WHY DO I NEED A LIVING TRUST?
A Will may not be the best plan for you and your
family, primarily because a will does not avoid
probate. A will must be verified by the probate
court before it can be enforced.
Furthermore, because a will can only go into
effect after you die, it provides no protection if
you become physically or mentally incapacitated.
So the court could easily take control of your
assets before you die –a concern of millions of
older Americans and their families.
Fortunately, there is a simple and proven
alternative to a will –the Revocable Living Trust. It avoids probate, and lets you keep
control of your assets while you are living –even
if you become incapacitated –and after you die.
WHAT IS PROBATE?
Probate is the legal process through which the
court “proves a will”. If you haven’t prepared
your own will, the Court will look to the default
will in the probate code and the Court will
probate that will as your will. Anybody who
owns assets or real estate valued at $100,000 or
more is generally required to go through probate
before their assets can be transferred.
The probate process can be expensive and time
consuming. The main expenses are attorney,
executor, appraisal, and court filing fees. The
fees generally range from 4% to 10% of the entire
value of your estate, and depending upon the
complexity of the estate, can take a minimum of
four months to as long as two years or more to
complete. Probate can become a tremendous
time and financial burden for your loved ones. |
