What is Estate Planning?Planning for your assets.Minimizing costs and taxes.Minimizing hassles and delays.Preventing possible disputes.
YOU SHOULD MAKE YOUROWN PLANWho will manage your assets if you areincapacitated?Who will inherit your assets after you passaway?
Your Estate, but whose plan?1. Without proper estate planning, your assets willbe handled according to state law, no matter whatyou intend. In many cases, court involvementwill be necessary.2. If you plan now, your wishes and intentions willbe honored.
The Do Nothing Plan• If You Do Nothing, Your Wishes areIrrelevant• During Lifetime: Conservators hip• After Your Death: Probate
Conservatorship• Court proceeding for an incapacitated personwho is unable to manage his own assets.• Someone petitions the court to be appointedthe Conservator.• The Court appoints a lawyer for the proposedConservatee. Later determines if Conservatoris necessary, and who it will be.• Conservator manages Conservatee’s assets.
Probate• Court proceeding to settle the estate of adeceased person.• Required whether or not there is a will.• Someone petitions court to be appointedAdministrator or Executor.• If no will, heirs determined under Californialaw.
A judge will decide who willinherit your money.
Statutory Fees for ProbateFor Attorney and Executor• 4% for 1st $100,000.00• 3% for next $100,000.00• 2% for next $800,000.00• 1% of the next $9,000,000.00.
Heirs who are unable to handlemoney. Addictions, disabilities,creditors.
The Best Plan for Most of Us1. Living Trust2. Pour Over Will3. Power of Attorney4. Advance Health Care Directive
Living Trust• Trust: Legal document containing yourinstructions regarding your own assets.• Trustee: You are the trustee until you areunable. You choose who will manage yourassets if you are unable.• Beneficiaries: You choose who will inheritafter you have passed away. You decide whowill inherit, what they will inherit, and whenthey will inherit.
Without a Living Trust –Example: Real Estate• Joe Sato and Mary Sato, Husband and Wifeas joint tenants with right of survivorship.• Joe dies first – who becomes the owner?How?• Then Mary dies – who becomes the owner?How?
With a Living Trust –Real Estate• Transfer to Joe Sato and Mary Sato, Trustees of theSato Family Trust.• Joe dies first – who becomes the owner? How?• Then Mary dies – who becomes the owner?• Provides for incapacity.
Pour Over WillJust One Part of Complete Estate Plan• Back up plan for assets not in the living trust.• Requires probate to be effective.• In most cases, will not be needed.• Nominate guardians for your minor children.
Stand Alone WillIs NOT a Complete Estate PlanYou decide who will inherit.BUT, the Will requires probate to be effective.Will does not help you if you are incapacitated.