The Definition of "Trust" in California Law
A "trust" refers to a specific legal structure used to dispose of assets. However, California law specifically excludes certain arrangements from the trust definition. Those with specific questions about California trust law should contact an estate attorney.
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Trusts in General
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A trust is created when one person, a settlor, transfers assets to a trustee, who manages those assets for a third party, a beneficiary (in the case of an express trust) or the public (in the case of a charitable trust.) The key factor for a valid trust is the fact that the settlor no longer has any say over what happens to the assets.
California Trusts
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The California Probate Code, Section 82(a), recognizes express trusts (meaning, those created intentionally by the settlor) created for both private and charitable purposes, as well as trusts created by judicial decree, which then operate like express trusts.
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Excluded Structures
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Section 82(b) names a number of legal arrangements which do not meet the California definition of a trust, among them guardianships and conservatorships, so-called "Totten" trusts, investment and voting trusts and trusts created specifically for the purpose of paying financial obligations.
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