Very few people want to see an estate end up in probate. It is an expensive and lengthy process that requires a judge to validate and authenticate your will and name an executor. Creditors must then be notified and paid off before distributing your assets to the beneficiaries.

There are a few ways to prevent probate litigation, such as joint ownership and gifting some of your possessions to your loved ones while you are still alive. Another way to avoid probate is by establishing trusts. 

What are trusts, and how can you set one up?

Types of Trusts

A trust is a legal arrangement in which one person (a trustee) manages property of another person (the beneficiary). Revocable, irrevocable, and testamentary trusts may be terms you have heard.

Revocable and irrevocable are living trusts that go into effect and are funded while the grantor is still alive. A testamentary trust is created through a will and does not take effect until after the grantor’s death.

Trusts can effectively manage your property and ensure it is distributed according to your wishes. But, each of them has its benefits and drawbacks.

Revocable Trusts

• A revocable trust can be changed or terminated at any time by the person who created it, called the grantor. In addition to being a way to avoid probate, a revocable can be used to manage assets during the grantor’s lifetime, which can be helpful if the grantor becomes incapacitated.
• Revocable trusts also have some drawbacks. Because the grantor retains control over the assets in the trust, they are still considered part of the grantor’s estate for tax purposes. Additionally, revocable trusts do not offer the same level of asset protection as irrevocable trusts.

Irrevocable Trusts

• An irrevocable trust cannot be changed or terminated once created without the beneficiaries’ approval. This may seem like a drawback, but it provides some distinct advantages:
• An irrevocable trust can help to protect assets from creditors. Once an asset is transferred into the trust, it becomes the property of the trust and is no longer subject to the claims of the grantor’s creditors.
• It can help to minimize estate taxes. Assets in an irrevocable trust are not included in the grantor’s estate for tax purposes, so they are not subject to estate taxes when the grantor dies. An irrevocable trust can help ensure that assets are distributed according to the grantor’s wishes.
• One common issue with irrevocable trusts is that they may not be able to be adapted to changes in the needs of the beneficiaries. For example, if a beneficiary develops a medical condition that requires expensive treatment, an irrevocable trust may not be able to be modified to provide for that need.

How to Navigate Estate Planning Concerns Such as Trusts and Probate

Due to the nuances of setting up a trust, you may want to consider working with an attorney. Our lawyers at Lonich Patton Ehrlich Policastri are experienced at crafting a variety of trusts. Call us at 408-553-0801 to schedule your free consultation.

No one wants to think about estate planning, but it’s a critical part of life. As you grow older, it becomes increasingly important to have a solid plan. A well-drafted plan can ensure your assets are distributed according to your wishes after you pass and help minimize the tax burden and emotional stress on your loved ones. 

What to look for in a law firm

If you’re looking for a law firm to help you with estate planning, it’s crucial to select one with experience and expertise. When looking for a reputable firm, your local bar association or the Better Business Bureau is a great place to start. They will be able to tell you if there have been any complaints against the law firm. 

Also make sure the firm you choose has experience in estate planning. Not all lawyers specialize in this area of law. Therefore, it is important to find a firm that is well-versed in all aspects of estate planning, including estate and trust administration, litigation, and probate, to ensure they can properly advise you. 

After selecting a law firm, set up a consultation to ensure that you are comfortable with your attorney and feel confident that they can properly provide guidance and represent your interests. 

What to expect during the estate planning process

Estate planning can be complex, but with the help of a knowledgeable lawyer, it doesn’t have to be daunting. The main components can include preparing a Last Will and Testament that outlines who will serve as the executor of your estate and designating your beneficiaries and what they will inherit. This document also outlines how your property and assets will be handled. 

You may also want to set up a Durable Power of Attorney or POA, which allows designated agents – usually family members or close friends – to act on behalf of an incapacitated person if necessary. You can also designate a Healthcare Power of Attorney to authorize an agent to specifically make medical decisions if you cannot communicate your wishes in an emergency. 

You may also want to consider setting up a Living Trust, which allows you to create a trust and transfer assets for your beneficiaries while you’re still alive, or a Living Will, which outlines your directives for how medical treatments should be handled if you are unable to advocate for yourself. 

The importance of estate planning

Every person should consider having an estate plan in place in case something happens and they cannot make decisions for themselves. If you don’t have a plan in place, your loved ones may have to go to court to sort out your affairs. This can be a costly and time-consuming process, so it’s best to take care of this important task ahead of time.  

LPEP can help

There are many firms out there, and it’s essential to choose the right firm for you. Our team at Lonich Patton Ehrlich Policastri has decades of combined experience navigating complex family law and estate planning cases in the Bay Area. We are ready to help you navigate your unique situation. Call us at 408-553-0801 to schedule a free consultation today. 

When most think of an estate plan, they typically consider it something that is only for the wealthy, but that couldn’t be further from the truth. An estate plan is an important part of any individual or family’s financial security. It determines how your assets will be distributed after your death and can also dictate who will handle your affairs if you are incapcitated. Understanding the components to include in an estate plan is vital to making sure your wishes are carried out properly.

Important Components to Include in an Estate Plan:

• Wills and Trusts
  One essential part of an estate plan is the will, a legal document that details the distribution of your assets after your death. This includes things like property, money, and possessions. You will also want to have a trust that will allow someone else to manage your assets on your behalf. A trust can be helpful if you cannot handle your own affairs or if you want to provide for someone after your death.
• Powers of Attorney
  A power of attorney is a legal document that gives someone else the authority to make decisions on your behalf. You can give someone power of attorney for financial matters, healthcare decisions, or both. Powers of attorney can be revocable, meaning you can cancel them at any time, or irrevocable, meaning they cannot be canceled. If you become incapacitated without a power of attorney in place, your family will have to go to court to get the authority to make decisions on your behalf. You should appoint someone you trust to act on your behalf, and you should review your power of attorney regularly to make sure it still meets your needs.
• Healthcare Directives
  A healthcare directive allows you to specify your wishes for medical treatment if you cannot make decisions for yourself. You can use a healthcare directive to appoint a healthcare agent to be responsible for making decisions on your behalf and specify your preferences for medical treatment, including end-of-life care. If you do not have a healthcare directive in place, your family won’t know what you want and will have the make difficult decisions.
• Beneficiary Designations
  Beneficiary designations determine who will receive your assets after you die. You can name individuals, charities, or even trusts as beneficiaries. It’s important to carefully consider your beneficiary choices, as they can significantly impact your estate taxes.
• Letter of Intent
  A Letter of Intent spells out your wishes for your estate in the event of your death or incapacity. It can include instructions for dividing your assets, funeral arrangements, and any medical directives you may have. While it is not legally binding, a Letter of Intent provides valuable guidance to your loved ones during a difficult time.

Why You Need an Estate Planning Attorney

Creating an estate plan requires a lot of legal paperwork, and when it comes to your assets, you don’t want to leave anything to chance. Our attorneys at Lonich Patton Ehrlich Policastri will work with you to create a solid estate plan that will give you peace of mind.

If you live in San Jose or the greater Bay Area, contact us for a free consultation by calling (408) 533-0801.

No matter your age or financial status, you can always benefit from having an estate plan for your family. While it’s difficult to think of what will happen in the event of premature death, estate planning will remove the stress on your family while receiving your possessions.

If you want the best for your spouse and children, you should develop a comprehensive plan. There is more to estate planning than your assets, so learning the various documents in an estate plan is necessary.

This article will cover what estate planning is and why it’s so important for your family.

What is Estate Planning?

When hearing the word “estate,” you may picture a large mansion with numerous cars. However, an estate is considered everything you own–such as your property, investments, cars, bank accounts, and other personal possessions.

By creating an estate plan, you will develop a detailed plan on where these possessions will go in the event of your death. Without a plan, the decisions will be made by state law and probate courts.

In many cases, the decisions made by courts don’t reflect your family’s needs and true desires. For the benefit of your family, you need to develop a plan that includes the necessary documents.

Most estate plans for families include the following documents:

• Will/Trust
• Durable Power of Attorney
• Beneficiary Designations
• Letter of Intent
• Healthcare Power of Attorney
• Guardianship Designations

Estate Planning Saves Time and Avoids Taxes

When you don’t have an estate plan, your family will need to wait an extended period to receive your belongings. As the probate courts determine what to do with your items, your assets remain frozen.

This legal process is incredibly time-consuming and can take months or even years to complete. If you want to save your family the headache and stress of this, you should create a will and list the beneficiaries to your investment accounts.

An estate plan will also reduce the tax burden on your family. Fortunately, California has no state estate or inheritance tax that affects heirs. You will still need to pay the federal estate tax and income tax, with an estate plan helping to reduce the burden.

Protect Your Children with Estate Planning

Estate planning is more than determining who receives your investment accounts. If you have young children, you can name who their guardian will be in the circumstance you and your spouse pass away.

While this situation is uncomfortable to think about, you can have peace of mind knowing they will be taken care of by someone you trust. By not including this in your estate plan, the courts will determine your children’s guardians.

Develop the Ideal Estate Plan for Your Family

If you want to ensure your family is protected, you need the help of an experienced team that specializes in estate planning. Our law firm will develop the ideal estate plan for your unique needs. Contact us today at 408-553-0801 for a free consultation!

Have you ever heard the terms “living will” and “final will” and wondered what the distinction is, exactly? Are you thinking about estate planning and the outline of your own end-of-life plans? Both types of documents help you and your loved ones feel secure knowing that your wishes will be adhered to, but how can they accomplish that?

What Is A Living Will?

A living will is also called an Advanced Health Care Directive. Its purpose is to make sure that, in the event that you cannot articulate your own healthcare preferences, they will still be honored. It allows you to appoint a family member or friend as your medical power of attorney. This person should know you well and be willing to communicate with physicians and other healthcare providers on your behalf. If you have specific preferences and instructions regarding treatments you would or would not want, your living will can lay these out.

You remain in control over your medical decisions even if you have created a living will. An Advanced Health Care Directive would only come into effect if you are deemed medically incapacitated. Once it is in force, any healthcare provider must follow what you have laid out in your living will and listen to your appointed agent. However, it is essential that your family, your doctors, and especially your agent all have access to your living will in the case of an emergency. The state of California also maintains a registry of Advance Health Care Directives so that every relevant party can access and follow your wishes.

What Is A Final Will?

A final will is what you probably imagine upon hearing the term: a last will and testament. It is an estate planning tool that allows you to set forth who shall inherit which parts of your estate, amending the automatic apportionment based on state law. If you do not have a will in California, your spouse receives all of your joint property and part of your separate property, with the remainder divided among your children. If you do not have a spouse or children, your estate is apportioned to your relatives, or, if none are found, it is given to the State of California.

You may choose to use a final will along with a trust, which can allow your assets to avoid the probate court supervision process altogether. However, a final will is critical regardless of your financial situation and it is an important part of your estate plan. It gives you the opportunity to name a guardian for any of your children who are minors and to appoint an executor of your estate. This person is responsible for seeing that the wishes, as you’ve laid out, are carried out properly and your finances are in order. You will also want to keep it up to date. Revisions may be in order after major life changes such as marriage, the birth of a child, divorce, or even a new relationship if you wish for your unmarried partner to receive any of your estate, which they are not automatically entitled to under California law.

Both types of wills give you and your family peace of mind knowing that no matter what, you have a well-thought-out plan in place. For a more in-depth look at wills and estate planning, have a look here. If you are located in or around Santa Clara, contact Lonich Patton Ehrlich Policastri to set up a virtual consultation with one of our estate planning attorneys.