Legal Question in Wills and Trusts in California

In California, you can use a joint trust, as California law says the property retains its character even after being transferred to the trust--separate property remains separate, and community property remains community. The trust should also have language affirming this. On the trust's schedule of assets (usually at the end of the trust), you should also maintain up-to-date lists of your community property and separate property.

There is a couple of ways to accomplish your objective. Put your wife onm the account as a beneficiary, with a pay on death statement. The other way you can handle this is make the revocable trust the beneficiary with the provisions of the trust controlling the distribution and to whom, which I would advocvate if you are going to set up a revocable trust. As to the living trust, you can have your wife as a cotrustee ie on a marital trust where both of you are the signers/trustors and trustees, which is the way to go since you have comingled assets. As to a checking account for the trust, that should be separate from the other account if you don't put that asset into the trust.

You can have one trust with separate accounts, one for the community assets and one for the separate property. You can name your wife the life-time income beneficiary of the separate property trust and, if you wish, name different successor beneficiary's for the separate property versus the community assets.

Please feel free to call to discuss the language needed to accomplish your goals.

That is an excellent question. Yes, you and your wife may have a joint living trust and be co-trustees. You may hold separate property as well as community property in the trust, and transferring assets to the trust will not change the characterization from SP to CP. You can also ask your lawyer to include language allowing trust accounts to be held in the name of one co-trustee only. That way, your SP account is in the trust so it will avoid probate, but still be managed by you alone while you're alive and well.

I just noticed that your zip code in my county... the first time I have ever seen that on a question on this site! Please feel free to call my office at 898-5958 if you have any other questions or to set up an appointment. (My partner also makes house calls if you don't want to drive to Novato or San Rafael.)