As you get older, you begin thinking about how you will pass down your possessions to loved ones. Whether you’re a private resident with children or a landlord with various properties within Sonoma County, a living trust could be your best option.
Is a Living Trust in California right for you?
A living trust is a good option if you own possessions and assets that you wish to pass on. Under living trusts, you (the trustee) would bestow an estate plan to the beneficiary. California’s living trust can also bypass the state’s complicated probate process.
What are the advantages of a Living Trust?
The most important advantage of a living trust in California is the avoidance of probate. California doesn’t abide by the Uniform Probate Code, which could make proceedings messy and complicated.
However, the probate process may be a simple probate case if your estate is less than $150K. The process could be even smoother if your real estate has a value of less than $50K. If your estate is worth more, a living trust may be a good option.
A living trust will also give you more control. You can dictate who will receive your valuables after you die, and can also manage how a beneficiary will use the assets bestowed to them.
Example: You can stipulate how a beneficiary will spend a multi-million-dollar fortune, so they don’t squander it.
A living trust in California can also keep certain taxes at bay. Your assets may be subject to the following types of taxation:
- Income taxes
- Estate taxes
- Gift taxes
A living trust can lower your tax bill or avoid it altogether due to California not having an estate tax.
Under federal guidelines, some of your assets may be exempt from taxation. With that, the exemptions depend on the assets in question. However, you’ll only be subject to estate taxation if your possessions are worth around $12 million.
How do I create a Living Trust?
The most direct way to create a living trust is to talk to an attorney who specializes in estate planning.
An estate lawyer can help you determine the best trust for your situation. From there, the lawyer will draft a document that lists your possessions and assets.
Living Trusts in California with the help of a Legal Professional
Living trusts are important in California because they can avoid complicated probate proceedings that could delay the transfer of assets. Also, living trusts in California can offer numerous tax savings that allow your beneficiaries to retain more of your estate.
An estate-planning attorney can help you take advantage of tax benefits and secure the transition of your assets to the appropriate parties.