Whenever you take title to a property, or change how you hold title, there is always the option to hold title in a Trust!
If you have any assets, you will want to form a Trust unless you want to end up in potential probate court. Attorney Adam Schneider shared there is often the misconception that people believe they just need a Will. Schneider says:
If you own real estate in CA, you likely would be better suited with a Trust. Outside of precarious situations like Guardianship and Conservatorship for the incapacitated, Wills only take effect upon death. That can often be a huge problem and usually requires constant updates. Wills can be form (printed) or holographic. Wills have specific requirements, many that can invalidate a Will if those requirements are not met. For instance, I just resolved a case where although the Will was notarized, it was not witnessed by two, disinterested, witnesses. This was a huge problem, left the burden on us to prove the Will up based on "clear and convincing evidence," and resulted in litigation for three years
In CA, Wills are your first class ticket to Probate Court, which is all public record. There is basically no privacy in the Probate action, and anyone can, and will step in, including creditors. Unless of course, your estate is below a certain threshold, then there are other mechanisms to handle "small estates."
Why would someone have a Will and not a Trust? Lack of knowledge, initial costs of a Trust, low asset value, no real property. Standard legal costs to Probate a Will in CA? The sweet spot is usually $15,000.00, give or take, and depending on the overall value of the estate. The legal fees are set by the State of California
The entire process usually takes anywhere from 1 to 1.5 years plus. That’s if it’s not contested. I have a contested Will that is 3 years old right now
Overall, a living Trust is not just to avoid probate, it is put in place and is indeed “living” and very much in effect during your lifetime to address things like incapacity and other life situations that come up where you might not be able to manage your affairs anymore. That could include business dealings, real estate dealings, and even more complicated things like inter vivos Trusts, contracts, and other serious matters
For actual legal advice and to talk to Adam about estate planning- reach out to him at 925.953.3872 or Adam@aschneiderlawpc.com