WHO SHOULD HAVE A LIVING TRUST?
A common question often asked is: Should I have a living trust?
Generally speaking, any single or married person who owns real estate worth more than $20,000 or has total assets worth more than $100,000 should strongly consider creating a living trust.
Additionally, a living trust may be appropriate for:
-Those who want to decide how their property will be divided on their death (rather than let the State of California decide);
-Those who don't want their family and friends to be left with the frustration, aggravation and expense of a probate court proceeding; and
-Those who wish to minimize or completely eliminate estate taxes.
Control. A revocable living trust allows the trust creator (called the "trustor" or "settlor") to control how property is divided and distributed upon his or her death. Without any such direction, the State of California decided those persons entitled to inherit from a deceased person's estate.
Tax Minimization. A properly drafted revocable living trust
Timely Distribution of Assets. A living trust allows for the timely distribution of trust assets. Generally, after the death of a trustor, distributions from a living trust may be made to the beneficiaries in a reasonable amount of time. Of course, the timing of distributions is made on a case-by-case basis and is different for each trust.
Costs of Probate
The costs of probate are determined under California Law. It is not uncommon for the total fees associated with a probate to total approximately 5% of a person's estate. Generally, the following chart shows an approximation of the total fees of a probate based upon the size of an estate:
$ 500,000.00 estate; approximate fees = $23,800.00
$ 1,000,000.00 estate; approximate fees = $48,135.00