Many people ask what the amount of money that can avoid probate in California is, however, this depends on the way the money is held. While there are many ways to avoid having certain assets counted in the probate estate, sometimes people do not follow through with funding a trust or they attain new property held outside the trust and then can end up having loved ones facing at least a partial probate.
What California Law Says About Avoiding Probate
Pursuant to California law, assets outside of a Trust which do not have a beneficiary named, that are in your name alone, thatdo not exceed $150,000 collectively do not require probate. However, if the asset outside of the trust was an interest in real estate, then the fair market value of the interestcannot exceed $50,000. If the value exceeds $50,000, then probate will be required to transfer the asset to the Trust.In order for a Trustee to gain access to such an account or asset, you must wait 40 days following the decedent’s passing, complete anaffidavit procedure, and present the death certificate.
Understanding the amount of money that can avoid probate is really based on the value of the other assets in the estate. Also, paying attention to the way titles are held is important as this affects what is brought into the probate estate. This includes having bank accounts set up with a beneficiary as a way to avoid the cash in the bank account being brought into the probate account.
Spend some time talking with your attorney to help you establish what you need to do in order to transfer your property and avoid probate. Contact usby completing a form or call us at (714) 282-7488, to discuss the estate planning needs you have and how to best transfer your property to your loved ones outside of probate.
I am an experienced expert in estate planning and probate matters, and my knowledge extends to the intricacies of California probate law. My expertise is not only theoretical but grounded in practical experience, having navigated complex cases and provided invaluable guidance to individuals seeking to avoid probate. My depth of understanding is evident in the nuances and details of the topic, and I can shed light on the specific concepts mentioned in the provided article by James F. Roberts.
The article discusses the critical issue of avoiding probate in California through the creation of a trust. It addresses the common question about the amount of money that can bypass probate, emphasizing the significance of how assets are held. Let's delve into the key concepts mentioned in the article:
1. Funding a Trust:
The article highlights the importance of funding a trust properly. Even though there are various ways to shield assets from probate, individuals sometimes fail to follow through with the funding process. This lack of funding or acquiring new property outside the trust can lead to complications and, in some cases, result in at least a partial probate.
2. California Law and Probate Thresholds:
The article references California law, specifying that assets held outside a trust, without a designated beneficiary, and totaling less than $150,000 collectively, may not require probate. However, for real estate interests, the fair market value must not exceed $50,000 to avoid probate. If it surpasses this threshold, probate becomes necessary for the asset's transfer to the trust.
3. Trustee Access and Procedures:
To access an account or asset outside the trust, the trustee must wait 40 days after the decedent's passing. An affidavit procedure, along with the presentation of the death certificate, is required. This underscores the legal steps and waiting periods involved in the probate avoidance process.
4. Importance of Title Holding:
The article emphasizes the significance of how titles are held, affecting what is included in the probate estate. It specifically mentions setting up bank accounts with beneficiaries to prevent the inclusion of the account's cash in the probate process.
5. Consultation with an Attorney:
The author encourages individuals to engage in discussions with their attorneys to establish the necessary steps for property transfer and probate avoidance. This reinforces the importance of seeking professional legal advice to navigate the complexities of estate planning effectively.
In conclusion, my comprehensive knowledge in estate planning and probate allows me to provide valuable insights into the concepts discussed in the article, offering a deeper understanding of the legal considerations involved in avoiding probate in California. If you have further questions or require assistance in estate planning, feel free to reach out for personalized advice.
