Probate Versus Living Trust. Would you rather have your estate go into probate at the time of your death, or are you going to set up a living trust in order to avoid probate? It may be best to consider the pros and cons of both processes before making a decision.
Probate is a legal process that aims to protect the surviving family members who have a legal claim to a deceased person’s properties. It is the process of settling the estate by first validating the authenticity of the last will and testament of the deceased and distributing his properties in accordance to that will.
A living trust, on the other hand, is the act of transferring ownership of one’s properties to a private trust, which will still remain under his control and may be revised at any time he deems necessary. In the event of his death, ownership of the properties held in trust is automatically given to the beneficiaries specified in the trust.
The choice between probate and living trust is primarily affected by three factors: money, time and privacy.
Probate is expensive. In Valencia, California alone you could be required to pay statutory fees of up to 8% of the value of your estate. In addition to this, there are still attorney’s fees to take care of. Setting up a living trust may be less costly in the long run since the process does not involve such a high amount in fees. It does not, however, save you from having to pay estate or inheritance taxes.
A probate may take at least six months, which could take a considerable emotional toll on the heirs. In comparison, properties held in a living trust could be distributed in a matter of weeks.
Probate is a public process and anyone can have access to information about the deceased and his family. On the other hand, a living trust is a private matter and does not fall into the control of probate court, hence only your lawyer and heirs will have access to all information.
Now that you have compared and contrasted the two processes, you are ready to make your decision and rest assured that your loved ones will have less of a burden in the future.
Mortensen Law
Tax, Trust & Estate Attorneys, P.C.
24300 Town Center Drive Suite 390
Valencia, CA 91355
(661) 799-8035
(661) 799-8838 fax
