When you thrive for that coveted higher post that a promotion would put you in, or you toil those long hours to strike that one business deal that would add a few extra dollars to your asset amount or maybe you simply buy a mutual fund or a bar of gold to see the price go up in a span of time, you are only doing one thing – making sure that your future is secure and by all means, more comfortable. But how many people stop to think that there might be no future at all? How many spare a thought that the business deal they just pulled through might go on as it is meant to and strike gold, but they themselves might not be there to reap the benefits? As surely as it is, death probably is also the most unpredictable truth created by the Almighty. So what happens if death lays its icy hands on you just when you had thought that your hard work over the years is just about to bear fruit for you to enjoy? Well, frankly, you can’t do anything but maybe a crib from heaven about your unfortunate demise. But yes, you can at least be happy seeing your loved ones living a secure life and enjoying the paybacks of your hard work. And to ensure that when you are not anymore, everything you amassed in your life passes on to the ones you had intended to without them having to go through much of a hassle, it is advisable to take note of the probate laws of your province of residence. In the United States, every state has its own set of criteria and conditions of the probate law and in this excerpt you can get to know more about LA Probate Law.
Probate is a process that proves that the will of a deceased person is valid, so their property can in due course be retitled (US terminology) or transferred to beneficiaries of the will. The laws associated with this, the LA Probate Law in this case, outline the rules which would govern the transfer of a person’s belongings in the disastrous case of his death. Though the thought of transferring assets after your death may not be a thought that you would like to indulge in every day, it is important that you have chalked out the future of your loved ones when you are no more.
In order to ensure that all the aspects of the LA Probate Law are in your grip, proper guidance of a probate law attorney becomes inevitable and this might involve a lot of money as the attorneys do not come cheap. This is where a Living Trust plays an important part. Living trusts help in avoiding probate and probate fees. A probate usually involves inventorying and appraising the property, paying debts and taxes, and distributing the remainder of the property according to the will. With the help of a living trust your surviving family members can transfer your property quickly and easily, without probate.
The first step in creating a living trust is to make a document called a ‘Declaration of trust’ which is in some ways similar to a Will. This document is meant to ensure that you name yourself as the trustee or the person in charge of the trust property. The next step is to transfer ownership of some or all of your property to yourself in your capacity as trustee. For example, you sign a deed which mentions that you transferred your house from ‘yourself to yourself’ as the trustee of the trust you created. And because you are the trustee, you do not give up any control of the property you put in the trust. In the declaration of the trust document, the people or organizations, that you intend should inherit the trust property after your expiry, may be named. These choices can be changed and other people may be mentioned as the inheritors. The trust may also be revoked at any time at your own discretion. Along with a living trust, it is advisable to have a backup Will, defining who would inherit any property that was not transferred to the trust. Suppose there is a case where a Will does not exist, then all property not transferred to the trust would be distributed according to the laws of the state. Once a living trust is created, a little day to day record keeping helps in keeping track of any property transferred to from the trust. No separate income tax records or returns are necessary as long as you yourself are both the grantor and the trustee. As long as you report the Income from property in the living trust in your personal income tax return; you don’t have to file a separate tax return for the trust. At the demise of the person who created the trust, the person named in the trust document as the successor trustee, transfers ownership of trust property to the inheritors. In most cases, the successor trustee can handle the whole thing in a few weeks with some simple paperwork. No probate court proceedings are required. The involvement of an attorney is only optional in creating a living trust, and there are fewer complexities involved in the process. Hence living trusts provide an easier option of property inheritance while staying within the boundaries of the LA Probate Law.
- Top 5 Medi-Cal Myths - December 5, 2021
- Questions to Consider When It’s Time to Create Your Will - December 4, 2021
- IRS Releases 2022 Estate Tax Exclusion - December 4, 2021
