How Do I Avoid Probate in California?
You may have heard that you want to avoid probate in California at all costs. Perhaps you know someone that has gone through the lengthy and costly probate process in California in the past. Dealing with the loss of a loved one, friend or family member is hard enough, the probate process can make that transition even more difficult. Unfortunately, under California law, the probate is a public, lengthy and costly process. California case law and statutes that govern the transfer of inheritance and properties are not only rigorous but complicated. Without taking action to avoid probate of your estate it is a given that your loved ones will be subject to a lengthy legal process which will tax your wealth and therefore reduce the amount that your loved ones inherit.
What is the California Probate Process
In California, when you die, with or without a will, your estate goes into what is known as “probate.” This is just a fancy word for the California court proceedings and distribution process of the wealth and property attached to your estate. When there is a will in place the California court acts as a neutral adjudicator of claims and disputes, if any. As you can imagine, California’s efforts to assist your family with this process is not cheap. The California courts, including the Orange County Probate Court, charge a variety of filing fees and other administrative fees that can be a significant percentage of your estate. If that were not enough to make anyone cringe, despite all efforts on the part of California lawmakers to clean up this process, it still can take anywhere from a year to two years to complete the Orange County, California probate process, leaving your family without any money to survive until the money is distributed. Knowing this, many residents of Irvine and Orange County, California look for ways to avoid these probate costs and the lengthy probate procedure.
How to Avoid Probate in California
Luckily there are ways to avoid probate. One of the most commonly used methods to avoid the cost of probate in California is to create a trust. Revocable trusts (also known as Revocable Living Trust, Living Revocable Trust, Living Trust, Family Trust, etc.) are a completely legal means of avoiding this process and to provide for your family. From the standpoint of the parties involved, there are some upfront legal fees and administrative costs, as well as, changes to titles and accounts to “fund the trust,” but the benefits are that no one is waiting for a year to two years before receiving their property or inheritance. Moreover, you will avoid the costly process of going through probate.
Despite the fact that your property is legally held in your trust, it really is a distinction without a difference. You (and perhaps your spouse) will act as the trustee of the trust, meaning that you can keep doing what you are doing now with your money and property without any tax consequences. The only difference is that your loved ones will not have to go through the long and expensive probate process that happens when your estate is transferred by your will alone.
To learn more about how to avoid probate in Irvine or Orange County, California contact John Wong, an Orange County probate lawyer at Modern Wealth Law.
John Wong advises on all aspects of estate planning, probate, asset protection and trust administration. He believes that estate planning is about planning for life; while having protections in place should the unexpected occur.
