We’ve released the latest episode of our podcast, ABCast Episode 3 – Estate Planning and Trusts. In this episode experienced San Diego estate planning and trust attorney Janathan Allen discusses many aspects of why the majority of San Diegans not only need an estate plan, they require a trust. What is probate? What is an estate plan? What is a trust? Why does anyone who own a home in San Diego need a trust? How do you pass assets and wealth on to your beneficiaries and heirs with a minimum of taxation and cost (or better yet, no taxation at all!)?
Jan discusses one of the most surprising facts for most people: the extremely high cost of probate and how an estate plan actually saves you and your heirs and beneficiaries tens of thousands of dollars. Without an estate plan and a trust your estate must go to Probate in order for your debts to be paid and your assets to be distributed. Jan uses the example of a simple estate where the decedent simply owned a home. The median price of a home in San Diego today is $640,000.
What’s the surprise? The cost of probate is based upon the appraised value of all assets at the time of probate, regardless of what they were purchased for, or the encumbrances against them.
In ABCast Episode 3 – Estate Planning and Trusts Janathan explains how this simple case with a $640,000 home would be handled. It doesn’t matter how much it was purchased for, and it doesn’t matter if there is a $500,000 mortgage against it and only $140,000 in equity. The cost of probating any asset is it’s value at the time of probate, in this case $640,000. The cost of probate in this case would be over $33,500 and it would take more than a year to get the asset through the process of Probate. Jan discusses the budget for an estate plan in the podcast which is a fraction of the cost of probating the house in this example alone.
Janathan explains the tools of estate planning such as a pour over will, powers of attorney, advance healthcare directives and a trust. There are several types of trusts and each estate plan must be customized to the individual client(s). We invite you to listen to ABCast Episode 3 – Estate Planning and Trusts and learn more about why you need an estate plan and the tools you should have going forward. We invite you to meet with experienced San Diego estate planning and trust attorney Janathan Allen by contacting Allen Barron, or call 866-631-3470 to schedule a free consultation.
