Do you have an estate plan? If you are like most Americans, then probably not. According to a recent survey, nearly 60% of Americans do not have a Will or an estate plan in place. Most claim that they haven’t had the time to “get around to it” or they “don’t think they have enough assets to leave to anyone.”
Whether you agree with these statements or not, it is important to note that everyone in California needs an estate plan of some sort. Further, if you own real property or have minor children, a Revocable Living Trust is essential to your plan. Read on to discover five good reasons why you need a Trust!
Probate is the legal process of transferring assets of a decedent to his or her heirs. The Probate process can be expensive in terms of both time and money. In California, an average probated estate will take up to two years, or more, from the start to the final distribution of assets, and can certainly take longer if the estate is large, contested, or even if the courts are simply backed-up.
This costly headache is easily avoidable if you have a Revocable Living Trust in place.
As mentioned above, Probate can be expensive due to filing fees, court costs and legal fees, all of which are determined by law and non-negotiable. By protecting your assets in a Revocable Living Trust, your family will avoid the costs and fees incurred with the Probate process. It can also provide a solution to paying off debts and/or taxes after your passing in a more private fashion, so that your family’s risk of creditors or predators approaching them is reduced.
A Revocable Living Trust creates a clear plan to protect your assets. You will have full control of the details of your Trust and as long as you are alive and of sound mind, it can be changed or revoked. You will have peace of mind knowing who will administrate your Trust and what your beneficiaries will be inheriting.
Additionally, in the event you become ill or incapacitated, you will have peace of mind knowing that the person you choose as your Successor Trustee can manage your affairs without the court getting involved.
One of the biggest differences between a Will and a Revocable Living Trust is the privacy offered with each option. A Trust is a private document between the parties and a Will becomes public record after your passing, as the original must be filed with the probate court. Many families like the privacy of a Revocable Living Trust, especially during such a stressful time.
You may be wondering what happens after your passing: how does it all work? Once the owner of a Trust passes away, the Successor Trustee is responsible for evaluating the property, filing taxes, paying bills on the Trust’s behalf, and finally, distributing the property in accordance with the terms of the Trust. Even if your Successor Trustee lacks extensive financial and legal knowledge, partnering with the right legal firm will make the Trust Administration process smooth and stress-free.
Secure a financially sound future for you and your loved ones by partnering with us. Our firm will assist the Trustee, providing legal counsel throughout the entire process. Our services are available at competitive prices and do not involve any hidden costs. We are here to guide you through the difficult decisions that will protect your family after your passing. Contact us today and secure your family’s future!