If your parents' real estate was not transferred into their trust prior to their death, and they have passed away, the process for transferring the property into the trust will be slightly different.

One option could be to open probate proceedings and have the property transferred through the probate process. This will likely involve going through the court system and may require the assistance of an attorney who specializes in probate law. The process will vary depending on the specific circumstances of the case and the laws of your state, but it may be a complex and time-consuming process.

Another option is a Heggstad petition, which is a legal motion that can be filed in California probate court to have real property transferred to a trust after the grantor's death based on the intent of the grantor. This process is relatively quicker and simpler compared to regular probate process and would not require opening a full probate case.

Regardless of the path chosen, it is important to seek the advice of an attorney who is familiar with California trust and estate law to guide you through the process and ensure that everything is done correctly.

It may also be important to check if there any liens or debts tied to the property that should be addressed before transferring the real estate to the trust.

As the beneficiary of a trust what are my rights and what are my obligations

How is a trust useful to me?

A trust is a legal arrangement in which one person (the trustor) transfers ownership of property to another person (the trustee) to hold and manage for the benefit of a third party (the beneficiary). Trusts can be useful for a variety of reasons, including:

1. Asset protection: A trust can help protect your assets from creditors, lawsuits, and other claims.

2. Estate planning: A trust can be used to manage your assets and distribute them according to your wishes after you pass away, which can help avoid probate and reduce estate taxes.

3. Special needs planning: A trust can be used to provide for a beneficiary who has special needs, such as a child with a disability, without jeopardizing their eligibility for government benefits.

4. Privacy: A trust can be used to manage your assets and distribute them without the need for public probate proceedings, which can help preserve your privacy.

5. Control: A trust can give you control over how your assets are managed and used, even after you are no longer able to manage them yourself.

6. Simplicity: A trust can be a simpler and more flexible alternative to a will, especially for individuals with complex financial situations or multiple beneficiaries.

It's worth noting that trusts can be complex legal instruments and may not be suitable for everyone. It's a good idea to consult with a financial advisor or attorney to determine if a trust is right for you.

There are several steps you can take to plan for the possibility of incapacitation:

Create a durable power of attorney: A durable power of attorney allows you to appoint someone you trust to make financial and legal decisions on your behalf in the event that you become incapacitated.

Create a living will or healthcare directive: A living will or healthcare directive allows you to specify your wishes for medical treatment in the event that you are unable to make those decisions yourself.

Create a HIPAA release: A HIPAA release allows you to authorize the release of your medical information to certain individuals (such as your healthcare power of attorney or family members).

Consider long-term care insurance: Long-term care insurance can help cover the costs of assisted living or nursing home care in the event that you become incapacitated and unable to care for yourself.

Talk to your loved ones: It's important to have open and honest conversations with your loved ones about your wishes and plans in the event of incapacitation. This can help ensure that your wishes are respected and that your loved ones are prepared to make decisions on your behalf if necessary.

If your trustee is incapacitated, they may be unable to fulfill their duties and responsibilities as trustee. Depending on the terms of the trust agreement and the specific circumstances, there may be provisions in place for handling such a situation. For example, the trust agreement may name a successor trustee to take over if the original trustee becomes incapacitated. Alternatively, the trust agreement may specify a process for appointing a new trustee.

If the trust agreement does not address the issue of incapacitation, or if the incapacitated trustee is the sole trustee and there is no successor trustee, the situation may become more complex. In such cases, it may be necessary to seek the appointment of a new trustee through the courts. This can be a time-consuming and costly process, so it is important to carefully consider who you name as trustee and to include provisions in the trust agreement for handling potential incapacity.

How much independent judgment does a trustee really have?

Life is unpredictable, and you do not need a natural disaster to put your life into havoc. Any life disruption can put a heavy toll on you and your loved ones. One area you can plan ahead in is estate planning. Here are some ideas to help you protect the people and possessions you value the most.

I love Aretha Franklin. “RESPECT”. When she passed in 2018 it was initially thought that she had died without a Will. However, there were actually three Wills found, two from 2010 and one from 2014. One of those was found under a couch cushion. Of course, a cousin, who stood to recover under intestate laws, challenged the Wills, and wanted to make sure that they were in her handwriting. What? A hand written Will. That’s right, and you thought I was misleading you.

So- what is required for a hand written Will? Easy. 1. In writing, 2. Signed by the testator, and 3. Signed by at least two witnesses who saw the testator sign the Will. Pretty simple right? Well, maybe… but probably not. A will just gets your assets into Probate, and what do we want to avoid? Probate…..

Would we recommend doing a hand written Will. Not really, you really need to speak to an attorney to make sure you get it right. Further still, a trust is a much more sophisticated and private vehicle for your assets. Do you want to know why?

Then. Get in touch.

Frozen Accounts – How to avoid them after the death of a loved one.

Here is what often happens, but does not need, to with proper planning. One of the spouses has an account where only they are the single owner. That account is also the one that is used to pay bills. When the account owner dies, that account is now part of their probate estate, and the rules around the bank account become stricter. In most cases deposits can continue, but withdrawals are prohibited.

What can you do to make sure that your accounts aren’t frozen?

1. Name your spouse or significant other as the payable on death beneficiary. This allows access to the account simply by providing identification and a death certificate. Further still, the account stays out of the probate process. However, please note that this strategy only provides access upon death. Incapacity is another issue.

2. Jointly owned accounts. If you jointly own an account with your spouse or significant other. This strategy will continue access to the account.

3. Place the account into a revocable living trust. This is one of the most effective methods for protecting your significant other / spouse. This allows anyone who is the trustee of the trust to manage the funds in the account. This means that if you are incapacitated or both you and your spouse / significant other are incapacitated your funds can continue to be managed.

Ask yourself the following questions:

● Who owns the account in question?

● Have you identified and formally named pay-on-death beneficiaries?

● How is the bank account currently titled?

● Do you have a trust and has the title to your bank account been changed to the name of the trust?

Some techniques for funding education expenses require that the funds be spent only on certain items to take full advantage of tax breaks and incentives. Other tools are less restrictive regarding how the money can be spent, allowing for more flexibility—which is important during these uncertain times.

Your retirement account provides asset protection during your lifetime, but as soon as you pass that account to a loved one, that protection evaporates. When your spouse, child, or other loved one inherits your retirement account, creditors have the power to seize it and use the funds to satisfy their claims. This means one lawsuit and POOF!—your life-long, hard-earned savings could be gone. Your loved one could be left penniless. Fortunately, there is a solution to this problem. A special trust called a standalone retirement trust (SRT) can protect inherited retirement accounts from your beneficiaries’ creditors.