Community properties are the normal methods of holding title. In California, we have community title; in other states they have other methods of holding title. However there are problems that you run into- When you hold property in your name and you pass on, that property is going to have to go into what is called a Probate, which is a court proceeding. When you go to court, there are consequences, you have to go before a Judge, have hearings, people challenging the probate, extensive fees; which can be very expensive as well as large amounts of paperwork involved.

 

Historically, if a person doesn’t have a will or trust, the question is what happens to the estate when they pass on? Generally it has to be analyzed by law; debts have to be paid, marshalling of assets, you need a method of organizing assets upon passing.
Upon having no planning, you will then have a probate. If you have a will, it will have to be analyzed and go through probate. The probate fees can be substantial, which is the percentage of asset value. The probate fees can be thousands of dollars, very time consuming which is not unusual.

You will need a better planning method which is a Living Trust. When emergencies occur, it will be better if you can pull out the documents rather than have healthcare professionals questioning as to the care of someone who cannot communicate.

Comprehensive and responsible Estate Planning includes the following:

• Living Trust
• Power of Attorney
• Living Will (Most Important)
• Durable Power of Attorney for Healthcare
• Will- “Pour over Will”
  

All of the above are necessary for a comprehensive estate plan. So in the end you want to make sure you have a comprehensive estate plan, not just a living trust set up, you should take care of everything at one time. Now the Pour over Will takes the assets from the Will and distributes into a Living Trust. Life Insurance can also go into the Trust but you have to be careful of Estate Tax.