The Importance of Funding Your Living Trust

Signing your Living Trust is only half the process if you are concerned about protecting yourself and your loved ones in case you become incapacited or die.   The funding of your Living Trust is actually more important in completing proper estate planning.

What does “Funding your Living Trust” mean? It means transferring title of your real property and other assets out of your name as an individual and into the name of your Living Trust.  Think of your Living Trust as a bucket that holds title to your real estate and money accounts.  The Trust language identifies who is to manage your assets and what they are to do if you become incapacitated, and also who is to receive your assets after you’re gone.  If you don’t transfer your assets to the Trust while you’re alive and competent then the Probate court has to do it for you before the terms of your Living Trust can control the disposition of your estate. 
 
Funding real estate into your Living Trust requires recording a new deed for each piece of property in the county the property is located.  Transferring money accounts requires signing new paperwork with each of your financial institutions.  Simply signing a letter that states that all of your assets and real estate are now part of your Living Trust doesn’t cut it.  

In California, assets which are held in an individual’s name alone and do not pass through joint ownership or beneficiary designation must go through Probate if they total more then one hundred thousand dollars.

Probate is a public proceeding so anyone can go into court and find out what you had and who you left it to regardless of whether they are related to you or not.  Probate is time consuming and takes a minimum of seven to eight months and often longer. During this time the assets are frozen and hard for your loved ones to access if they need them.   Probate is also expensive.  In California,   attorney’s fees to Probate an estate are written out in Probate Code Section 10810 and are based on the size of the estate and the fair market value of the real property.  The statutory attorney fees to probate a one million dollar home whether it has fifty thousand dollars of equity or is fully paid off is the same in both cases and will be twenty three thousand dollars.  Executors get paid the same as the attorney and these fees do not include other court costs, fees and expenses.   

If you become mentally incapacited without having funded your trust then there is nothing in the bucket for your successor trustees to manage on your behalf.  They will need to initiate a conservatorship in Probate Court so a Judge can decree that they have the power to manage your assets.  The judge then continues to supervise your conservator until you recover or die, and like a death Probate, it will be public, expensive and time consuming. 

An unfunded Living Trust is just a Will.  Make sure your Living Trust is properly funded.

Written by Barry W. Finkelstein, Edited by Dan Joy

Barry W. Finkelstein is an attorney at law that specializes in providing counseling to couples, families, individuals and business owners throughout the bay area on estate planning, asset protection, wealth preservation and business succession. He believes that providing his clients with a thorough understanding of the estate planning process is the first step to creating successful preservation of assets and resources should one die or become disabled. He works collaboratively with other professional advisors such as financial planners, insurance agents, and CPAs to ensure desired results at every stage of life. For more information visit Barry’s website at http://www.alamedalaw.com/index.php.

3087 California Street – Little Jewel in the Laurel

The Laurel Neighborhood

The Laurel neighborhood in Oakland is rich with culture and cute little homes. Tree lined streets remind me of quaint little towns in Michigan where I grew up. But with the Jazz festival and numerous other events, the Laurel neighborhood provides a small town feel with ethnic diversity and enriching artistic opportunities.  There is easy access to other areas such as Grand Lake, Lakeshore, Rockridge, Piedmont Avenue, Montclair, downtown Oakland, and San Francisco.  A casual car pool takes you to downtown San Francisco or allows you to pick up passengers and travel across the Bay Bridge to the city for free during rush hour in the car pool lane. There are also express bus lines that take you to and from San Francisco.

Popular Coffee House in the Laurel

The Laurel has plenty of good eateries. My favorite is the Full House Café which is a very popular breakfast and lunch diner.  There is also a great coffee shop known as the World Ground Coffee which makes great Latte’s and has yummy baked goods and sandwiches.  They sometimes host local Jazz artists so you can listen to music while enjoying your Saturday afternoon coffee. Farmer Joe’s has a great selection of produce while the Food Mill offers a natural foods and health products.  Redwood Regional Park is close at hand for hiking or biking.  Do you have a dog?  Dog walking and baby strowlers are a common site in this area. It’s no wonder this little neighborhood is so desirable.

The House

Front Exterior of 3087 California Street

Well here is your chance to live in the Laurel at an affordable starter home price. 3087 California Street is truly a little Jewel in the heart of the Laurel.  The present owners loved living here for the past 15 years. Their need for more space with a growing family is what is prompting their move.  They will, however, miss their neighbors, the Block Party, the holiday celebrations such as the 4th of July Breakfast, Christmas Party, and Ice Cream Social (especially enjoyed by the kids).  And they will also miss the quiet. In preparing the house for sale I visited after dark and was amazed by the sound of the crickets and how there was very little urban noise. 
Priced at $479,000 it will not last long. The interior was just painted and colors chosen by Angelisse Karol Color and Design. 

The living room to dining room

The living room boasts a fireplace with built-ins.  The dining area is open to the living room and separated by an arched detail.

Country style kitchen with original cabinetry and tile work and diner style breakfast nook.

The kitchen is full of charm with original cabinetry and a diner style breakfast nook which has a window out to the back yard. Off the kitchen is a laundry room and deck looking on to the back and side yards where you could sit and enjoy your morning coffee or evening cocktail. The back yard is large and very sunny. It would be the perfect location for a big vegetable garden or a lush paradise.

Back Yard and Garage Await your Touch

There is a good sized garage with a decent foundation and framing that could be easily converted to a studio or office space with French doors to the back yard and maybe a stone patio area. The possibilities are endless!  The 2 bedrooms have ample closet space. The bath was recently upgraded with new fixtures.  It’s a small house but it’s full of that California bungalow charm and character. 
If you would like more information on this house visit the web site at www.3087California.com.  I suggest you tour the home in person soon as I’m sure it will be sold in a short time at this price, on this street, in this neighborhood. 
Written and Edited by Dan Joy