Estate Planning 101
An estate plan is a series of legal documents that outline how to handle your affairs when you die or in the event that you can’t make legal decisions for yourself. This can include asset distribution to heirs and beneficiaries, custody and guardianship of dependents, asset protection, minimizing estate and other taxes, and establishing how you want medical decisions to be made on your behalf. In the United States, more than 50% of adults do not know where their parents store their important papers and documents, and disputes with family members over a loved one’s assets are incredibly common. Of the 60,286 probate cases that occurred in the California Superior Courts in 2023, nearly 3/4 were related to conflicts over asset distribution. A qualified estate planning attorney can help you make sure all necessary aspects of your estate plan are covered, ensure your plan meets legal requirements, minimize the chance of disputes or complications, and update your documents when needed. The key elements of an estate plan include:
- Creating legal documents, including a Last Will and Testament, a Durable Power of Attorney, an Advance Healthcare Directive, and one or more trusts if needed
- Identifying key individuals in the estate, like beneficiaries, an executor, guardians, and trustees
- Developing an asset protection plan
Factors That Affect Estate Planning Cost
No two estates are alike, so the estate planning process can look different from one person to the next, even within the same family or community. The size and complexity of the estate, the types of assets involved, how many beneficiaries or heirs there are, and the experience and fee structure of the attorney can all have an impact on the overall cost of the estate plan. Consider the following:
- Whether you have existing documents that only need to be updated. If so, the cost may be lower than that of starting from scratch.
- Whether you already have documents such as Healthcare Power of Attorney or Durable Power of Attorney to outline how to handle your finances, assets, and medical decisions if you are unable to do so. If not, you may need to add these to your estate plan.
- Whether your family has specific needs, such as naming a guardian for children or other dependents. If so, a plan for how to handle those needs is essential. It may need to be added to existing documents, or new documents may be created.
- Whether you want your beneficiaries to have access to their inheritance immediately after your death or even while you are still alive. You may want to set up trusts.
- Whether you had your assets valued recently. If not, there may be additional costs to inventory and valuate your assets.
- Whether your total estate is valued over $166,250. This is based on the fair market value of all of your assets combined, including financial accounts, real estate, and other personal property. If so, your estate may need to go through the probate process. You may be able to streamline probate, reduce estate taxes, and safeguard some assets for your beneficiaries with a comprehensive asset protection plan.
The Bottom Line
The only dependable way to know how much your estate planning will cost is to consult with a trusted estate planning attorney. Your attorney can help you inventory your assets and liabilities, draft your estate plan, and put your estate plan into action by funding trusts, updating beneficiaries on accounts, and making sure that your documents are updated when needed.
FAQs
Q: What Costs Exist for Estate Planning?
A: In addition to your estate planning lawyer’s services, each document also has its own filing and/or recording fees with the court. There may also be fees for other professional services, such as accounting, asset valuation, brokers, or financial advisors. Ask your attorney about any additional costs, payment, and payment structures when you meet for your initial consultation.
Q: What Are the Steps in the Estate Planning Process?
A: The steps in the estate planning process are consulting an experienced estate planning lawyer, identifying your goals and objectives, creating your will and healthcare directives, naming beneficiaries and other key people in the estate, addressing taxes, establishing trusts if needed, and making sure to regularly review and update your estate plan. Your estate planning attorney can help make sure your plan meets all legal requirements and covers the needs of your family.
Q: Is It Better to Have a Will or a Trust in California?
A: In California, a will and a trust can serve different functions, and you may need a will, a trust, or both, depending on your specific circumstances. A will allows you to distribute your assets and name a guardian for dependents after your death, while a trust offers greater control over timing and privacy, as well as some benefits related to taxes and asset management. A skilled estate planning lawyer can help you determine which is right for your family.
Q: How Much Does It Cost to Set Up a Living Trust in California?
A: How much it costs to set up a living trust in California can vary, depending on the type and complexity of the assets, the size of the estate, and what specific provisions and maintenance you need for the trust. Attorney fees can vary, and there are court fees for filing and recording the trust. Be sure to ask your estate planning lawyer about the process, fees, and payment in your initial consultation.
Get the Estate Planning Help You Need
At Gaudy Law, our skilled and compassionate legal team has worked with hundreds of clients in California for more than 21 years. Our focus is on legal matters related to estate planning, probate law, and trusts, and our goal is to make sure your family and interests are protected, no matter what happens. Contact our office today to discuss your needs and learn about your options.
