Legal Question in Wills and Trusts in California

Re: Equity distribution

Why do you want to make a distribution? Most attorneys agree that it normally is not beneficial to give gifts of property to others as you loss control of the property and the receipent often changes their attitude toward you. Also, there are tax consequences.

In California, the first $250,000 in capital gains on the sale of your residence 2 of the last 5 years is excluded, so you would want to retain at least that amount. How is it unofficially a family property? If your name was the only one put down on the title but the others paid for the down payment or mortgage, then you can clarify title. You do probably want to set up a trust but you probably should go to someone with experience in that area so that yo get the maximum tax benefit, including a stepped up basis on death.

Re: Equity distribution

The answer to your question depends if you want to do so only after you die, or right now. A Living Trust is not a present transfer of a vested interest because a Living Trust is revocable so whatever you put in the trust is still yours until you die. If you want to give a portion of the equity right away as a present interest there are a lot of vehicles you could utilize.

You should work with an estate planning attorney. It really doesn't cost much in your situtation.

You maybe should by my book and get an education. It is coming out on the 15th of this month, "Create Your Legacy & Save the American Middle Class, How You Can Protect Your Loved Ones in the Event of Death or Disability (Without Paying a Legal Fees}" You will be able to order the book on-line at Amazon.com, but, it is better to order at www.IWantToCreateMyLegacy.com. If you order there, you will get a free special report entitled "The 7 Urban Myths About Medicaid & The Truths You Need to Know". This report alone could save you and your family hundreds of times the cost of the book.

The book is, to my knowledge, the only one written for regular people in the middle class, and it contains in an appendix the Legacy Living Trust Package, which to my knowledge is the only complete fill-in the blanks trust package written in simple English (no Legalese) that will be valid in every State in the US.

If you buy the book, read it and you need services or help beyond the Legacy Living Trust Package, you can contact us and we will give you a signficant discount on any estate planning services we provide.