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Are there different types of trusts in California?
There are many types of trusts in California. Always get legal advice to determine the trust best suited for your estate plan. A trust gets created for estate and tax planning purposes and to avoid probate. See our video about How to Avoid Probate.
How is a trust’s income apportioned in California?
If a trust has a mix of California resident and nonresident fiduciaries or noncontingent beneficiaries, the trust’s income is apportioned using the applicable two-tier apportionment formula. (See FTB Legal Notice 98-12).
What are the powers of a trustee in California?
Powers of a Trustee. Unless the powers of a Trustee conflict with California law, a trustee’s powers are noted in the revocable or irrevocable trust. A trustee’s job is to collect, preserve and protect the trust assets. Responsibilities include: making reasonable repairs. Ensure the property remains insured.
Can a trust file a protective claim for California-source income?
However, trusts with potentially apportionable California-source income should consult with a competent tax professional and consider filing a protective claim for refund to preserve their rights should the decision be upheld on appeal. Generally, the FTB will delay action on the refund claim until the litigation is resolved.
Is there a Tax Guide for irrevocable trusts in California?
Although its focus is on the treatment of irrevocable, non-grantor trusts, it includes a brief overview of California’s taxation of the income of estates and administrative trusts, as well as a technical guide to complying with California income tax reporting and withholding requirements.
What happens to a trust when the beneficiary dies in California?
The notice gets sent to the Director of California Victim Compensation and Government Claims Board within 90 days of the trustor’s death if an heir or beneficiary of the trust is in a correctional facility or in prison.
Is undistributed net income from a living trust taxable in California?
Despite the trust’s New York origin and administration, all of the trust’s undistributed net income is currently taxable by California.