A living trust can be a good alternative to a will for managing your estate. But you’ll learn that it’s wise to have a will even if you’ve established a trust. If you live in San Diego it is advised to use only a California bar licensed attorney.

We try to go over some of the basics below to help you understand some frequently asked questions about wills and trusts, and trust administration. Fill out our simple form or call us to set up a consultation.

If you do not have a valid will that provides how your assets will be distributed when you pass away, your estate will require a probate court administration.  Dying without a will means your assets may not be distributed the way you want.

 Instead, the government will make that decision for you.  A will helps with the distribution process, but it does not avoid probate.  .

The probate process is time consuming (it can take months or years), the court files are open to the public, and it is costly because you now have the court, attorneys and various professionals involved in administering the estate.

 The probate court takes control of the process until the estate has been settled and distributed.That means your assets are frozen until the court orders otherwise.  In the meantime, your family may need access to bank accounts or the equity in your home to cover living expenses.

 This can be a stressful process.  Proper estate planning can avoid probate and provide you with peace of mind that your assets will pass according to your wishes in a private and efficient manner..

If you become incapacitated, you won’t be able to manage your own financial affairs or medical needs.  That’s a major event that impacts almost every family at some point, and often without warning.

Many people are under the mistaken impression that their spouse or adult children can automatically take over for them in case they become incapacitated.  The truth is that in order for others to be able to manage your finances, they must petition a court to declare you legally incompetent.

This is an emotional, stressful, lengthy, costly and public process. Even if the court appoints the person you would have chosen (which may not happen), that person may have to come back to the court every year and show how they are spending and investing your money.

You can avoid a lot of stress, time and costs by designating a person or persons that you trust to immediately step into this role when the time arises. We will counsel you and prepare the proper legal documents so your designated person(s) will have your authority to handle your financial affairs, manage your bank accounts, pay bills and buy or sell assets for your benefit.

So, now that we have addressed your finances and property, a plan for your medical care needs to be addressed in the event of incapacity. In California, a family member or close friend can be designated as your agent under a durable power of attorney for health care.

Under this document, your agent is appointed to follow your wishes and make medical decisions on your behalf if you are unable to do so.

To minimize the stress of this process, we provide instructions in the document so your agent and loved ones are comfortable your wishes are being followed.

A properly prepared and funded trust should greatly reduce the time, stress and costs of administering your estate upon death.

 The trustee is responsible for taking inventory of the estate, providing notice, handling any outstanding debts and taxes that may be due and eventually distributing the assets to the beneficiaries according to the terms of the trust.

 This process can be difficult for many reasons, and sometimes the trustee just needs confirmation that they are proceeding as required.  Our office is available to provide a courtesy consultation and assist with the trust administration when needed.

Life does not always go as expected and sometimes a parent will pass away before a child. An estate plan needs to address these unfortunate events.

While a surviving parent may be able to provide for the children, you should also plan for the possibility of both you and your spouse dying simultaneously, or within a short duration of time.

A contingency plan should provide for persons you’d like to raise your children.

Otherwise, the decision as to who will raise your children will be left to a court.  Even if you are lucky enough to have the person or persons you would have wanted selected by the court, they may have undue burdens and restrictions placed on them by the court, such as having to provide an accounting. You should give careful thought to your choice of guardian.

Consider whether they share your values, are they financially able to fill this important role, and are they at an appropriate age or time in their life to do so.

Another consideration for a parent that passes before a minor child is whether you want the child to have unlimited access to their share of the estate when they turn age 18.

Some children are not mature enough to have full access to assets at that age. Some parents prefer the child reaches certain educational or professional goals before an outright distribution of assets.

In those cases, you can plan ahead by having the assets placed in trust for the child until those milestones are achieved, while still providing for the child’s needs. All too often, children receive substantial assets before they are mature enough to handle them properly,
with devastating results.

Those with a special needs family member must plan for the future and consider available resources.  Developing an effective plan for the individual’s future requires a review of the social, financial and legal aspects of that person’s life.

We work with our clients to make sure their estate plan does not disqualify or disrupt an individual’s eligibility for state or federal government assistance. .

Whether there will be any estate death tax owed to the government depends on the size of your estate and how your estate plan works.

  There are many effective strategies that can be implemented to reduce or eliminate estate death taxes, but without proper planning these opportunities may be missed.

You should consult a qualified estate planning attorney to review your family and financial situation, your goals and explain
the various options available to you.

A Revocable Trust, or Living Trust, is a document that is used to provide for the distribution of your assets you’re your death, according to your wishes, and with the goal of avoiding the involvement of a court (probate court).

While a will is an important document, without a trust your estate will still be subject to the probate court process. We want our clients to avoid probate court because it is time consuming, costly and their proceedings are a matter of public record.

A power of attorney, or POA, is a document that allows you to appoint an agent to step to make decisions on your behalf, typically upon your incapacity.

A Durable Power of Attorney for Management of Property and Financial Affairs allows your agent to handle your finances, managing your bank accounts, paying your bills, buying or selling assets, handling real estate and other aspects of daily living.

 This can be a tremendous benefit in the event of incapacity or an extended medical event.  A properly prepared estate plan should include a POA, but great care should be taken into choosing an agent because of the level of trust inherit in the position.

Our office can assist you with reviewing your options and the powers granted to your agent..

An advance health care directive is a document that outlines your health care wishes and nominates your agent to act as your spokesperson to communicate with your physician in the event of incapacity.

It alleviates the stress and doubt of your agent, family and friends because they’ll be following your health care preferences, including the treatment you want at the end of life, religious preferences and your position on organ donation.