The laws of the state of California will govern the trust document that you create under the Must Have Documents. Many people ask why we do this and why this is legal. The reason that we do this is that California law is a very modern and user-friendly law in the area of trusts, and the laws of California are more favorable to the consumer than those of any other state.
The reason that your trust is valid in your home state, even though it's governed by California law, is found in section 268(1) of the Restatement of the Law Second, Conflict Laws, (St. Paul, Minn.: American Law Institute Publishers, 1969) which states: "As with testamentary trusts, a settlor may designate which state's local law will govern construction of the terms of the trust regardless of whether or not the designated state has any connection with the trust."