Wills & Trusts Walnut Creek, CA

Wills & Trusts Walnut Creek | Are you wondering if you need a Will or a Trust in Walnut Creek, CA?

This is a common question at our firm, but luckily we have the answer for you!

Living Trusts and Probate Avoidance

Although living trusts have been around for centuries, only recently have they achieved a high degree of popularity among the general public. The reason for this surge in popularity is that living trusts help to avoid probate. You might be wondering, “What is probate, and why is everyone trying so hard to avoid it?”  The short answer is that probate is a court-supervised procedure for collecting a deceased person’s assets, paying debts and taxes, and distributing the property to the person’s beneficiaries (either according to the instructions the person set forth in his or her will or as determined by state law if the person died without a will). The probate process usually takes 6 to 12 months to complete, although it may take longer in complicated cases.

What is a Trust?

A trust is a legal relationship, usually evidenced by a written document called a “Declaration of Trust” or “Trust Agreement”, whereby one person, called the “Settlor”, transfers property to another person, called the “Trustee”, who holds the property for the benefit of another person, called the “Beneficiary”.  The same person may occupy more than one position at a time.  For example, in the typical living trust, as long as the Settlor is alive, he or she is also the Trustee and Beneficiary.  On the death of the Settlor, a “Successor Trustee” (e.g., child, friend, and bank) takes over as Trustee and follows the Settlor’s instructions, which are set forth in the Trust, concerning the distribution of property and the payment of taxes and expenses.

Court Involvement

There is a popular misconception that the existence of a living trust avoids all possibility of court involvement.  This is true (in part) only if all of the Settlor’s assets were properly funded into the living trust. For example, if assets held outside the trust exceed $100,000 in gross value, a probate will be required for those assets in order for you, as Trustee, to collect those assets and add them to the trust. Moreover, if at any time a beneficiary of the Trust believes that the Trustee has acted improperly or without regard for the beneficiary’s interests, the beneficiary may file a petition with the court to force the Trustee to make a full report and accounting or to redress an alleged breach of trust, including removal of the Trustee or surcharge against the Trustee.

Do I need a Trust if I already have a Will?

The short answer is yes! Having a will without a Trust will create a Probate, which will be a slow and expensive process. We get this question a lot, click here to find out if you need a Trust!

 

Have a question about Wills & Trusts Walnut Creek?

Contact Rex Crandell Firm in Walnut Creek, CA at 925-934-6320!