Estate Planning

Estate planning includes the creation of testamentary documents, including Last Wills and Living Trusts, which allow you to leave the most assets to your beneficiaries with the least governmental interference. For most families, a Living Trust is advisable for anyone with an estate which would otherwise need to be probated.

Probate is the process whereby a court supervises the transfer of the assets of a decedent, whether that person died with a will or not. In California, the estate of a person with assets in excess of $100,000 must be probated.

Probate is, however, a waste of time and money, and proper estate planning must be used in order to avoid probate. Probate fees (executors' fees and lawyers' fees), which are generally about 5% of the gross value of the decedent’s estate, can be avoided with a Living Trust.

Probate is also full of delays. Permission from the court is required for many actions. Notice must be given (frequently it must be published in a newspaper) and a hearing must be held to decide to sell assets or pay money to the family. Probate usually takes about one year, but it can often be longer.

While you are alive, a Living Trust will not complicate your life or require you to manage your assets any differently. No special tax returns are required; no reports to any government agency. The benefits of having a Living Trust may include the elimination of estate taxes, the orderly and prompt administration of your assets after your death, and the protection of your minor children.

A Living Trust may be an appropriate estate plan for:

• Owners of real estate;
• Parents of minors;
• Parents with children from previous marriages; and
• The elderly.

Forming a Living Trust is not expensive, especially in view of the savings of Probate (and the possible estate tax savings). We encourage you to contact us today to help you and your family plan for your future.