What is a revocable living trust and how will it benefit me? One of the most beneficial aspects of a trust is that it allows the beneficiaries, after the death of the owners (or Settlors) to avoid probate. Probate is an extremely expensive legal process and the fees paid to the attorney and the administrator or executor are set by statute. The fees are set by California Probate Code Section 10810. They are as follows:
| Percent | Estate Value |
| 4% | The first $100,000.00 |
| 3% | The first $100,000.00 |
| 2% | The next $800,000.00 |
| 1% | The next $9,000,000.00 |
| 1/2% | The next $15,000,000.00 |
| Reasonable Amount Determind by the Court | All amounts over $25,000,000.00 |
What is a revocable living trust and how will it benefit me? One of the most beneficial aspects of a trust is that it allows the beneficiaries, after the death of the owners (or Settlors) to avoid probate. Probate is an extremely expensive legal process and the fees paid to the attorney and the administrator or executor are set by statute. The fees are set by California Probate Code Section 10810. They are as follows:
| Estate Value | Attorney Fees | Adm/ Executor Fees | Total |
| $200,000.00 | $7,000.00 | $7,000.00 | $14,000.00 |
| $500,000.00 | $13,000.00 | $13,000.00 | $26,000.00 |
| $1,000,000.00 | $23,000.00 | $23,000.00 | $46,000.00 |
| $5,000,000.00 | $63,000.00 | $63,000.00 | $126,000.00 |
| $10,000,000.00 | $113,000.00 | $113,000.00 | $226,000.00 |
| $25,000,000.00 | $213,000.00 | $213,000.00 | $426,000.00 |
Add to this the filing costs, appraisal costs and other incidental court costs and you can see clearly that probate is an expensive proposition. The alternative is to create a revocable trust. A trust avoids probate and allows the persons you select to manage and distribute your assets as you see fit after your death–and during your lifetime if you became unable to manage your own affairs.
A trust also gives you the flexibility to provide for your minor children or adult children if they cannot manage their own affairs. Upon creation of your trust, you then transfer your assets into the trust and the trust becomes the owner of the assets, and you of course own and manage the trust, most typically, during your lifetime. Upon your death, your assets are distributed to the persons you select, in the manner you select. As long as you are competent, you may revoke or change the terms of your trust at any time.
A living trust avoids probate saving your beneficiaries time and money. And since the court would not be involved, your assets and their values as well as your beneficiaries identities would not become public record. If you die and your assets are not in a living trust they could be subject to probate. There are a few other ways to avoid probate with certain assets, which will be a subject for future reflection.
Here at the Law Offices of Gloria D. Cordova, Inc., we will help you get started planning for your estate. We offer a great package deal that includes a Will, Revocable Trust, Advanced Health Care Directive, Durable Power of Attorney, and we also transfer your property to your trust. Please call to set up a consultation, you can reach us at 909.612.5787. Please check in regularly to learn more estate planning facts. Also check us out on https://www.facebook.com/gcordovalaw?ref=hl.