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WHAT IS A WILL?
A will gives you control over the
distribution of your estate. It is like a letter
to the court. This letter allows you to express
to the court who you want to give your assets
to, nominate executors, nominate a guardian to
take care of your children, and express your
wishes about burial or cremation.
WHY IS A WILL “NOT ENOUGH” IN CALIFORNIA?
A will is not enough in California because with
a will your family and loved ones must take the
will to the court. The court takes control and
rules on whether or not the will is valid. The
court then oversees the administration of the
will through the probate process which can take
up to three years, in some cases. During this
court process, mandatory fees and costs may
total tens of thousands of dollars - just to
distribute assets to whom they are intended
under the will. (See
Probate Section/fees and costs).
IF A WILL IS NOT ENOUGH...WHAT DO
CALIFORNIA RESIDENTS DO TO AVOID PROBATE AND
HIGH LEGAL COSTS?
In order to avoid court, probate fees and the
loss of control associated with court
supervision...you can transfer your assets to a
living trust where you are the trustee and
retain total control over your assets during
life and direct distribution at death.
You should consult an estate planning attorney
in order to ensure that your unique financial
situation is suitable for the type of living
trust you establish. The best news is the cost.
A properly drafted estate plan including a
living trust costs a fraction of what it costs
to probate an estate.
(See Probate Section/fees and costs).
A recent survey by AARP (American Association
for Retired Persons) found that probate is big
business. In fact, AARP estimates that probate
costs could top $2 billion a year — $1.5 billion
for attorneys, and hundreds of millions more for
bonding companies, appraisers and probate
courts.
WHAT IS A
LIVING TRUST?
Like a will, a living trust is an estate
planning document that will enable you to give
your money and/or property to your loved ones
after you pass away. Unlike a will, a living
trust operates free of court supervision!
Living trusts have been used in the United
States since the Constitution was drafted.
Living trusts are revocable, they can be changed
or revoked at any time with a simple amendment
or revocation.
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