What is a revocable living trust?

Here is a video on what a revocable living trust is, and why you would want one.  As the centerpiece of my comprehensive estate plans, the living trust allows your estate to pass to your heirs without the hassle and expense of probate.  In California, an estate worth $100,000 or more gross (the total value of your estate not taking any debt into account) is going to probate.  Probate is the court process of assessing your property, paying your debts, and distributing the reminder of your estate to your heirs.  The problem with the probate process is that it can take years to complete (all the while your property is tied up in court), can cost 8-10% of your gross estate (just think – if you just have a house worth $400,000, the total probate fees could cost up to $40,000!), and is a public process.  I’ll be posting another video on probate and why we want to avoid it.  A living trust avoids probate – your estate passes without any courts or lawyers or judges.  This is critical to protect your loved ones and your estate once you’ve passed on.

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