Montclair Estate Planning Lawyer

Wills

When executed properly, a will is a legally binding and enforceable document. It outlines, in detail, the distribution of an individual’s assets upon their passing and other wishes. Wills can be a good way to communicate instructions on how assets should be distributed. They also offer the flexibility of simply being thrown out and rewritten to accommodate life changes, but all updated wills must be finalized before the settlor’s death.

However, wills are also subject to the confines of probate, which can take a significant amount of time. There may also be delays associated with probate, including contests by beneficiaries or other interested parties. When a will goes through probate, it also becomes a matter of public record. It has no power until the death of the grantor; that is, it is not effective if the grantor becomes physically or mentally debilitated.

Trusts

A trust is an alternative to a will in estate planning. There are various types of trusts, including a living trust, a revocable trust, and an irrevocable trust, which means they can suit the needs of more estate planners than wills. One of the biggest advantages of a trust is that it does not require going through probate court, so assets can be distributed much more quickly than with a will. The estate planner has more control over when assets can be distributed through a trust as well.

Additionally, trusts are also private and can have tax benefits. Nevertheless, there are some downsides to trusts. By nature, trusts are complicated, and they can be time-consuming and expensive. Trusts may also necessitate long-term management by the trustee, who is the individual named in the trust, to see that it is carried out according to the terms of the settlor. It can be burdensome to the trustee, depending on the long-term conditions of the trust.

It is much more difficult and costly to amend a trust, whereas a will can simply be redone with very little effort. Finally, California trust laws are very explicit; thus, trusts are more strictly governed. For example, a trust can only include certain types of assets, so some financial accounts are excluded, like retirement accounts, bank accounts, and life insurance policies that require a beneficiary to be named on the account.

In 2022, 1,397 probate cases were filed in the San Bernardino Superior Court. Having a professional estate planning attorney oversee your will or trust, in advance of your death, can save your loved ones a great deal of pain and suffering.

A seamless and solid estate plan that is all but impenetrable by the courts is crucial. No matter who the vested interests in your estate are, whether they are the executor of your will, your trustee, your beneficiaries, or even creditors, your wishes can be upheld and honored, despite any disagreement with them.

FAQs

Q: How Much Does an Estate Lawyer Cost in CA?

A: The cost of an estate lawyer in California can vary, depending on:

• The complexity of the estate, including assets and debts
• Who the beneficiaries are
• The types of estate planning instruments you need
• The types of disbursement documents you require
• How involved you require the attorney to be following your death

External factors that affect the cost of estate planning include the fees of the attorney you work with and the region your lawyer practices in.

Q: What Are Three Types of Healthcare Directives in California?

A: There are two main types of advanced care directives: a durable power of attorney for healthcare and a living will. California also recognizes a Physician Orders for Life-Sustaining Treatment, also called a POLST, but this is only for residents of skilled nursing facilities. An estate planning attorney can help you decide which types of healthcare directives suit your needs.

Q: What Is the Five-by-Five Rule in Estate Planning?

A: The five-by-five rule in estate planning is a concept that is recognized by the IRS. It excludes an annual withdrawal of $5,000 or 5% of the trust’s assets from taxation. This means you could designate this amount to be allocated or allowed to be withdrawn by beneficiaries each year. That can save them from having to pay taxes on just those funds.

Q: What Is the Difference Between an Estate Lawyer and an Estate Planner?

A: An estate lawyer is also an estate planner, and they can draw up legally binding documents such as wills, trusts, and other documents involved in estate planning. An estate lawyer can also advise and represent clients in any of the legal processes of probate. Estate planners who are not lawyers, however, can recommend estate planning solutions and are often financially astute, but they don’t have the ability to actually make any legally binding directives.

If you think your family would benefit from estate planning following your passing, understand that taking this step is a very responsible act of love. Once it’s finished, you’ll feel the same sense of relief many of our clients express when they get their affairs in order. You won’t have to worry about causing anyone stress after they pass away. Contact Gaudy Law to schedule a meeting with a seasoned and knowledgeable Montclair estate planning lawyer.

We can meet in our office, or over the phone. Use this time to get questions answered and learn your best next step.