If you do not take control of the
distribution of your assets, the state will.
Unless you create and place your assets in a trust before death, your
assets must go through the California probate courts at the time of death. Probate courts charge extensive fees and
often take years to distribute the assets.
For example, H dies without a
trust and at the time of H’s death he had a house worth $1,000,000. His assets will go to probate court. Along with court fees, the court will hire
other professionals to help it distribute the assets. If the total probate fees are $100,000,
somebody has to pay these fees before the house may be distributed. If the surviving wife may take the house, she
need pay $100,000 to the court for probate fees. If she does not have the money, the court
will put the house up for, yes you all know the term, probate sale. The asset will be auctioned off and the probate
fees will be extracted from the proceeds.
In California, placing our assets
in a trust avoids probate court completely.
We may still manage and control our assets placed in a trust as we wish,
however when we pass away, they are transferred to our loved ones with ease and
no additional fees. The minimal costs of
setting up a trust today is substantially outweighed by the benefits of saving
thousands of dollars, time, and stress for your surviving loved ones.
Other benefits of a trust include
tax breaks, privacy, and better protection of your assets from creditors. Trusts also allow you to appoint a trustee to
manage your assets when you become unable.
In American society, a trust is a
necessary instrument for anyone with any assets, who wants his/her surviving
children, wife, or whomever to take after they pass away. Not creating a trust during your lifetime,
will cause a lot of financial and emotional stress to your surviving loved
ones. Leave a good name out for
yourself, we are not everlasting, but a trust can be.
You have the knowledge, be Smart.
This content provides only
general information which may or may not reflect the most current legal
developments. KAASS LAW represents clients in: Los Angeles, Burbank, Hollywood,
Glendale, Van Nuys, North Hollywood, Studio City, Eagle Rock, Sunland, Tujunga,
Sylmar, La Crecenta, La Canada, Beverly Hills, Westwood, Santa Monica,
Brentwood,
KAASS LAW is authorized to
practice law in California. The above
content is intended for California residents only. This content provides only general
information which may or may not reflect the most current legal developments.
KAASS LAW expressly disclaims all liability in respect to actions taken or not
taken based on any of the contents of this website.
