I had a difficult phone call with a client today. Let me just preface. I’m not an attorney. I’m a mortgage lender, but I see this all the time. Client calls me about a year ago, lets me know that his mom’s health is not good and ultimately she’s going to inherit the home. I put him in touch with one of my estate planning attorneys and he never set up the living trust.
It’s a critical mistake. Let me tell you why. Living trust, real estate, really simple probate sucks. Let me explain what happens if you set up a living trust for your real estate. It’s going to cost you somewhere between $2,500 and $4,000, depending on your overall estate. Could cost a little bit more. But it’s a range. How long does it take to set it up? Takes about 30 days.
Why is that so critical? Let me tell you why. If you’re going to inherit property or give property in the event of your death and you don’t have a living trust that goes to probate, what’s that mean in California? Minimum? Um, you’re looking at $23,000 in fees on $1,000,000 home, and it could be even more.
Number two, it takes nine months to two years, currently, for probate to settle, that means the house is stuck, can’t sell it, can’t refinance it. And in most cases, you still got to cover the monthly expenses. If you invest a little bit of time and a little bit of money to avoid these pitfalls, your life will be much easier.
If you have a question about your home, how to get into a living, trust or need a great referral to the state planning attorney, I can help. Have a great day. Thanks.