Probate can be a lengthy and complex legal process, but some individuals choose to navigate it without the assistance of an attorney.
While it's possible to handle probate on your own, working with a skilled Laguna Niguel estate planning attorney can make the process faster, easier, and less stressful.
In this guide, we'll explore what probate entails and provide insights into what it's like to manage probate independently.
Probate is a legal process designed to determine how a deceased person's assets should be distributed among beneficiaries. During probate, the court reviews the deceased person's will to ensure its validity.
The court appoints an executor who is responsible for overseeing the distribution of assets and executing the terms of the will. In some cases, beneficiaries may challenge the will, adding complexity to the process.
Additionally, probate cases address outstanding debts and creditors' claims. The probate process is typically a matter of public record, which means that details about the estate become publicly accessible, a factor that some individuals prefer to avoid.
Probate proceedings can vary in duration and complexity, with larger and more intricate estates often requiring more time to settle.
Avoiding probate is feasible, but it generally requires proactive estate planning measures. Here are some strategies to consider:
While it's possible to manage probate without legal representation, it's important to understand that the process can be time-consuming and legally complex. Here are some factors to consider if you choose to handle probate on your own:
While it's possible to handle probate without a trust attorney in Orange County, legal professionals can offer several advantages:
While it's possible to manage probate independently, the legal complexities involved make seeking the assistance of a Laguna Niguel estate planning attorney a wise choice.
A skilled estate planning attorney can provide guidance, reduce the risk of errors, and expedite the probate process, ensuring that your loved ones receive their inheritance promptly and efficiently.
Estate planning attorneys serving Laguna Niguel can offer customized solutions tailored to your specific needs, simplifying the probate process and providing peace of mind.
If you're in need of legal assistance with probate or estate planning matters, Parker Law Offices is here to help. Our dedicated team specializes in probate and estate planning law, serving clients throughout Orange County.
From Dana Point to Newport Beach, we provide professional legal services and personalized solutions to meet your unique needs.Schedule a free consultation with an estate planning attorney in Laguna Niguel from Parker Law Offices today to explore your legal options and ensure your estate affairs are handled effectively. Contact us at 949-867-4818 or fill out our online form to get started.
Are you looking for information about probate records? When someone passes away, their assets are typically subject to probate, a legal process that involves the court's examination of their will and other estate documents.
While working with a skilled trust attorney in Orange County can help you set up your estate to potentially avoid probate, it's crucial to understand the implications of probate records and privacy concerns.
In this article, we'll delve into probate, what probate records entail, and explore ways to protect your privacy.
Probate records are essentially a public account of what transpired during a probate case. Probate is a legal process that takes place in a courtroom, aiming to handle the estate of a deceased individual.
Because it's a legal proceeding, probate records are part of the public record. These records typically contain various details related to the probate case, including legal documents, personal information about the deceased, beneficiaries, and more.
A typical probate record comprises various legal documents associated with the probate case, including the will and other estate planning documents. It may also include testamentary letters and an inventory of the estate's assets.
While these documents are essential for the probate process, it's crucial to recognize that they become public knowledge. This can raise concerns for families who value their privacy, as the exposure of personal and financial information may lead to complications or unwanted attention.
Unfortunately, like many other vital documents, estate records are accessible to the public. Even though these records may contain sensitive, personal information about the deceased and their heirs, they are open to anyone interested.
Most wills go through the probate court, making them part of the public court records. However, it's important to note that before reaching the probate stage, wills are generally considered private documents.
For individuals and families who prioritize privacy, this public accessibility can be concerning. In such cases, it becomes essential to explore alternatives to avoid probate and its associated costs and privacy invasions.
Probate records provide detailed insights into the probate case. These documents include the will, administrative letters, testamentary letters, estate inventory, and more. Additionally, they contain information about the deceased person, a list of beneficiaries, and sometimes even personal information about the beneficiaries and the executor.
In situations where a will is contested or other legal actions are involved, additional documents related to the probate case may be available.
Once this information becomes part of the public record, it's challenging to make it private again. Courts typically seal probate records only under rare circumstances, such as when a judge believes that their disclosure might influence an ongoing court case.
Given the public nature of probate records, preventing the probate process, if possible, is a prudent approach for those who value their privacy. To achieve this, consider working with a probate attorney in Orange County. These legal professionals can help you explore solutions that address privacy concerns while ensuring the efficient distribution of your assets.
Probate court serves as the legal process for settling the estate of a deceased individual. This process typically involves tasks such as dividing the deceased person's estate, paying off their debts, and fulfilling their final wishes, including burial arrangements.
Probate can become quite intricate, especially in cases involving large estates or complex financial matters. To navigate this process effectively, it's advisable to engage an experienced attorney who can guide you through each step. If a case appears likely to be lengthy and complex, seeking legal counsel before initiating the probate process can be particularly beneficial.
In certain situations, you can avoid probate, thereby sidestepping the public scrutiny associated with it. Some common methods for avoiding probate include:
Planning your estate with the help of an estate and trust attorney can be an invaluable step in safeguarding your privacy and the interests of your loved ones. By addressing potential privacy concerns in advance, you can ensure that your assets are distributed according to your wishes without the need for probate.
Probate records are indeed public, and once they become part of the public record, it can be challenging to regain your privacy. Taking proactive steps to avoid probate, such as establishing trusts or designating beneficiaries, can help you maintain the confidentiality of your estate affairs.
Consulting with an experienced estate and trust attorney is a crucial part of this process, ensuring that your assets are protected, your wishes are honored, and your privacy is maintained.
Don't leave your estate's confidentiality to chance. Take action now to shield your personal and financial information from public scrutiny. Our seasoned estate and probate attorneys in Orange County specialize in safeguarding your privacy while ensuring your assets are distributed according to your wishes.
With years of experience in navigating complex probate matters, we'll help you explore alternatives to probate, such as trusts and beneficiary designations, that offer a higher degree of privacy. Your estate's confidentiality is our priority.
Secure your family's future and protect your privacy—contact us today for a consultation. Your peace of mind is just a call away. Dial (949) 385-3130 and speak with our trusted estate experts at Parker Law Offices. Your privacy matters, and we're here to help you preserve it.
Do All Estates Require Probate? Losing a loved one is never easy, and when you find yourself entrusted with the responsibility of managing their estate, it can be an overwhelming experience. Not only are you dealing with grief, but you're also tasked with carrying out their final wishes.
However, before you can begin, you'll need to initiate the probate process by filing the will with the probate court. This intricate procedure can be a minefield if you're not well-versed in it. That's where a probate attorney in Orange County can be your invaluable guide.
Are you wondering whether your estate will be subject to probate? Let's delve into estates that are exempt from probate and how you can qualify for a probate alternative.
Probate is a legal process that allows the court to review a deceased person's estate and determine how to divide it among beneficiaries. It occurs whether or not a person has a will.
If the deceased person has a will, the probate court will assess it and determine if it is valid. If so, they will formally assign an executor for the decedent's estate, and that person will divide the estate assets accordingly.
When a person dies without a will, a California probate court will step in and make decisions about how to distribute their assets.
Some probate cases last for over a year, particularly if the case is complicated or if family members dispute the outcome. Probate issues can prove to be both frustrating and expensive—which is why it is worth it to plan ahead to avoid the court if at all possible.
Creating an estate plan with an Orange County probate lawyer can save your loved ones time and money—allowing them the opportunity to grieve in peace after your death.
Probate is required for most estates, but not all. In certain circumstances, California residents can petition for a simpler alternative to the formal probate process.
Many people seek this option because it can save them valuable time and money. Instead of dealing with legal issues and lengthy cases, you can submit an affidavit that will allow you to take legal ownership of your inherited assets.
A probate attorney in Orange County can help you identify ways to simplify your estate so your loved ones can inherit your property quickly and painlessly. Instead of hiring probate lawyers, they will be able to grieve and settle your affairs in peace.
Simply creating an estate plan doesn't allow you to avoid Orange County probate court, although it's a good start. Wills and other documents do not exempt you from the process.
The court makes an exception for surviving spouses, small estates, property in trusts, and anything that falls outside of probate jurisdiction.
Through careful estate planning and working with an Orange County probate attorney, you can avoid probate altogether. Your attorney can also help you prepare the paperwork and settle legal matters as they arise.
Spouses and domestic partners can often skip probate and instead automatically inherit personal property. With items like furniture, clothing, and other personal effects, there's no need to submit any paperwork.
Real property that is owned with the right of survivorship will also transfer automatically to the surviving spouse. If there's a need to retitle the property, the spouse can submit an affidavit to complete the transfer.
For property without the right of survivorship, a spouse can submit a spousal property petition. Though this route does require some paperwork, it is still much faster than probate court. There's no limit to the value of the property that can be transferred this way, and it can be used for everything from real estate to stocks.
In Orange County, CA, small estate probate procedures can expedite the process and make things much easier. Instead of going to court and hiring an attorney, beneficiaries can submit an affidavit for the transfer of property or real estate.
As of April 2022, a small estate is an estate that is worth less than $184,500. The court adjusts this cutoff for inflation every three years.
This limit may seem low. However, when calculating your assets to see whether you qualify for this option, you can exclude:
By excluding these assets, it is much easier to qualify for small estate probate procedures. Your probate attorney in Orange County can set up a trust for you and find other ways to ensure your estate qualifies for this path.
Trusts are a useful estate planning tool, and they have many benefits, including avoiding Orange County probate. Trusts allow for automatic transfer of property ownership to the beneficiaries listed and they can be personalized to fit your unique financial and legal needs.
All assets contained in a trust are private, unlike property that is transferred via the will. Trusts also protect your assets from lawsuits, like personal injury cases where the claimant demands payment for damages. They also protect assets from creditor claims.
A trust attorney in Orange County may recommend a trust as the best option for your estate.
Many financial accounts allow you to designate a beneficiary through the bank, and all of these accounts are exempt from probate.
Retirement accounts, bank accounts, life insurance policies, and other accounts can automatically transfer to beneficiaries upon the owner's death with no need for involvement from probate courts.
At Parker Law Offices, we can take care of all your estate planning needs. Our reputable attorneys are knowledgeable in creating solid estate plans that allow for a seamless transfer of assets to beneficiaries.
We also help clients through the probate process and help them determine if they qualify for alternatives. With the help of a probate law firm, you can get a much better outcome, save money, and potentially reduce your estate taxes.
To schedule your free consultation with a skilled probate attorney in Orange County, fill out our online form or contact us at 949-867-4818 at Parker Law Offices today!
Seeking guidance for probate cases and wondering if you need an attorney? Probate is a complex and often daunting process that no one wants to face immediately after losing a loved one. Yet, it's a challenge that frequently falls upon the shoulders of the executor. While some may be willing to shoulder the entire burden, others opt for the support of a skilled probate attorney in Orange County.
This support encompasses a wide array of estate administration tasks, from handling outstanding debts to ensuring all necessary paperwork is properly executed. Their knowledge of probate law and understanding of the system can be an invaluable asset, especially for those grappling with grief and the intricate administrative responsibilities left behind by the deceased.
Probate is inherently a legal process, laden with terminology that can bewilder the average person. Misinterpretations can lead to unfavorable consequences, including outright rejection of the case by the probate court or unintentional legal violations.
A probate lawyer is your guide to maintaining a smooth and compliant probate journey. There are numerous compelling reasons to consider hiring a probate attorney, some of which we'll explore below.
You might believe that your will is airtight, and protected by a no-contest clause, but disputes may arise. An attorney can either fend off legal challenges or represent the estate and beneficiaries, ensuring these claims are dismissed by the court. In doing so, the attorney safeguards the interests of the beneficiaries by preserving the assets of the estate.
Probate proceedings can be prolonged, sometimes extending to two years or more. While such extended timelines are relatively rare, it's not uncommon for cases to endure for at least a year. An experienced probate attorney, well-versed in the intricacies of the process, can expedite matters, potentially completing the entire process within six to eight months.
The probate process is rife with what can be described as "grunt work." This includes:
Experienced attorneys possess the resources and knowledge to handle all these tasks efficiently, saving you time, effort, and the frustration that often accompanies self-administration.
While a death in the family can bring loved ones together, the reading of a will can sometimes have the opposite effect, leading to tension and conflicts among beneficiaries. Such disputes can become highly charged and divisive, with the executor often facing accusations of favoritism when attempting to mediate.
An impartial third party—your probate attorney with experience in probate litigation—can have a more significant impact and may even mediate effectively among feuding family members.
The decision to hire a probate lawyer is subjective. If you feel that having a probate attorney by your side is the right choice, then it's certainly an option worth considering. Many probate lawyers are affiliated with law firms specializing in estate planning, allowing you to work with the same firm as your trust attorney in Orange County.
To assess your need for a probate lawyer, consider the following:
If these questions leave you feeling uncertain or anxious, it may be advisable to consult an estate planning law firm.
When creating a shortlist of potential lawyers, preparing a list of questions can help you make an informed decision. Here are some key questions to consider:
Choosing a reputable and experienced Orange County estate planning attorney is essential. Probate is a facet of estate planning that requires dedicated attention and knowledge. Law firms like Parker Law Offices offer comprehensive probate services to provide clients with holistic solutions.
For more information on the role of a probate attorney and how they can assist you, don't hesitate to reach out to Parker Law Offices. You can contact us at (949) 867-4818, send us an email, or complete the contact form on our website.
Are you dealing with the complexities of probate after losing a loved one? Losing a loved one is never easy, and when you find yourself entrusted with the responsibility of managing their estate, it can be an overwhelming experience. Not only are you dealing with grief, but you're also tasked with carrying out their final wishes.
However, before you can begin, you'll need to initiate the probate process by filing the will with the probate court. This intricate procedure can be a minefield if you're not well-versed in it. That's where a probate attorney in Orange County can be your invaluable guide.
When seeking help with probate matters, you have two options:
Your choice between these options depends on your unique needs and comfort level. You retain control over the parts of the process you feel confident handling, while the probate attorney takes care of the more complex aspects, ensuring a seamless probate journey.
While handling a straightforward estate as an executor might be manageable, consulting with a probate lawyer is always a wise decision.
This consultation ensures you meet all necessary requirements for a smooth probate process. Mistakes in probate proceedings can lead to costly delays, which can be both frustrating and disheartening when you're striving to honor your loved one's memory.
Full suite services are particularly advisable when:
Unbundled services are typically preferred when:
Note: When opting for unbundled services, it's crucial to establish clear responsibilities. A written agreement signed by both parties eliminates confusion and potential disputes down the road.
Engaging a trust attorney in Orange County for full suite services initiates with applying for a grant of probate at the relevant probate court. This application typically includes submitting the will, death certificate, and other required legal documents as per state regulations.
Subsequent services encompass:
While probate is often necessary, some circumstances allow for its avoidance, particularly when the deceased engaged an estate planning or probate attorney to devise a probate-avoidance strategy. These strategies may involve:
The extent of probate-avoidance strategies adopted correlates with the complexity of the estate. With careful planning, you may only need a probate attorney's guidance and validation of your approach.
While not a complete probate avoidance, small estate procedures provide shortcuts for estates valued below a certain threshold. These procedures may involve summary probate or an out-of-court process that employs affidavits to release assets.
It's important to note that the definition of a "small estate" varies by state, and your probate attorney will be well-versed in the specifics of your jurisdiction.
In some states, the Uniform Probate Code (UPC) streamlines the probate process, enabling most cases to proceed with minimal court oversight.
Probate attorney fees vary depending on the estate's size and complexity. Fee structures typically fall into three categories: hourly rates, percentage-based fees, and flat rates.
While flat rates may seem high initially, it's important to note that you won't be billed for every phone call or email. Beneficiaries are best served by minimizing service usage, which can be achieved by assisting the executor with straightforward tasks, such as making phone calls.
Understanding billing details is crucial. Many lawyers using hourly billing systems charge in 15-minute increments, meaning you pay for every 15 minutes or part thereof. It's advisable to consolidate your questions for a single call to maximize your consultation time.
A proficient probate attorney is an invaluable asset. At Parker Law Offices, we specialize in estate and probate planning, catering to a wide range of needs.
Whether you require assistance with property sales or prefer an attorney to manage the entire process, we are among the top Orange County estate planning attorneys, committed to ensuring a smooth and efficient probate experience.Get in touch with us today to have all your questions about estate and probate planning answered. You can reach us by completing our website's contact form, or by calling us at 949-867-4818.
Estate planning can be simple if you've got a small family with only one child and no siblings. It's when you have a large family, such as a blended family, that it can get complicated. That's why you need a trust attorney in Orange County to help you create a will that encapsulates your wishes, especially regarding asset distribution among your beneficiaries.
They'll be able to tell you which type of distribution, per stirpes or per capita, matches your needs.
Per stirpes is a Latin term that means "by branch" or "by roots". It's a linear asset distribution method. It means that if one of your descendants passes away before you do, their share of your estate goes to their children. It's a direct line from you to your children to your grandchildren.
However, it doesn't make provisions for your spouse or other loved ones. It also only applies to your biological children. Unless you create a trust for your stepchildren, they are completely left out of your will.
You have two children, Alice and Betty. Alice has two children and Betty has three children. According to your will, they share your estate equally, 50-50. Alice dies in a tragic accident and, according to per stirpes, her share goes to her children. Each child receives a quarter of your estate and Betty still has her 50% share.
You still have Alice and Betty and they still have their children. This time Betty dies from a major heart attack and, according to per stirpes, her share goes to her children. Each child receives approximately 16% of your estate assets and Alice still has her 50% share.
Per stirpes has many benefits, but one glaring problem is the "unfair" estate distribution among your grandchildren. Alice's children get 25% of your estate while Betty's children only get 16%.
There is absolutely no favoritism on your part. There is no spite, no desire to cheat Betty's children. But, it could appear so and suddenly where there was none, there is now enmity between your grandchildren.
Per stirpes is not a default asset distribution method. You have to specify it in your will. You also have to use specific terms. "Assets are to be distributed to my descendants, per stirpes."
Per capita shares your assets equally among your named beneficiaries, including sisters-in-law, uncles, half-brothers, etc. Should a primary beneficiary pass away before you, their share is added to the pot and then equally distributed among your living beneficiaries.
Your probate attorney in Orange County will help make your wishes clear by using specific terms in your will, "I leave my estate to my descendants, per capita."
You still have Alice and Betty and they still have their children. Alice falls from a tree and dies from her injuries. Her share of the estate goes to Betty. Betty now receives 100% of the estate. Alice's children don't get anything.
You have three children, Alice, Betty, and Carol and your estate is to be shared equally between them, so each gets a one-third share. Alice has two children, Betty has three children, and Carol has one child. Alice dies from a terminal disease and her share of the estate is then divided between Betty and Carol. Now they both get 50% of your estate.
Alice's children don't get anything.
Many people consider per capita distribution to be the fairer of the two methods, but it also has disadvantages.
One of the biggest advantages of per stirpes is that the line of distribution has been established. You don't need to update your will or estate plan when an original beneficiary passes away.
It also eliminates uncertainty and potential squabbles about how a deceased beneficiary's share is to be distributed if they die before you, the testator. You can further secure assets for your beneficiaries by including a no-contest clause in your will.
You can't add a new beneficiary (contingent beneficiary) if one of your children or grandchildren dies. Inheritance is strictly linear.
All beneficiaries receive an equal share in your estate, regardless of your relationship, for example, spouse, niece, or cousin.
In theory, it also eliminates squabbles because distribution is clearly stated.
If the value of your estate is worth more than a set amount and you decide to leave it to your grandchildren rather than your children, they will have to pay generation-skipping transfer tax (GSTT).
You can't give your favorite niece a bigger share of the estate than your least favorite niece. Per capita distributes assets equally, regardless of your preferences.
You have to update your will whenever there are significant life events, like a death, divorce, marriage, or birth.
There is a very clear difference between the two types of asset distribution and they each serve a specific purpose. However, they also each have little details and state-specific regulations that are best explained by an experienced estate planning lawyer. Parker Law Offices employs some of the best Orange County estate planning attorneys who specialize in estate planning, including trusts and probate.
If you have any questions about estate planning or want to start the estate planning process, get in touch via email, our onsite contact form, or by calling 949-867-4818.
Trusts are an important part of estate planning. They can also be one of the trickier aspects of estate planning. It doesn't have to do with setting up a trust and naming trust beneficiaries. It has everything to do with naming successor co-trustees, specifically naming more than one of your children. Your trust attorney in Orange County will give you good advice about the decision, but there are some factors you should know from the outset.
Family dynamics are interesting. Families can put up a joint front when you don't expect it and fall prey to in-fighting also when you least expect it. The point is, you might expect your children to act cohesively as co-trustees, but when it comes right down to it, your decision could drive a wedge between them.
This is the question that drives many people to name all their children as co-trustees.
They might think you're choosing your favorite child. They might feel hurt because you chose one over the others. They might even feel that it's unfair for one of them to make all the important decisions without consulting the others.
It seems like the only logical thing to do is to include everyone. However, it turns out that it could actually be the worst thing to do.
For starters, being a trustee is a big responsibility. They have to make important decisions about the trust; decisions that require calm, logical thinking. Ask yourself if your children, working as a committee, are capable of calm, rational thought that leads to unanimous action.
Unanimous is the key word here, as your Orange County estate planning attorney will tell you.
According to the Californian Probate Code, multiple trustees must all agree on the matter at hand. There's no majority rule. There's no veto power. Everyone must be in complete agreement.
Does this sound like your family? After all, even the closest siblings will occasionally disagree.
You'll need to create contingencies for situations when there is a stalemate; for example, have a corporate trustee (from a bank or trust company) break the deadlock. Note: The corporate trustee has no right to interfere if your children are in agreement.
Unanimity is just one potential obstacle. There are several more that must be overcome.
If one of your children feels that any of the others are lax in their duties as trustees they have the option to petition the court to either resolve the problem or remove the lackadaisical sibling. This is an expensive process that is billed to the trust.
Not only is the value of the trust reduced but the relationship between your adult children could suffer.
Without instructions otherwise, all co-trustees must sign legal documents, including those that authorize particular actions. Often, they have to sign the trust documents in the presence of others to ensure they are all of one mind. This is obviously a problem if your children are scattered across the country.
You can work around the problem by specifically stating that the signature of Trustee A will suffice. This works well in theory, but it poses the exact same problem that naming all your children joint trustees was supposed to prevent. One sibling has the power and, in this instance, can act without support from the others.
In the event that your children have reached an agreement, and you haven't designated a "head trustee" who can sign on behalf of everyone, the documents must be signed by all of the trustees. In some cases, signing can be witnessed by authorized professionals, like an attorney or certified bank employee.
Should this not be the case, all siblings will have to get together at the same time to sign the documents. This can take some time and some complex arrangements, which basically means that it can take months before any decisions are acted upon.
If you name all your children as co-trustees, you bind them in ways you might not expect. If one child has sticky fingers and helps themselves to some of the assets or funds in the trust, they breach their fiduciary duty. Unfortunately, all of your other children are jointly liable. They could all face legal action for their sibling's crimes.
No, it doesn't. If you really want to involve all of your children - including those from a blended family—the best thing to do is talk to all of them. Talk to them privately and then, if possible, in a group. Modern technology means that you can have a group meeting via live streaming platforms, like Zoom and Google Chat. So there aren't really any excuses for not being able to attend.
The first conversation that you should have is with your head trustee. They must be willing to assume the role and all the concomitant responsibilities. If not, you need to talk to your second choice.
You also need to talk to others to explain the reasoning behind your decision. For example, Daughter C has excellent managerial and organizational skills and that's why you've chosen her as head trustee. Then explain the importance of their supporting role so they don't feel marginalized.
You can use an impartial, independent trustee. Many banks have professional trustees who work in the trust department. They know all the rules and procedures and work quickly and efficiently so there aren't any unnecessary delays when certain actions or steps need to be taken.
There are also private professional trustees or fiduciaries who can manage your trust. Before you sign any contracts, however, make sure they are properly licensed and bonded by the state of California.
Estate planning lawyers are there to give you valuable advice about optimizing your legacy, including setting up trusts to protect your assets from probate. Your probate attorney in Orange County can help you decide what types of trusts you can create, as well as help you choose a suitable successor trustee.
Parker Law Offices specializes in estate planning with a focus on trusts. If you have any questions about starting estate planning or want to add a trust to an existing estate plan, simply contact Parker Law Offices via email, the contact form on their website, or call 949-867-4818.
If you've been appointed as a successor trustee it means that the grantor trusts you with all the important aspects of their life should they become incapacitated or when they die. It's an important role with important responsibilities.
If you're about to appoint a successor trustee, it's a good idea to discuss their exact duties with a trust attorney in Orange County, so you can choose the person most capable of meeting the requirements.
A successor trustee is responsible for administering a trust should an event, illness, or death render you incapable of administering the trust yourself. Options include adult children, close friends, financial advisors, estate planning lawyers, and trust companies. A successor trustee's duties depend on the grantor's instructions, but there are certain duties that are inherent in the role.
The first item on the list is to notify the family and financial institutions of the grantor's incapacity or death. Next, they must provide the trust beneficiaries with copies of the Declaration of Trust.
The successor trustee distributes the property and trust assets according to the terms of the trust. For example, they might have to manage the trust for a minor child until they come of age or meet the conditions of the trust, such as completing an undergraduate degree.
The most important thing to remember when appointing a successor trustee is the complexity of the role. They must understand estate planning and trust law and make informed decisions regarding financial management. This is just one reason why appointing an Orange County estate planning attorney is highly recommended.
A successor trustee assumes a fiduciary duty to the beneficiaries of a trust, which means they must always act with the beneficiaries' best interests at heart. Often, this includes investment management and navigation of state and federal tax laws. Add multiple beneficiaries, including charities, and the complexity of the trust agreement is compounded.
For this reason, it's essential that you talk to whoever you want to appoint before you make the decision final. Your best friend might be honored that you place that much trust in them, but their brain runs more to art and literature, not estate taxation and the finer details of living trust management.
An EIN is an Employer Identification Number or federal tax ID number. It's provided by the Internal Revenue Service (IRS) as it's used for tax reporting purposes. Generally, a revocable trust doesn't need an EIN because it falls within the grantor's income taxes.
An irrevocable trust needs an EIN because it's a separate entity with its own tax identification.
It starts to get confusing when irrevocable trusts are also grantor trusts which may or may not need an EIN because they may or may not be estate tax liabilities.
This can be a step too far for family or friends who have been appointed successor trustees. A trust attorney is far more experienced at navigating the IRS website.
A trust bank account is set up to conduct any trust-related financial transactions. There are different types of trust bank accounts and in some cases, more than one account may be necessary to meet all the trust's financial obligations.
For example, a trust checking account ensures funds are available to make payments immediately. There are also trust savings accounts and brokerage accounts.
It's important to know which account or accounts a specific trust needs so that time and money aren't wasted on accounts that serve no purpose or cost more money than they're worth.
A successor trustee may not know which account will most benefit the trust. Trust attorneys know precisely what accounts are needed and how to manage them.
Successor trustees have to report obligations to provide beneficiaries with pertinent information regarding the trust. For example, the information contained in the trust documents, including the terms, list of assets, trust deeds, and identity of trustees. They must also provide beneficiaries with information that will answer their questions regarding the management of the trust.
Beneficiaries are also entitled to annual reports from trustees so they can see how well the trust is performing.
There is some information that successor trustees aren't bound to provide to beneficiaries. The line between confidential and shared information is fuzzy and best walked by experienced estate planning attorneys.
Subtrusts are trusts within trusts and usually only come into being after the death of the grantor. Subtrusts include Bypass Trusts, Residual Trusts, and Tax Avoidance Trusts. They have various benefits, including asset protection from creditors and asset protection for children outside the current marriage.
There are situations where the assets need to be protected from the beneficiaries, including the financially irresponsible or those with expensive addictions.
Successor trustees are tasked with funding subtrusts and placing assets in particular subtrusts such as those for individual beneficiaries.
These decisions often require specialist estate planning knowledge, including the ramifications of the different types of subtrusts. A layman might not be qualified to make the correct choices.
Trust accounting is the recording and maintenance of financial records, including ledgers that contain financial transactions and monthly account reconciliation. There must be a paper trail that proves every transaction was right and proper and not against the best interests of the beneficiaries.
In cases where the successor trustee isn't qualified to carry out fiduciary responsibilities, they usually have the authority to delegate responsibilities to experts, such as professional investment managers.
Parker Law Offices is a firm that specializes in all manner of estate planning, including trust administration and the assumption of all successor trustee duties and responsibilities. We also provide the specialist services of probate attorneys in Orange County.
Contact us for more information on the duties and responsibilities of successor trustees. Complete the contact form on our website or call us at 949-867-4818 at Parker Law Offices today!
Trusts are part of estate planning. They serve as a secure holding pen where the trust creator transfers assets that are then protected from certain things like lawsuits. A trust attorney in Orange County will help you create a trust agreement that fulfills your wishes and meets state and federal requirements.
There are different types of trusts and different types of beneficiaries. All of this will be explained to you when you contact a trust attorney for advice.
A trust is a legal arrangement that allows the trust creator to transfer assets to another person who is the trustee. The trustee holds, manages, and administers the assets of the designated beneficiaries. A trust document called a trust deed, specifies the trust terms and conditions for its administration and trust distributions.
Trust beneficiaries are usually children or grandchildren, but they can also be organizations like charities and schools. However, some states restrict the types of beneficiaries allowed. For example, you may not be able to name your dogs as beneficiaries. Consult your Orange County estate planning attorney to ensure that your trust is legally compliant.
There are three types of beneficiaries, these are:
Primary beneficiaries typically include:
Immediate family and close loved ones. For example, a mother, sister, daughter, best friend of 30 years, or exemplary nurse who went out of her way to help you while caught in tragic circumstances.
If you have a minor child when you pass away, their legal guardian manages their inheritance until they come of age.
Talk to your estate planning lawyer for professional advice about naming family and friends with special needs as beneficiaries. It's possible that your good intentions put them in a position where they no longer qualify for government assistance and could end up much worse off than before.
A philanthropic option available to you is a charitable trust. You create a trust whose purpose is to stream income to your preferred charity.
The two most common are charitable lead trusts and charitable remainder trusts.
A charitable lead trust is an irrevocable trust that streams trust income to your nominated charity for a period, for example, seven years. At the end of the period, the remaining assets are distributed to beneficiaries and not the charity.
A charitable remainder trust is an irrevocable trust that streams income to the chosen charity for a period of time. When that period ends, the remaining assets go to the charity and not the beneficiaries.
There are two types of charitable remainder trusts. Charitable remainder annuity trusts (CRATs) donate a fixed amount as an annuity annually and don't allow additional contributions. Charitable remainder unitrusts (CRUTs) donate a fixed percentage of the value of the trust annually and do allow additional contributions.
Many people want to contribute to their place of worship upon their death. It's one last tithe. A tithe is a cash donation to a church that amounts to 10% of property or income. It can also be 10% of your estate.
An estate planning attorney will help you find the best way to carry out your final religious duty by looking at the different types of trusts and determining which option is best for you. For example, you could set up a trust that donates 10% of the value of the trust to the church annually.
You can contribute to your favorite animal shelter or rescue center in a revocable living or charitable remainder trust. You can choose to leave a specified amount of money or resource, for example, all your books for the secondhand bookstore.
You can also go with a residuary option where you leave whatever is left of your estate after everything has been paid and all your beneficiaries are satisfied, to your chosen shelter.
There's also a contingent option should your primary beneficiary not be able to inherit. For example, you leave the remainder of your estate to your brother, but specify that if he doesn't survive you, then 100% of the remainder will to the animal shelter.
A charitable remainder trust fund is also the best way to leave a portion of your estate to your school when you die. You can choose between the two types of charitable remainder trusts, charitable remainder annuity trusts or charitable remainder unitrusts.
For example, you might want a trust that allows you or others to keep making contributions, in which case you need a unitrust.
You may want to contribute to the continuation of your business after you die. As much as you love your family, you know none of them has a head for business, so you want to keep your legacy apart from the rest of your estate planning.
However, business legacies have the potential to be complicated. If you want to be as clear as possible about how you want to leave your legacy, you need to engage an estate planning lawyer who specializes in trusts. They'll help you create a trust specifically for your business's benefit.
Don't leave your estate planning to chance by hiring inexperienced trust lawyers. Choose a firm with experienced trust and probate attorneys in Orange County. Parker Law Offices specializes in all aspects of estate planning, with a special focus on the different types of trusts.
Whatever the size of your estate, let our attorneys help you reach your estate planning objectives. Complete the contact form on our website and we'll get back to you. You may also contact us at 949-867-4818 at Parker Law Offices to book a consultation today!
Estate planning isn't only something that takes care of your family after you die. You can set up a revocable or revocable living trust that protects your assets before your death and benefits your family afterward. A trust attorney in Orange County will give you all the advice you need to create a revocable trust that enables you to preserve your wealth.
Revocable trusts aren't just for the rich. Everyone with a family, no matter how small, can create a revocable trust. This is because there are many benefits that apply to all income levels. For example, a trust isn't part of your estate and doesn't go through the probate process. The assets in a trust are available far more quickly and avoid probate costs.
A revocable trust is relatively fluid, you can change the terms at any time during your lifetime. You don't have this option if you have an irrevocable trust. Its fluidity allows you to draw income from the trust and use the trust assets. When you die, the assets are distributed as you have stipulated in the trust terms.
You could, for example, draw money from the assets in a trust to pay your medical expenses for a hip replacement.
When you die, your estate goes through a probate proceeding that authenticates your will and approves your executor. It can take a long time, sometimes a year or more, and probate expenses can mount up. The cost is taken out of the estate, reducing the assets distributed to your beneficiaries.
Trusts are separate from your estate so they don't go through probate. Furthermore, if you put assets in a trust in another state, you avoid probate estate proceedings in that state.
For example, if you have rental properties in California and Maine, they are also exempt from probate.
A will is a public document, which means anyone can take a look, including creditors who want to know if there are sufficient assets to pay your debt. Due to the fact that a revocable trust is separate from your estate, it remains a private document.
For example, an unscrupulous gold digger who frequently reads obituaries and looks at promising wills could latch onto your daughter who inherited your entire estate. That can't happen with a revocable trust document.
One of the greatest advantages of a revocable trust is the ability to change it when necessary. It may become necessary if you are incapacitated in some way and can no longer take care of yourself or your financial affairs.
For example, you find out that you have a degenerative spinal condition and know you will need help in the future. You can include terms in the trust that dictate your wants and needs, including who will manage your assets and the way in which you want them managed.
We said above that a revocable trust is private and can't be accessed by just anyone. This provides essential protection for your family against creditors.
It also provides protection from potential lawsuits.
For example, your son is sued by his ex-wife for child support. The assets in the trust can't be touched, so your son's financial problems won't affect your daughter's share of the trust property.
Revocable trusts are taxed in an entirely different way from irrevocable trusts. In an irrevocable trust, assets belong to the trust, which means the trust creator and beneficiaries don't owe any income tax. However, in a revocable trust, you retain ownership of the assets and, as a result, you must submit income tax returns.
Furthermore, your estate's total (gross) value determines the income taxes due. The revocable trust is yours and will be subject to estate taxes. However, a probate attorney in Orange County can help you with tax planning, which could result in estate tax savings or even no tax at all. This is achieved by maximizing estate tax exemptions.
For example, gifting the maximum amount allowed to your family. The gift is exempt from estate tax.
One of the biggest benefits of a revocable living trust is the control you maintain when you're incapacitated. The living trust specifies the way in which you want financial decisions and payments handled when you can no longer do so yourself. This is usually managed by your successor trustee.
It completely bypasses the need for a conservatorship, which is when the court appoints someone to manage your money.
However, you want to plan for more than your money matters. You can also dictate how you want your healthcare and personal affairs managed after incapacitating life events, such as a stroke.
Parker Law Offices specializes in every aspect of estate planning from probate to wills and trusts. We're one of the premiere Orange County estate planning attorney law firms. We will help you create a basic trust plan and go on to help you set up a revocable living trust for your adult and minor children.
We also help with larger estate plans that include biological children as well as step-children who aren't automatic beneficiaries.
You can rely on our expertise, professionalism, and confidentiality when drawing up your trust agreement. Contact our team at Parker Law Offices by completing the form on our website. Alternatively, you can call 949-867-4818 to book a consultation today!