Estate Planning
 
Trusts vs. Wills
A living trust is a legal document enabling you to give money and/or property to your loved ones, free of court supervision, after you pass away. Many homeowners can save their heirs a lot of money by having a living trust prepared. If there is someone you completely trust to manage your assets in case you become incapacitated or pass away, you should consider the advantages of living trusts compared to simple wills.
 
Three primary advantages of living trusts are:
1) Living trusts can save thousands of dollars by preventing an estate from going through a Superior Court probate procedure to clear title after someone passes away;
2) Living trusts can prevent heirs from having to pay federal estate taxes, in the case of couples who own more than $1 million in assets; and
3) Living trusts allow people with children to specify how they want their children to be provided for in the event of a family disaster.
 
Please click here for more about living trust processes, alternative methods of estate planning, the costs of probate proceedings, and taxes imposed after a death.
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Trusts for Married People
Trusts for married people must be tailored to address changes in the 2001 federal tax laws. The trusts our firm drafts take these changes into account. Two common trusts for married people are the bypass trust (also known as a credit shelter trust, credit shelter exemption trust, or A-B trust) and the disclaimer trust. Before 2001, the bypass trust was an effective way to allow married couples with assets greater than $600,000 to avoid estate taxes. However, the bypass trust has restrictions that limit the surviving spouse's control over the assets in the trust once one spouse passes away. Since the changes in the tax laws in 2001, the disclaimer trust has emerged as the preferable choice for many couples that would have previously chosen the bypass trust. If you are married and had a trust drafted before 2001, or if you are thinking about having a trust drafted, it is important that you understand the differences in these types of trusts. This is especially important if your assets, including real estate, are between $600,000 and $4,000,000.
 
Please click here for a detailed explanation of bypass trusts and disclaimer trusts.
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Medi-Cal Trusts
One advantage of our trusts is that they can ease application for Medi-Cal assistance. In some cases, a settlor may need to utilize the Medi-Cal program to obtain assistance for long- term nursing home costs. Not many lawyers provide this option for their clients. We understand the hurdles involved in obtaining Medi-Cal assistance to pay for long-term nursing home care. We have designed our documents to coordinate with Medi-Cal application regulations.
 
Please click here for a detailed explanation of these Medi-Cal trusts.
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Other Types of Trusts
Specialized trusts are available to address various specific needs. These can include irrevocable (unchangeable) trusts that help people reduce the sizes of their estates to minimize potential federal estate taxes. Examples include: life insurance trusts (for large life insurance policies); charitable remainder trusts (for donations to charities); and qualified personal residence trusts (for the primary residence and one vacation home for a single person). Other trusts enable people to care for dependents, such as trusts for minors and special needs trusts.
 
Please click here for a description of specialized trusts.
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Additional Estate Planning Documents
In addition to the trust, we include several other documents in our estate planning packages. These include:
• Pour-over Wills
• Durable Powers of Attorney for Finances and/or Personal Care
• Advance Health Care Directives
• Deeds
• Funding Letters
• Certifications of Trust
 
Please click here for an introduction to these types of estate planning documents.
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