Estate Planning with No Family | California Living Trusts (2024)

FAQs

Who should I leave my estate to if I have no family? ›

Alternative heirs

It can be a relative, friend, or charitable organization—anyone except the attorney who drafted your will.

Limitations: Requires adherence to trust document's instructions on asset assignments. Joint assets, including certain IRAs and retirement plans, cannot be placed into a one-person trust. No complete tax avoidance: Total avoidance of taxes is rarely possible with living trusts, though there may be ways to reduce them.

Generally, if you die without a will, trust, or other provision for the distribution of your money and property, that money and property will be distributed according to California law. This is a complicated process, but essentially the state will determine who gets the property based on their relationship to you.

Consider a living trust

A living trust places your assets in trust and your representative, or successor trustee, transfers them to your designated beneficiaries after your death. Because your assets never technically changed ownership (the trust continues to own the assets), then probate is typically avoided.

Leaving Your Entire Estate

If you choose to leave all the property you own as a whole, you won't need to list each item separately when making your will. You can name any combination of people to receive your entire estate--one person or a group of people (or organizations).

Most often, the spouse has first priority to get your assets; then children, grandchildren, parents, and siblings. And who gets to be in charge? Usually, the same order of priority applies: a surviving spouse is first in line to serve as the personal representative or administrator of the estate.

What are the advantages of a Living Trust? If all your property is in trust when you die (or become incompetent), then legally you don't own anything in your name. This means, if you die, no probate (formal court administration of a decedent's estate) is needed to pass your property on to your beneficiaries.

The two types that determine taxes on trust distributions are: Revocable living trust: distributions are typically not taxable as they are considered gifts and not income. Irrevocable trust: may be subject to taxation depending on who receives them and how much they receive.

Creating a living trust in California is not terribly difficult, but it takes some planning. You might find it helpful to work with a financial advisor or another professional when drafting up your living trust. However, you can also download the forms online and then take them to a notary public yourself.

How much does it cost to do a living trust in California? ›

A comprehensive living trust estate plan can cost anywhere from $1,500 to $10,000.

What happens to a house in trust after death? Once the settlor passes away, the trustee assumes temporary ownership of the property until its distribution to beneficiaries, even in cases of siblings contesting a trust in California.

A revocable living trust is the most commonly used trust for estate planning purposes because it allows you to maintain control over the trust and make changes during your lifetime. This means you can add or remove assets, change beneficiaries, or even revoke the trust entirely if you wish.

A legal concept referred to as the “rule against perpetuities” prevents a trust from remaining active indefinitely. California law requires a trust to terminate within 90 years or no later than 21 years after the death of an individual alive at the time the trust was created.

If you're single, the two most important reasons for establishing a living trust is that it helps your beneficiaries to avoid the costs and hassles of probate and will keep your assets out of court-supervised guardianship.

If you die without a Will, your assets will go through probate court before being distributed. Most states have their own succession laws that dictate how this process will work. If you do not have children, it is common for assets and funds to go to your parents and then siblings.

It would be yes, you can, but there are some rules and regulations. You must be the owner of the inheritance and then choose whether you want to give the inheritance. There are three main ways to transfer the inheritance: as a gift, transfer on death (TOD), and joint ownership.

If beneficiaries are not named, the life insurance proceeds will go to your estate. If you don't have a will, your estate, including the death benefit, may need to go through probate court.

Your direct heirs usually include your spouse, children, and parents. Adoptive heir: This includes any adopted children you may have. Adopted children generally have the same inheritance rights as biological children. Collateral heir: Any of your less direct relatives are considered your collateral heirs.