A Common Myth About Revocable Living Trusts

As an Estate Planning Attorney, I often run into Myths people have about revocable living trusts. One of the most common ones is that nothing needs to be done when a grantor aka settlor dies. However, this is certainly not true. While a revocable living trust can help you avoid a full blown probate and its attendant intrusions into privacy, huge professional fees and duration, it does not mean that there is nothing to do upon the death of a settlor

Among some of the things that usually have to be done by a successor trustee are:

• order timely appraisals of all trust assets


• prepare and file a final income tax return for the person who passed away


• obtain a taxpayer identification number from the IRS


• Provide notice to Medi-CAL


• fund subtrusts or atleast prepare separate accounts


• execute certain documents


• lodge the pour over will with the clerk of the county court


• preparing statutory notices to beneficiaries

The above list is by no means exhaustive, there are many more things that a trustee may be legally required to do. But I think you get the point. There are still procedures of legal significance that need to be done upon the death of a settlor. Failure to do some of these things leave a successor trustee open to liability for breach of fiduciary duties.

So its not that the use of a properly funded revocable living trust avoids any and all costs associated with the handling of ones affairs. However, in the ordinary situation the fees charged by an attorney should be far less than the statutory fees for probate which by the way are calculated on the gross value of property and not the net ( meaning mortgages do not discount the value the percentage is based on).

ABOUT CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.

CHRISTOPHER R. TWINING
LAW OFFICES OF CHRISTOPHER R. TWINING
1440 VETERAN AVENUE, SUITE 509
LOS ANGELES, CALIFORNIA 90024
(310) 492-5990 Fax (310) 775-9774
http://www.twininglaw.com