Who Needs a Living Trust?
I believe that if your death would probably trigger probate, you should consider having a revocable living trust. Many people believe that you don’t need a trust unless your estate is over $1,000,000. In California, if a resident passed away with assets with a gross value of $500,000, either with or without a will, the estate would almost certainly go through probate. The probate fees for a $500,000 estate would be about $26,000! That is a lot of money compared to the cost of hiring an attorney to draft a living trust. Procrastination is probably the number one reason that everyone in California has not created a living trust. Consider the low initial cost of having an attorney draft a living trust for you. Why wait any longer? The risk of probate fees alone outweighs the cost of a living trust. When you also consider the benefit of avoiding estate taxes and conservatorship, you can clearly see the benefit of getting a living trust right away! Privacy: When a will is probated, a copy o
At the Cobb Planning Group, we offer free consultations to make sure a Living Trust is appropriate for a client. A normal guideline for residents of California, however, is anyone who owns real estate, has minor children or, if they have personal property which exceeds $100,000 (gross value). Usually a Living Trust will benefit these families, married or single.
Almost anyone with an estate of $100,000 or more can benefit from having a living trust. Estates of $100,000 or more are often subjected to probate in their state of residence, which can cost anywhere from 2%-4% of the estate’s value in court and legal fees. The living trust also is useful for individuals subject to estate taxes. Through a living trust, a couple is able to maximize their Unified Credit to its fullest. It even accomplishes protection for individuals wanting to avoid conservatorship. Advanced living trusts can be structured for complicated family situations. Re-married spouses, with children from a previous marriage, can use an advanced revocable trust to ensure kids receive their proper inheritance. Our FREE Living Trust Special Report offers a checklist for individuals to determine if the living trust is an appropriate strategy for them. Avoiding Probate Living Trusts avoid probate, since they are completely private. Because a trust is recognized as a separate legal en
