Posted on October 01, 2022 in Estate And Probate Administration

One of the goals of estate planning is to ensure that your assets, including any California real estate you own, go to your designated heirs after your death. However, sometimes people pass away without a will, or that document may be unclear regarding who should get a piece of real estate. When that situation occurs, a real estate probate sale may occur.

What is a probate sale?

A probate sale occurs under the supervision of the probate court following someone's death. These sales are much different from regular real estate transactions and often take much longer to complete, sometimes up to a year. The probate court overseeing the process must approve the terms of the sale. The cost of going through probate varies, but the courts usually charge a fee ranging from 3% to 5% of the sale price. You'll often find that a home in probate will sell below market price to pay debts that the deceased may have left behind. The executor of the deceased person's estate can sell the property while it is still in probate to pay debts.

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 Posted on September 17, 2022 in Estate And Trust Litigation

Trusts are known to be a pretty solid estate plan option for many California residents. However, it's not exactly uncommon for people to be displeased by the results of a will or trust.

Just like wills, you can absolutely contest a trust under a few conditions. Contesting a trust isn't an easy process, so it's important to be thoroughly aware of the limitations.

Who can contest a trust?

There are just a few circumstances that make people eligible to contest a trust. For someone to contest a trust, one of the following conditions must be met:

• Devisee of the trust

• Beneficiary of the trust

• Would-be beneficiary if the person had died without a will

These are commonly family members, such as spouses or the oldest child of the deceased. Depending on the state you live in, there may or may not be consequences for contesting the trust (such as giving up whatever may have been left to you).

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 Posted on September 06, 2022 in Estate And Probate Administration

Probate in California typically takes longer than in other states. On average, probate takes six to eighteen months to complete. In rare cases, it takes two years or more for the beneficiaries to receive their inheritances.

End of probate

Beneficiaries can only receive their inheritances from a will at the end of probate because the law requires that creditors receive their share first. Executors of estates must also handle the tax obligations of the decedent before distributing assets to beneficiaries. This entire process takes time, and the larger the estate, the longer it tends to take.

Conflict

If a conflict arises between beneficiaries and the executor of an estate, then probate will take longer. During some stages of probate, the executor may need information from the beneficiaries. Some beneficiaries might slow things down out of either irresponsibility or unhappiness. When an executor has to go to court to enforce steps of probate, it delays the process for everyone.

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 Posted on August 20, 2022 in Estate And Probate Administration

Assets held in your California estate at the time of your death will likely be subject to state probate laws. During the probate process, your estate is represented by an individual either appointed by the person overseeing the case or who is appointed in your will.

The role of the executor

An executor is responsible for several tasks such as notifying family members, creditors and others about your death. This person will also need to take an inventory of your estate, review creditor claims and oversee the process of distributing assets to beneficiaries. Finally, an estate representative will be responsible for providing the court with a full accounting of its assets before the case can be discharged.

Almost anyone can be an executor

An estate representative can be anyone over the age of 18 who is of sound mind. However, as a practical matter, you'll want to consider only those who are the most likely to respect your final wishes and who are capable of following the law. It may be worthwhile to walk your chosen representative through the estate and probate administration process prior to your death. This will give your executor some idea of what to expect after you pass as well as insight into how to obtain assistance if needed.

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 Posted on August 05, 2022 in Estate Planning

Trusts might seem like a complicated estate planning tool for some California residents. Even though they sound complicated, living trusts can make the estate planning process go more smoothly.

How does a living trust work?

Anything placed into a living trust is managed by a trustee. The trustee will manage the trusts on behalf of the trust beneficiaries, acting in their best interest.

Trusts can also give you more control over how the assets are passed down to beneficiaries or how much of the trust can be accessed at one time. Living trusts are also a great option for beneficiaries who are minors or otherwise unable to make their own financial decisions.

What's the main benefit of a living trust?

Generally, you don't have to pay estate taxes on assets that are passed down from a living trust. And any assets that are in the trust don't have to go through probate court before they can be accessed by the beneficiary or trustee.

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 Posted on July 24, 2022 in Trusts

When creating your estate plan as a California resident, you might want to include a trust. You should know the differences between revocable and irrevocable trusts so you can choose the one that's appropriate for you.

What is a revocable trust?

A revocable trust, or living trust, allows you to hold assets within during your lifetime and can be changed whenever you see fit. You can either name a trustee to manage the trust or oversee it yourself.

This type of trust is one of the best estate planning tools. Any assets or property you fund it with can avoid the probate process, which can be timely and prevent your beneficiaries from receiving their inheritance sooner. Additionally, anything held inside a revocable trust stays off public record.

What is an irrevocable trust?

Unlike a revocable trust, you cannot make changes to an irrevocable trust. Anything placed inside by the grantor cannot be removed. It's protected from creditors and lawsuits. Any assets and property in the trust is no longer considered part of the grantor's estate, which means they are not taxable.

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 Posted on July 08, 2022 in Estate Planning

For estate planning in California, trusts are a powerful tool for managing asset transfers, avoiding probate, and reducing taxes. However, they can be a little tricky to manage for those who are not fully prepared.

Revocable Trusts

A revocable trust can be set up to take ownership of a grantor's assets when they die or become incapacitated. Assets in a will do not need to go through probate court. The grantor names one or more successor trustees to manage the trust after they die, as well as beneficiaries, who will receive the assets in the trust according to the plan. The successor is in charge of handling any outstanding legal matters or debts and distributing the right assets to the right beneficiaries. This can take anywhere from months to years.

The complexity of the trust affects how long it takes to unwind. For example, having more than one beneficiary means more paperwork and tasks, extending the time. It also provides more opportunities for disputes with the trust or its distribution, which can add a lot of time. Taxes add time as well, if they apply, and especially if there are taxes due in multiple states. The underlying assets themselves can also take time to manage if they are complex or hard to value, like a business. The bottom line is that the more complex the trust is, the longer it will take to settle all of it.

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 Posted on June 24, 2022 in Estate And Probate Administration

Creating your will in California takes a lot of thought, which could make it time-consuming. One of the most important details is choosing an executor who will oversee your estate once you're gone. Although it doesn't happen often, you might want to remove them.

Why should you remove an executor?

There are several reasons why you might want to remove the executor you named in your will. If the individual is significantly incompetent, you might come to realize that you made a mistake in choosing them. Or if they agree to all the terms of the position but then change their mind afterward, you would want to eliminate them as executor and choose someone else.

Misconduct of any kind is a huge reason to remove an executor. For example, this can occur when they refuse to comply with or enforce a court order, they have been convicted of a felony, they have misappropriated funds through stealing, are nasty toward beneficiaries or refuse to carry out the terms of the will.

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 Posted on June 13, 2022 in Trusts

The love and support you show for a disabled loved one in California doesn't have to end when you pass. You can set up a special needs trust in order to provide for them even after you are gone. There are a certain number of rules and regulations that will have to be followed in order to set up this trust.

The two types of special needs trusts

There are two main types of special needs trusts that you can set up in California. The first is known as a stand-alone trust. You can use it to financially support your loved one along with contributions from others. This arrangement is not part of an official will or standard trust. The money you place in it can be accessed before your death.

The other is known as a testamentary trust. This is an arrangement through which you leave money for the beneficiary that they can't access immediately. If you go this route, you will do so under the official heading of a will or trust. This means that the arrangement you set up won't be funded until you are gone.

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 Posted on May 25, 2022 in Estate Planning

Estate planning has many different components for families in California, and the larger the estate is, the more complex the plan needs to be. There are multiple considerations, such as tax savings, asset preservation, seamless transitions, and managing outstanding issues.

Balancing estate planning

The different goals of estate planning can sometimes conflict, and prioritizing one can make the others harder to achieve. For example, one major goal is minimizing the tax burden of the estate. There are lots of ways to accomplish this, and some of them can become difficult, involving multiple trusts and splitting different assets across the trusts at different times. However, this can also make it hard for the family to keep track of the assets and manage a custodial transfer to the next generation. That increases the risk of something going wrong.

A more balanced approach will take all of the family's goals into account at once, creating a unified plan that gives the family a clear pathway to transition their assets. A plan that focuses too much on one goal can undermine others, compromising the whole vision and risking problems. Estate plans also need to be a bit flexible to manage any unexpected events that might occur along the way, so they can't be completely set in stone.

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