Roseville, CA estate planning & probate attorney R. Keenan Davis talks about how a trust differs from a will in terms of asset distribution and tax implications. In discussing the distinction between a trust and a will, it was emphasized that a will is only validated after an individual’s death, remaining unknown until that moment as it doesn’t undergo scrutiny before that event. The probate process, where wills must be proven in court due to the inability to cross-examine the deceased individual, introduces time-consuming, expensive, and entirely public proceedings, constituting three significant drawbacks of relying solely on a will.

Firstly, the imposition of probate fees, outlined in the California probate code and potentially substantial for larger estates, becomes a relevant concern. This financial burden can be entirely circumvented by adopting the approach of creating a revocable living trust, as recommended by their firm. Secondly, wills present a confidentiality challenge as all associated documents and attachments must pass through probate, filed with the court, and made publicly accessible. In contrast, a revocable living trust maintains privacy, safeguarding important family matters from public scrutiny.

The third pivotal distinction revolves around time. Courts in most metropolitan jurisdictions are known to take two to three, sometimes even four years, to probate an estate. Conversely, a comprehensive estate planning package, incorporating a revocable living trust, takes immediate effect. In instances of disability, pre-addressed circumstances in the estate plan negate the need for conservatorship and related court processes. Upon an individual’s passing, the trust facilitates a streamlined process, bypassing the extended probate timeline. Notably, the trust ensures clarity in distribution, fostering peace of mind and serving as a heartfelt testament to their families.