Probate is a Superior Court proceeding that takes place upon the death of an individual. In probate, the Court directs the payment of a deceased person’s liabilities and distributes the remaining assets to beneficiaries of the will.
If there is no will, the assets are distributed to the person’s heirs as determined under the laws of the State of California.
Probate proceedings are cumbersome and lengthy. The average uncontested probate takes one to two years. Contested probates last much longer.
The Laws of the State of California set probate fees. These fees and costs depend on the gross size of the probate estate (assets including liabilities).
They normally average between 5-10% of the gross value of the probate estate.
A Living Trust allows your assets to be distributed almost immediately. Only assets in your name as an individual are subject to probate, but with a trust, you transfer assets into your name as trustee. Upon your death, nothing is subject to probate because nothing is held in your name as an individual. Instead, everything is in your name as trustee.
Your back-up trustee (someone you have named) automatically takes over. The back-up trustee pays your debts and distributes your assets to your beneficiaries according to your instructions.
The trust document authorizes your back-up trustee to distribute the assets, thus avoiding a probate. To act, all your back-up trustee needs is your death certificate and the trust.
You may even instruct your back-up trustee to hold assets for a beneficiary until they reach a certain age, such as 21. Until your beneficiary reaches that age, the assets are available only for their education, health and welfare.
