ESTATE PLANNING

A Revocable Living Trust not only allows YOU to select who will control your estate upon your passing, but it also allows YOU to designate your beneficiaries so that YOUR assets ends up in the hands of those you love and care for without the hassle and fees of the Probate Court. Be weary of online companies and /or stationery store form versions which DO NOT properly advise you on Estate Tax planning, nor the process, legal or tax ramifications involved in the the transfer of your real estate (your most expensive asset) into your trust, rendering most trusts improperly funded (no assets in it) NULL and Void.








Unfortunately for your beneficiaries, but fortunately for the courts, if you die with a Will but NOT a Living Trust, your estate (property owned at death) will go through what is known as the "Probate" process, administered by a "Probate Court." Once your will is admitted for probate, the probate process averages about 8-16+ months in California prior to it closing (i.e., your beneficiaries will have to wait up to several years for their inheritance!). Additionally, Probate Fees average between 5 -10+% of the Value of your Estate owned at death. During this waiting period, all creditors will be notified, last debts and estate/death taxes (if any) paid, and the remaining estate will be distributed as stated in your Will.


Wills are in effect a "Set of Instructions" to the Probate Judge as to how you want your estate distributed after your death. Dying testate or intestate (with or without a will) DOES NOT ELIMINATE PROBATE FEES or the BENEFICIARY INHERITIANCE WAITING PERIOD OF 1+ YEARS. If you die intestate (without a will), more likely than not, your assets will be distributed according to California Probate Code 246, which states that if you die without a will, your estate will be distributed in equal shares to your children (class gift). If you have no surviving children, then equally to your grandchildren; if there are no surviving grandchildren, then equally to your parents; if there are no surviving parents then equally to your sisters and brothers, then nieces and nephews, etc., which simply protects your estate property to keep it in your bloodline (as opposed to Ex-Spouses, Son-In-Laws, etc.). Keep in mind that with a both a Will and a Living Trust, you can distribute your entire estate to Child A and omit Child B, or devise, bequest, or gift whatever you want to whomever you want with little or no limitation.

Living Trusts eliminate Probate Fees because your "Trustee (a trustworthy adult which you select) not the Probate Court, is going to hold, administer, and eventually close your estate on your behalf and distribute assets as directed in your Living Trust. It is your choice to pay the Trustee reasonable compensation, but it is not mandatory. On average, most corporate or bank Trustees charge approximately 1-3% of the Fair Market Value of the Estate for yearly administration fees. ***Trust preparation and Post Mortem (after death) Trust Administration can become pretty tricky very fast--- be sure to consult your Estate Planning attorney upon decedent's death to determine the rights and responsibilities of both the Trustee(s) and/or Beneficiaries.

Our Estate Planning Attorneys can educate and instruct the Trustee(s) during this difficult time, and/or act on their behalf to help settle and close the estate in an efficient and timely manner. There are several subtrusts than can be added to your Basic Estate Plan to help you save $1000's in estate/death taxes!


There are several good reasons. Historically, a will has also been the first point of reference for individuals contemplating their end of life decisions; the will is where we designate guardianship provisions for our minor children, not in the trust, and the list goes on.

The most strategic tax savings are achieved through a Living Trust, not a Will! Keep in mind, however, that it is possible and almost necessary to have both---a Pour-Over Will ,which incorporates by reference your Living Trust (it pours over into your Trust), and thus saves you taxes while also providing guardianship provisions for your children---Interesting isn't it?

Please contact us directly for to schedule your free initial consultation (949) 260-8474!