Avoiding Probate with a Trust in California
Navigating California Probate Laws: The DRS Law Team’s Proven Strategies to Keep You Out of Court
Assets placed in a trust will bypass the probate process, which is required only under specific conditions. A probate proceeding is required in California when all three of the following are present:
- A person has passed away; and
- They owned property in their name alone; and
- That property exceeds a gross value of $61,500 for real estate and/or $184,500 for personal property.
A trust as a separate legal entity can hold property titled in the name of the trust. Since the trust, not the individual, owns the assets, those assets are not considered part of the deceased person’s estate. When determining whether probate is necessary, the key question is: "What did the deceased person own?" If the answer is nothing—because all assets were held in a trust—then there is no probate estate, making probate unnecessary.
How Does A Trust Avoid Probate?
How a Living Trust Works
When you create a living trust, you name yourself as the primary trustee and a trusted relative or bank as the secondary trustee. As long as you are able, you simply do what you want with the funds. If you become incapacitated however your secondary trustee gains access to the funds and takes over so long as you are unable. In accordance with your instructions, the secondary trustee takes care of you and your family and pays your bills.
When you die, the secondary trustee disposes of the funds, as you have directed, to provide for your family. As the funds are in a trust, they were not technically yours at your death and so they do not have to go through probate. This also means that the trust is not a public record and affords privacy to your family.
David R. Schneider has been preparing living trusts for clients in the coastal counties of California since 1999. When a client comes to us, we listen and let the client describe his or her financial situation and family needs. We then propose to the client options to achieve the client’s objectives and due regard to estate planning, tax planning, avoidance of probate and other considerations. We then professionally prepare the documents the client desires.
Probate can be daunting and time-consuming. Let David R. Schneider handle the legal hurdles so you can focus on life’s important moments..Do You Need Help with Trusts?
Trusts are vital tools for providing for family needs and have important tax planning benefits. When you create a trust, you put funds into the hands of a trustee with instructions as to how to provide for beneficiaries. An estate planning attorney can ensure your trust is drafted properly to carry out your objectives and achieve maximum tax benefit. David Schneider and the team a DRS Law are expert in helping to guide clients involved with an existing trust and answer any questions about trusts.
We have assisted clients with trusts throughout, California since 1999. We are a seasoned trust firm offering high-quality, personalized service to clients. When clients contact us, we work out comprehensive estate planning to address their unique situations. This may include the creation of one or more trusts for high net-worth clients, or simpler versions to ensure an orderly transition from parent/grandparent to child/grandchild insuring both protection and probate avoidance. Where the trust already exists, we guide trustees or beneficiaries as the situation requires.
Preparation of Trusts
Different Trusts address different needs. Revocable Living Trusts can be used to provide a Trusted relative/friend access to your funds in case of your disability. They are also useful for the avoidance of probate proceedings. Irrevocable Trusts are used as tax planning tools to minimize estate taxes and also for asset protection. They can additionally be used to facilitate eligibility for Medicaid or Veterans benefits. Special Needs Trusts enable you to provide for incompetent dependents in case of your death or incapacity.
Trust Administration
We are available to assist in trust administration. This can involve guiding a trustee to comply with legal requirements and avoid breach of fiduciary duty. We can also aid trustees involved in litigation or IRS investigations. We also take action for beneficiaries unhappy with the administration of a trust.
Frequently Asked Questions (FAQ)
How much does it cost to set up a living trust in California?
While fees vary based on complexity, a basic living trust typically costs between $2,000-4,000. This includes trust document preparation, asset transfer assistance, and pour-over will creation. The investment often saves tens of thousands of dollars compared to potential probate costs, which can run 4-7% of your estate's value.
What happens if I forget to put some assets into my trust?
Any assets left out of your trust may need to go through probate if they exceed California's threshold ($61,500 for real estate or $184,500 for personal property). However, a pour-over will can help transfer forgotten assets into your trust after death, though this may still require probate proceedings.
Can I manage my assets normally after putting them in a living trust?
Yes, with a revocable living trust you maintain complete control of your assets. As the primary trustee, you can buy, sell, or modify assets just as you did before. The trust only restricts access if you become incapacitated or pass away, at which point your chosen secondary trustee takes over.
How long does it take to set up a trust and transfer assets?
The basic trust setup typically takes 2-3 weeks from initial consultation to final document signing. Asset transfers can take an additional 1-2 months depending on the types of assets involved. Real estate transfers, account retitling, and beneficiary updates are handled systematically to ensure proper trust funding.
Serving All California Counties
Our practice extends throughout California, including:
- Ventura County (Thousand Oaks, Oxnard, Camarillo, Simi Valley)
- Los Angeles County
- Orange County
- Riverside County
- San Bernardino County
- San Diego County
- Santa Barbara County
Whether you’re local or in another part of California, we’re here to guide you toward a smoother, more secure estate plan.
Ready to Avoid Probate and Protect Your Assets?
We’ve been preparing living trusts and handling trust administration issues since 1999. We understand the intricacies of California law and will tailor solutions to meet your financial and family needs. If you’re ready to protect your legacy and avoid probate headaches, contact us today.
Contact David R. Schneider, experienced Trust Attorney, to discuss your trust needs today.
Integrity and Expertise at the Core of Our Legal Services
With decades of professional expertise, David R. Schneider, APC blends deep community ties with a wealth of experience. From running a successful business to excelling in the legal field with top grades and honors, David’s extensive knowledge ensures comprehensive and trusted legal support. His lifelong commitment to the Conejo Valley and its residents is your assurance of reliable and heartfelt service. Choose a legacy of excellence for your legal needs.