A lot of attorneys out there are putting the guilt trip on “Parent’s”, reminding them that, if they don’t put an estate plan in place soon, their loved ones will be out of luck in the future. The standard narrative is this: 1) Get an estate plan. 2) Feel peace of mind knowing your loved ones are cared for. Of course, that sounds great, and a good number of people do end up getting their affairs in order just to feel like they’ve checked the box. BUT, let’s be honest, peace of mind isn’t a super persuasive pay-off. That’s why over 60% of Americans don’t even have so much as a will, let alone a probate avoidance estate plan.

Here’s the thing, you, not your parents, are the ones who will benefit from their probate avoidance estate plan. And you are also the ones with the most to lose. Do you really want to go through the process of probate? Do you really want to have to wait twelve to eighteen months just to receive a dime from your parents’ wealth? Do you want the details of everything you will inherit to be available on the public record? And do you really want to lose 3-6% of the total value of your inheritance right off the top? Of course you don’t.

Let’s do the math. Say your parents own a home that’s valued at $550,000. And maybe they have about $75,000 in stocks, $30,000 in cash, and a $17,000 car. In total, that’s a $672,000 estate. You will lose, right off the top, about $33,000. Then, if they still owe anything on their house or to any other creditors, those debts will have to be paid back, too. Plus any additional court costs, appraisal costs, attorneys fees, funeral costs, the list goes on and on.

Surprise! Estate Planning is Actually in Your Best Interest

Take it from us — probate is not fun and you stand to lose a lot of money in the process. But, there is a way to avoid it. A probate avoidance trust is a relatively simple set of legal documents that keeps your parents stuff out of probate. This kind of trust, alongside a standard will, is a secure way to ensure that you are able to inherit quickly, easily, and without the hassle and expense of probate when your parents pass. To us, it’s a no-brainer. Sure, setting up a probate avoidance trust costs a little money now, but it’s nothing compared to what you will save in the long run. Talk to your parents. If they aren’t willing to put up the money to create a trust, consider offering to pay for it yourself. After all, it’s your money to lose. Consider it an investment in your future.

Want to learn more about setting up a probate avoidance trust to protect your inheritance? Give the Trust Brothers a call at (626) 331-1515.