Estate planning is a process.  It involves people - your family, other individuals and, in many cases, charitable organizations of your choice.  It also involves your assets (your property) and the various forms of ownership and title that those assets may take.  It addresses your future needs in case you ever become unable to care for yourself.

Through estate planning, you can determine:
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● How and by whom your assets will be managed for your benefit during your lifetime if you ever become unable to manage them yourself.
● When and under what circumstances it makes sense to distribute your assets during your lifetime.
● How and to whom your assets will be distributed after your death.
● How and by whom your personal care will be managed and how health care decisions will be made during your lifetime if you become unable to care for yourself.

Many people mistakenly think that estate planning only involves the writing of a Will.

Estate planning can also involve financial, tax, medical, and business planning. A Will is part of the planning process, but you will need other documents as well to fully address your estate planning needs.  

Estate planning is a dynamic process.  Things change.  People and assets and laws change. It may well be necessary to adjust your estate plan every so often to reflect those changes.

There are many things to consider when creating your estate plan:
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● What are my assets and what is their approximate value?
● Who do I want to receive those assets - and when?
● Who should manage those assets if I cannot - either during my lifetime or after my death?
● Who should be responsible for taking care of my minor children if I become unable to care for them myself?
● Who should make decisions on my behalf concerning my care and welfare if I become unable to care for myself?
● What do I want done with my remains after I die and where would I want them buried, scattered, or otherwise laid to rest?

There may be questions you had not even considered that impact your estate plan. Our practice will help you answer these basic questions and identify others you may need to address.

You do - whether your estate is large or small.  Either way, you should designate someone to manage your assets and make health and personal care decisions for you if you ever become unable to do so for yourself.

If your estate is small, then a simple, uncomplicated estate plan should cover all of your estate planning needs.  Large estates (i.e., those with a lot of or varied assets, business interests, multiple real properties, blended families, etc.) need more follow-up once the plan is created.

Your attorney will discuss various strategies for preserving your assets and reducing the tax implications for your beneficiaries, as well as those that might be payable after your passing.

Regardless of the size of your estate, if you have no plan, then your plan will be determined by the state.  This includes for your own personal care, and without the proper documents in place, you may find that you become the subject of a conservatorship.  Conservatorships are managed by the state through the Court system and are largely a matter of public record.  They are expensive and time-consuming and may even require your survivors to hire a professional – a person who is very likely to be a complete stranger to you and your family!

Everything you own, which can include bank accounts, real property (whether residential or commercial), business interests, stocks, bonds, retirement accounts, insurance policies, cars, personal items, etc., is your estate.  Any assets that you may own jointly with others are also part of your estate, at least as to your share of the asset.

The value of your estate will determine whether estate taxes will be due upon your passing and whether your beneficiaries can be subject to certain taxes as well.  

A Will is a very ancient type of legal document which gives instruction as to what you want to happen with your assets after your death.  If you have minor children, you can nominate someone in your Will to care for them after you pass away.  Your Will nominates a person or persons to be in charge of your estate.  That person will be known as the Executor.

Any assets that remain in your name (and not in the name of a trust) will be subject to the terms of your Will, although there are some exceptions which transfer to the named beneficiary of that asset.

A Will is not a substitute for a trust! Wills cannot address any of your needs during your lifetime.  Importantly, Wills must be probated, and generally speaking, probates are a matter of public record.

A trust is a legal document that holds your assets both during and after your life.  It goes by many names, including Revocable Trust, Living Trust, Revocable Living Trust, inter vivos trust, or grantor trust.  During your life, your trust is considered an extension of yourself – you can put assets into the trust or take them out again with no immediate consequences.  Your trust can own property or be the beneficiary of certain assets.

The person you name in your trust to manage your assets and make distributions to your beneficiaries is your Trustee.  This should be a person who you trust implicitly, someone who is conscientious and thorough.  You should not choose someone as your Trustee purely to avoid hurting their feelings.

A revocable living trust is not the same thing as a Will!  A well-crafted estate plan does include what is called a pour-over Will, which allows assets which are not held by your trust at your death to be gathered (“scooped up”) and added to (“poured into”) your trust so that the asset can then be distributed according to the terms of your trust.  This is part of how a trust protects your survivors from having to go through the probate process.

It is very important to remember that your assets don’t automatically become part of your estate plan when the trust document is signed.  You must “fund” your trust!  Funding a trust is the process by which all of your assets are titled to your trust and must be done by you during your lifetime.

Probate is the court-supervised process to distribute a deceased person’s assets to the correct people who are entitled to such distributions by law.  This is done either through a Will, or to the decedent’s heirs at law if the person passed away without a Will (also known as intestate succession).  

The court prefers to honor a person’s Will to the greatest extent possible under the law.  The person you nominate as your Executor is very likely to be the person appointed, unless for some reason they can’t be, or they decline.  Your assets will be distributed to your beneficiaries according to the terms of your Will.  The Court will also supervise – even scrutinize – the actions of your Executor to ensure that everything is done properly according to the law.

It is important to remember that probates are a matter of public record.  Absolutely anyone can get a peek into your family and financial life and the lives of your heirs and beneficiaries by looking at the documents filed with the Court, nearly all of which are publicly available.  Probates are also subject to the Court’s own timeline and can take a long time to fully resolve.

Your beneficiaries can be whomever you choose!  You should always consider who you would want to receive all or a portion of your estate, or who you would want to inherit your assets if the person you’ve named dies before you.

If you want to leave anything to charity after you pass away, a Will or a Trust is the only way to make that happen.

While you can name any adult of sound mind that you wish as the Executor of your Will or as the Trustee of your trust, you should carefully consider who you name.  While they serve nearly identical functions, the executor of a Will is subject to direct supervision by the Court and the Trustee may not be.  Both are responsible for ensuring that your written instructions are followed.  An important difference is that an Executor is appointed by the Court under a validly-executed Will and only acts after you pass away.  A Trustee is appointed by you and can act either on your behalf alone or with a Co-Trustee, and either during or after your lifetime.  In most cases, you will be the Trustee of your trust during your lifetime.

While you should take into consideration whether appointing one person over another will affect those individual’s relationships with each other, you should not appoint someone purely to avoid hurting their feelings.

Whomever you choose to name, that person should be organized, responsible, prudent, and honest.  Ideally, they will be very good at managing their own money.  

You may nominate a guardian for your minor children in your Will.  Although they can be, your nominee as guardian need not be the same person as your Executor or Trustee.

While this is just a nomination and it is ultimately the Court who will appoint someone, in most cases, anyone you nominate will be considered to have precedence over anyone else.  Making a nomination can avoid a potential “tug-of-war” between well-meaning family members and others.

You might consider transferring any assets intended for a minor child into a custodian account under the California Uniform Transfers to Minors Act, to be held for that child until he or she reaches age 18, 21, or 25 (your choice).  A trust-based estate plan can also set up trusts for the benefit of minor children to hold their inheritance until a certain age.

Tax planning is key element of a well-crafted estate plan.  The estate tax exemption is the amount under which the estate of a deceased person will NOT owe the so-called “death tax”.  As of February 2025, for decedents who passed away in 2024, that exemption amount is $13,610,000 ($13,990,000 for decedents who passed in 2025).  If you are concerned that yours or a loved one’s total net value is over these amounts, estate planning offers many ways to potentially reduce the taxable value of the estate.

The estate tax exemption is not the only tax consideration.  Income taxes, capital gains, gift, property, and generation-skipping are all various taxes that your estate may be subject to.  The nature of the assets and how they are held also impact the tax consequences of someone’s estate.  For example:

● A married couple with mostly community property assets may be able to get a step-up in their tax basis and the above-noted exemption amount may be different for the surviving spouse.
● A married couple with mostly separate property will require different strategies for reducing tax when (or indeed, if) the surviving spouse inherits the assets.
● Converting separate property assets into community property assets during both spouses’ lifetimes can trigger various tax consequences.
● Owning real property as joint tenants, tenants in common, or community property all have unique implications for the surviving owners.

Tax implications exist no matter your situation and regardless of who your beneficiaries are.  Your attorney will need an in-depth knowledge of what kind of assets you own, how you own them, and what they are worth in order to effectively design the best plan for your unique circumstances.

Yes!  The nature of your assets and how you hold title to those assets is a critical factor in the estate planning process.  Before you take title (or change title) to an asset, you should understand the tax and other consequences of any proposed change.  Your estate planning attorney will be able to advise you.

‍Community property and separate property

● If you are married or a registered domestic partner, assets earned by either you or your spouse or domestic partner while married or in the partnership and while a resident of California are community property.  (Note: Earned income in domestic partnerships, however, may not be treated as community property for federal income tax purposes.)

● As a married individual or registered domestic partner, you may continue to own certain separate property as well - property which you owned prior to the marriage or domestic partnership.  A gift or inheritance received during the marriage or partnership could be considered separate property as well.

● Separate property can be converted to community property (and vice versa) by a written agreement (it must conform with California law) signed by both spouses.  However, taking such a step can have significant tax and other consequences.  Make sure that you understand those consequences before making any such change.

‍Tenants-in-common

● If you own property as tenants in common and one co-tenant (co-owner) dies, that co-tenant’s interest in the property would pass to the beneficiary named in his or her Will.  This would apply to co-tenants who are married or in a domestic partnership as well as to those who are single.

‍Joint tenancy with right of survivorship

● Co-owners (married or not) of a property can also hold title as joint tenants with right of survivorship.

● If one tenant were to die in such a situation, the property would simply pass to the surviving joint tenant without being affected by the deceased person’s Will.

Community property with right of survivorship‍

● If you are married or in a registered domestic partnership,  you and your spouse or partner could also hold title to property as community property with right of survivorship.  Then, if your spouse or domestic partner were to die, the property would pass to you without being affected by the deceased person’s Will.

● Married couples and registered domestic partners also have the option of jointly holding title to property as community property.  In such a situation, if one spouse or partner were to die, his or her interest would be distributed according to the instructions in his or her Will.

Yes, there are!  Some kinds of assets are actually best transferred by means of designating a beneficiary to receive that asset.  These assets can be “transfer on death” or “payable on death” assets, but can also be things like life insurance policies, qualified and non-qualified 401(k) plans, and other retirement vehicles.  It’s best to consult with an estate planning attorney to determine the best approach to transfer your assets with the least amount of headache to your heirs and beneficiaries.  

You can determine what will happen my making your own arrangements in advance.  Through estate planning, you can choose those who will care for you and manage your assets during any time in your life when you cannot do so yourself.  These people – called “Agents” – can be appointed to act immediately, or only if you should become incapable.  Your Agents are appointed by you in documents which are part of your estate plan and are called “Powers of Attorney”.  

A General Durable Power of Attorney designates your financial Agent.  Your Agent and your Trustee (who can, but do not have to be, the same person) are able to manage your assets for your benefit during your life.  An Advance Health Care Directive designates your medical Agent.  This person can direct physicians treating you to either continue your care, or withhold care, based on your written instructions and preferences.  Both Agents can have broad or limited powers to act based on your wishes, but it is important to note that the authority of an Agent under a power of attorney ends upon your death.  

Nominating Agents to act for you through an estate plan also helps to protect you from what is called a Conservatorship.  An adult without the capacity or ability to care for themselves and their assets and who does not have Powers of Attorney giving someone the authority to act on their behalf needs someone to have that authority.  The Court can designate someone – called a Conservator – to do so.  Under a conservatorship, your life, your assets, your health, and what happens to your assets after you pass away will all be managed and determined by the state.  The Court will supervise your life until you either regain capacity or pass away.  There are also significant, on-going expenses associated with a conservatorship.  Most people would prefer not to become a ward of the state in their old age.  A well-crated estate plan customized for your circumstances and your values is the best way to protect yourself during your lifetime and your beneficiaries when you pass away.