Frequently Asked Questions

I have a will, does that avoid probate?

Depending on your assets a will might NOT avoid probate.  Particularly if you own real estate and you only have a will, your estate will require probate.  However, if you place your real estate into a revocable living trust, it will avoid probate.  This is one of the main reasons to create a trust in California.

I have a trust, do I also need a will?

Yes, your trust will be accompanied by what is called a pour-over will.  This will nominates guardians if you minor children, or would be used if an asset was ever left out of your trust at your passing.  There would be a shorter court procedure to "pour" that asset into your trust to avoid a full probate.  It's likely this document will never be used, but it's created just in case!

Are there costs associated with having a trust?

Other than the initial set up cost, there aren't yearly maintenance or on going expenses associated with simply having a revocable living trust. 

However, it is very important to revisit your trust and other documents every few years to make sure they are still in line with your current goals and wishes, the people you have named in your documents are still accurate, assets are still properly titled and beneficiary designations are up to date.   If any changes are needed, there will be fees associated with those updates.

When should I update my trust or other estate planning documents?

Anytime you have a major life event such as a death, birth, change in your health, marriage/divorce you should review your entire estate plan to see if there is any impact.

Also, it's important to stay apprised as to any changes in the laws that may affect your documents.  If you every have any concerns, please contact us for further assistance.

How do I address my personal property like my car and jewelry?

There are a few ways to address personal property.  The first is with a document called an Assignment of Personal Property (which is included in all our trust packages).  This will generally assign all of your personal items, such as your car, couch, clothes and other personal belongings, to your revocable living trust. 

If you have special items such as artwork or other collectibles and you'd like these particular items to go to certain individuals, these distributions can be listed in your trust for the Trustee to distribute. 

If you have other items, that aren't necessarily of high value but are more sentimental, there is a Personal Property Addendum that comes with your trust.  This document can be completed in your own handwriting, at any time, and does not have to be notarized or witnessed.  This is a nice option to allow you to update over the years without the necessity of formally updating or amending your trust. 

What is required to put my home into my trust?

We assist you by creating a new deed transferring your real estate into your trust and get it recorded with the county.  During this process we also prepare a county form that indicates this is an exempt transfer so your property taxes do not go up (there is no reassessment) for placing your property into your trust. 

If you have a mortgage on your property you do not need to notify them, however you should contact your homeowner's insurance, and in some cases your title insurance, to add the name of your trust to your policy.

If you decide to sell your home while it's in your trust this doesn't change the sale or hinder it in any way.

If you purchase a new home or acquire other real estate after your trust is set up, you may be able to purchase it directly in your name as Trustee of your Trust, or if not, you'll just need to prepare one more transfer from yourself to your trust.  If you need assistance with this please contact us.

Do all of my assets have to go into my trust?

This will depend on your unique situation, so the answer could be yes or no, but if appropriate, some assets can be controlled by the beneficiary designations and these assets (if set up properly) would transfer outside of your trust and also avoid probate court.

Does a Revocable Living Trust protect against lawsuits and creditors?

Unfortunately a revocable living trust does not protect against lawsuits or creditors because it is not a separate entity from yourself.  While you are alive, your trust uses your own social security number and the main objective is to keep your assets out of probate court and easily pass your estate to your beneficiaries (see more about probate court under our Other Services tab). 

If you are looking for true creditor protection you may want to look into creating a business entity such as a Limited Liability Company (LLC) or a Corporation, which are stand alone entities with their own tax identification numbers.  It is important to keep in mind that there are required yearly fees, tax returns and formalities that must be followed to ensure there is a distinction between you as an individual and the business to preserve that creditor protection.