[Living Trust] The Necessity of Wills and Trusts Based on Estate Size

Many people wonder whether a will or a trust is essential for their estate. The answer to this question often depends on the size of the estate. Most states allow a simplified probate process if the value of the estate does not exceed a certain total amount. These limits vary by state and can depend on the types of assets included.

Examples of Will and Trust Necessity

For instance, in California, there are three options for simplified probate for small estates:

1. Small Estate Affidavit: For estates with a value not exceeding $184,500 that do not include real property.

2. Small Real Property Affidavit: For estates with real property valued at $61,500 or less.

3. Petition to Determine Succession to Real Property: For transferring both real estate and personal property, with a value not exceeding $184,500.

In Utah, there are two options for small estate probate:

1. Small Estate Affidavit: For estates not exceeding $100,000, provided the decedent was a resident or there is no approved personal representative petition, and at least 30 days have passed since death. Vehicles, boats, and trailers are not included in this amount if the decedent owned four or fewer.

2. Simplified Probate: While heirs cannot skip the probate process entirely, this method simplifies it, potentially saving costs on probate fees and legal expenses.

In Texas, there is an option to completely bypass probate using a small estate affidavit. The requirements for this are:

• The decedent left no will, at least 30 days have passed since their death, and

• The total value of all assets must not exceed $75,000 (excluding homestead and exempt property).

The necessity for a will or trust can vary based on the size of the estate. For simpler asset structures, a streamlined probate process may suffice, but for more complex assets, considering a will or trust can provide better protection and distribution options. Consulting with a professional attorney is crucial to establish the best plan tailored to your specific situation.