We have often written that every San Diego homeowner should have a trust due to the high costs of probate and the time involved. Yet most San Diegans don’t even have a will, let alone an estate plan which includes a trust. What should a homeowner know and why should they go through the process of creating or updating a trust?
It is true that one of the main reasons for implementing a trust is to eliminate the extensive cost and prolonged time frames associated with Probate. If you do not have a trust, most of your assets must be handled through Probate upon your passing. Probate will cost tens of thousands of dollars for any modest home in San Diego. The process of probate itself will take many months (usually more than a year) to complete. California law allows you to add “transfer to” orders to almost all assets with the exception of real estate, but many Californians fail to take advantage of this simple strategy.
How important is your privacy? Probate is a “public record” and all assets covered in your will become part of the public record. Most people prefer to keep their personal business private and protected, and a trust is the perfect vehicle to accomplish this. If you own property out-of-state, own a business, have a special needs child or wish to ensure the maximum amount of your assets pass quickly to your beneficiaries and heirs a trust is the most secure and dependable strategy.
What are some additional reasons why every San Diego homeowner should have a trust as part of their estate plan? Your trust can be use to influence children, heirs and others after your passing. You may establish goals for your beneficiaries that rewards them by transferring assets upon completion of a specific goal such as 5 years of sobriety, a college degree or the arrival of a first child.
Finally, a trust ensures that your wishes are followed to the letter, and controlled by a trustee with the authority to ensure your directions are fulfilled. There are tax advantages and additional legal protections for larger estates but estate planning and a revocable trust aren’t simply for the Wealthy. The fact is every San Diego homeowner should have a trust and will save tens of thousands of dollars over the actual cost of preparing your trust. The experienced estate planning and trust attorneys at Allen Barron invite you to contact us for a free consultation at 866-631-3470 to learn more about how a revocable trust can protect you and provide security for yourself, your spouse and your family and beneficiaries.