Top 4 Reasons Why California Homeowners Should Have a Living Trust

By Fernando Reza

Our 72-hour program is designed to put you in control. You'll have the freedom to choose your sale date, closing date, and even have the option to stay in your home for a while after closing. Our flexible approach caters to your unique needs, giving you peace of mind and control throughout the entire process.

If you own a home or plan to buy one, there’s something many people overlook. It’s called a living trust, and it can make a significant difference for your family. Many homeowners assume this is something only the wealthy need; however, that’s not the case at all. A living trust is one of the most practical ways to protect your home, your wishes, and your loved ones. Here’s why:

1. Avoid probate. When someone passes away without a trust, their estate usually goes through probate. That is a court process in which assets, such as your home, are reviewed, settled, and distributed. It can take several months or even longer. Legal costs can reach 20 to 30 percent of the estate’s value. With a living trust, probate can be avoided entirely. Your chosen trustee takes over and follows the instructions you’ve already outlined. This makes everything simpler and faster for your family.

2. Keeps your privacy. Many people are unaware that a will becomes a public record once it is executed. That means anyone can look up what you owned and who received it. A living trust keeps that information private. Only your family and those you name in the trust can access it. Your finances and final wishes stay personal.

3. Protection for when you are unable to make a decision. If you become seriously ill or injured and are unable to manage your affairs, a living trust steps in. Without one, your family might have to go to court to get permission to help you. That process can be time-consuming and stressful. A trust allows someone you choose to manage your bills, real estate, and other matters right away without court involvement.

Total control and peace of mind. You decide exactly who receives what, when, and how. You can include instructions for special situations, such as setting aside funds for a child with a disability or keeping property in the family. With a trust, your wishes are spelled out and honored.

4. Helps with Prop 19. For homeowners in California, Proposition 19 can result in property tax increases when passing a home to your children. Placing the house in a trust may help preserve those tax benefits. This can be a crucial tool for safeguarding long-term family wealth.

A living trust is not complicated. It is an innovative, affordable way to protect your assets and reduce stress for your family. If you want help or a referral to someone who can guide you through the process, feel free to call or text me at 626-388-5518 or email me at fernando.reza@kw.com. I’d be happy to help you with the process to ensure you and your assets are protected.