Many people wishing to prepare a comprehensive estate planning have the doubts about living trust and will. Even when such persons create living trust, the will would be indispensable part of good estate planning.
Proper estate planning (will or trust) in California can save you a lot of money, headaches, and heartaches.
While you are living you can prevent the need to have a conservator appointed- this happens if you lose the ability to make decisions for yourself. Setting this up in advance through a California wills and trusts means your assets are protected - even from you - should you lose the ability to make decisions for yourself. Many attorneys charge upwards of $20,000 to represent you in a California conservatorship proceeding, and if it is contested costs can be much higher.
When you pass away, your estate may go through probate, a long and expensive process in California. Probate can take years, and the costs are prohibitive. The basic statutory fees for probating a one million dollar estate are currency $46,000. Remember, your house is valued at its gross value for probate, not your equity value. The larger your estate, the more expensive probate becomes.
Trust deed investing is the ability to invest in loans that have been secured byCalifornia estate planning, usually short term spanning up to eight years. The housing bubble caused many homes and buildings to be foreclosed on, forcing many disreputable findings in regards to the banking and loan market to be discovered and laid out for all to see. Because of this, nearly 20% of the mortgages that sit within a bank's balance sheet are now delinquent; in fact, many banks have tightened their lending practices in the aftermath, forcing many of those who want to loan unable to do so due to their less than stellar credit rating.
The cost of a living trust varies depending on which attorney you hire, and how complex your estate planning attorney needs to be. If you own a number of rental houses, for example, the cost will be higher because a new deed needs to be prepared for each property. But if you own property in multiple states and don't have a living trust, you'll have to go through probate in each state!
You can expect to pay around $2,000 or so for a basic Living Trust package in California. Most California trust attorneys will also prepare other documents for you, including a Durable Power of Attorney, and Advance Health Care Directive among others. If you need estate tax planning, planning for special needs children, pets, etc the cost will of course be higher.
Some attorneys charge by the hour, and some offer a flat rate. Like dealing with any other professional, you should be comfortable with your attorney. Many lawyers offer a free initial consultation that allows you to discuss your needs and to see if you are comfortable with that attorney.
Preparing a living trust can ensure that more of your assets go where you want them to go, they go there more quickly, and a properly drafted living trust helps protect you from an expensive an humiliating conservatorship proceeding. Most all Californians will benefit from preparing a living trust, and all Californians benefit from doing estate planning.