We offer our clients a wide range of services primarily focused on estate planning and estate administration
Estate Planning
It is natural that every individual, and every family, has a different collection of assets, different needs for estate planning, and different views on how their estate should be administered upon their passing. Whether an estate is large or small, everyone should have an estate plan in place in order to provide direction on how the estate is to be handled upon death, or incapacity, and who is/are the person(s) to manage it.
Much has been documented and discussed regarding the need for simple Wills versus Living Trusts. Each comes with its own set of pros and cons dependent upon the assets of the estate and the specific wishes of the individual, or family, that is seeking to establish their estate plan. That is why it is important to engage an experienced attorney who can provide specific recommendations based upon your own collection of assets, needs and ultimate distribution desires, in order to craft an estate plan that best suits your wishes.
Revocable ("Living") Trusts
Historically trusts were created for estate tax planning reasons; however, the federal estate tax rate has gone up and up over the years so it doesn't affect nearly as many people as it once did. As a result of the estate tax exemption amount being so high, Trusts are commonly used for many as a way to avoid the timely, expensive, and court supervised probate process. For larger estates that approach or exceed the estate tax exemption amount, significant estate taxes can be saved by proper estate planning before your death, or, for couples, before one of you dies.
A Trust is designed to govern the disposition of your Trust assets during your lifetime and after death. Property transferred to the Trust during your lifetime will not be subject to probate proceedings. Property held in joint tenancy or designated to pass to beneficiaries other than the Trust, while generally not subject to probate, will not be distributed in accordance with the terms of your Trust. Therefore, in order to maximize the benefits of your estate plan, most assets should be transferred to, or designated to pass, to your Trust.
It is important to remember, there are three parties to every trust: (1) A Trustor, or creator of the Trust; (2) a Trustee, the manager of the Trust; and (3) Beneficiaries, those who will inherit upon the death of the Trustor. Creating a trust allows you to designate whom you would like to manage your trust estate when you can no longer handle your own affairs, or upon your death. It gives you the peace of mind to know that the person you designated will be able to step into your shoes and administer the Trust estate according to your wishes once you are gone.
There are many different types of trust instruments that exist which can be crafted to best suit your planning purposes: community property trusts; separate property trusts; disclaimer trusts; A/B trusts; QTIP trusts; irrevocable trusts; special needs trusts; pet trusts; and many more depending on your needs and wishes.
Almost any type of property may be added to the Trust at any time. However, having a revocable Trust means you are in no way restricted from taking assets out of the Trust. Assets change over time and, as such, you may transfer title to assets in and out of a revocable Trust as necessary. As the grantor/creator of a revocable Trust, you will retain the power to revoke, modify or amend the Trust at any time provided you are competent to do so. Our experienced attorneys will guide and assist you in determining which assets should be transferred into your trust, and which can remain in your individual name.
Even though you may create a revocable trust, you will still need a Will to govern the disposition of your tangible personal property at your death. In a trust setting, this is commonly referred to as a "pour over" Will and covers assets that are held in your individual name at your death.
Wills
A Will is meant to govern the disposition of assets held in your individual name at your death. A properly drafted and executed Will names individuals, or charitable organizations, who will receive your assets at your death. The Will also nominates an executor who will be appointed and supervised by the probate court to manage your estate once you are gone; ultimately to pay your debts, expenses and taxes, and make distribution to those designated beneficiaries.
Another important function of a Will is to nominate potential guardians of your minor children. In California, a child is considered an adult when they reach age 18. Under California law, a minor child (under age 18) is not allowed to care for himself or herself if both parents were to die. Nor is a minor child legally allowed to manage his or her own property. By nominating a guardian under your Will, you will have the comfort and knowledge that those individual(s) you nominated will be able to take care and custody of your children if something happened to you.
It is important to note that a Will for a resident of California must be executed according to California law in order to be valid.
Many people mistakenly think that estate planning only involves the writing of a Will. Estate planning, however, can also involve financial, tax, medical and business planning. A Will is part of the planning process, but you will need other documents as well to fully address your estate planning needs.
Power of Attorney
A Power of Attorney is a written legal document that gives another person the right and authority to act on your behalf. It can be limited to special circumstances or it can be general. That authority will end if you become incapacitated, unless you have a durable power of attorney. A durable power of attorney will remain in effect while you are incapacitated. This means that if you were suddenly unable to handle your own affairs, someone you trust, whom you would name as your legal agent or attorney-in-fact, could do so for you.
In a trust setting, the durable power of attorney is typically a standby document, as most assets will be held in the name of the trust, to be managed by the designated trustee of that trust; however, a durable power of attorney is still advisable to handle limited financial transactions and deal with any assets that may not have been transferred into your trust, such as retirement accounts.
Advance Health Care Directive
An advance health care directive allows you to designate someone to make health care decisions for you in the event that you become unable to do so for yourself. Additionally, this legal document can contain your wishes concerning matters such as: life-sustaining treatment and other health care issues, instructions concerning the disposition of your remains, instructions regarding your funeral, and whether or not you wish to donate organs.
Much has been documented and discussed regarding the need for simple Wills versus Living Trusts. Each comes with its own set of pros and cons dependent upon the assets of the estate and the specific wishes of the individual, or family, that is seeking to establish their estate plan. That is why it is important to engage an experienced attorney who can provide specific recommendations based upon your own collection of assets, needs and ultimate distribution desires, in order to craft an estate plan that best suits your wishes.
Revocable ("Living") Trusts
Historically trusts were created for estate tax planning reasons; however, the federal estate tax rate has gone up and up over the years so it doesn't affect nearly as many people as it once did. As a result of the estate tax exemption amount being so high, Trusts are commonly used for many as a way to avoid the timely, expensive, and court supervised probate process. For larger estates that approach or exceed the estate tax exemption amount, significant estate taxes can be saved by proper estate planning before your death, or, for couples, before one of you dies.
A Trust is designed to govern the disposition of your Trust assets during your lifetime and after death. Property transferred to the Trust during your lifetime will not be subject to probate proceedings. Property held in joint tenancy or designated to pass to beneficiaries other than the Trust, while generally not subject to probate, will not be distributed in accordance with the terms of your Trust. Therefore, in order to maximize the benefits of your estate plan, most assets should be transferred to, or designated to pass, to your Trust.
It is important to remember, there are three parties to every trust: (1) A Trustor, or creator of the Trust; (2) a Trustee, the manager of the Trust; and (3) Beneficiaries, those who will inherit upon the death of the Trustor. Creating a trust allows you to designate whom you would like to manage your trust estate when you can no longer handle your own affairs, or upon your death. It gives you the peace of mind to know that the person you designated will be able to step into your shoes and administer the Trust estate according to your wishes once you are gone.
There are many different types of trust instruments that exist which can be crafted to best suit your planning purposes: community property trusts; separate property trusts; disclaimer trusts; A/B trusts; QTIP trusts; irrevocable trusts; special needs trusts; pet trusts; and many more depending on your needs and wishes.
Almost any type of property may be added to the Trust at any time. However, having a revocable Trust means you are in no way restricted from taking assets out of the Trust. Assets change over time and, as such, you may transfer title to assets in and out of a revocable Trust as necessary. As the grantor/creator of a revocable Trust, you will retain the power to revoke, modify or amend the Trust at any time provided you are competent to do so. Our experienced attorneys will guide and assist you in determining which assets should be transferred into your trust, and which can remain in your individual name.
Even though you may create a revocable trust, you will still need a Will to govern the disposition of your tangible personal property at your death. In a trust setting, this is commonly referred to as a "pour over" Will and covers assets that are held in your individual name at your death.
Wills
A Will is meant to govern the disposition of assets held in your individual name at your death. A properly drafted and executed Will names individuals, or charitable organizations, who will receive your assets at your death. The Will also nominates an executor who will be appointed and supervised by the probate court to manage your estate once you are gone; ultimately to pay your debts, expenses and taxes, and make distribution to those designated beneficiaries.
Another important function of a Will is to nominate potential guardians of your minor children. In California, a child is considered an adult when they reach age 18. Under California law, a minor child (under age 18) is not allowed to care for himself or herself if both parents were to die. Nor is a minor child legally allowed to manage his or her own property. By nominating a guardian under your Will, you will have the comfort and knowledge that those individual(s) you nominated will be able to take care and custody of your children if something happened to you.
It is important to note that a Will for a resident of California must be executed according to California law in order to be valid.
Many people mistakenly think that estate planning only involves the writing of a Will. Estate planning, however, can also involve financial, tax, medical and business planning. A Will is part of the planning process, but you will need other documents as well to fully address your estate planning needs.
Power of Attorney
A Power of Attorney is a written legal document that gives another person the right and authority to act on your behalf. It can be limited to special circumstances or it can be general. That authority will end if you become incapacitated, unless you have a durable power of attorney. A durable power of attorney will remain in effect while you are incapacitated. This means that if you were suddenly unable to handle your own affairs, someone you trust, whom you would name as your legal agent or attorney-in-fact, could do so for you.
In a trust setting, the durable power of attorney is typically a standby document, as most assets will be held in the name of the trust, to be managed by the designated trustee of that trust; however, a durable power of attorney is still advisable to handle limited financial transactions and deal with any assets that may not have been transferred into your trust, such as retirement accounts.
Advance Health Care Directive
An advance health care directive allows you to designate someone to make health care decisions for you in the event that you become unable to do so for yourself. Additionally, this legal document can contain your wishes concerning matters such as: life-sustaining treatment and other health care issues, instructions concerning the disposition of your remains, instructions regarding your funeral, and whether or not you wish to donate organs.
Probate
Probate is the court supervised administration of a decedent's estate. In a probate case, an executor (if there is a will) or an administrator (if there is no will) is appointed by the court to serve as a personal representative of the estate in order to collect the assets, pay the debts and expenses of the estate, and then ultimately, distribute the remainder of the estate to the beneficiaries who have a legal right to inherit the property. The entire probate process can take between 9 months to 1 1/2 years, or potentially even longer.
In California if the gross assets held in an individual's name at their death cumulatively equal more than the probate threshold amount for the year in which the death occurred, the decedent's estate must have the assets pass through the probate process in order to clear title to the assets and ultimately allow the beneficiaries to inherit the assets, whether they be cash, property or otherwise. Even if the cumulative value of the estate totals less than the probate threshold, a full probate may not be required, but other summary probate proceedings may be necessary in order to allow the beneficiaries to legally inherit the property.
The probate process is a complex, time consuming and detailed process. It is handled in a public forum (via the Courts) and may require significant time and expense by the estate in order to complete. Our office has developed a systematic approach to handling probate cases that has been refined over forty plus years of practice to ensure that the proper administration is handled as quickly and efficiently as possible.
In California if the gross assets held in an individual's name at their death cumulatively equal more than the probate threshold amount for the year in which the death occurred, the decedent's estate must have the assets pass through the probate process in order to clear title to the assets and ultimately allow the beneficiaries to inherit the assets, whether they be cash, property or otherwise. Even if the cumulative value of the estate totals less than the probate threshold, a full probate may not be required, but other summary probate proceedings may be necessary in order to allow the beneficiaries to legally inherit the property.
The probate process is a complex, time consuming and detailed process. It is handled in a public forum (via the Courts) and may require significant time and expense by the estate in order to complete. Our office has developed a systematic approach to handling probate cases that has been refined over forty plus years of practice to ensure that the proper administration is handled as quickly and efficiently as possible.
Trust Administration
There is a common misconception that no need exists for professional services in the administration of living trusts after death, especially when there is a moderate estate to administer.
Fear of Probate and the Living Trust Myth. Many individuals have turned to living trusts to avoid the hassles and costs of probate; their expectations often exceed reality. It frequently comes as a surprise to the successor trustee, and the beneficiaries, to learn that living trusts are not magic. Estate administration requires structure and formality, with corresponding legal and accounting fees, even if there is a fully-funded revocable trust in place. This misunderstanding may be the greatest myth of living trusts.
Similarities of Probate and Trust Administration. In fact, probate and trust administration require the same administrative functions: (1) providing statutory notices; (2) making an inventory of assets; (3) paying debts and taxes; and (4) distributing the remaining assets to the designated beneficiaries. In probate, court supervision imposes structure and formality on this process. With a living trust, there is no probate court supervision and, therefore, no structure or formality. The absence of formal court procedures can make living trust administration more complex than probate. Chaos may result. It is therefore incumbent upon the professional team, primarily the lawyer and CPA, to impose formality in the administration of a trust where none exists.
System for Trust Administration. The need for structure in the trust administration process has led us to develop a system for administering living trusts after death. This system includes: (1) procedural checklists; (2) a case database with all pertinent information relating to the trust, the trustee, and beneficiaries; (3) specific forms for trust administration documents; (4) an asset collection procedure; and (5) a trust administration document assembly process. This system for administering living trusts has been developed through years of practice and familiarity with the requirements of administering estates upon a death. We have established this system for administration to protect the trustee from liability and to ensure the trustors' wishes and goals will be carried out.
Fear of Probate and the Living Trust Myth. Many individuals have turned to living trusts to avoid the hassles and costs of probate; their expectations often exceed reality. It frequently comes as a surprise to the successor trustee, and the beneficiaries, to learn that living trusts are not magic. Estate administration requires structure and formality, with corresponding legal and accounting fees, even if there is a fully-funded revocable trust in place. This misunderstanding may be the greatest myth of living trusts.
Similarities of Probate and Trust Administration. In fact, probate and trust administration require the same administrative functions: (1) providing statutory notices; (2) making an inventory of assets; (3) paying debts and taxes; and (4) distributing the remaining assets to the designated beneficiaries. In probate, court supervision imposes structure and formality on this process. With a living trust, there is no probate court supervision and, therefore, no structure or formality. The absence of formal court procedures can make living trust administration more complex than probate. Chaos may result. It is therefore incumbent upon the professional team, primarily the lawyer and CPA, to impose formality in the administration of a trust where none exists.
System for Trust Administration. The need for structure in the trust administration process has led us to develop a system for administering living trusts after death. This system includes: (1) procedural checklists; (2) a case database with all pertinent information relating to the trust, the trustee, and beneficiaries; (3) specific forms for trust administration documents; (4) an asset collection procedure; and (5) a trust administration document assembly process. This system for administering living trusts has been developed through years of practice and familiarity with the requirements of administering estates upon a death. We have established this system for administration to protect the trustee from liability and to ensure the trustors' wishes and goals will be carried out.