Top Myths
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If my property is in Joint Tenancy I do not need a trust.
Although joint tenancy is a simple, convenient and efficient way to hold title to assets, it has many significant limitations that must not be overlooked. Joint tenancy title cannot avoid conservatorship court proceeding if a joint tenant becomes mentally or physically incapacitated to the extent that he or she can no longer sign legal documents. The individual and the joint tenancy assets would be subject to conservatorship court jurisdiction in this event. Additionally, the most significant shortcoming of joint tenancy, is, that when the last joint tenant dies or if the joint tenants die in a simultaneous disaster, the joint tenancy property is then subject to the substantial expenses and time delays of probate.
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I do not need a trust if I have a will
A valid will does not avoid probate if the assets subject to that will are over the values specified in the California Probate Code. California law requires a will to be probated (administered by the court) if the value of the non-real estate assets controlled by the will is over $150,000.00 (Probate Code Section 13151), or if the decedent owned real estate, controlled by the will, which exceeds $50,000.00 in value (Probate Code Section 13200). These values are applicable to estates of decedents dying in 2013 and will likely change from year to year.
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Loss of Control: By signing a trust I am giving up control of my assets
Living trusts are typically created solely for benefit of the Trustor(s) (the creator[s] of the trust). During their lifetimes the Trustors typically manage the trust themselves. Thus, the trust assets are totally under the control of the Trustor. The trust document is typically amendable or revocable by the Trustor(s) at any time. Wills are much more difficult to amend due to numerous legal and procedural formalities applicable to wills.
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Everything I own is controlled by my Trust automatically
A trust can only own and control assets that have been formally retitled into the name of the trust. Therefore, the assets you own will be distributed in accordance with instructions you have provided in your trust only if the assets have been property transferred into your trust. Consequently, assets that have not been property transferred in the trust may be subject to Probate court proceedings, depending on the value of and type of assets that is left outside the trust.