Planning for Your Estate: Probate vs. Living Trust
It's not a fun topic to think about, but at some point, we all have to face the fact that our time on this earth is limited. And when we're gone, we have to think about what will happen to our belongings. If you own a home in California, you may be wondering what the best way is to protect your property after you die. Do you need a probate? Or would a living trust be better? Let's take a look at the pros and cons of each option so you can make the best decision for your situation.
What is Probate?
Probate is the legal process of distributing a person's assets after they die. If you die without a will or living trust in place, the court will appoint a personal representative to oversee the distribution of your assets according to California law. This process can be time-consuming and expensive, with fees and court costs totaling up to 10% of the value of your estate. In addition, probate is a matter of public record, so your family's privacy may be compromised.
What is a Living Trust?
A living trust is an arrangement that allows you to transfer ownership of your assets to another person or entity while you're still alive. You can name yourself as the trustee, which gives you control over how the assets are managed during your lifetime. And because the transfer of ownership takes place while you're alive, there's no need for probate when you die. This can save your family time and money, and it also protects their privacy.
Overall:
Making the decision of whether to go through probate or create a living trust depends on many factors. You'll need to consider the value of your assets, your family's privacy preferences, and how much time and money you're willing to spend on estate planning. Ultimately, only you can decide what's best for your situation. But we hope this overview has given you some helpful information to make that decision.