Trusts: Why and when should you have one set up, and how much do they cost?
More often than not, people wait until a major incident before thinking about setting up a trust, which is an important part of the real estate planning process. If you want to save money and help your loved ones avoid headaches, then trusts are a fantastic vehicle to ensure your money and assets are handled according to your specific instructions.
If you pass away in California without a properly formed trust, your real estate and other assets will pass through probate court, which is an expensive process designed to protect debtors and creditors—not your heirs. You’ll also benefit from the flexibility and control over the execution of your estate if you use a trust. A will, for example, goes into effect only after you die, but a trust can provide some protection if you become physically or mentally incapacitated.
If you own real estate in California worth more than $24,000 or have liquid assets worth more than $180,000, the cost-benefit analysis indicates that you should have a trust.
If you have any questions or need recommendations for attorneys to help you through the process of setting up a trust, give me a call or send me an email. I’d be happy to help you.
