What is a Living Trust?
A Living Trust is a legal document which creates a device to hold your property on your behalf. During your lifetime, you, as Trustee (manager), retain all rights as owner and remain in complete control of your property just like before. You may amend or revoke a typical Living Trust, as well as add or remove property from the trust at any time you wish. Having a Living Trust enables your family to avoid costly and time consuming Probate.
Rudolph & Chonoles, LLP, is dedicated to providing the Southern California community with complete Living Trust packages at reasonable prices.
Clients May Receive:
- A Living Trust
- Nomination of Children’s Guardian
- Pour Over Will
- Advanced Health Care Directive
- Durable Power of Attorney
- Trust Transfer Deed
- and more….
What is Probate and why should we avoid it?
Probate is the court supervised legal proceeding under which your estate is wound up and your assets (property) are transferred to others following your death. It typically involves hiring an attorney and often takes as much as 2 years.
Estates (all the property and wealth of someone who has died) worth at least $150,000 must go through probate if they do not have a Living Trust. The gross value of your home is included in determining the value of your estate.
Costs of Probate
Costs of probate include statutory fees for an Attorney and an Executor (the person in charge of your estate during probate). In Probate, Attorneys’ Fees are based on a percentage of the value of your estate as follows (current as of September 2016):
- 4% of the first $100,000
- 3% of the next $100,000
- 2% of the next $800,000
- 1% of the next $9 million, and
- .05% of the next $15 million.
Advantages of a Living Trust
A Living Trust can provide many benefits over a Will:
- A living trust can help ensure your assets will be managed according to your wishes even if you
- Upon your death, your estate passes to the beneficiaries of your choice.
- Your property can pass to your beneficiaries quickly and without costly probate.
- The contents of your estate and your wishes are handled privately.
- There are no complicated court involvements.
- You do not incur court costs.
- There is no court oversight.
- Potentially lower tax liability for your heirs who receive your real estate.
- Possibly reduced or eliminated Federal Estate Taxes.
- You can maintain complete flexibility in amending or revoking your trust anytime during your life.
- You have complete control over your assets.
- You get peace of mind…