If life is not sufficiently complex, then think again about death and taxes! Dying has never been more messy, as State and Federal courts prowl through deceased persons’ estates in search of “government's share" of what you've worked and saved for. Simple, legally proper and increasingly popular living trusts in California guarantee you and your heirs privacy and lower estate transfer costs to after-death estate events for State residents.
Probate Versus Family's Interest Contained By A CA Living Trust. Preserving family estate assets from the protracted and expensive probate process is the key to the grantor style revocable living trust. It's all about time and money savings to your heirs. Absent proper estate organization . . . supported by lawyer-prepared documents . . . your heirs might wait three years or more, plus literally lose over 20% of the underlying asset value to “probate administrative costs".
Assets - What Have You Actually Got? Are all of your assets located in California? Or, do certain assets, like a cottage or retirement condo or boat exist outside California?
* In-California Assets. If you're single, and a resident of California, then your California living trust can accept your asset transfers as “separate" rather than “community" assets as is the case when a married couple . . . with joint title to say a house or real property . . . makes a transfer designation of that jointly-owned asset into your California living trust. In California law “community property" can be managed by a spouse, without limiting authority or transfer rights.
* Out-Of-California Assets. Any financial or real property assets that you have either deposited at a financial institution or held as title registered to an out-of-State address should be transferred into your California living trust. There's a catch, however, you need to do the asset transfer correctly, based on the other State's laws . . . so to be prudent hire an estate attorney in the other State to draft the required documents.
How Does Your Revocable California Living Trust Manage Your Death Event? Let's assume that all of your in-State and out-of-State assets have been properly transferred into your living trust, which is now “legally funded". Your “successor trustee", who acts with full legal or fiduciary powers and can be a qualified friend or an institution, checks on all areas of liability . . . think taxes, debtors or any other legal obligation . . . makes payments to eliminate these obligations prior to the distribution process you've outlined for your heirs.
Creating The California Revocable Living Trust Deed - Who Do You Need? Avoid low cost “estate promoters" selling estate planning deals. You've worked hard all your life. You love your family. You don't want them to go through additional agony after you've died by battling with courts over faulty documents. In most communities you'll find a suitably qualified Californian estate lawyer. His or her job will be to inventory your entire asset base,
Costs, Fees Estimate From A California Living Trust Attorney. California law obligates lawyers and licensed financial estate service providers to state in writing the full scope of their services . . . from assert reviews to document creation and review . . . along with associated cost for you to understand and accept or modify under contract.
Cancellation Rights On A California Living Trust - Consumer Protection. If your CA living trust preparation costs exceed $25 . . . which they certainly will do . . . then by law after you've signed the contract agreeing to purchase the service, you still have three business days following execution of the original contract and copy to cancel without liability.
California Taxes And Your California Living Trust. You may wonder . . . “how is my California living trust identified, as a legal person or entity?" by California, my county and the Federal government? Answer? Your social security number, as the grantor or settlor of this revocable living trust, is the identifying “code". Under California law, no taxes accrue nor are taxes paid by your CA living trust until the grantor dies. Meanwhile, any ordinary income or reporting of capital gains or losses is reported on your individual income tax return. California living trusts do not confer any direct tax minimization benefits that could not, otherwise, be created through regular and proper estate planning, inclusive of ordinary wills.
Bottom Line. California living trusts offer privacy, and potentially significant cost and time savings to your heirs, without the imposition of court-ordered probate. Learn how CA living trusts and spendthrift trusts can simplify estate planning so that legal heirs.
Please go to:-
Living Trusts: http://www.wise4living.com/lwill/living-trust.html
Spendthrift Trusts: http://www.wise4living.com/lwill/spendthrift.html
Author Robin Derry is publisher for http://www.wise4living.com/ a specialty knowledge site that gives insights and solutions on a wide range of product, technology and lifestyle interests for web-enabled people.