Myth: "I Don't Have Enough Money for a Living Trust" - Guidance from a California Trust and Estates Lawyer

One of the most persistent myths in estate planning is that living trusts are reserved for the ultra-wealthy. The reality? If you own a home, have a retirement account, or want to keep your family out of court, you likely have enough to justify a trust.

In fact, middle-class families often need a trust more than the wealthy because they can least afford the high costs of probate.

Is There a Minimum Net Worth for a Living Trust?

No. There is no legal minimum dollar amount required to create a trust. The decision shouldn't be based on how much you have, but rather on what you want to protect and how you want your family to handle your affairs.

If you own real estate, even with a mortgage, a trust is usually the only way to bypass probate. In many states, if you own a home worth $300,000, your estate could face $9,000 to $15,000 in probate fees if you only have a will.

What Are the Hidden Costs of Choosing a Will Over a Trust?

Many people choose a will because it's cheaper upfront. However, a will guarantees your family will go to probate court. The cost of a trust is higher initially, but it bypasses probate later. The cost of a will is lower upfront, but it potentially creates $10,000 or more in court fees, legal fees, and executor fees later.

Think of a trust as prepaying your estate administration at a discount, so your children don't have to pay a premium during a crisis.

How Does a Trust Protect You While You're Alive?

Wealth isn't just about money. It's also about protecting yourself during health crises. If you become incapacitated by a stroke or dementia, a will does nothing because you're still alive.

Without a trust in California, your family might have to petition a court for a conservatorship (think Britney Spears) just to access your checking account to pay your mortgage. This public court process is expensive and emotionally difficult. A living trust allows your successor trustee to step in instantly and privately, without a judge's permission.

Why Does Privacy Matter in Estate Planning?

Probate is a public proceeding. Anyone can walk into the courthouse and download your will to see exactly who got what and who didn't. Scammers often use probate records to target widows or young heirs who have just received an inheritance.

Trusts are private contracts. Nobody knows what you own, who you left it to, or how much it's worth except the people you trust. This privacy protects your family from unwanted attention and potential exploitation.

Do You Need a Trust? The Middle-Class Checklist

You likely need a trust if you own a home and want to avoid probate delays and costs. You also benefit from a trust if you want to keep your family affairs private and out of the public record. Additionally, if you want to prevent a court guardianship if you become ill, a trust provides essential incapacity planning protection.

Making the Right Choice for Your Family

Don't let the millionaire myth cost your family their inheritance. A living trust isn't about being rich. Rather, it's about being smart and protecting what you've worked hard to build.

Clink on this link to see what your estate would cost in a probate.  Hint, don’t reduce your estate value by your debts.  The fees are calculated on your GROSS estate, not net value.

https://www.michellegofflaw.com/california-probate-calculator

Still have questions or need help with your planning? At Michelle Goff Law Group, we proudly serve clients throughout the entire state of California—virtually! No matter where you are, there’s no need to drive to an office. We meet you where you’re comfortable, by phone or Zoom, to create an estate plan that truly fits your life. We also serve clients in Colorado. Contact us today at 719-424-3321 or click here to schedule your consultation.