Issue link: https://imageup.uberflip.com/i/1517742
SOLERA DIAMOND VALLEY | APRIL 2024 17 By Suzette Strauss, SDV Resident Realtor Why talk about Trust vs. Probate? I am amazed at how many people I meet that own property and do not have a Trust; this includes young people as well as those of us who are more "seasoned." I'm sure we've all heard the saying that there are two things we all face… death and taxes! When it comes to your estate, your heirs can avoid the sting of taxes. Let's take a brief look at how. Trust: By obtaining a Trust with a Pour-Over Will you are able to designate who receives your hard-earned assets when you encounter your "graduation day" from this earth… aka death. Be sure to assign a trustworthy Executor to carry out your plan as stated; and perhaps an alternate, should your initial choice "graduate" before you. Tip #1: Do not put your children on title (Grant Deed) of your property or they will lose their Stepped-Up Basis when they inherit it. Rather designate them to inherit it through your Trust. This simply means the basis for taxes will be "stepped up" to the current value thereby eliminating the additional tax on Capital Gains. Tip #2: A Pour-Over Will is like a safety net for those assets you either forgot to add to your Trust or forgot to put back in, such as removing the property to refinance and never putting it back in. Assets are in a sense poured automatically into the Trust. Probate: This will involve a lawyer and the court system, which always mean money. The average cost of probate is $42,000 and can take one year in California. So, the question is, do you want your heirs to lose out on at least this amount when it is not necessary if you have a Trust in place. Tip #3: If you know someone heading to probate, advise them to have a very knowledgeable Probate Attorney. This will be especially important if property needs to be sold prior to the one- year mark. There are specific documents needed to sell, and having obtained them and received full authority, the sale can take place in approximately 90 days. Summary: Avoid Probate by obtaining a Trust with a Pour- Over Will. The average cost is $1,200-$3,000 with a Trust/ Probate Attorney, however, a Real Estate Attorney recently told me that Legal Zoom is also a satisfactory solution for those with limited funds or merely prefer to put their Trust together on their own. This is the method I recently used for my mom. Be wise and plan! Trust vs. Probate BILLIARDS Don Briggs & Rose Barratt Ken Barratt & Jona Jetter