Estate Planning for Real Estate, Cash, Stocks and Bonds, Medical Treatment, Investments, Retirement Accounts, Minimize Taxation, Asset Protection and Piece of Mind!!

Estate Planning might be one of the most important Plans you make!!

Disclaimer: I am not a Lawyer, Probate Expert, Estate Planner or Tax Adviser and I do not guarantee the accuracy of these claims. I will say this information is very helpful and you should seek advice from the experts forementioned.

Creating Your “Revokable Living Trust” can ONLY happen when a knowledgeable Estate Planning Lawyer drafts it for you. It will take some time and thought but I think when you are done it will be very satisfying.

Here’s 2 simple questions:

1. Who is the Successor Trustee in a Trust:
A. The Wife or Husband.
B. The Lawyer who drafted the Trust.
C. The first born child.
D. The last born child.
E. You need a copy of the Trust.
The Answer is E

2. Where do you get a copy of the Trust:
A. County Recorder.
B. Have the children search the house.
C. The Attorney who drafted the Trust.
D. Ask the children for a copy.
The WRONG answer is A

Note on Question #2: If answers B,C & D are UNSUCCSESSFUL, then welcome to PROBATE.

No one should welcome Probate. It’s lengthy, messy and more expensive than the cost of Creating a Trust. Its Public Information, everything is handled in a Court Room by a Judge and an Appointed Agent and there’s no guarantee they will split Assets equally or they might when they shouldn’t. It’s possible the Heirs will hold animosity towards each other for life, because some will feel left out or shorthanded.

What is a “Revokable Living Trust”? It’s a Private Agreement between the Grantor/Living Trustee (s), Successor Trustee (s) and Beneficiary (s). It includes all Your Assets and outlines how those Assets are to be distributed after you die, but you, the Grantor, remain in charge until then. You can Change, Modify, Add, Delete to the Trust while alive (Revocable).

When you Die, California Law allows for the Successor Trustee and Beneficiary to be the SAME Person. One of the Main Functions of a Trust is to AVOID Probate, which is a Public handling of ALL Your Assets in COURT. One of the Main Benefits is Asset Protection. There’s  more Benefits described below.

A Good Estate Planning Lawyer will Guide You through these Goals.

  • Before you Die, You decide ‘Whom” you want to give too. “How” you want to give it and “When” you want to give.
  • Include a solution for becoming incapacitated.
  • Protect the ones you’ve included in the Trust.
  • If there’s more than One beneficiary, outline the distribution amounts too each to avoid litigation.
  • Maximize the Assets left behind.
  • Protect against Creditors.
  • A good Trust will pass along your Ideas and Values.

A Good Estate Plan Includes.

  • A Trust that’s Fully Funded, meaning it includes a Pour Over Will.
  • A Pour Over Will includes Guardianship for minors and that anything Not In the Trust goes to the Trust.
  • Advance Health Care Directive for each Living Trustee/Grantor. Is Designating a Person to make Healthcare Decisions on Your Behalf if Incapacitated and Avoids Guardianship, which is Court Appointed.
  • Durable Power of Attorney for each Living Trustee. This provides Access for Your Assigned Agent to Act on your behalf as it relates to Your Assets, in the event of becoming Incapacitated. It also avoids Conservatorship, which is a Court Appointed Agent.
  • Living Will includes Non-Revival status if you’re in a Permanent Vegetative State or if in Irreversible and Terminal status (Unconscious).
  • HIPAA Release (Health Insurance Portability and Accountability Act). Allows for your Assigned Person to have Access to Your Health Records.
  • Personal Property Memorandum is a separate document from the Will and the Trust. It outlines who gets items like paintings, jewelry, cars, furniture, heirlooms etc.
  • Assignment of Personal Property is a legal document that transfers ownership of the Personal Property mentioned in the Memorandum from the Deceased to the Inheritor.
  • Certificate of Trust and ID Card is a Document or Card used by the Successor Trustee or Beneficiary to demonstrate their Authority to Act on behalf of the Trust without revealing all the details of the Trust.
  • Assignment of LLC and Corporate Stocks this will outline the capacity of the Inheritors as it relates to Ownership and Value, the Position of Authority to other owners of the business, if there are any, and to the world of business relations.

Benefits of the Trust

  • Only the Lawyer who drafts the Trust, along with Trustee (who may also be the Beneficiary), and Beneficiary will know the details regarding Estate Value and Distribution. It’s a Private Affair, NOT public, like Probate.
  • With a Trust and if Medi-Cal expenses exist or have been paid by Medi-Cal, recovery and reimbursement will not occur.
  • In the event there is a Surviving Spouse, the Trust can be drafted to prevent Assets from being given to a New Spouse (Remarried = Blended Family).
  • Maximize Federal Estate Tax Savings.
  • Outline who gets what if a Beneficiaries Dies and has Children.
  • Inheritors Trust is a Lifetime Beneficiary-Controlled Distribution. This can apply to any of the Trustees and or Beneficiaries that are experiencing Divorce, Bankruptcy, Addiction, a Minor, Financial Incompetence. The Distributions will occur overtime/controlled, instead of all at one time.
  • The Trust Owns the Assets. If the Trustee and or the Beneficiary experiences personal Litigation, Bankruptcy, Creditor Pursuit or Divorce, the Assets cannot be attached to satisfy those debts.