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DO YOU NEED A WILL? |
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If you die without a will or living trust, all of your individually owned property (not held in joint tenancy or designated to go to a beneficiary) will pass to your next of kin through what we call “intestate succession”. Your estate most likely will be probated. And if you don’t have any living relatives, the State if California will be your sole beneficiary instead of your best friend or your favorite charity.
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WHAT IS A LIVING TRUST? |
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Simply put, it’s a document that spells out the names of the people or organizations that you want to receive your property after your death.
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WHAT IS A WILL? |
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Simply put, it too is a document that spells out the names of the people or organizations that you want to receive your property after your death.
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WHAT'S THE DIFFERENCE? |
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WILL vs LIVING TRUST |
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WILL*-- Before your heirs receive your property, a probate judge has to give the “OK”. It usually takes at least a year and sometimes much longer to get an order from the court to distribute your property.
LIVING TRUST*-- Your “successor trustee” can do whatever you directed him/her to do in your trust without having to wait for permission from a judge. Often within a couple of months, your loved ones will receive their inheritance.
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YOU BE THE JUDGE!! |
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MONEY
It cost a bit more to do a trust…
BUT it cost a great deal more to die without one.
Will Living Trust
Drafting Fee: $250 - $350 $1,000 - $2,000*
After-Death Fees:
$200,000 Estate $14,000* $200 - $2,000**
$600,000 Estate $30,000* $200 - $2,000***
POTENTIAL SAVINGS = $13,000 to - $28,000
…. with increased savings for larger estates.
*Notary and County Recorder fees not included.
** Statutory attorney and executor fees not including costs. Fees are based on gross value of estate. Attorney can also ask the court for “extraordinary fees” for “extraordinary” services they perform on the behalf of the estate.
*** Your “successor trustee” may need some advice from an attorney after you die. Most attorneys will charge an hourly rate to help. In my experience, simple living trust usually take about 1 to 5 hours of an attorney’s time.
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