California Estate Planning Attorney

The purpose of the following is to provide general information for educational purposes only. We hope you find it informative. It should not be relied upon for any specific situation. If you have specific legal questions, please feel free to contact the undersigned at your earliest convenience.  We will be please to answer any of your questions FREE of charge.

What is Estate Planning?

Many people think that Estate Planning is simply the writing of a will. They plan their estate because they want to control who will receive their assets after they die, preferably with as little as possible going to legal fees and taxes. As you will see, for most of us, Estate Planning encompasses much more than the simple writing of a will or what happens after you die. A good estate plan will also protect you in the event of your incapacity. It will let you — not the courts — keep control of your assets, as well as control of decisions about your medical care when you can no longer handle your own affairs.

The best time to plan your estate is now — while you can and before you need it. With Estate Planning, there is no second chance.

None of us likes to think about our own mortality or the possibility of becoming incapacitated. That is exactly why so many families are caught off guard and unprepared when incapacity or death strikes.

Keep in mind that Estate Planning is a dynamic process. Just as people and assets and laws change, it may well be necessary to adjust your estate plan on occasion to reflect those changes.

What is my Estate?

Your estate consists, simply, of everything you own — your home, other real estate, bank accounts, investments, retirement benefits from your employer, IRAs, your insurance policies, collectibles, and personal belongings.

When you start adding it up — especially when you add in the death benefits from your insurance policies — you may find, like many people do, that you actually own a lot more than you think.

Now, perhaps, you understand why people do Estate Planning.

Estate Planning

It is commonly assumed that estate planning is only for the rich, the ill or the elderly. In fact, estate planning is a necessity for any responsible, caring person, whether one’s assets have a value of fifty thousand dollars or five million dollars. The proper planning of an individual’s estate and future is important and ultimately provides a person with a sense of security by ensuring that his or her wishes will be fulfilled.

In the area of Estate Planning, clients can select from a wide array of legal options, including wills, basic revocable trusts (sometimes referred to as living trusts), irrevocable insurance trusts, charitable trusts and others. We remind our clients that proper estate planning can allow their relatives and loved ones to avoid unnecessary taxes and other related costs.

Estate Planning, when all is said and done, is really a means of allowing an individual to control his or her affairs pertaining to asset management. We strongly urge all of our clients to review their estate plans on an annual basis and to consult with us regarding any changes. We work closely with the Private Banking Departments and Portfolio Managers of the world’s finest institutions, always striving to make certain that our client’s financial objectives are fully implemented. Because of our experience with and contacts at these institutions, our clients can be assured that they are receiving the very best service and personal attention available.

Does Every Estate Require Tax Planning?

Estate taxes are imposed upon an estate that has a net value in 2000 of $675,000 or more. That amount will increase, in uneven annual increments, to $1,000,000 in 2006. For estates that approach or exceed these amounts, estate tax savings can be realized by proper estate planning. Such planning, however, must generally be implemented before death. Estate Planning for taxation purposes needs to take into account not only estate taxes, but also income, gift, property, and generation-skipping taxes as well.

When considering issues dealing with planning to avoid or potentially eliminate estate taxes, professional guidance from lawyers, accountants and other qualified financial advisors should be considered.

Who Needs Estate Planning?

Whatever the size of your estate, you should consider the benefits associated with designating a person who, in the event of your incapacity, will have the responsibility for the management of your assets and your care, including the authority to make health care decisions on your behalf.

If your estate is small in value, you may focus simply upon who is to receive your assets after your death and who should be in charge of its management and distribution.

If your estate is larger, you will also want to consider various ways to preserve your assets for your beneficiaries and to reduce or postpone the amount of estate tax which otherwise might be payable at your death.

What if I do no Estate Planning?

If you die intestate (without a will), then California’s laws of descent and distribution will determine who receives your property by default. Contrary to popular belief, if you die without a will, everything you own does not automatically pass to the state. Typically, the distribution will be to your spouse and children and then to other family members. The state’s plan reflects the legislature’s guess as to how most people would dispose of their estate and establishes protections for certain beneficiaries, particularly minor children. The rules of “intestate succession” may or may not reflect your actual wishes. Estate planning affords you the opportunity to alter the state’s default plan to suit your personal preferences.

Should I Seek Help with my Estate Planning?

It is possible to prepare one’s own estate plan using do-it-yourself software or fill-in-the-blank forms. It is unlikely, however, that these methods will result in a suitable solution that accomplishes all of your objectives. It is generally advisable to consult with a qualified Estate Planning attorney who can interpret the various laws dealing with property rights, taxes, wills, trusts, and probate.

If you do decide to consult with an estate planning attorney, you can save time and money by preparing thoroughly for your meeting. You can organize information regarding your assets, liabilities, disposition desires and other objectives as well as gather important documents such as prior wills or trusts, powers of attorney, life insurance policies, employment benefits, and other related documents and information.

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