21 Jan Why Do I Need A Living Trust?
Why Do I Need A Living Trust?
This is a question on the minds of many approaching the age of retirement. Where your belongings go and how they are handled is something to be concerned about. And being able to ensure that your estate is handled the way YOU want it is priceless. For most people having a simple will is, simply not enough. This is where a Living Trust becomes very useful.
`To understand what a living trust is first one has to know what they are used for. After death, the will of the departed has to go through Probate. Probate is an orderly execution and distribution of the will and the estate assets to all those involved. This process proves the will, for lack of a better word, takes inventory and appraises all property, pays the deceased debts and taxes, and then closes the case in court. This is the standard procedure when one has only a simple will. However simple it may sound probates are often lengthy and expensive, taking anywhere from one to two years which adds up when it comes to pricey attorney fees. Another downside is that probate is a public court affair, which means NO PRIVACY. In probate, the court controls the entire process which means NO PRIVACY. This may be the biggest difference between probate and a Living Trust.
A Living Trust is a property right , held by one party for the benefit of another, that becomes effective during the life of the creator, and therefore is also in existence after their death as well. When you establish a living trust you have control over all of your estate and assets, where they go, who they go to, and they are also readily available to you for regular use. Living Trusts give you privacy , security, and control over your future and the future of your loved ones.
Still questioning what a living trust can do for you? Well there are many questions that can not be simply answered and everyone’s situation is different. At Ortiz World Wealth Advisors we understand that, there are certain things that can only be explained face to face by someone with years of experience. For more information on a Living Trust contact us using the link at the bottom of the page and take control of your future NOW.
You can get an idea of how high these fees are by looking at California’s statutory fee schedule. For “ordinary” services, a lawyer can collect:
- 4% of the first $100,000 of the gross value of the probate estate
- 3% of the next $100,000
- 2% of the next $800,000
- 1% of the next $9 million
- ½% of the next $15 million
- “a reasonable amount” of anything over $25 million
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