California Trust Laws

California Code - Division 9: Trust Law

Creation Requirements

California law states that a trust is created only if:

• The settlor properly manifests an intention to create a trust;

• There is trust property; and

• There is a beneficiary (unless it is a charitable trust).

A trust in relation to real property is not valid unless evidenced by one of the following methods:

• By a written instrument signed by the trustee, or by the trustee's agent if authorized in writing to do so.

• By a written instrument conveying the trust property signed by the settlor, or by the settlor's agent if authorized in writing to do so.

• By operation of law.

Methods of Creating Trusts

In California, a trust may be created by any of the following methods:

• A declaration by the owner of property that the owner holds the property as trustee.

• A transfer of property by the owner during the owner's lifetime to another person as trustee.

• A transfer of property by the owner, by will or by other instrument taking effect upon the death of the owner, to another person as trustee.

• An exercise of a power of appointment to another person as trustee.

• An enforceable promise to create a trust.

Trust Purpose

Under California law, a trust may be created for any purpose that is not illegal or against public policy. A trust created for an indefinite or general purpose is not invalid for that reason if it can be determined with reasonable certainty that a particular use of the trust property comes within that purpose.