Questions About Establishing a Trust
Do I still need a trust if I already have a will?
We recommend it! A will does not avoid probate, which (as I’ve mentioned earlier) can be very costly and time-consuming for your loved ones. When you establish a trust, however, your assets can transfer privately and efficiently without going through probate.
Is establishing a trust only for wealthy families?
No. Trusts are valuable for families of all income levels. Like the woman from my story, many people establish a trust to protect their home, preserve government benefits, ensure care for minors or special needs beneficiaries, or simply ease the transfer of assets.
Do I need an attorney to establish a trust?
Yes. Trust laws are complex and vary by state. Working with an attorney who specializes in estate planning ensures your trust is legally sound and tailored to your specific needs.
We personally recommend the services of:
- Heather Chubb – Chubb Law Firm
- Alexandria Goff – Goff Legal
- Tonya Nygren – Nygren Law
- Heather Johnston – Sapphire Law Group
- Jennifer Brown – Law Office of Jennifer Brown
Each of them are talented and highly experienced Sacramento attorneys who can help you establish a trust that works for you and your family.
Meta Description: Learn why and how to establish a trust, how it protects your family, avoids probate, and preserves benefits like Medi-Cal.