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TRUSTS IN CALIFORNIA
WHAT IS A REVOCABLE (LIVING) TRUST?
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A Revocable (or Living) Trust is a Legal Vehicle That Can Own Assets.
- In it you specify who will inherit your money and property when you die.
- The trust names who distributes your assets when you die. This person is known as your “Successor Trustee”.
- It should include a list of your assets to make it easier for the Successor Trustee to find them and distribute them to the people you specify.
- After the trust is in place, it is of critical importance to transfer title to your home and financial accounts to your trust. Our estate planning package includes transfer of your primary residence into your new trust. We also will work with you to transfer your other assets into your trust.
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As Revealed by its Name, a Revocable or Living Trust Can Be Revoked Or Changed Anytime Before You Die. Amendments are easy to make with or without the help of an attorney.
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One of the Major Advantages of having a Living Trust is that you Don’t Have To Go Through Probate (Since trust owns the assets). Probate refers to the court process that is required if you have a simple will or no will, i.e. dying intestate.
- Going through probate takes an enormous amount of time, often when it can least be afforded. In most cases going through the probate process takes 1 to 2 years or more.
- Avoiding probate save money. Probate can cost up to 8% of the estate value. (See table in the “California Wills” section.) You don’t need to give this money away needlessly.
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The Contents Of The Trust Are Totally Private.
There is no required publication as there is with a simple will. With a trust, only your heirs, beneficiaries and your successor trustee have a right to know what is in the trust.
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Plan For Federal Estate Taxes.
Most people don’t know that the amount that their estate exceeds the federal exemption will be taxed at a rate of 35%! (See exemption and estate tax table in the “Minimizing Estate Taxes” section.) To add insult to injury, this tax is due in cash within nine (9) months of your death! There are legal ways to minimize your estate taxes. If you think that your estate may be subject to this tax you need to consult a competent California estate planning attorney. He can show you ways to minimize this confiscatory tax burden.