Looking for advice regarding living will and trust

by **osbaldo** » Wed Feb 25, 2009 5:27 am

I am middle aged and I have been able to achieve a good level of success in buying foreclosed properties over the years. Currently, I rent all the properties out to tenants, and maybe I will sell a few of the homes in a couple years when the market picks back up. But for now, I am most concerned about what would happen to these properties if I were to, heaven forbid, fall down with a heart attack, or get hit by a car.

I have three kids, and only one of them lives in California. So, I think I need to create some kind of living will and trust. My question is that if I create the living will and trust in California, will it govern my wishes in all other states? Will my kids be included?

by **Bradly T.** » Mon Mar 30, 2009 4:19 pm

Real property is probated in the state of location. Some states allow naming direct beneficiaries for real property with a beneficiary deed of trust avoiding the probate process. Some states have complicated "community property" distribution rules (California included) if you are married. The simplest and safest method is a revocable living trust which you create to own properties and to receive your accounts, assets, life insurance, etc. with your trust as the named beneficiary. Trusts have universal standing in all states regardless of where the trust is originated or the trust owned property is located. If you want a trust to sell the properties and distribute the proceeds to beneficiaries over a short period of time (10 years or less) any state's trust rules will work. If you want the trust to hold and manage property for decades for the benefit of 2 generations or more, you'll need a "Delaware" trust, now issued by several states, which allow impertuity of the trust status for decades/generations. You should get the assistance of an experienced attorney who specializes in estate planning - no general practitioners and no seminar-trust salesman either. Cost should run $2k - $4k depending on your attorney's furniture, shoes, and car choices. Your desired outcome is not difficult to achieve. Good luck!!

by **osbaldo** » Thu Jul 23, 2009 12:21 pm

Thank you for the advice. I've been looking into contacting a southern California lawyer to try to clear things up. Does anyone have any recommendations?

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