More than a Will to Avoid Probate

A family's home is often the biggest asset they will ever own.  For many, the home itself and/or the equity in the home are a legacy they wish to leave behind to their children and grandchildren.  While living wills are part of the package of documents that today's families should have, it does not protect the tax man from knocking at your door.

So why should your estate planning be in Trusts?

A trust avoids the hassle of probate. Probate (Latin for prove) occurs when someone dies intestate and California Code prescribes the division of an estate to the surviving heirs.  In other words the Government gets involved in a family’s life and the courts oversee the payment of debts and liquidation of the estate of the decedent. In fact, if a person dies without legally recognizing their heirs, the estate becomes the property of the State of California!

Properly constructed estate plans may include a pour over will which puts the estate assets into a legally seperate instrument known as The Trust.  There are several types of trusts - in fact there is a trust for almost any type of situation.  A common type of family trust is the A-B Trust (often used for married couples).  A trust of this type is simply one method of holding title to real estate and personal property.  

For the last 40 years smart homeowners have been holding their real estate in trusts in order to avoid probate when the property owner dies.  However, the reason these property owners are so smart is because the Trust provides another benefit.  For example, should a property owner become incapacitated (such as Alzheimer’s or a sever stroke) then an designated trustee can manage the property and even sell, rent it, or ensure the property stays in the family - any of which may be necessary for the trustor's (original property owner's) benefit.

If you are currently a property owner or looking to buy, be sure to consult a reputable estate planning attorney who can help protect you and your family by using more than just a simple will!  Your property, your legacy, and your life deserve longevity.

Disclosure:  The persons writing this article are not attorneys and are not providing legal advice.