Do I need a Trust or a Will?
Generally, if you own real estate in California or if you have assets in your own name in excess of $166,250, you should have a Revocable Living Trust. A properly funded trust will allow you to pass your assets to your chosen beneficiaries without a costly probate. Without a Trust, a probate is generally required in each state where the decedent owned real property and in the decedent’s state of residence if the decedent’s assets exceed a certain amount (in California that amount is, $166,250.)
If I don’t need a Trust, should I have a Will?
Yes. If you have a Will, your Will controls who your beneficiaries are, who your executors will be, whether or not your executors should pay a bond and who the Guardians of minor children will be. If you don’t have a Will, you leave all of these decisions up to the State’s default plan which may not be what you would have chosen.
If I have a Trust should I still have a Will?
Yes. When you have a trust it is advisable to have a Pour-over Will. A Pour-over Will is a special type of Will designed to work hand-in-hand with your Trust. Rather than naming your beneficiaries in your Will, your Pour-over Will will name your Trust as your beneficiary so that if anything was left out of your trust or otherwise ends up in your estate upon your death, it will pass through the Pour-over Will back to your Trust.
How much does a California Probate Cost?
In California the typical Probate Estate will currently incur the following costs:
Court filing fees: Minimum of $900.00
Publication fees: Average runs between $600-$1,000.
Bond Fees: Vary depending on size of estate and credit worthiness of the Executor. These fees may be waived if waived in the Will or by the beneficiaries and approved by the Court. Typical bond fee on $500,000 estate might be around $1000.00 each year or portion of year of administration.
Statutory Executor and Attorney’s fees: Both the Executor and the Attorney are entitled to a Statutory Fee based on the following formula: 4% of first $100,000; 3% of next $100,000; 2% of next $800,000; 1% of next $9,000,000.
What is a Living Will? Should I have one?
Every adult should have a Living Will. A living Will also known as a Durable Power of Attorney for Healthcare and Directive to Physician is a document whereby you direct who will make your medical decisions for you if you can’t make them for yourself and what your wishes are about being given or kept on life support under certain circumstances. The Living Will will also allow you to decide whether or not you want to be an organ or tissue donor.