If I have a will, why would I need a living trust?

A will is a one-way ticket to probate if you own a home or have other substantial assets. Wills must be formally verified or proven by a probate court and result in substantial probate fees being paid.

A living trust is almost always the best way to plan an estate because it avoids the probate process and all probate fees. The probate process often takes ten to twenty-four months, whereas with a living trust, the property can usually be distributed within a few weeks.

 

I want an estate plan that will make it as easy on my spouse as possible when I die. Does this mean I need a living trust?

Anyone who has minor children and/or a house will always find it advantageous to create a living trust. A living trust will save money; reduce the time it takes to distribute the assets of the estate, including cash; and eliminate a great deal of work for the personal representative of the deceased.

 

Is it possible for you to create a living trust for us without our visiting your office?

Yes. We can email the final document to you with simple instructions. Call us with any questions.

 

What is an inter vivos trust?

It is simply the Latin term meaning living trust.

 

What happens if I have no living trust or will?

The state has written a will for you (via the California Probate Code) that you may not like. It goes into effect automatically when a person fails to make their own estate plan. Probate and probate fees are included.

 

Who will care for my child if I cannot?

If you have a spouse, your spouse will care? for your child. If you don't have a spouse or both you and your spouse die simultaneously, your Will will determine who will care for your minor child or children. If you don't have a Will, the state will make the decision for you.

 

We have two small children. Is it necessary for us to name a guardian in our will?

Absolutely. While it is not likely that a child will lose both parents before reaching the age of 18, it is possible and parents should plan for the unthinkable to protect their children. If parents don't name a guardian, the court will do it which may make everyone unhappy.

 

What is legacy planning?

Legacy planning is financial planning by people who want to prepare to transfer their assets to loved ones, next of kin, charitable organizations, or religious organizations, after their death. Financial and estate planners who prepare wills and trusts for people, help with legacy planning. Legacy planning is especially important for those who own and operate mall businesses or other assets that require ongoing attention.

 

If we name a guardian in our will, can we change our mind and name a replacement guardian if we desire to do so?

Absolutely.

 

What will happen to my pet when I die?

If you and your spouse or significant other, are joint caregivers, you may not have to make any arrangements. Otherwise, you may want to consider providing Fluffy, Fido, or Polly with a pet trust. See: Pet Trust - Pet Guardianships. If arrangements are not made, your animal companion could end up in an animal shelter.

 

Why should probate be avoided by use of a living trust?

In addition to the fees and lengthy administrative process, probate is a public process. It is not confidential as with a living trust. All members of the public have access to all information including who is receiving what property. Also most importantly, with a living trust, family living expenses can be provided almost immediately. With a will, the court must evaluate and approve the distribution of family living expenses.

 

Will owning property in joint-tenancy avoid probate?

It will postpone it until the second person dies, at which point, probate will be required. In the event of simultaneous death (such as in an auto or aircraft accident), probate will not be postponed.

Joint tenancy has other possible disadvantages as well. It can result in a loss of control over the assets and may have severe adverse tax consequences. It is not the best estate planning method. If you decide to rely on joint tenancy, you should first consult with a tax consultant.

 

I am disabled which makes it difficult for me to travel. Can a living trust be created by email?

Yes. As long as you can send and receive emails, there is no problem in creating a living trust.

 

Is a living trust valid in every state?

Yes. It is valid in most other countries as well.

 

How are assets usually transferred into a living trust?

The most common ways are recorded deeds, written assignments, title transfers or retitling such as for vehicles, and opening new accounts. When we represent a client by forming a living trust, we can assist you with any needed transfers.

 

I own real estate in Texas. Can I place the property into my living trust formed in California?

Absolutely. For each property in another state, we will need to record a transfer deed in the land records office of the county where the real estate is located.

 

If I have a living trust, will I need the services of an attorney to distribute the property?

 No. You can do it yourself or we can assist you for less than the cost of an attorney.

 

Is a living trust expensive?

No. The cost is modest when compared to the costs of probate. The cost will depend upon the complexity of the plan, the type and amount of your assets and the amount of tax planning required. Always obtain a quote in advance and see our schedule of fees.

 

Does it make sense to have a living trust if I am not married?

Yes. If you want to avoid probate, you should have a living trust.

 

Can two unmarried people who are living together have a living trust?

Yes. This is quite common and often makes sense.

 

If my child dies before me, does his or her spouse become the beneficiary of that child’s share of my estate?

It's up to you, but in most cases the answer is no. Usually, the share goes to the children of that child (your grandchildren). If the deceased child has no children, usually the share would be divided among your other children. The formula is entirely up to you.

 

Who should receive a copy of my living trust and related documents while I am still living?

Your successor trustee or trustees should receive a copy or know where the document can be found. The person who prepared your trust will also maintain a copy which will be kept confidential. You may want to inform trusted family members or friends on how to reach the persons in possession of your trust and related documents. I do not recommend that beneficiaries receive copies because you may want to make changes in the future that affect the beneficiaries. However, informing your beneficiaries on who prepared the trust and how to reach that person is definitely recommended. We have prepared a simple notice form that you may use.

 

I don’t own any real estate or other significant assets and have no children, but I do have some things that I would like to be given to certain people when I die. Can you prepare a simple, low-cost, will for me?

Absolutely. Please refer to our schedule of fees and let us know when you would like to proceed.

 

What does it mean to fund a living trust?

Funding a trust means transferring property or assets into the trust. This can be done with a deed, an assignment, or otherwise. We can assist you with the process.

           

Do I still have control over the property in my living trust?

Absolutely. As trustee of your trust, you can do anything you could do before.

 

Can I transfer assets into and out of the trust any time I want?

Absolutely. Given that the trust is revocable, you can transfer assets into or out of the trust at any time.

 

Is it possible for me to name beneficiaries that live outside of California?

Your beneficiaries and your successor trustee can live outside of California, however, it is easier to expedite the distribution of property if your successor trustee is in California.

 

Can I leave part of my estate to a not yet conceived child or grandchild?

Yes. This can be accomplished easily with a living trust.

 

Can I use my living trust to provide long-term care for a disabled child or grandchild?

Yes. A living trust is the perfect tool to use for long-term care of any type.

 

Can a living trust protect me from catastrophic illness expenses?

No. The assets in your living trust are your assets and are available to pay personally.

 

Can I provide for my pet in my living trust?

Most definitely. A properly drafted living trust can provide for the long-term care of your pet after you are gone.

 

How difficult is it to change my living trust?

It's very easy. Changes are made by simple amendment as long as you are living.

 

When can a revocable living trust be revoked or modified?

Any time while the Trustor is living. Upon death the trust becomes irrevocable.

 

Can my successor trustee make changes to my living trust?

No. Upon your death, the right to make changes ceases. The living trust becomes irrevocable and the trustee is under a legal duty to fulfill every instruction in your trust document.

 

When does a living trust end?

Living trusts end when all of the property in the trust has been distributed according to the terms of the trust.

 

How do I revoke my will which is now obsolete?

The best way to revoke your will is to create a new will to replace the old will. You do not want to revoke your existing will without having a replacement. This is important.

 

If I transfer my home to a living trust, can I still deduct the interest and real estate taxes?

Absolutely.

 

If I have a living trust, will it be necessary to change my home insurance policy to name the trust?

No.

 

Will I be required to maintain separate tax and accounting records if I transfer property to a living trust?

No. While you are living, everything is reported on your personal tax returns.

 

Do I need to file a separate tax return for my living trust?

No. An estate tax return must be filed only after you death. This is usually only one time.

 

Will there be a federal or state estate tax owed when I die?

If you live in California, there is no state estate tax and the federal government exempts more than twelve million dollars per person from federal estate taxes. This information is current as of 2024 and is subject to change. The exemption does not apply to estate income tax returns.

 

Who do you recommend that we contact for estate tax returns?

We recommend that you contact NationwideAccounting.net for estate income tax returns, estate tax returns, individual tax returns, and any type of business tax returns.

 

What assets should be transferred into my living trust?

Everything other than life insurance policies, IRAs, 401k accounts, and other pension plans. Usually, your living trust will be named as a contingent beneficiary for these types of assets.

 

Does it ever make sense to have more than one living trust?

Yes. Many people create one living trust for their business and another for their personal property. They do this because they want different successor trustees for each trust. Ideally, a successor trustee for a business will have industry knowledge and will be familiar with the business.

 

Can my mortgage lender “call my loan due” if I transfer my home into a living trust?

No. By law, the lender’s position remains the same and they cannot call the loan due.

           

By transferring my home into a living trust, will I cause a reappraisal under California’s Proposition 13?

Absolutely not.

 

Should my life insurance policies be owned by my living trust?

Yes. In most cases, the living trust should be named as both owner and beneficiary of all policies. This will eliminate the risk that the named beneficiary (or beneficiaries) could die simultaneously with the owner of the policies, thus subjecting the insurance proceeds to probate. The policies should be owned by the insured.

 

Will a living trust prevent me from refinancing my home or make it highly difficult to do so?

No. Homes that have been placed in a living trust are financed or refinanced regularly. This should not be a concern.

 

Should my IRAs and 401k accounts be placed into my living trust?

A living trust should never own your IRAs and 401k accounts because such a transfer would be equivalent to an outright distribution. Thus, it would have negative tax implications.

Most people name their spouse as beneficiary and their living trust as contingent beneficiary.

 

If married, what happens if I have separate property?

Separate property is still transferred into the living trust. The assets will retain their character of separate property by use of a "Separate Property Agreement".

           

If I have a living trust, will I still need a will?

Yes. A pour-over will make sense for most people. It transfers any property left outside the trust at death to the living trust. While such property may still be subject to probate, it can at least be distributed as part of your overall estate plan.

 

What is the best and easiest way to update a will?

If the changes are minor, a codicil can be used which is simply an amendment. If the changes are significant, it is best to revoke the existing will and create a new one. This is often the better way because it eliminates the need to read and compare two documents. In any event, the document will need to be signed before two witnesses who will sign in the capacity as witnesses.

 

Will a Living Trust protect me from creditors or lawsuits?

No. A Living Trust will not protect the Trustor from creditors and/or lawsuits.

 

Do I need an attorney to draft my estate plan?

No.

 

My parents refuse to form a living trust even though they are getting older. My brother and I who will inherit our parent’s property want to avoid paying thousands of dollars in unnecessary probate fees and want to avoid the long court proceeding that we will certainly face if they don’t form a simple living trust. What do you suggest?

You can prepay the cost of a living trust for your parents and then arrange an appointment for them to meet with us. This should make them realize how very important proper planning is to their family and should eliminate any excuse to delay protecting their family. See: Living Trust - Gift Certificate.

 

I desperately need a living trust to protect my wife and children but am short of cash. Do you accept most credit cards?

Yes. We do not want you to be without protection.

 

Is it possible to disinherit a child?

Yes. This should be done in a will in order to assure its enforceability.

 

If you prepare a Will for us, can you include a Nomination of Guardianship for Minor Children?

Absolutely. There is no additional fee for this service. There is only a notary fee charged by the notary.

 

Can you provide a trust that will address what happens to my pets when I die?

Yes. See: Pet Trust - Pet Guardianship.

 

What is a California Durable Power of Attorney?

A power of attorney that remains effective even if the person who created it (called the "principal") becomes incapacitated. The person authorized to act (called the "attorney in fact") can make decisions for the principal as defined in the document. Often separate Durable Powers of Attorney are created for Health Care and Financial Purposes. See Health Care Directive.

 

What is a Advance Health Care Directive?

An Advance Health Care Directive is a legal document that explains how you want medical decisions about you to be made if you cannot make the decision yourself. It applies only to health care decisions and does not affect financial or money matters.

 

What is the meaning and significance of the term" Next of Kin"?

Next of kin refers to people who share a relationship through blood, marriage, or adoption. The relationship helps to establish who would receive a portion of a deceased person's estate if there is no will.

 

What is a Preliminary Change of Ownership Report (PCOR)?

A Preliminary Change of Ownership Report (PCOR) is a document that must be recorded at the County Recorder's Office whenever a deed is recorded. The primary function is to determine the amount of tax that must be applied by the Tax Collector's Office. The form requests: (1) who are the parties; transferor and transferee; (2) what is the transfer value or the purchase price; (3) is there a Homeowner's Exemption that applies; and (4) whether there is any reason there should be no re-assessment of the existing tax. Failure to file the PCOR will result in a penalty. Transfers of real estate to a living trust must be reported but do not increase the real estate taxes that are payable.