Depending on your own financial and familial situation, there are many potential reasons and benefits for having a living trust drafted. However, the two biggest reasons to have a living trust drafted are rooted in two concepts: cost and time. Put simply, a living trust is much less costly and time-consuming than probate court.
Trust: A typical trust package drafted by an attorney costs between $1,600 to $2,200. Although this is not a small amount of money, this is a lot less than probate fees.
Probate: Attorney’s fees in probate court are set by statute, which means that the fees are set by the California legislature and are not negotiable like ordinary attorney’s fees. For example, as we know in the San Gabriel Valley, property values have risen significantly in the past few years. As a result, if a person in Temple City passes away without a living trust and has one asset, a house worth $800,000, the attorney’s fees by law would be $19,000.
That is a big difference in attorney’s fees.
Living Trust: I have met with a client, drafted, and finalized a trust in less than a week. Once a person with a trust passes away, that person’s trust assets transfers to the beneficiaries (almost) immediately.
Probate: My average probate case has been taking twelve to sixteen months to complete before assets are transferred. This long period of time makes the grieving process even more difficult for the surviving loved ones.
Due to the complicated nature of living trusts, I like to end my initial meeting with clients by reminding them that the main reason to have a living trust drafted is to avoid probate court, a costly and lengthy process.
Tony does not charge for initial consultations. For more information, please contact Tony at 5703 Temple City Boulevard, 626-285-7033, or firstname.lastname@example.org.