BENEFIT OF LIVING TRUST

 BENEFIT OF A LIVING TRUST

A California living trust is a legal document which places your home (s) and assets into a TRUST for your benefit during your lifetime and then transferred to your heirs without them having to go through probate and avoids Medi-Cal taking of your home.  

Other BENEFITS of a Living Trust: 

1. As of January 1, 2017 Medi-Cal CANNOT take your home if you have a Living Trust: 

Approximate Probate Cost.. Without a Trust

2. It AVOIDS Probate.. which could take up to two years even if there's a WILL.
3. Prevents court control of assets at incapacity 
4. Avoids Conservator-ship and Provides maximum privacy.
5. Managing and distributing to the heirs of the estate is simplified. 
6. Ensuring that the heirs of the estate continue to receive government benefits by placing inheritance in a sub-trust when necessary.
7. Maximizes TAX Savings
8. Peace of mind.   

DURABLE POWER OF ATTORNEY: 

The DPOA or durable power of attorney is the most important estate planning document-and more useful than a trust / will. 

A durable Power of Attorney lets a person that is appointed by you , act in place of you for Financial Purposes if and when you ever become incapacitated. 

The person you have appointed can step in and take care of your financial affairs such as making sure all of your assets are in the Trust to keep it away from Medi-Cal. 

Without a durable power of attorney, You have no representation unless a court appoints a conservator who may not be the person that you had in mind. Under your court appointed conservator he or she may have a get court permission to take planning steps that could be implemented immediately under a simple durable power of attorney. 

A durable power of attorney may also be either immediate or "springing" but most durable posers of attorney take effect immediately upon their execution, even if the understanding is that they will not be use until and unless the grantor becomes incapacitated. The DPOA can also be written so that it does not become effective until such incapacity occurs. In these cases, it is very important that the standard for determining incapacity and triggering the durable powers of attorney are clearly stated and laid out. (tow opinions from licensed medical doctors are necessary). 

CALIFORNIA PROBATE TIMELINE: 

The first 3 Months: 

• Prepare and file petition for probate
• Publish in newspaper
• Probate notes from judge
• Court hearing
• Letters and Order issued
• Bond issued if ordered by judge



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right Realtor with Probate Experience will help
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• Open an estate bank account with EIN

The Next 4 Months: 

• Inventory & Appraisal
• Notice to all creditors
• Pay Medi-Cal claims
• Real Estate sold if full authority  (Notice of Proposed Action / Wait 15 days then close escrow)

Limited Authority: 

• Newspaper publication to sell house 
• Accepted offer must be within 90% 
• Accept offer
• Petition for court confirmation
• Court hearing for overbidding
• Judge Order/Close Escrow
• Statement Death of Real Property 
• Proposition 58 and Proposition 193



Proposition 58 transfers between parents
and child / children:  Proposition 193
transfers between grandparents and grand-
child / grandchildren: 

• Taxes and debts paid

Month 8 to Month 11

• Petition for final distribution
• Probate note from judge
• Court hearing

At the 1-Year Mark

• Judge signs order for distribution
• Distribution to heirs
• ExParte to close out the probate estate

PREPARED BY A LAWYER: 

• Prepared by a lawyer                        Living Trust   ☑       Will ☑
• Distribute your assets to family and loved ones     ☑              ☑
• Title assets directly into it for ease of distribution   ☑
• Appoint a guardian for your minor children            ☑              ☑
• Deal with all of your property in your home state, rather than each separate state where it exist.                                 ☑
• Maintain privacy and confidentiality, not a matter  ☑ of public record
• Trustee retains control of the issuing of property,  ☑ rather than a judge
• Assets can be issued without the cost of hiring a  ☑ lawyer for lengthy and costly probate proceedings

LIVING TRUST Vs. WILL

A living trust, once signed, notarized, and funded, is a legally binding document that guarantees your plan for your estate will be executed as you wish. 

This is confidence that a will cannot provide, because even though it is a legal document, it is subject to probate where it is scrutinized and can be threatened by other family members etc. 

Probate Testimonials: 

Dear Mr Mendoza
Your Prompt, responsive assistance to our recent probate sale was much appreciated, We would recommend you to other attorneys in need of assistance. You made the sale of this probate real estate as uncomplicated as it could be. 
Phyllis M. Gallagher 
Fullerton: 

Thank You Mr Mendoza
It was great working with you recently in the sale of the two probate properties. You kept me informed of all developments and you were very knowledgeable about selling properties subject to court confirmation in probate. 

I hope that we can work on other estates together. I would recommend you to to others as well. 
Eleanor M Farber:  Independent Legal Assistant
Walnut Ridge Dr. Agoura

Dear Mr Mendoza
Your able assistance in working through the probate procedures in a recent Orange Co. real estate transaction was appreciated by the heirs as well as our office. 
We look forward to working with you again in the future. 
Sincerely 
Margaret M. Zapata:  Legal Assistant

                                     Probate Home Value LA & Orange Co