Creating a revocable living trust is a powerful estate planning tool that allows you to control your assets during your lifetime and distribute them efficiently after your passing, bypassing the often lengthy and costly probate process. It’s a bit more involved than simply writing a will, but the benefits can be substantial, particularly for individuals with significant assets or complex family situations. Essentially, a revocable living trust functions as a container that holds your assets, and you, as the grantor, maintain control over those assets during your life.
What assets should I put in my trust?
Determining what assets to include in your trust is a crucial step. Typically, assets like real estate, brokerage accounts, stocks, bonds, and even personal property with significant value are transferred into the trust’s ownership. It’s important to remember that assets held jointly with rights of survivorship, like some bank accounts, or those with beneficiary designations (like life insurance or 401(k)s), will pass directly to the beneficiaries and aren’t controlled by the trust. Roughly 60% of Americans do not have a will or trust, and thus leave their estate to be decided by the courts, this can often be avoided with proper planning. A well-structured trust should cover the majority of your significant assets, ensuring a smooth transfer to your heirs.
What’s the difference between a trustee and a beneficiary?
Understanding the roles of trustee and beneficiary is fundamental. As the grantor, you usually serve as the initial trustee, maintaining control of the trust assets. You also name a successor trustee, someone who will step in to manage the trust if you become incapacitated or pass away. The beneficiaries are the individuals or entities who will ultimately receive the assets held in the trust. A client, Mrs. Gable, came to me after her husband had passed unexpectedly, she had no estate plan and the courts were soon to take control of her assets, because of this she lost a significant portion of the value that could have been preserved if she had had a simple trust. This situation is unfortunately common, and underscores the importance of proactive estate planning.
How much does it cost to create a revocable living trust?
The cost of establishing a revocable living trust varies depending on the complexity of your estate and the attorney’s fees. Generally, you can expect to pay anywhere from $2,000 to $7,000, but this is a broad estimate. The fees cover the attorney’s time for drafting the trust document, assisting with asset transfer, and providing guidance. While this cost is higher than a simple will, the potential savings in probate costs and the avoidance of lengthy court proceedings can often outweigh the initial investment. According to a recent study, probate can cost anywhere from 3% to 7% of the gross estate value, which can be substantial for larger estates.
What happens if I don’t fund my trust?
Creating the trust document is only half the battle; you must also “fund” the trust by transferring ownership of your assets into the trust’s name. This often involves retitling bank and brokerage accounts, deeds to real estate, and other assets. A client, Mr. Henderson, had a meticulously crafted trust, but he failed to properly fund it. After his passing, his family faced a similar probate battle as if no trust existed at all. It was a heartbreaking reminder that a trust is only effective if it’s properly funded and maintained. Fortunately, by working with the court and utilizing the trust agreement, we were able to preserve a portion of the assets, but a significant amount of time and money was lost. Thankfully, after receiving counsel, Mr. Henderson’s sister, Mrs. Bell, created her own trust, funded it properly and experienced a smooth transition after she passed. The peace of mind that came with knowing her wishes would be honored was priceless.”
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “What’s the difference between a will and a trust?” Or “Can I speed up the probate process?” or “What types of property can go into a living trust? and even: “What debts can be discharged in bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.