Probate – Estate Planning

Planning Your Estate and Probate

You have worked far too hard to let someone else make decisions on how your assets will be distributed or used upon your death or incapacity. Dealing with issues of end-of-life are very sensitive, yet so incredibly important. A lot of people think that because they are married, there is no need to have an estate plan. They don’t like to think about the what “if’s” because it would require making difficult decisions or having difficult conversations with a spouse. If you do not have a Will or a Trust in place that sets forth your wishes, the State or someone else will make those decision for you. Having a clear path for your family when you leave this life is one of the greatest gifts you can give.

WHAT HAPPENS IF I DON’T HAVE A WILL OR A TRUST

The legal term for dying without a Will is dying intestate. If you do not specify through a valid Will or a Trust who will receive your property, State law controls and generally distributes your property to your spouse and/or your closest heirs. This may not be what you had in mind.

By failing to appoint anyone to be administrator of your property, the administrator may have to pay certain fess or post a bond at the expense of your estate before he or she can begin to distribute your assets. This can all be avoided by having the proper paperwork in place.

IF YOU HAVE MORE THAN A MODEST ESTATE

If you own a home or if you have a savings in excess of $150,000, you should consider making a living trust as the centerpiece of your estate plan. A properly funded- living trust will allow your estate to avoid the expense and delay of the probate court.

Not all assets count toward the $150,000. When determining the value of your estate, it specifically excludes items from the calculation, including:

1. 1. Joint tenancy property;
   2. Multiple-party accounts;
   3. Assets passing to a surviving spouse or domestic partner;
   4. Life estate assets;
   5. Property in trust;
   6. POD (paid on death) and TOD (transferred on Death) Accounts;
   7. Vehicles, boats, mobile homes/RVs;
   8. Moneys from service in Armed Forces; and
   9. Up to $5,000 in salary/compensation from employment.

CARRYING OUT THE PROVISIONS OF YOUR WILL

If you have a Will and the assets are worth more than $150,000, the process by which your Will is carried out following your death is “probate”. Because probate is court supervised, Probate is usually a long, expensive and a burdensome process.  Some disadvantages of a probate include the following:

• Its expensive
• It’s a long process
• Your assets become public record
• Court fees
• Attorney’s fees
• Administrative fees

ADVANTAGES OF A LIVING TRUST vs. A WILL

1. 1. A Will does not avoid Probate Court/ a Living Trust does
   2. California Law says that anything over $150,000 must be probated
   3. Probate can take 2 years in Court before an estate gets distributed
   4. With a Will, the probate fees are based on the Gross value of the Estate. These fees do not include any expenses or debts so you can end up paying up to 8% of the entire Estate value. Example: if you have an estate of $100,000.00 and you owe about $90,000 in debt (mortgage, loans, etc.), your probate fees will be based on the full $100,000, not on the $10,000 that is left.

Setting up an estate plan can save your family from probate.  We can assist you and your family in preparing the right estate plan for your specific needs. We also offer services in the following areas:

• LIVING TRUSTS
• LAST WILL AND TESTAMENT
• GENERAL POWER OF ATTORNEY
• MEDICAL POWER OF ATTORNEY
• ADVANCED DIRECTIVE
• PROBATE
• GUARDIANSHIPS
• CONSERVATORSHIPS
• ADOPTIONS

The information provided herein is not meant as legal advice and shall be treated as informational only.  The information is not meant to be substitute for the service of an attorney. If you have specific questions concerning legal, or tax consequence regarding your estate plan, you are advised to seek legal counsel or to seek the advice of a CPA and/or an accountant. The information provided here is meant only for reference and convenience. All applicable laws should be checked to insure that the information provided is still current.