Legal Question in Wills and Trusts in California

Re: do we need a trust?

Whether a living trust should be used as a Will substitute depends not on estate size, but on the assets held and what state you reside in.

A living trust does NOT save any taxes at all. Its purpose is to make estate estate administration (probate) easier.

This can be especially true in a state like California. Many people use living trusts in California to reduce or eliminate the costs, and burden of California probate.

Since you live in California, you should contact a qualified estate planning attorney in the county where you live to receive proper legal advice. Do not proceed in any way based on what you read on the internet or what you might hear via the internet. Your estate plan is too important to trust to cyberspace.

Federal regulations require us to advise you that nothing in this message can be used and is not intended to be used in any way or manner to avoid or attempt to avoid any penalties.

Re: do we need a trust?

a revocable trust will not reduce estate taxes (if any) on first death. if properly drafted and funded it can avoid probate for the estate.

your father should also have a durable power of attorney for asset management and an advance health care directive.

Re: do we need a trust?

Assuming that your father is in California, probate on a $500K estate would be about $13,000 plus filing fees of about $600, and take about 5 months. You cannot avoid Probate with a will.

A trust will run between $900-$1500, and perhaps $1000 to administer the trust after your fathers death.

Obviously, a trust will be more economical in the long run.