Who Needs and Doesn't Need a Trust

I have heard many differing opinions on this question. Not unlike those attorneys, I too have an opinion. One of the things that clients tell me they have "heard from their attorney", is that you don't need a living trust unless your estate goes over $3,500,000 dollars. That would seem to imply that a single person, or a couple, with an estate of $500,000 do not need a trust. Here in California, if a resident, and/or couple, passed away intestate (without a will), or testate (with a will) their estate would almost certainly have to be probated. The statutory probate fees for their $500,000 estate would probably be a minimum of $26,000.

My opinion is quite simple. If your death would trigger probate you should consider drafting a revocable living trust. The drafting of a Revocable Living Trust is nothing more than an alternative to drafting a will. Your Revocable Living Trust would result in a non-probate transfer at death. Your Will would result in a probate transfer at death.

If you think you're too young to consider finding out about trusts - Think Again! Do your parents have a Living Trust? Will you be saddled with taxes, probate, attorneys, delays and public scrutiny when one or both of them die? If you have minor children, who would take care of your children? Maybe you should look further into a revocable living trust package by researching the other pages here on our Web site.

To find out more about what a revocable living trust is, please refer to our section on estates.