Forgetting to include an asset in your trust, while a common oversight, can create unexpected complications and potentially defeat the purpose of estate planning, leading to probate – the very process trusts are designed to avoid. A trust is only effective for assets *titled* in the name of the trust; anything left outside the trust remains subject to the often lengthy and costly probate process. This can include bank accounts, real estate, investment accounts, or even personal property of significant value. Approximately 60% of Americans do not have a will or trust, leaving their assets to be distributed according to state law, which may not align with their wishes. Careful review and periodic updates are essential to ensure comprehensive coverage.
Can I Still Fix a Missed Asset?
Yes, absolutely, but it requires proactive steps. A “Pour-Over Will” is a crucial companion document to a trust. It acts as a safety net, directing any assets inadvertently left out of the trust *into* the trust upon your death. While this avoids probate on those leftover assets, it does require an additional step in the estate administration process. For example, I once worked with a client, Margaret, who meticulously funded her trust with her primary residence, brokerage accounts, and life insurance policies. She failed to update the beneficiary designation on a small, inherited IRA. After her passing, that IRA, though relatively small, still required a probate proceeding, adding unnecessary time and expense to the settlement of her estate. It’s a clear illustration of why consistent review is key.
What is the Cost of Probate in California?
Probate costs in California can be substantial, typically ranging from 4% to 6% of the gross estate value, with larger estates often incurring higher percentages. These fees include court costs, executor fees, and attorney fees. For example, an estate valued at $500,000 could easily incur $20,000 to $30,000 in probate costs. This is why diligently funding your trust is so important. It’s not just about avoiding the emotional distress of probate, but also protecting your family from these potentially significant financial burdens. A well-funded trust ensures a smoother, faster, and more cost-effective transfer of assets to your loved ones. Approximately 70% of probate costs are attributable to attorney and executor fees, which can be minimized through proper estate planning.
How Often Should I Review My Trust?
I recommend reviewing your trust at least every three to five years, or whenever there’s a major life event, such as a marriage, divorce, birth of a child, or significant change in your financial situation. It’s also important to review your trust if there are changes in tax laws or estate planning regulations. I recall a situation with a client, Arthur, a retired engineer, who had created his trust over a decade ago. He’d accumulated several rental properties since then but never updated his trust to include them. After his passing, his family faced a complicated and costly legal battle to transfer ownership of these properties. Had he simply reviewed and updated his trust, the process would have been seamless. Regular review ensures your trust reflects your current wishes and minimizes potential complications.
What if I Completely Forget About My Trust?
Unfortunately, if a trust is created but never funded – meaning assets aren’t transferred into the trust’s name – it’s essentially ineffective. It exists only on paper. This happened to a client, Evelyn, who created a trust years ago but never bothered to transfer ownership of her assets. After a debilitating stroke, her children discovered the trust, but it was too late. Because the assets remained in her individual name, her estate still had to go through probate. It’s a heartbreaking example of the importance of not just creating a trust, but actively funding it and maintaining it. The key is to view estate planning as an ongoing process, not a one-time event. A proactive approach, with regular reviews and updates, ensures your wishes are honored and your loved ones are protected.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- estate planning
- pet trust
- wills
- family trust
- estate planning attorney near me
- living trust
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “What documents are essential for a basic estate plan?” Or “What if I live in a different state than where the deceased person lived—does probate still apply?” or “Will my bank accounts still work the same after putting them in a trust? and even: “How do I prepare for a bankruptcy filing?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.