WHAT IS PROBATE AND HOW DOES IT AFFECT ME?
In California, probate is the legal process that oversees the distribution of a deceased person's estate if they die without a valid estate plan & own property exceeding $184,500.
If you own property in California that has a Fair Market Value of over $184,500 (do not factor in your mortgage) the Probate Court is nearly always involved unless you have a valid estate plan.
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Why is probate so bad? Three reasons:
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TIME. MONEY. PRIVACY.
PROBATE IS A LONG PROCESS
Probate in California takes 9-24 months.
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This can mean significant delays in the distribution of assets to your loved ones.
A LIVING TRUST CAN HELP YOU AVOID PROBATE
When you have a funded Revocable Living Trust (RLT) your family can take your assets through trust administration rather than probate.
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Trust administration is much less complicated, faster and much less expensive than probate.
PROBATE IS EXPENSIVE
"Statutory" fees can significantly reduce the value of your estate.
These fees are not negotiable and are set by Probate Code.
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There are more potential probate fees on top of this:
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The court may approve for 'extraordinary' services billed at the attorney's hourly rate
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Probate involves court costs and other fees including:
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filing and service fees
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probate referee fees
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publication costs and bonding fees
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These all can add several thousand dollars more to your estate fees.
PROBATE IS A PUBLIC PROCEEDING
Probate administration is a public proceeding, meaning your financial affairs and decisions (your wealth and who is receiving it) become a matter of public record.
This can compromise your family's privacy. A living trust keeps your personal business completely private and only the people you have identified are aware of your financial affairs, inheritance and distributions.