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How a Revocable Living Trust Can Be Beneficial To You

 

Revocable Living Trust

If you are over 50 and own real property, a Living Trust may be more beneficial than a Will.  The main advantage to a Living Trust is the ability to transfer your estate to your beneficiaries upon your death without the necessity of probate and all its associated costs.

A Living Trust is a legal document establishing a separate entity to hold title to your property while it is still under your complete ownership and control.  The Living Trust is set up naming you as both the “Trustor” and the “Trustee.”

  • You are able to revoke or amend your trust.
  • You can add or remove any type of property to your trust.
  • You can also spend or consume any of the trust property.
In your Living Trust, you also designate a “Successor Trustee.”  This is usually a spouse, relative or friend.  Upon your demise, or if you should become incapacitated, your “Successor Trustee” will manage your estate as directed by you in your Living Trust
Your “Successor Trustee” is responsible for carrying out your final wishes.

There are numerous advantages to the Living Trust as opposed to a Will.  Here are just a few of these advantages:
  • Avoid probate and its associated costs, attorney’s fees and executor’s commissions.
  • There is no Court/Judge supervision of your estate.
  • Under Proposition 13, there is no reassessment of property taxes with your Living Trust.
  • Your Living Trust is a confidential document (as opposed to a Will which is filed in court with probate proceedings).

Advanced Health Care Directive

If you are ever in a position where you are unable to make health care decisions, with an Advanced Health Care Directive, you are able to appoint a relative or friend to make these decisions on your behalf.  This document allows you to appoint a relative or friend to make these decisions on your behalf.  This document allows you to specify whether you desire to have life-prolonging care and treatment.  With this document completed, your wishes will be carried out by your doctors. 

Your Complete Living Trust Package Includes

  • The Living Trust
  • Last Will and Testament (Pour-Over Will)
  • Advanced Health Care Directive
  • Transferring One Property into the Living Trust
  • Instructions to Successor Trustee
  • Financial Durable Power of Attorney

Will and Probate Costs

If you decided not to prepare a Living Trust or you do not own real property, you should at least have a Will.  Like a Living Trust, a Will allows you to specify who will inherit your estate, be guardian to your children and appoint an Executor to wind up your affairs.  However, with the use of a Will, probate is involved when your estate has assets in excess of $100,000.

With probate, the court controls your estate and supervises the Executor in the payment of taxes, probate fees and any distribution of assets which comes directly from your estate.  The following is an example of the costs of probate:                         

Your Estate Value

Combined Probate Fees

$100,000  $  7,000
$250,000   $13,100
$300,000    $15,100

Remember, these fees are avoided if your property is in a Living Trust.  A little preparation today is the best gift you can give to your heirs for tomorrow.

In addition to Living Trusts and Wills, my office is also experienced in Probate.

Please feel free to contact my office for a free consultation.  Home appointments are available, if necessary.

Law Office of Karen A. Stevenson
13122 Stern Avenue
La Mirada, California 90638
Office: 562-947-8997


 

The information provided is not intended as legal or tax advice and may not be relied on for purposes of avoiding federal tax penalties.  All individuals, including those involved in a real estate transaction, are advised to meet with their tax and legal professionals.

Charlie Dunn
Berkshire Hathaway HomeServices California Properties
11306 183rd Street, Cerritos, CA 90703
Direct Line: 562-430-4007
Make Yours a "DunnDeal" 

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