ESTATE PLANNING

Estate Planning involves far more than just drafting a will when you retire, estate planning is an essential tool for tax planning and asset allocation that can protect your wealth. Your estate plan should begin as soon as possible—when you marry, purchase a home and have children are all life stages that trigger essential components of your estate plan. Erin offers full service estate planning services. She drafts and administers trusts, last wills and testaments, powers of attorney, probate litigation, conservatorships and guardianships.

The Process

EPL offers complete estate planning services—from the first steps to the final notarized document, I strive to make your planning experience as efficient and stress-free as possible. First, every new client completes a family planning intake form which I will use to set-up some planning scenarios specified to each client’s needs. Next, I hold an initial planning session either in-person, on the phone, or via Zoom conference to review any areas of concern, select a distribution scheme, and to answer any questions. Through this process I will get to know you, your family and your priorities so that your estate plan—instead of forms you download off the internet and fill in—actually serve your purpose in planning for the future.

Estate plans are not a “set-it and forget it” area of law, they require frequent updates to reflect changes in your financial position, new assets and any changes in law. By establishing a collaborative relationship in the planning stages, you as a client can rest assured your plan will be updated to match your needs throughout your lifetime. I am invested in making sure that your assets are protected and that your trust is funded appropriately so that when it is time for your family to access your estate plan, the administration proceeds smoothly, free from probate court.

Living Trusts

A living trust, also known as a revocable living trust or revocable trust (“RLT”), is an effective estate planning device that allows you to retain full control over trust property during your lifetime. Unlike a will, a trust is effective during your lifetime in the event of incapacity. After you pass away, the property in your trust will transfer to your beneficiaries and avoid probate. Probate fees in California can range from 3%-7% of the total value of the estate, thus the initial costs of drafting and funding an RLT will save you substantially in the long run. RLTs are flexible estate planning tools because they allow you to transfer property over time, they can be revoked or changed while you are alive and they protect your privacy upon death because unlike wills, they do not become public records.

Once your trust is drafted, you will transfer your personal and real property assets into the trust. Transferring assets into your trust will not trigger federal gift, estate or income tax consequences because for tax purposes, you are still the owner of the trust property. An RLT is an effective way to lower estate fees and to avoid unnecessary state and federal taxes.

Asset Protection

Asset protection is integral to the estate planning process. Whether you are an entrepreneur or an artist, using a business entity, carrying appropriate insurance and carefully tracking your investments are effective asset protection tools. In addition to RLTs and other conventional estate planning tools which function to transfer your assets upon death or incapacity, asset protection structures serve to insulate your wealth from lawsuits, creditors and tax consequences during your lifetime. Liability insurance, gifting assets to family members, 529 plans and retirement plans are all tools that protect your estate if effectively utilized.

Erin is committed to providing the best planning for her clients. If you do not have a will or a living trust, a durable power of attorney or a medical directive, you are leaving yourself and your loved ones without guidance regarding your health, finances and well-being. In addition to your RLT and powers of attorney documents, additional considerations for your estate in order to avoid probate are:

1. Joint Tenancy Bank Accounts

2. Beneficiary Designations on IRAs and 401(k)s

3. Beneficiary Designations on Life Insurance Policies

4. Holding Real Property as Joint Tenants with Right of Survivorship

5. Transfer on Death Beneficiary Designations for Investment Accounts

6. Pay on Death Designations on Bank Accounts

Trust Administration

Have you been given the responsibility of being Administrator of a Trust? Trust Administration — being a Trustee is serious business. Trustees hold a powerful position in Trust matters, they are responsible for a host of fiduciary duties, many of which are difficult to ascertain from the trust document without the assistance of a legal professional. From treating each and every beneficiary fairly, to properly accounting for their actions and spending, to making proper distributions when they are due—there are numerous boxes to check when administering an estate. When a Trustee violates his or her duty as trustee, it can spell disaster for the Trust beneficiaries. 

When you handle a trust administration you are not supervised by a court and you do not have to report to any court. In this way it is very different from probate administration. However, you need to furnish the beneficiaries with an accounting within the first year of the operation (usually that year starts with the death of the Trustor) and every two years thereafter. You may be faced with creditors, or those claiming to be creditors, filing claims against the trust for payment of outstanding debts left behind by the deceased. If the trust involves assets remaining in a trust fund for years to provide for future generations out of its investments, your role is ongoing. It is important to have the guidance of an attorney to validate the will, notify creditors, settle any of the decedent’s debts, filing and paying any estate taxes and distribute property under court guidance.

Probate

In the event a loved one passes away without an estate plan, or there is a dispute among the beneficiaries of the estate, an action in the probate court may be filed to resolve such issues. Unfortunately, the probate process in California is time-consuming, costly and highly technical—a probate proceeding can years to complete and cost the estate tens of thousands of dollars. Hiring a lawyer who will take the time to explain the processes clearly and who understands the California Probate Code as well as local court rules is of paramount importance in all probate proceedings.

Some important steps to the probate process include:

• Filing an inventory of the estate’s assets

• Notifying creditors and handling unpaid bills

• Organizing and selling of personal and real property

• Distribution of remaining assets to beneficiaries or heirs

Finally, California residents can avoid the probate process if they plan early. Trusts have become a popular method to avoid probate.