What is a legal trust and why should you consider one if you are a homeowner or are part of a blended family in San Diego? A trust is a common legal tool which allows your assets to pass to your beneficiaries without having to go through the time and expense of probate court. A revocable trust allows you to remain in control of your home and assets and make changes along the way. You can sell your home and buy a new one. You can create or update directions regarding how the assets and funds in your revocable trust are to be distributed upon your passing. Generally speaking, anyone with an estate worth more than $150,000 will save money with an effective estate plan which includes a revocable trust.
Do you think your estate is worth $150,000? This is not about the equity in your home, it is about the appraised value of the home regardless of the mortgages and other liens or encumbrances which are attached to it. The median value of a house in San Diego is right around $500,000, which means any homeowner in San Diego would save time and money by placing their home and other assets within the protections of a revocable trust.
Probate is a time consuming and expensive venue. The probate court charges a fee. The compensation for just the executor in this $500,000 home example is $13,000 and this does not include court costs, filing fees, notices, fees associated with the probate referee and other costs. There are also fees for an attorney and anyone else who helps to manage or dispose of your assets in probate.
If you have a blended family, and either or both spouses have children from a previous marriage it is usually important to ensure provisions are made to ensure some portion of the estate is set aside for them no matter what happens. Revocable trusts provide incredible flexibility while ensuring these protections for those you love.
Allen Barron’s experienced estate planning attorneys make the creation of a trust easier. We guide you through each step and create documents which are enforceable while capturing your specific intentions and instructions. If you have questions about what is a legal trust and why should you consider one we invite you to contact Allen Barron or call for a free consultation at 866-631-3470.