Inheritance is a tricky matter. You want all your belongings and earnings to be safe with your loved ones after your demise. In most cases, when there is no will or trust in place, it often disrupts the inheritance process. The next in the line of kin have to go through a lengthy probate procedure to inherit the estate.
Inheritance law in California enforces a six-step probate process before distributing the estate among legal heirs and beneficiaries. The probate process includes authentication of the recent will, appointing a representative, locating the demised person’s assets, and authenticating the death certificate. After authentication of credentials, the creditors are identified and paid off. After all the debt has been paid, the taxes on the remaining assets are filed and paid. Lastly, the assets are distributed among the legal heirs or beneficiaries.
The living trusts in California are exempted from the probate process. So, If you have a vast estate in any city in the state of California, it is best to set up a living trust with assistance from a trust attorney San Diego or any other city in the state. It will enable your heirs to skip the lengthy probate process that can take up to nine months.
When you set up a living trust, it is a legal document that places all your assets in trust during your lifetime. It is distributed among the chosen beneficiaries after your death by an enforcer, or a representative called a successor trustee.
A trust lawyer can help form a living trust and chart out the intricacies of the trust for you. You can even make the lawyer your successor trustee to enforce your trust as per your conditions.
Avoids Probate
One of the most common reasons people make a living trust is that their loved ones do not struggle to get their inheritance. The probate process can prove to be challenging and time-consuming, depending on the asset portfolio.
Protects Privacy
A will is a public record, and all the information mentioned in it becomes available to the public. Anyone can go to the local courts to find out the details of the will. In contrast, living trusts do not come under the public eye’s scrutiny and ensure the heirs’ privacy.
Saves money
Hiring a trust attorney in San Diego or any other city in California is not a cheap affair, but it indeed is worth the bang for its buck. Initially, the cost of setting up a trust is more than that of a will. But, it is more challenging for a beneficiary to challenge a trust as compared to a will. A living trust safeguards the family’s interest and eliminates the risk of going through an elaborate inheritance case in court.
Living Trusts are legally enforceable.
Some people manage their living trust by themselves, which is sometimes not enforceable by law as there are many loopholes in the contract that nullifies the whole trust. It is essential to hire a lawyer to form a living trust that can withstand any court intervention. With the help of an attorney, you can ensure your beneficiaries get your estate in the way you intended.
Reduce taxes
A living trust dictates the distribution of assets among beneficiaries and what assets will be sold. The beneficiaries only have to pay taxes on an estate only when each asset from the trust is distributed or sold. A trust attorney and their team will help you navigate the intricacies of taxes as well.
Unlike a will, a trust allows you to set conditions on how the beneficiaries can utilize the inherited assets. You have the option to dictate every term and condition that pertains to your assets and what will happen to them. This protects your legacy from being mishandled and reduces the chances of conflict amongst the family members or the beneficiaries.
