Why You Should Have a Living Trust

 Beyond the Will: Why a Living Trust is Essential for California Homeowners

In California, a common misconception is that a simple Will is enough to protect your family. While a Will is a foundational document, it often fails to keep your estate out of the public court system known as probate.

The primary reason to establish a Revocable Living Trust is probate avoidance. In California, if your assets exceed a certain threshold (currently $184,500), your estate must go through probate unless it is held in a trust.

Probate is:

• Public: Your private financial matters become public record.

• Costly: Statutory fees are set by law and can take a significant percentage of your estate's value.

• Slow: It typically takes 12 to 18 months to resolve, during which your heirs may have limited access to funds.

A trust allows for the immediate, private transfer of assets to your loved ones without court intervention. It also provides a plan for incapacity, ensuring that if you become unable to manage your affairs, a successor trustee you trust can step in without a court-ordered conservatorship.