Legal Question in Wills and Trusts in California
Trust vs. Will
My aunt has an estate which is worth approximately 1 million dollars. She has a will which says that upon her death her estate will be given in two equal shares to two charities. I told her to set up a trust, but she said that her attorney said that she does not need a trust because her estate is going to charities. I have read that if a trust is not set up her attorney, who is also the executor, can make up to $21,150 on probate for her estate. I was told be my attorney that a trust would avoid probate and that large fee.
I would appreciate your oppinion on this matter; does she need a trust or is having just a will acceptable
Thank you,
Robert
3 Answers from Attorneys
Re: Trust vs. Will
It sounds like the attorney is giving VERY bad advice. I suggest your aunt get a trust and also make a complaint to the state bar. These type of attorneys are what give my profession a bad name. Good luck!
Re: Trust vs. Will
A trust is absolutely the best way to go. There are statutory fees established by the State of California, and can be mostly avoided if a trust is established.
Re: Trust vs. Will
The will is fine, but the trust in the end saves administration fees--a trust's may be 2% of the value of the assets, while a will's are about 6%. Another reason for having the trust is that it provides for a successor trustee in case your aunt later can't take care of herself--this avoids an expensive probate conservatorship.
I can appreciate that it may not bother your aunt that the charities will get less if she pays just a bit more now for a trust, but she should at least have the opportunity to make an informed decision, including seeing the attorney's potential fees for each option. If she does opt to stay with the will, she should also have durable powers of attorney for property and health care to provide for her potential disability.
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