An Alternative to Probate
This article is not for you if: you have nothing; or you have no one to leave anything to; or you don’t care whatever happens to your money and real estate and stuff after you die; or you like the idea of paying money (lots of money) to lawyers and courts; or you have a properly funded living trust.
That leaves lots of you.
If you die leaving assets in California in your name alone, and those assets have an aggregate gross value of over $150,000.00, there will be a probate. Probate is a legal procedure which takes about a year, or longer, costs thousands of dollars, primarily in legal fees, is a matter of public record, and is a general pain in the neck and other vital organs.
Among the costs of probate are court filing fees, paid when the first petition for probate is filed and upon the filing of each additional petition, such as each annual accounting and for the final account and request for distribution. There are also publication costs and fees for the Probate Referee (a court-appointed appraiser). There may also be a surety bond premium.
Is this trip necessary? Not necessarily. If, instead of holding title to assets in your name alone, you hold title as trustee of a revocable living trust, at your death your successor trustee automatically takes control of these assets. This successor trustee may then pay your bills, compromise claims against your estate, and distribute the net assets to your beneficiaries, in accordance with your wishes, without the necessity of probate proceedings or court involvement.
Granted, times are financially challenging for many people. Real estate prices have not yet returned to the highs of prior years. Stock prices fluctuate. Our net worth may well be far less than it seemed to be several years ago. Nevertheless, considering how much a probate can cost, the preparation of a living trust and related estate planning documents is still a cost-effective way to carry out your wishes for the distribution of your assets once you are gone. Estate planning won’t make you any money, but typically can save your loved ones thousands of dollars in probate expenses and, in some cases, in Federal estate taxes.
As one lawyer recently asked a prospective trust client, “Who do you love more, your children or mine?”
Jerry Kessler practices law in Santa Clarita. He can be reached at (661) 255-1001.
ADVERTISE WITH US
A Note From the Publishers – April 2024
We simply couldn’t resist! Our covers are in high demand, so this month, we are thrilled to feature four non-profits, each promoting their upcoming events. Each event offers its own unique experience, showcasing the diversity of our community.First on the list...
Wine on the Roof Returns on April 25, 2024
\Wine on the Roof will take place on Thursday, April 25th from 6:30-10pm at The Centre (the former Sports Complex at Golden Valley/Centre Pointe Parkway in Santa Clarita). This unique fundraising event benefits the WiSH Education Foundation and features a SIX...
SCV Senior Center Prepares for Celebrity Waiter Celebration Saturday, April 27, 2024
The SCV Senior Center is preparing for their annual fundraising event – Celebrity Waiter – with the theme – “California Dreamin’” on Saturday, April 27th at Bella Vida. Table Sponsorships are still available.The headliner for the event is “Surfin’” – A Beach...
ABOUT THE MAGAZINE
Santa Clarita Magazine has set a high standard for excellence in advertising for over 34 years. A family owned and operated business, Santa Clarita Magazine has grown with the Santa Clarita Valley since 1990 and become the #1 place to advertise locally.
FOLLOW US
SANTA CLARITA MAGAZINE
PO Box 801570
Valencia Ca 91380
For Advertising information
Call or Text: 1 (661) 294-4444