Estate Planning
ESTATE PLANNING
We respect the unique concerns and needs of each and every client, regardless of circumstances or complexity. Whether clients have a clear sense of their goals or are just beginning to assess their plans for the future, we apply our comprehensive knowledge of the law and estate planning tools to craft custom plans that address personal needs. We take great pride in ensuring that each estate plan reflects the client’s goals and values, with an eye toward ensuring family harmony, minimizing tax burdens, and securing a legacy for generations to come.
When a California resident dies, what happens to everything they worked for during their life depends on how well they planned and prepared. With no planning, a person dies "intestate" and the California Probate Code decides what should happen to their belongings through a years-long court process called a probate. With a will, a person can determine what they want to have happen with their property as well as who should take care of their children. With a will alone, however, you still need to go through probate. It also doesn't address the issues of what happens if you become incapacitated whether through an accident or illness.
For these reasons, a complete estate plan will usually be made up of four parts that support each other and work to avoid needless expense.
Durable Power of Attorney
A durable power of attorney is the first part of a comprehensive estate plan. This power of attorney gives someone you trust the authority to make legal/financial decisions on your behalf.
A durable power of attorney can be written so that the transfer of responsibilities occurs immediately or the POA can state that it goes into effect when you become incapacitated.
Healthcare Directive
An "advance health care directive" lets your physician, family and friends know your health care preferences, including the types of special treatment you want or don't want at the end of life, your desire for diagnostic testing, surgical procedures, cardiopulmonary resuscitation and organ donation.
By considering your options early, you can ensure the quality of life that is important to you and avoid having your family "guess" your wishes or having to make critical medical care decisions for you under stress or in emotional turmoil.
Will
A will is the legal document by which a person tells the world what they want to have happen with the things they owned in life when they die. If you die without a will, the laws of intestate succession are used to determine who will inherit the estate.
In California, three types of will are typically accepted. The first is a holographic will, written in the hand of the testator, where the signature and the material terms of the holographic will must be in the handwriting of the testator. The second is a fillable statutory will, located here. Lastly, is the will in solemn form, which is generally drafted by an attorney and must be signed by witnesses.
Other things that can be done with a will include nominating an executor, the person who will be in charge of administering the estate. A will also can nominate guardians for your children who are under age 18.
If you die with less than $150,000 in assets, your estate may be able to avoid probate. Otherwise, your heirs will have to go through the court process for distribution of assets and will be subject to the mandatory fees.
Trust
Living trusts can avoid probate and reduce or eliminate federal estate taxes for your estate.
A trust document is prepared that usually names the trustors (the persons who are setting up the trust) as the trustees of the trust. The trustees are responsible for managing the trust and its assets. The trust also provides for distribution of the estates of the trustors after the deaths of both trustors. These provisions can be the same as those found in a will and might include trusts for younger beneficiaries, gifts to charities, etc.
A living trust will avoid probate for all assets that have been transferred to the trust. Probate is a costly, time-consuming process that many estates do not need.
A trust also can avoid a conservatorship, which is a court proceeding that is expensive, time-consuming and restrictive. Conservatorships are needed when an individual can no longer manage his or her financial affairs. A conservator is appointed by a court and given the power to manage the conservatee's financial affairs, and also make decisions concerning the conservatee's living arrangements. A properly prepared trust can provide a successor trustee who will manage the trust for the benefit of the trustor, sometimes avoiding the need for a conservatorship.