HOW OFTEN SHOULD I REVISE MY TRUST?
In Estate Planning, it is recommended that every five years or so, you take out your trust and review it to see if there are some big changes that have occurred or if you have simply changed your mind on some of the decisions you made previously. If everything remains the same, you can put the trust back on the shelf. The other thing to consider is that life-changing events can happen at any time, and if those occur, a revisit to your estate plan could be necessary.
WHAT DOES A WILL DO?
A will provides for the distribution of your estate after you pass away. It also can provide for guardianship for minor children and can be set up to provide to stepchildren, godchildren, and even friends. You can also choose your own executor (the person who will carry out your wishes).
WHAT A WILL DOES NOT DO?
A will does not protect against creditors. A will does not avoid probate. A will still must be brought to court and administered in the presence of a judge (unless the estate’s value is under $150,000). A will is not the same thing as a trust.
WHAT IS THE DIFFERENCE BETWEEN A WILL AND A TRUST?
A trust and a will are both documents that allow for the distribution of assets, the ability to appoint an executor or a trustee, and describe what your wishes are after death. A trust, however, does not go to court (probate). It protects your beneficiaries from creditors and Medicaid payback, and it is a more secure way of protecting your home after you are gone.
WHAT DO OUR PACKAGES INCLUDE?
Living trust, Certificate of trust, Declaration of trust, Pour over will, Guardianship if applicable, Special Needs Trust if applicable, Durable Power of Attorney, Advanced Healthcare Directive, Assignment of Business Interest if applicable, new deeds to property, Notary, and Engraved commemorative box.
DOES CALIFORNIA HAVE AN ESTATE TAX OR AN INHERITANCE TAX?
No. California does not have either one of these taxes, which is why a living trust, or revocable trust, works perfectly in California and protects your beneficiaries from having to pay a tax on your estate upon receipt. (There is a federal tax, but this only applies to a single person estate valued at $5.49 million or above and $11 million or above for a couple.)
WHY SHOULD I HAVE A HEALTH CARE DIRECTIVE?
A health care directive allows you to express your wishes regarding your health care and even end of life decisions in a situation where you may be unable to communicate these wishes to your physician. You are able to appoint the person you want and trust to be in this role and this is a source of comfort for you and is preferred by physicians. Letting your family know in advance what you wish to happen prevents family members from making these hard decisions, especially when they will already be emotional.
WHAT IS PROBATE?
Probate is a formal legal process that varies slightly by state. Probate will give legal recognition to a will and will appoint the executor if one has not been designated prior.
HOW MUCH DOES PROBATE COST?
California probate code section 10810 determines the cost of probate, which does not include filing fees and other fees that can be accrued if there are feuding family members and complex estate matters.
ESTATE VALUE | COST
$100,000 | $4,000
$200,000 | $7,000
$300,000 | $9,000
$400,000 | $11,000
$500,000 | $13,000
$600,000 | $15,000
$700,000 | $17,000
$800,000 | $19,000
$900,000 | $21,000
$1,000,000 | $23,000
$1,500,000 | $28,000
$2,000,000 | $33,000
California Probate Code § 10810
Estate Value Determined PRE DEBTS
WHAT IS THE AVERAGE COST OF AN ESTATE PLAN?
The average cost of an estate plan varies by marital status, properties owned, and location. Most estate plans will start at $1900 and go up from there.
WHAT IS THE DIFFERENCE BETWEEN AN EXECUTOR AND A TRUSTEE?
An executor is responsible for the execution of a will at the passing of the testator. A trustee is responsible for the management and distribution of a trust which can be during lifetime as well as at death.