California – If you own a home you need a Trust

Many think that a trust is for the wealthy or financially sophisticated but not so. The simple truth is if you own a home in California you need a trust.

Why? Probate Taxes. If would seem that Probate Taxes would be charged based on  the net worth but that is not the case. They are based on  gross value. Suppose a person dies with a will but no trust. Does the estate go to probate? Yes, even with a will there is a probate if there is no trust.

A house can be “underwater” and be costly in a probate situation. Suppose the value of the home is $800,000 but the mortgage is $810,000. In my mind there is no value but under probate law the $800,000 asset would generate a probate tax of $19,000.

The schedule is 4% of the first $100,000; 3% for the next $100,000; 2% of the next $800,000 and 1% from $1,000,000 to $10,000,000.

If you own a home you need a trust. This was the message today from our speaker, Brad Smith.

Contact professionals and you will realize that the protection you are seeking is not expensive and it is so so valuable to you and your family.