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How Homeowners Benefit from a Revocable Living Trust

Hey everyone, this is attorney Brian Russ at Brian Russ Law, Inc. You can find me online at BrianRussLaw.com and ProbateProbateProbate.com. My phone number is (888) 632-6623. And so today’s video is about how California homeowners benefit from a revocable living trust.

I’m sure you’ve heard a lot of things about setting up a trust and why they’re good or have questions about what’s a living trust versus revocable trust versus an irrevocable trust. And so today’s topic, really, this video is intended to cover about 95% of homeowners in California. For people that generally own one home that they live in. It’s a personal residence. And, you know, the topic of this video is why setting up a revocable living trust, you know, benefits those people.

And so, before we get into further detail, right, I have to give you the disclaimers, the State Bar says I have to tell you these things and I’m happy to tell you them so the first one is that this video does not constitute legal advice. This is for informational and advertisement purposes only. This is not legal advice. If you need help with your particular situation, or if you have particular questions about what type of trust would be best for you, or how to best set up a trust for you and your loved ones and your family, you need to retain an attorney. Furthermore, by viewing this video or reading this post, you have to know that no attorney client relationship forms. I don’t know who’s watching this, anybody could be watching anywhere in the world. No attorney client relationship forms by your watching this video. And as mentioned before, this video and this post is an advertisement, it should be considered an advertisement. I’m an attorney, I sell my services, I most likely would like to work with you if you want to set up a revocable living trust in California, for California property, and you’re a California resident, so feel free to reach out to me.

Now to get to the topic of the video. Right, the whole thing is the benefits of revocable living trust. And really, this video is focused on how it benefits homeowners, there’s lots of other benefits to a revocable living trust, especially to people who maybe have a child or loved one with special needs. There’s benefits to a revocable living trust if you have children who are very young, or maybe they are, you know, adults, and but maybe they’re not so good with money or they have other questionable spending habits. There’s lots of benefits to a revocable living trust. But again, this video is focused on, you know why it is beneficial for a homeowner to establish revocable living trust, and then to put that property into the trust.

So the major, the major benefit of establishing revocable living trust for a homeowner, is that basically, by putting a property in the name of a trust – by putting your real property, so your real estate, into the name of the trust is that it avoids necessary probate proceedings triggered by virtue of it being real property that needs to pass on to your heirs. So you know, I know a lot of attorneys will tell people, they try to use this whole thing about avoiding probate these as a scare tactic. I will tell you that I do not think probate court is scary. I do not think it is bad. I do not think it is unfair.

I do think going through probate court is expensive, there’s unnecessary expense, it is delayed. There’s unnecessary delays in the process. There’s just unnecessary requirements. That I mean, if you want your family to go through it, that’s fine. But most people, nearly every single client I’ve ever talked to, every single potential client I’ve ever talked to one of their main goals of setting up a state plan is to have the most efficient administration of their estate, so that their heirs inherit as much money in property as possible. They want as little as possible to go to the government. Right. And so the court is a branch of the government.

So that’s why we you know, we set up these revocable living trusts. So in California, there are specific statutes that say, you know, an estate has to go through probate proceedings for their full probate or simplified probate, if there’s real property involved. And if that real property is worth certain dollar amounts, I think it’s something like, you know, there’s there’s a threshold at around 60,000, there’s a threshold around 160,000. I mean, these things are generally pegged for inflation, or they increase with statute.

Don’t quote me on the exact numbers. But essentially, if you own real property in California, or an interest in real property, so you own a quarter, quarter of a house or you own half of a property or whatever, you probably have to go through probate unless that interest is transferred into a trust. And so again, you’d have to go through probate proceedings, your family have to go through there just takes extra time, unnecessary time because there’s other ways that we can deal with these things.

And there’s other ways that are more efficient. The other benefit of setting for revocable living trust and avoiding going to probate court is that it allows for private administration of your estate. If you go through the probate process, or as you say, if your family has to take your estate through the probate process in probate court, that becomes public record. Anybody can go see who’s inheriting what, what happened, and a lot people just want their affairs to be private. They don’t want it to be public record. And that’s, that’s totally fair.

If you set up a revocable living trust, it allows the property to pass outside of the probate court just passes through trust administration. And there are some, you know, there’s always the possibility that a trust administration can go sideways, there can be dispute, and we end up in court, that’s always possibility. But most cases that I’ve seen is that you can do this private trust administration without having to go to court, you have a couple of brothers and sisters, everybody agrees to the distribution array. Now, as we get into third or half or quarter, whatever it is, and you avoid having to go to court, you avoid having to put this out in public record for people to see in the future.

Because one, it’s public record for both the estate, you know, for the decedent, it’s public record for the beneficiaries, their names are on there. So if you have creditors and so on, you know, and they’re running a search, they can see that you are inheriting, you know, potentially large sums of money. And so again, there’s a benefit of the revocable living trust in that it allows for private administration of the estate.

And third, this is really, why I hammer home just setting up a revocable living trust, moving your property into the name of the trust allows for a more efficient administration of the estate, right? I keep harping on this, the court is fair, you know, it’s legal. All this is just not as efficient as doing it privately. And so, again, that’s one of the major benefits. Additionally, as I said, there’s the private administration of it as well. So, if you have any questions about setting up a revocable living trust, so you have property in California, you own, you know, your home, you know, feel free to reach out to me, you know, my contact information is here, BrianRussLaw.com, you can go ahead and call (888) 632-6623 and set up at a time to talk with me. I serve clients all throughout California. So even though I’m based in Sacramento, that’s my home base. I serve clients in San Diego County, Los Angeles County, up North, Bay Area, all over the state. So feel free reach out and we can set up your living trust.

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