Comprehensive Estate Planning for Middle Class Californians

Our focus in estate planning is on middle class clients who would not leave a taxable estate (currently over $2 Million per individual).

Although federal estate taxes are not a primary concern for such clients, the expense and duration of California probate, however, is of grave concern. California’s Probate Code provides (see Sections 10800 and 10810, respectively) that both the executor/administrator of an estate as well as the probate attorney of the executor/administrator are entitled to claim a percentage of the gross value of the estate prior to the distribution of the estate for their work in administering a probate. That’s right, gross value! To put this in perspective, an elderly widow leaving only a modest San Jose home worth $800,000 (again, gross value -- not net of any mortgage) as her only asset, will yield approximately $38,000 in fees between the executor/administrator and his or her probate attorney -- before the Probate Court issues its final order granting the executor the right to distribute the estate to the heirs of the deceased.

It is this fact that drives many property owners in California to seek an estate plan utilizing a Revocable Living Trust in place of a will in order to transfer property at death because in general a properly funded Revocable Living Trust can allow California real property to be transferred at death without a probate.

Additionally, a California Revocable Living Trust can ensure the smooth transition and management of one’s financial affairs in the event that an individual becomes incapacitated due to Alzheimer’s disease, other dementia, coma, stroke or other illness. In this way, by carefully appointing trusted successor trustees and defining the triggering events of succession, one can avoid a court imposed conservatorship over one’s estate in the event of incapacity.

We provide individualized advice as you consider how to distribute your assets to your loved ones at death. We listen carefully to your wishes, and we draft wills and living trusts in close consultation with you in order to carry out your wishes.

We approach estate planning always as a means of giving clients back control over their own destiny. That is to say, if one does not mind leaving the distribution of their estate at death up to the decisions of a probate judge and other strangers applying the default rules of intestacy found in the probate code, or doesn’t mind that in the absence of an advance health care directive, a court might order that one be kept on artificial life support despite being in a permanent vegetative state, such a person probably does not need an estate plan. On the other hand, the person who prefers to take control over their lives -- especially at such times that he or she may no longer be able to speak for themselves -- can do so simply by thinking ahead and seeking the legal counsel of our experienced San Jose estate planning attorneys.

Indeed, a few carefully drafted documents, including a will, a living trust, a power of attorney and an advance health care directive can avoid untold expense, stress, and potentially heartache for your loved ones in the future.

Some of our frequently offered services in estate planning include:

• Drafting of Revocable Living Trusts with Pour Over Wills to avoid probate, to ensure the smooth transfer of assets to loved ones at death, and to minimize taxes.
• Preparation of General Durable Powers of Attorney (Financial) as well as Health Care Powers of Attorney/ Advance Health Care Directives in order to ensure that the client’s wishes with respect to life sustaining care are respected by medical care givers.
• Assistance with Funding Living Trusts by transferring title to assets to the client’s trust once formed.
• Formation of Limited Liability Companies to hold certain assets as a method of asset protection and to take advantage of fractional discounts in valuation.