I can save HOW MUCH?!
We have all heard about Living Trusts. You may have gone to a seminar trying to get you to part with your money and thought, not now. Well it’s time to consider it if you own a home in California, have kids, or just want to have some say in how your estate is handled.
Probate Code section 10810(a) sets forth the following pay schedule for “ordinary” attorney’s fees in probate:
(1) Four percent on the first one hundred thousand dollars ($100,000).
(2) Three percent on the next one hundred thousand dollars ($100,000).
(3) Two percent on the next eight hundred thousand dollars ($800,000).
(4) One percent on the next nine million dollars ($9,000,000).
(5) One-half of 1 percent on the next fifteen million dollars ($15,000,000).
(6) For all amounts above twenty-five million dollars ($25,000,000), a reasonable amount to be determined by the court.
Without getting into all of the details (something for later), here is a simple dollars and cents example to consider. Let’s say you live in SoCal where the “average” home price exceeds $600,000 and your home is worth $500K – you own nothing else, no car, jewelry, etc. Your “ordinary” attorney’s fees (not including other Court costs) in probate will be $13,000. Alternatively, you could have a Living Trust prepared and properly funded for about $1,500 and avoid probate all together – a savings on this modest estate of more than $11,000.
Disclaimer: Blog posts are for general information only and may not be applicable to your individual circumstances. This blog post is not intended nor shall it be deemed to provide legal advice to its reader. If you would like further information on the subject of this blog post, please feel free to contact me.
Copyright © Bill Van Dusen 03/14/2017