Different options and costs of living trusts
There are a variety of options when completing a California living trust. After extensive research to determine the cost of a living trust in California, I summarized my results into 2 categories:
* Consultation in the office
* Living trusts online
Consultation in the office
The office consultation is your traditional office visit with an attorney. You see these many of these listed in the yellow pages. They offer you a free one hour consultation in hopes of winning your business.
The typical fee is $ 2,500. The services provided will be a complete estate plan, which includes a living trust.
California attorneys are required to sign a fee agreement. This rate agreement will dictate the terms of payment, delivery of documents, etc. Generally, you will have to pay the $ 2,500 up front. This $ 2,500 will be deposited into the attorney’s trust account.
These types of contracts typically take 3-4 weeks to complete.
After interviewing several law firms, I discovered that they generally include the following documents in their California estate plan:
* California Living Trust
* California Advance Health Care Directive (Living Will)
* California Power of Attorney for Finances
* California landfill will
Tea Advance Health Care Directive it is important in case you are incapacitated because it allows you to appoint a health care agent who has the authority to make decisions based on your current wishes.
Tea Power of attorney for finances It is necessary in case you are disabled and need someone to take care of your finances (for example, filing your personal tax returns, etc.).
Tea Eternal will You essentially transfer everything that was not formally transferred into your living trust. Basically, you are naming your California living trust as the sole beneficiary of your property.
However, these $ 2,500 plans did not include a few key elements:
* California notary fees
* California Transfer Grant Deeds
California Notary Fees
Notary fees in California have a maximum of $ 10 per signature (that’s the law). If you are single, there are four signatures or $ 40. Married couples will pay $ 80. If you use a mobile notary, your travel fees are steep. Many banks offer a notarial service for free.
California Transfer Grant Deeds
After completing your living trust in California, you will need to transfer your home (and any rental property) to your living trust. Essentially, you prepare a transfer deed of assignment to title the property in the name of your trust.
If you do not complete these transfer grant deeds, the living trust is invalid.
It is much simpler on your 401k and life insurance because it is a simple matter of naming your trust as the beneficiary. However, you cannot name a California real estate beneficiary. The only way to name a real estate beneficiary in California is to use a living trust.
After you notarize the trust and prepare your transfer assignment deeds (each parcel requires a separate assignment deed), you will need to register them. Each transfer grant deed is registered in the county where the parcel is located. That transfer grant deed is also accompanied by a county ownership change report. This county property change report is a document required by all 58 California counties and is used by the County Assessor to see if the property should be:
* Reevaluated
* The document transfer tax will be applied
Since a living trust is EXEMPT from both taxes, you must take care to fill out that form correctly.
Now that I’ve talked about office visits, let’s take a look at the online offerings.
Living Trusts Online
There were also many options for online trusts, as this option was gaining popularity. The price of an online living trust ranges from $ 297 to $ 997, making it an avenue where you can save a lot of money.
We found, as with the in-office version, that many did not include the transfer release deed. In fact, one vendor charged an additional $ 249 per transfer deed (if you had four properties, you’d pay $ 249 x 4, or $ 996).
We also discovered that there were additional hidden fees for other documents. For example, a provider charged another $ 40 each for both the advance directive and the power of attorney (x2 if married or domestic partner because another $ 160 is required). Be sure to pay attention to the fine print.
At the office consultation, you pick up your trusted package in person, but the online version is shipped, so be sure to check if the shipping cost is included.
Resume
If you have complicated real estate needs, it is probably best to meet with a local provider in their office. Whether you are using an online provider or an office consultation, be sure to take this list with you and ask to make sure ALL documents are provided.
If you have more than one real estate property, make sure the transfer concession deeds are completed for ALL properties. Also make sure they include each preliminary ownership change report and registration instructions (required separately for each deed).
Lastly, make sure the notary’s fees are included because they will cost you another $ 40 (single) and $ 80 (married). You will also pay another $ 10 for each transfer grant deed ($ 20 each if you are married).