Learn how to avoid costly probate and protect your assets with a trust.
Have you ever thought about what will happen to your estate after you pass? We know that this is rarely on people’s minds as they go about their day, and in some cases, people avoid it entirely. However, not being prepared has its own risks, and the burden will fall on your bereaved family. That’s why today, we are going to discuss probate and trust and what it means for you and your family.
1. What is probate? Probate is the legal process where a court helps ensure a person's assets are distributed, and any debts are settled after they pass away. When a property enters probate, it can be a long and expensive process, especially in California, where legal backlogs often extend the timeline to 12 to 18 months. Not only is it time-consuming, but the costs can add up quickly. The sad truth is that many homeowners don’t think about this until it’s too late.
2. Why is probate expensive? Probate fees are calculated as a percentage of the estate's value. For example, if your home is worth $1 million, the attorney's compensation could be upwards of $23,000, plus additional court costs of $2,000 to $3,000. That’s a huge chunk of money that could have been avoided with proper estate planning, such as creating a trust. Probate also requires dealing with the courts, meaning your estate’s timeline is at the mercy of the legal system, which will take a long time to settle due to court backlogs.
"Planning now can save your family time, money, and stress in the future."
3. How a trust can help you avoid probate. By setting up a trust, you can completely bypass the probate process. Trusts allow you to transfer ownership of your property and assets to your beneficiaries without the involvement of the courts. This means faster access to your assets for your loved ones and no expensive legal fees or delays. Having a trust in place not only saves money but also prevents your family from dealing with the emotional stress of probate during an already difficult time.
4. What are the benefits of setting up a trust? Setting up a trust allows you to save time, as probate can take 12 to 18 months, while your heirs can access your property much faster with a trust in place. It also helps you save money by avoiding costly legal fees based on your estate's value. A trust gives you control over how your assets are handled, allowing you to designate specific instructions. Additionally, it eliminates the need for court involvement, making the process smoother and less stressful for your loved ones.
5. What happens if you don’t have a trust? Without a trust, your property will go through probate, where the court oversees the distribution of your assets. This process is public, costly, and can take a long time to complete. For example, probate could result in $23,000 in attorney fees for a $1 million estate, plus additional court costs. Your heirs may also experience delays of over a year before gaining access to your assets, which can be especially burdensome during a time of loss.
If you want to ensure that your assets are transferred smoothly without unnecessary costs and added stress for your family, we recommend that you plan this ahead of time. By taking proactive steps now, you can protect your assets and ensure that your estate is handled quickly and efficiently without the need for probate.
If you have questions about estate planning or need help with the probate process, don’t hesitate to call us at (760) 201-9252. We are here to help you and your family in this challenging time.
