What is Estate Planning?

Depending on your situation, Estate Planning can involve many different facets, including writing a will, avoiding probate, arranging for care of minor children, saving on estate taxes or preserving assets for children from a prior marriage. An Estate Plan should be tailored to your unique needs.

What if there is No Will?

Generally, if the deceased person did not leave a Will (or if it is proved invalid) and the deceased person did not leave property another way, like through a Living Trust or joint tenancy, the estate must still go through Probate. In this case, the Court would divide the property according to Californiaís intestate succession laws.

Who Should Have an Estate Plan?

The following types of people should strongly consider putting together an Estate Plan:
(1) Owners of any real property (especially those with real property in more than one state)
(2) Parents with minor children (especially children with special needs)
(3) Married persons with children from a prior marriage
(4) Married couples with estates (including life insurance proceeds) exceeding $2 million
(5) Individuals with a serious illness.

What is a Living Trust?

A Living Trust (also known as a Revocable Trust) is a legal entity you create and that you will transfer some or most of your property into. You remain in control over all your property while you are alive, and at your death, it will pass on to your designated beneficiaries. A Living Trust is often at the heart of a good Estate Plan and is one of the most common mechanisms used to avoid Probate.

What is Probate?

It is a legal process that involves:
(1) Filing the deceased personís will with the Court and proving it to be valid
(2) Identifying, gathering and appraising the deceased personís assets
(3) Paying off the deceased personís debts and any estate tax due
(4) Distributing whatís left in the deceased personís estate according to the will. A typical Probate takes up to a year or more and could cost a considerable amount in Probate fees and costs.

What Methods are Available to Avoid Probate?

The following are the most common methods used to avoid probate:
(1) Living Trust
(2) Joint Tenancy
(3) Community Property with Right of Survivorship,
(4) ìPay-On- Deathî Designations (used for bank accounts and stock accounts)
(5) Beneficiary Designations (used for life insurance and retirement accounts). There are distinct advantages and disadvantages with each method, and thus, it is recommended that you consult with an estate planning professional to discuss your overall situation and particular needs.