| Alan R. Horvath, Attorney at Law |
| Probate Avoidance |
Probate is the process by which the state determines the ownership of assets left by a deceased individual, and
takes the necessary legal action to have them retitled. Because probate is a court administered process, it is slow,
costly, and public. Probate fees are statutorily set on a declining sliding scale, starting at 4% for the first $100,000.
The fee on a million dollar estate would be $23,000. Many individuals desire to avoid probate in order to avoid these
fees.
Because a trust survives the death of a trustee, and the trust assets automatically become the property of the
successor trustee, a trust can be used as a vehicle to avoid probate. Rather than making a will, the settlor puts all his
property into a trust. He may choose to be the initial trustee or not. The key is that who will be trustee after his death
is the same person he would otherwise have named as his executor. With a trust, the property will automatically
become the property of this trustee, and the trust will give instructions to the trustee as to how and when the property
is to be distributed. No probate is necessary because ownership of the assets has already been determined.
If this sounds like legal mumbo jumbo, it is, but it is legal, it works, and it is now common practice.
Note that the result of avoiding the court is that you are putting total trust in your trustee.
takes the necessary legal action to have them retitled. Because probate is a court administered process, it is slow,
costly, and public. Probate fees are statutorily set on a declining sliding scale, starting at 4% for the first $100,000.
The fee on a million dollar estate would be $23,000. Many individuals desire to avoid probate in order to avoid these
fees.
Because a trust survives the death of a trustee, and the trust assets automatically become the property of the
successor trustee, a trust can be used as a vehicle to avoid probate. Rather than making a will, the settlor puts all his
property into a trust. He may choose to be the initial trustee or not. The key is that who will be trustee after his death
is the same person he would otherwise have named as his executor. With a trust, the property will automatically
become the property of this trustee, and the trust will give instructions to the trustee as to how and when the property
is to be distributed. No probate is necessary because ownership of the assets has already been determined.
If this sounds like legal mumbo jumbo, it is, but it is legal, it works, and it is now common practice.
Note that the result of avoiding the court is that you are putting total trust in your trustee.
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P.O. Box 81
37 Main St., Suite 202
San Andreas, CA 95249
37 Main St., Suite 202
San Andreas, CA 95249
| Phone: 209 754-5291 Fax: 209 754-5293 |
| ahorvathlaw@sbcglobal.net |
| Estate Planning By Phone for Any California Resident |