Living Trust and Probate. Generally, lawyers love probate and will try to convince you of its importance. After all, they do get a hefty amount in fees during probate. You must realize, however, that what is good for an attorney is not necessarily good for you and your family.
First of all, probate is costly — there is no question about that. Statutory fees could range from 4-8% of the total value of your estate, as in the case in Valencia, California. Secondly, probate is time-consuming. It normally takes a minimum of six months for the probate court to confirm the authenticity of a person’s last will. Finally, probate is a public process and no one has a legal right to keep probate documents from the public.
Because of the factors cited above, it may be wise to consider executing a California living trust. This is the process of transferring the ownership of your property to a private trust, which you yourself can control. This trust is generally revocable and may be revised at any time.
While it may not let you avoid most estate and inheritance taxes, setting up a living trust involves much less cost than probate and the distribution of assets held in trust takes only a few weeks — definitely a much better deal then going through months of probate. This also protects one’s privacy since it is a private transaction and as such, is not within the jurisdiction of probate court.
The main thing in avoiding probate tax is to name specific beneficiaries for all of your properties and assets and make sure that your trust is properly maintained so that no part of your estate falls into the control of probate court at the time of your death.
Mortensen Law
Tax, Trust & Estate Attorneys, P.C.
24300 Town Center Drive Suite 390
Valencia, CA 91355
(661) 799-8035
(661) 799-8838 fax
