A will is a legal declaration that explains what a person wants done with his or her property or estate after death. When a person dies, unless they have taken specific steps to avoid it, their will must pass through a court-supervised process called probate. Probate is a fancy word for a procedure through which a judge gives legal permission for the deceased’s assets to be passed to his or her beneficiaries. Many people seek to avoid probate for two primary reasons. First, it can sometimes take years for a court to finish probating a will, and until the process is complete, the beneficiaries cannot use the assets. Second, probate can cost you a lot in terms of attorney’s fees.

It is possible to avoid probate entirely with proper estate planning. This will reduce the legal fees on the estate, and it can also mean avoiding the estate tax, potentially saving even more than the legal fees.

A primary way of avoiding probate is by having both a will and a trust. A trust is a document that spells out the rules that you want followed for property held in trust for your beneficiaries. It is a legal entity that “holds” your assets while you are alive, though you can still use them during your life. Upon death, assets in the trust are passed to the trust beneficiaries by operation of the trust document instead of by going through probate. Some of the benefits of preparing a trust in addition to a will include:

• it can be tens of thousands of dollars cheaper than probate;
• your beneficiaries not only receive more of your estate, they receive it much more quickly;
• trusts reduce the likelihood of litigation over your assets;
• a trust will keep much more of your personal information private.

If you would like to speak with an attorney at no cost to ask questions about preparing a will and/or trust, please contact us to schedule a free consultation at (415)439-0653, or click here to schedule a time online.