Are you thinking of forming a trust? Trust preparation is an important step to planning for your – and your family’s – future. Robert L. Ferris, San Francisco trust preparation attorney, can help you begin the process and construct a solid foundation for your legal needs. The following is a brief explanation of what a trust is, as well as why it can be of benefit to you.
A revocable trust, sometimes referred to as a “living trust,” “intervivos trust,” or “A-B trust,” is a written legal document through which your assets are placed into a trust for your benefit during your lifetime and then transferred to designated beneficiaries at your death by your chosen representative, called a “successor trustee.” The person making the trust (the trustor) transfers title to their home and other real property to the trust by means of a quitclaim deed. The primary benefit of a revocable trust is that it avoids the high costs of probate, which can easily cost tens of thousands of dollars. Probate costs are calculated based on the value of the estate. For example, the probate fees for an estate with a home valued at one million dollars would be $23,000 for the probate attorney, $23,000 for the estate representative, $10,000 for the probate referee appointed by the court to appraise the property, $2,760 for the bond, if required, and court costs for filing fees and newspaper publication of about $1,200. Similar to a will, a trust states who will be in charge of a decedent’s estate upon death (the successor trustee) and who will receive that property (the beneficiaries). A “pour-over will” is also prepared at the time the trust is created. This specific type of will insures that any assets acquired after the creation of the trust, but not transferred to the trust, will be distributed in the same manner as those assets in the trust. In other words, the assets are “poured over” into the trust.
If you are interested in trust preparation for you and your family, call our office for a free consultation with Robert L. Ferris, San Francisco trust preparation attorney, at (650) 488-0431.