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Understandably, estate planning can be a difficult subject for many people to address and for this reason, my goal is to provide a comfortable environment and knowledgeable service to facilitate this discussion. Planning for the future, including life's unexpected events, can provide you and your loved ones with a sense of security and peace of mind.
A common estate planning document is a revocable living trust which provides for the management of trust assets during a settlor's incapacity and distribution of assets after the settlor's passing. Further, the administration of a trust after the settlor's death is done without the cost and time of probate (see Probate for more information). A revocable living trust is drafted after careful consideration of family dynamics and the settlor's intentions. A revocable trust can be updated to reflect the settlor's life changes.
A revocable living trust is only one component of a component of a complete estate planning package. It is also important to address health care and financial decisions upon incapacity. For this reason, a complete estate planning package also includes a Will, an Advance Health Care Directive, Health Insurance Portability and Accountability Act (HIPAA) Release and General Durable Power of Attorney.
Every individual and family is unique. Accordingly, I look forward to meeting with each client to discuss an estate plan that fits his or her needs.
The administration of a trust in California is subject to various requirements under the Probate Code. As such, it is important for a trustee to understand his or her duties not only under the trust document itself, but under California law. Because a trustee is serving in a fiduciary capacity, he or she is responsible for managing the trust according to its terms and treat all beneficiaries fairly and impartially.
Further, it is often the case that the serving trustee is also a family member or friend of the decedent and coping with an emotional loss. Therefore, it is crucial for a trustee to have proper legal support and guidance to help him or her handle the required administrative tasks and minimize feeling overwhelmed.
In California, probate is the court process wherein a decedent's assets are distributed to his or her beneficiaries or heirs. Generally, probate is required when the decedent either passes away intestate (without a will) or with a will and may take anywhere from nine months to a year and a half or more (depending on the estate complexity and/or contested matters). The fees for probate are statutory, meaning that they are fixed by California law and are based on the estate's gross value as follows:
Four percent (4%) on the first one-hundred-thousand dollars ($100,000)
Three percent (3%) on the next one-hundred-thousand dollars ($100,000)
Two percent (2%) on the next eight-hundred-thousand dollars ($800,000)
One percent (1%) on the next nine-million dollars ($9,000,000)
For example, an estate comprised of one house valued at $1,000,000 would incur a statutory fee for each of the attorney and executor of $23,000 for a total of $46,000.
Similar to the administration of a trust, the executor or administrator of a probate estate is serving in a fiduciary role and is subject to legal duties and responsibilities under California law. Accordingly, proper legal support and guidance is strongly recommended to ensure that the executor satisfies his or her fiduciary duties and administers the estate in an efficient manner.