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What is Living Trust? In recent years, people have become more concerned about their finances and the proper management of their assets and properties. Because of this shift towards financial responsibility, interest in living trusts has significantly increased as well. Hence, there may be a need to define living trust in a manner that is more understandable by the ordinary, non-legalese individual.

In Valencia California, living trust is commonly defined as a trust that is revocable by the creator or the trust grantor. Ideally, it is used to prepare for circumstances such as death, disability or incapacity. It is, however, more often used simply to avoid the probate process. Avoiding probate normally means saving money and time as well as maintaining privacy in the handling of a deceased person’s assets. In Valencia, California for example, going through probate could mean fees that range from 4-8% of the total value of a person’s estate. To add to that, you would still have to pay appraisal fees and court costs.

There are, of course certain disadvantages in setting up a living trust. For one, having a living trust does not save you from estate and inheritance taxes. The expenses involved in setting up a trust could also be high, and it is an immediate expense, because you have to pay the fees up front and payment may not be postponed until the time of the grantor’s death. In the long run, however, the money, time and hassle that you save by putting up the trust far outweighs the expense involved in setting it up.

A living trust is a private financial transaction and as such, is not subject to the control of the probate court. This is why it is considered as one of the most reliable ways of avoiding probate in time of death. For those considering setting up their own living trust, it may be best to consult an attorney who specializes in this field to get proper guidance. A good lawyer can ensure that your trust is properly set up and the beneficiaries will gain full benefit from the said trust.

Mortensen Law
Tax, Trust & Estate Attorneys, P.C.
24300 Town Center Drive Suite 390
Valencia, CA 91355
(661) 799-8035
(661) 799-8838 fax

The Benefits of a Living Trust. Most people think that preparing a last will and testament is enough preparation in the event of death. There are, however, other ways to plan for this and other eventualities. Setting up a living trust is one of these ways.

What is a living trust? It is simply the act of putting your properties in a trust that is revocable by the trust grantor. It helps you plan for the possibility of disability or incapacity, as well as the inevitability of death. It also lets you avoid the lengthy and expensive process of probate.

The main concern when it comes to probate is expense, especially in places like Valencia, California, where probate expenses can range from 4-8% of the gross value of one’s assets. Having a living trust can help you avoid these costs. Of course, setting up a trust can be costly as well. One would have to consult with a good living trust lawyer before setting up the trust, which means that he could rack up attorney’s fees. The cost of setting up a trust is, however, negligible as compared to the cost of going through probate court.

Time is also a major factor that makes living trust more attractive than probate. A probate normally takes at least six months whereas facilitating the distribution of properties held in a living trust only takes the trustee a few weeks to complete.

Perhaps most important for some individuals is the privacy that a living trust guarantees. Probate court records, much like any court document, is open to the public while living trust records are held privately. A living trust is outside the control of probate court and the trustee is not required to report to the court in the process of distributing the grantor’s assets.

Mortensen Law
Tax, Trust & Estate Attorneys, P.C.
24300 Town Center Drive Suite 390
Valencia, CA 91355
(661) 799-8035
(661) 799-8838 fax

Probate Versus Living Trust. Would you rather have your estate go into probate at the time of your death, or are you going to set up a living trust in order to avoid probate? It may be best to consider the pros and cons of both processes before making a decision.

Probate is a legal process that aims to protect the surviving family members who have a legal claim to a deceased person’s properties. It is the process of settling the estate by first validating the authenticity of the last will and testament of the deceased and distributing his properties in accordance to that will.

A living trust, on the other hand, is the act of transferring ownership of one’s properties to a private trust, which will still remain under his control and may be revised at any time he deems necessary. In the event of his death, ownership of the properties held in trust is automatically given to the beneficiaries specified in the trust.

The choice between probate and living trust is primarily affected by three factors: money, time and privacy.

Probate is expensive. In Valencia, California alone you could be required to pay statutory fees of up to 8% of the value of your estate. In addition to this, there are still attorney’s fees to take care of. Setting up a living trust may be less costly in the long run since the process does not involve such a high amount in fees. It does not, however, save you from having to pay estate or inheritance taxes.

A probate may take at least six months, which could take a considerable emotional toll on the heirs. In comparison, properties held in a living trust could be distributed in a matter of weeks.

Probate is a public process and anyone can have access to information about the deceased and his family. On the other hand, a living trust is a private matter and does not fall into the control of probate court, hence only your lawyer and heirs will have access to all information.

Now that you have compared and contrasted the two processes, you are ready to make your decision and rest assured that your loved ones will have less of a burden in the future.

Mortensen Law
Tax, Trust & Estate Attorneys, P.C.
24300 Town Center Drive Suite 390
Valencia, CA 91355
(661) 799-8035
(661) 799-8838 fax

Living Trust to Aid the Living. Nobody wants to die, but death is a certainty — it is only a question of when. Most of us want to die with the peace of knowing that those we leave behind will not be burdened by our death. For this reason, we prepare our last will and testament, buy insurance policies and set up trusts for our children. Perhaps we should also consider setting up a living trust in addition to all the financial safeguards we have already put in place.

A living trust is aptly named, as it primarily benefits the living — or the surviving — family members of a deceased person. It aids them in the fact that it allows them to save a large amount of money and time by avoiding the expensive and lengthy process of probate. It also allows them to keep their privacy in the process.

Having a living trust may not save you from paying estate and inheritance taxes, but it does protect you from having to shell out astronomical amounts in probate court costs and lawyer fees. Executing the stipulations of a living trust may take weeks to complete, but that is a small price to pay in exchange of spending at least six months going through probate. Finally, a trust falls outside the control of probate court; therefore one is not forced to go through a public process or report to the probate court as regards the distribution of the deceased person’s properties.

Before actually setting up a living trust, however, you may want to consult a probate attorney who could provide legal input and help you ensure that your trust is handled properly. It is also imperative to specify a beneficiary for all of your assets to make sure that there are no loopholes that may place any of your properties into probate control.

Mortensen Law
Tax, Trust & Estate Attorneys, P.C.
24300 Town Center Drive Suite 390
Valencia, CA 91355
(661) 799-8035
(661) 799-8838 fax