Living Trust Savings (April, 2006)
Article for THE LEGAL CORNER: ANSWERS TO COMMONLY ASKED QUESTIONS REGARDING
THE LAW.
HOW MUCH DO I REALLY SAVE BY HAVING A LIVING
TRUST?
In the absence of a living trust or property transferred by joint tenancy, if
your estate is worth $100,000.00 or more (to include the fair market value of
your home, not just your equity in that home), a probate case is required to
transfer your assets. How much does such a probate case cost? Probate attorney’s
fees and executor’s fees are determined by the gross value of assets in
your estate. Those fees, on average (not counting additional fees due for sale
of real property, challenges to a Will or the like) are approximately $26,000.00
for an estate with a gross value of $600,000.00, $36,000.00 for an estate with
$750,000.00 in assets, $46,000.00 for an estate with a gross value of $1 million
and approximately $56,000.00 for a gross estate value of $1.5 million. It is
not uncommon for heirs to have to sell property simply to raise enough money
to pay for the cost of inheriting property!
By contrast, a properly prepared and funded living trust avoids the process
of probate and provides for a prompt, informal, out of court alternative to
the probate process.
Furthermore, the process of probate, while it can be completed in as "little"
as 9-10 months, most commonly takes at least 15-18 months and sometimes longer
to complete.
Another key benefit to a living trust is avoiding further court proceedings
(a Conservatorship) in the event of your incapacity - another lengthy, expensive
legal process.
The information contained herein is general information about the law only. The law is subject to change. If you have a specific legal question and want your question(s) answered, consult with an experienced attorney.