Our office would love to prepeare your estate planning documents.  We have a sample living trust binder with all the related documents we will show to you at the first meeting and explain it to you. 

We usually can prepare this entire package within 15 days to four weeks from the time we receive the fully completed intake packet we send you depending on our volume at the time.  This is a very labor-intensive process.  We will provide you with the originals (signed in blue ink) for safe-keeping and one copy organized in a binder with custom tabs, cover artwork and premium paper. 

Estate Planning for New Families with Young Children

We would love to help new families with their basic estate planning needs which include nominations of guardians for their children, documents in case of incapacity,  and naming a successor trustee or executor  for their estate.   A younger couple and new family may not need the same level of sophistication as an older established couple with more assets and property.   We want to create documents that are flexibile and have room for change.  

Typical Overview of Our Revocable Living Trust

Section 1 .1 Declaration to create a revocable trust

Section 1.2 Name of revocable trust established

Section 1.3   Statement of Intent

Section 1.5 Identification of Children

Section 2.1 Definition of Trust Estate

Section 3.1 Power of Revocation and Amendment of this Trust

Section 3.3  Method of Revocation or Amendment

Article 4 Distributions during trust creators lives

Article 5 Distribution after first spouse death

Section 6.3 Disposition of Trust assets on death of surviving spouse

Section 7.1 Successor Trustees named

Section 7 .2 General Powers of Trustee

Section 8.5 Definition of Incapacity

Section 9.1 Signature Clause

Schedule of Trust Assets:  List of real property, bank accounts, stocks and other assets that are part of the revocable trust. 

Why do you want to spend this time to prepare an estate plan and avoid probate?

Reason #1 - To give MORE inheritance and money to your kids. (approx. $18,000- $19,000 for a $300,000 estate).  And in our opinion this is a significant amount of money.

To even start a probate the filing fee you must pay the court is $435.00 (as of 1/1/17)

But in addition to the Probate filing fee of $435 there will be other court costs associated with probate such as lodging your will with the court, referee appraisal fees, certified copy fees and publication costs.

But the above costs are not the big expense related to probate.  Under California law your personal representative/executor and attorney are entitled to statutory fees. And if your estate has a probate attorney and personal representative you will likely pay this fee twice. 

So if you have an estate worth $300,000 in gross value your estate will pay approx $18,000 in probate fees.

 Current  2017 California Law

 California Law regarding payment of Personal Representative is found in California Probate Code Section 10800

Your executor of the will or personal representative (no will or trust) will get

Compensation to the Personal Representative for Ordinary Services (Probate Code 10800)

(1) Four percent on the first one hundred thousand dollars (2) three percent on the next one hundred thousand dollars (3) two percent on the next eight hundred thousand dollars. 

 California Law regarding payment of an Attorney is found in California Probate Code Section 10810

Your attorney that probates the estate will get

Statutory Probate Fees for Ordinary Services of an Attorney (Probate Code 10810)

(1) Four percent on the first one hundred thousand dollars (2) three percent on the next one hundred thousand dollars (3) two percent  on the next eight hundred thousand dollars.

*Attorney may also seek extraordinary services additional compensation Probate Code 10811

** If your trustee hires an attorney for the trust administration it will cost money. 

 More Reasons to do your estate plan now

 Reason #2 -  To help you in case of emergency. If you have a stroke, aggressive cancer, coma or serious medical illness where you lose capacity our estate planning documents can help you during your life time if you have a trust worthy person in your life.  It takes time (days or weeks) to prepare and file a conservatorship and in some cases you will need someone with legal power to make a medical decision quickly. (Advance Health Care Directive – Agent can make medical decision on your behalf legally. Power of Attorney – Agent can access your bank accounts and pay your medical bills and regular bills while you are in the hospital.).  If you don’t have these documents someone will to go court and petition to be your conservator in a conservatorship proceeding. 

Reason #3.  We consider trust administration an easier and faster process than probate to deal with real property and other assets.  The trust already owns the real property if the living trust is properly funded and the distribution process often takes less time unless you delay the distributions in the trust (i.e parents giving their children the inheritance in stages. Please note this will incur additional trust administration costs) 

Reason #4.  You can name the executor in a will or trustee of your living trust who you feel would be the best and most qualified person to be in charge of your estate.  Also you would be able to nominate guardians for the person and finances of your minor children under the age of 18.  If you don’t have estate planning documents now you have not appointed anyone in writing to be in charge of your estate and this person will be determined by the court instead at probate.  If you don’t have any estate planning documents California law (intestate succession) will determine who will inherit your property when you pass away.

Explanation of the possible Estate Planning Documents our law office will likely prepare for you.

ADVANCE HEALTH CARE DIRECTIVE

Usually when you have surgery or major medical procedures the hospital staff will ask if you have an advance health care directive.  This is a legal document that appoints an agent that you feel can make important medical decisions for you in the event that you are unable to communicate your medical instructions or wishes to a physician.  Also it is a document that allows you to state if you do not want life-sustaining treatment if you become terminally ill or permanently unconscious. Please have a long discussion with your agent for healthcare about your medical wishes for them to carry out. The agent under an advance health care directive is in charge of your funeral and burial wishes if you have no other written burial instructions. 

HIPAA FORM AUTHORIZATION

HIPAA stands for the Health Insurance Portability and Accountability Act which was passed by Congress in 1996.  HIPAA requires the protection and confidential handling of protected health information.  Your HIPAA authorization will allow someone you appoint to review and access  your medical records if they need to make important medical decisions for you.

DURABLE POWER OF ATTORNEY 

This is a very powerful document that is only in effect while you are alive.  It gives another person WHO YOU COMPLETELY TRUST AND APPOINT the legal authority to act on your behalf.  You can give your agent broad, ongoing powers such as handling all your finances or you can limit your agent to more specific and narrow powers (i.e. selling your car while you are away).  This document will avoid a conservatorship proceeding in the event you are unable to handle your own finances or day to day needs.

REVOCABLE LIVING TRUST

This is likely the most instrumental document to your estate plan.  It is a similar to a will except your assets are added into the trust during your lifetime and transferred to your beneficiaries when you die without probate.  It can also be used for your benefit during your life time to avoid a conservatorship. Most people name themselves as trustees who manage all the trust assets.  You can also revoke, amend or change your living trust.  Typically, most of your real property is owned by the living trust once it is created

SYNPOSIS OF YOUR REVOCABLE TRUST

This is a non-legal document that our office provides that explains the specifics of your revocable trust we drafted in an easy to read format.

CERTIFICATE OF TRUST

Our revocable trusts are approx 20 plus pages long. California law allows for a person to create a certificate of trust to provide third parties in lieu of providing the trust documents.  The benefits is that it is much easier to carry around and it maintains the trust’s privacy as to the distribution specifics, the most confidential part of the trust. 

DECLARATION OF TRUST OWNERSHIP OF PERSONAL PROPERTY

We will assign your personal property (the contents of your residence i.e furniture, clothing, jewelry) into your revocable trust.  This is so your revocable trust will always own some type of assets in it, otherwise a revocable trust without assets has no value.   

DEED TRANSFERING YOUR REAL PROPERTY INTO TRUST

We can prepare the deeds to transfer your residence or real property in the revocable trust.  Now your revocable trust will hold these high worth assets to avoid probate.  You will also need a preliminary change of ownership forms that we prepare on your behalf every time you record deeds at the County Recorder’s office.

POUR-OVER WILL

The pour-over will is a back-up document to your revocable living trust with the purpose that if your trust failed to transfer any asset into your trust during your lifetime that during probate the pour-over will follow the terms of your revocable trust.  This pour-over will can also be used to nominate guardians for your minor children under the age of 18 and their finances.  The pour-over will needs to be witnessed by two independent witnesses to be valid. 

SYNPOSIS OF YOUR POUR-OVER WILL

This is a non-legal document that our office provides that explains the specifics of your pour-over will in an easy to read format.

 TRUST FUNDING INSTRUCTIONS

We will provide you instructions on how to properly fund your trust for all your assets you acquire in the future after the revocable trust was drafted.  All assets over $150,000 will have to go through probate unless they fall under some exception such as a transfer on death deed, joint tenancy, beneficiary designations, life insurance etc.