Revocable Living Trusts are the key tool in avoiding the expense and delays of probate, a court-overseen process for estates with over $100,000 in gross assets.
You should strongly consider a Revocable Living Trust if any of the following are true:
1. You own real property
2. You have over $100,000 in gross assets
3. You want to maintain your privacy
4. You want to protect your children from squandering their inheritance
Aren’t trusts just for the wealthy?
Not at all!
Statutory probate fees on a $200,000 estate are $14,000, or 7% of the estate. Fees on a $1M estate are 5% of the estate. Fees on a $4M estate are 3% of the estate. Folks with modest estates suffer even more if they have not avoided probate.
Imagine that you own a home that would sell for $1,000,000, but you have a $950,000 mortgage. Probate attorney and executor fees would be $46,000. After paying those fees, only $4,000 of the equity remains; your beneficiaries have lost 92% of their inheritance!
