Why You Need a Trust

https://lifeasplanned.wordpress.com/2016/04/11/thinking-ahead-why-you-ne...

When planning for what happens to assets after one’s death, most people think they are clear of the estate tax, because the threshold before taxes apply is so high. But many people don’t think of the probate fee charged under state law by probate attorneys, or the fees for executors. And even if people know about attorney probate fees, which can amount to tens of thousands of dollars even for a modest estate, they may not realize that the probate fee applies to the full value of the homes they own. Not just to the equity portion.

In other words, probate fees will also apply to the debt still owed on the house, not just the part you own.
The only workaround on this is to place the house along with other assets in a trust, your trust, so that upon your death the house avoids probate proceedings. And all the costs associated with this.

To learn more about this problem see my blog at the link above.

Kathleen Nemetz, MBA, CFP

Certified Financial Planner

www.life-as-planned.com

San Rafael, CA