A San Diego Family Trust is an excellent tool to have in place for any family. A familiy trust is simply a revocable trust (or inter vivos trust) created by a husband and wife (the Settlors of the Trust) for the benefit of the beneficiaries of the trust—the married couple and then their heirs once the Settlors of the Family Trust have died.
Family Living Trust in San Diego: 5 primary benefits
Probate Avoidance
Probate typically runs about 3-5% of the overall value of the estate. Further, probate involves constant court interaction and fees.
In contrast, trust administration typically runs 1-2% of the overall value of the estate and involves little to no court interaction or fees.
Privacy
A will is available to the public. A family trust is private, and is only made available to the parties named in the trust.
Harder to Contest
Due to the public nature of a will, it is more susceptible to a potential will contest. A Trust, as mentioned above, is private. The only parties involved in trust administration are the parties named in the trust.
A San Diego will contest or trust contest can be very costly. The unfortunate part of most estate contests is the parties involved wind up depleting the estate in question over the bitter feelings among parties. Avoiding a will contest through the creation of a family trust is the best way to protect your family from needless litigation upon your death.
Incapacity
Most people focus primarily on the benefits of a trust at death but there are also benefits to a trust while the Settlor is still alive. If the Settlors of a family trust become incapacitated, the successor trustee can step in and take care of the Settlor and the estate. In contrast, a will does not provide incapacity planning.
Faster Distribution
A trust can typically begin distribution within the first 90 days after administration has begun. In contrast, California probate of a will requires court interaction and can take up to two years or more in San Diego.
Thank you for reading our article, the Benefits of a Family Trust in San Diego. If you have any questions, please leave your comments below.