Estate Planning FAQs
Some of the most frequently asked questions RJS LAW addresses when advising clients on estate planning matters | Estate Planning FAQs
Estate Planning FAQs (1-16) Why do I need an estate plan?
An estate plan addresses what happens upon your incapacity and death – it allows you to determine who makes your financial and health decisions if you are unable to do so and to direct the disposition of your assets upon your death without having to go through probate. Without an estate plan, the Probate Court will decide who makes those decisions.
What are the components of an estate plan in California? Estate Planning FAQs
A comprehensive California estate plan typically includes a Revocable Living Trust, a Certification of Trust, an Assignment of Personal Property, a Pour-Over Will, a Power of Attorney for finances, an Advance Health Care Directive, and aHIPAA Authorization.
What is the difference between a Will and a Trust in California?
A will is only effective upon death and after it has been admitted by the Probate Court. A living trust is effective immediately upon signing, providing immediate management of assets in the event of incapacity and avoiding probate so long as the trust is properly funded.
Is a Will enough?
While better than nothing, a will alone often requires your estate to go through Probate Court if you have personal property valued at over $208,850 and/or real property valued at over $750,000.
Do I still need a Will if I have a Trust?
Yes. A “pour-over will” is often used alongside a trust to ensure any assets not formally transferred to the trust before your death are eventually “poured” into it.
What is the difference between a revocable and irrevocable trust?
Revocable: Can be amended or terminated by the grantor at any time so long as the grantor has capacity to do so. It offers flexibility but remains part of your taxable estate.
Irrevocable: Generally, cannot be changed once established. It can provide significant tax benefits and creditor protection but requires giving up control of the assets.
What is a Power of Attorney (POA)?
A Power of Attorney grants someone the authority to act on your behalf. A POA remains valid if you become mentally or physically incapacitated, allowing your agent to manage your finances. A POA terminates at death.
What is an Advanced Health Care Directive in California?
An Advanced Health Care Directive in California is a legal document enabling competent adults (18+) to outline their medical treatment preferences and appoint a trusted person (agent) to make healthcare decisions on their behalf if they become incapacitated. It ensures end-of-life wishes, such as refusing life-sustaining treatment, organ donation, and disposition of remains are respected.
Why get a Revocable Living Trust (RLT)?
The primary reason for Californians to have a RLT is to avoid probate, plan for issues of incapacity, and direct the disposition of their assets upon death. Upon death, RLTs are typically administered privately, without court intervention.
What assets should be placed in a trust?
Real Estate, bank accounts, stocks, business interests, and other investments should be retitled in the name of the trust.
What assets should NOT be put in a trust?
Retirement accounts such as IRAs or 401(k)s cannot be retitled in the name of a trust, they must be titled in your individual name. A retirement account can, however, name the trust as a beneficiary.
When should you update your estate plan?
Estate plans are like cars – they need maintenance. You should review your plan every 3–5 years or after major life events like marriage, divorce, death, the birth of a child, or a significant change in financial status.
What is Probate?
It is a court-supervised process to distribute your assets. In California, it is notoriously expensive (fees can reach 10% of the gross estate) and slow (often taking 10 months to 2 years).
Do you lose control of your assets placed in an RLT? Estate Planning FAQs
No. As the “Settlor,” you typically serve as your own Trustee, giving you full control to manage, buy, or sell assets during your lifetime.
Will placing your residence in an RLT trigger a property tax reassessment?
No. Under California law, transferring your primary residence to a revocable living trust does not trigger a reassessment under Proposition 13.
What kind of matters does your firm handle? Estate Planning FAQs
Our firm handles all types of estate planning, asset protection, trust administration, probate, and trust & probate litigation. The firm also handles a wide array of tax cases including IRS cases, EDD Cases, Franchise Tax Board cases, and CDTFA cases. In addition, the firm also handles tax planning, international tax, and bankruptcy.
Estate Planning FAQs | WIlls | Trusts | Probate
.