Top-Rated Los Angeles Estate and Trust Attorneys

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You've worked a lifetime accumulating assets and property, it may be time now for an estate planning checklist to preserve those assets. Estate planning and trusts can help you avoid losing your house and emptying your bank account in the event of a disabling illness or sudden death. An estate planning attorney can also help with the smooth transfer of your estate to the special loved ones in your life.
Estate planning and trusts involve more than writing a Last Will and Testament. Many consider estate planning trusts transferring ownership of assets to a "Living Trust", which they or a designated estate planning and trusts trustee control during the person's lifetime. An estate planning and trusts "Living Trust" is different from a estate planning trusts "Living Will", which expresses your wishes about being kept alive if you' become terminally ill or seriously injured.
Since the estate planning and trusts approach taken will depend on your personal situation, we suggest that you consult with your accountant, your estate planning attorney or other appropriate estate planning and trusts expert in financial and estate planning and trusts. Be wary of "free" estate planning and trusts seminars whose business is to sell estate planning checklists, and legal, financial and estate planning and trusts services even if your personal situation does not justify estate planning trusts. Only an estate planning attorney can give you legal advice.
ESTATE PLANNING ATTORNEY
McFarlin & Geurts, LLP offers you a free confidential consultation regarding your specific estate planning and trusts situation and can help you with an estate planning checklist to protect yourself and your loved ones.
ESTATE PLANNING TRUSTS
SOME THINGS TO CONSIDER IN YOUR FINANCIAL AND ESTATE PLANNING AND TRUSTS:
  • Select the best type of estate/financial estate planning and trusts plan such as a "living trust" and "last will and testament".
  • Determine your cash flow and the value of your estate planning trusts assets. It is very difficult to develop an estate planning and trusts financial plan if you do not know how much income you will receive now and in the future, an estate planning attorney can assist you.
  • Calculate your estate planning and trusts net worth. In addition to your regular income and expenses, identify your assets and liabilities in your overall calculation for estate planning trusts purposes.
  • Anticipate estate planning and trusts related changes, such as illness, inflation, retirement, etc., these can be part of your estate planning checklist. These changes could affect your estate planning and trusts financial status.
  • Medicare/Medicaid Benefits (Social Security Administration) can effect estate planning trusts.
  • Medical services and long-term care costs are important estate planning and trusts and estate planning attorney considerations in end-of-life care planning and should be included in the estate planning checklist. Although there is often no easy or simple way to determine how to meet these estate planning trusts future needs, it is important to learn what kind of financial assistance you may be able to receive under your health insurance plan, disability insurance plan and Medicare/Medicaid Benefits (Social Security Administration). An estate planning attorney can assist you here.
  • Place a personal copy of your plan and estate planning checklist in a secure and accessible place. Also, keep vital estate planning and trusts information and records in a safe and accessible location, such as with your estate planning attorney. Consider using an estate planning and trusts estate planning checklist and worksheet.
  • Make sure your loved ones know of your estate planning and trusts and financial plan requests, and the identity of your estate planning attorney.
  • Avoid surprise estate planning trusts costs and let your family know your wishes by planning funeral arrangements and securing your estate planning checklist with your estate planning attorney.
ESTATE PLANNING TRUSTS FREQUENT QUESTIONS FOR AN ESTATE PLANNING ATTORNEY:
1. WHAT IS ESTATE PLANNING AND TRUSTS?
Estate planning trusts is a process. It involves people- your family, other individuals and, in many cases, charitable organizations of your choice. It also involves your estate planning and trusts assets (your property) and the various estate planning and trusts forms of ownership or estate planning checklist and title that those assets may take. And it addresses your estate planning and trusts future needs in case you ever become unable to care for yourself.
THROUGH ESTATE PLANNING AND TRUSTS, YOU CAN DETERMINE:
  • How and by whom your estate planning trusts 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 estate planning trusts assets during your lifetime, an estate planning attorney can advise you.
  • How and to whom your estate planning trusts assets will be distributed by your estate planning attorney 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 through your estate planning checklist.
Many people mistakenly think that estate planning and trusts only involves the writing of a will or an estate planning checklist. Estate planning and trusts, however, can also involve financial, tax, medical and business planning. A will is part of the estate planning and trusts process, but you will need other documents as well to fully address your estate planning and trusts needs, this is where an estate planning checklist and an estate planning attorney are helpful.
The purpose of this page is to summarize the estate planning and trusts process, and illustrate how it can help you meet your estate planning trusts goals and objectives. You will discover that estate planning and trusts is a dynamic process. Just as people and assets and laws change, it may well be necessary to adjust your estate planning trusts plan, through your estate planning attorney, every so often to reflect those changes and update your estate planning checklist.
2. WHAT IS INVOLVED IN ESTATE PLANNING TRUSTS?
THERE ARE MANY ISSUES TO CONSIDER IN CREATING AN ESTATE PLANNING AND TRUSTS PLAN. FIRST OF ALL, ASK YOURSELF THE FOLLOWING QUESTIONS FOR YOUR ESTATE PLANNING CHECKLIST:
  • What are my estate planning and trusts assets and what is their approximate value?
  • Whom do I want to receive those estate planning trusts assets-and when?
  • Who should manage those estate planning and trusts 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 estate planning and trusts 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?
Once you have some answers to these questions, you are ready to speak to an estate planning attorney about your estate planning and trusts needs. Such an estate planning attorney can help you create an estate plan, estate planning checklist and advise you on such estate planning and trusts issues and the management of your estate.
TEN THINGS YOU SHOULD KNOW ABOUT ESTATE PLANNING AND TRUSTS
1. NO MATTER YOUR NET WORTH, IT'S IMPORTANT TO HAVE BASIC ESTATE PLANNING AND TRUSTS IN PLACE.
Such an estate planning and trusts plan ensures that your family and financial goals are met after you die, it is wise to have such estate planning trusts prepared by a qualified estate planning attorney.
2. A PROPER ESTATE PLAN HAS SEVERAL ELEMENTS.
They can include: a will; a power of attorney; and a living will or healthcare proxy (medical power of attorney or healthcare directive). For some people, an estate planning trusts may also make sense. When putting together a plan, you must be mindful of both federal and state laws governing estates, only a qualified estate planning attorney can give you legal advice.
3. TAKING INVENTORY OF YOUR ASSETS IS A GOOD STARTING POINT; THE ESTATE PLANNING CHECKLIST.
For estate planning checklist purposes, your assets include your real estate, investments, retirement savings, insurance policies, business interests, and other valuable possessions. Additionally you may have family heirlooms or sentimental items of which you want to control the distribution. Estate planning and trusts is the ideal way to carry out your wishes and avoid family conflict after you pass, with the assistance of an estate planning attorney. Ask yourself three estate planning and trusts questions: Whom do you want to inherit your assets and possessions? Whom do you want handling your personal financial affairs if you're ever incapacitated? Whom do you want making important medical decisions for you if you become unable to make them for yourself?
4. EVERYBODY NEEDS A WILL OR ESTATE PLANNING AND TRUSTS.
A will tells the world exactly where you want your assets and personal possessions distributed when you die. It's also the best place to name guardians for your children. Dying without a will - also known as dying "intestate" - can be costly to your heirs and leaves you no say over who gets your assets and possessions. Even if you have estate planning trusts, you still need a will to take care of any holdings outside of estate planning trusts when you die. If you have important assets to protect, or specific wishes you'd like carried out, it is important to work with an estate planning attorney to avoid any family battles or unintentional ambiguity.
5. ESTATE PLANNING AND TRUSTS AREN'T JUST FOR THE WEALTHY.
Estate planning trusts are legal mechanisms that let you put legal conditions on how and when your assets will be distributed upon your death. They also allow you to reduce your estate and gift taxes and to distribute assets to your loved ones without the cost, delay, and publicity of probate court, which administers wills. Some estate planning and trusts also offer greater protection of your assets from creditors and lawsuits, such as the irrevocable estate planning trust. If you are considering an irrevocable trust, it is highly recommended that you utilize the services of an estate planning attorney rather than try it on your own without legal representation.
6. DISCUSSING YOUR ESTATE PLANNING AND TRUSTS WITH YOUR LOVED ONES MAY PREVENT DISPUTES OR CONFUSION.
Inheritance can be a tricky and loaded issue. By being clear about your intentions, you help dispel potential conflicts after you're gone. It may not be the most pleasant conversation, but a very important topic to discuss nonetheless. A good estate planning attorney can assist with this process as well.
7. THE FEDERAL ESTATE TAX EXEMPTION - THE AMOUNT YOU MAY LEAVE TO HEIRS FREE OF FEDERAL TAX - HAS BEEN RISING GRADUALLY AND WILL HIT $3.5 MILLION IN 2009, BUT THEN PHASE BACK DOWN.
Meanwhile, the top estate tax rate is coming down. The estate tax is scheduled to phase out completely by 2010, but only for a year. Unless Congress passes new laws between now and then, the tax will be reinstated in 2011 and you will only be allowed to leave your loved ones $1 million tax-free at that time. If you have an estate that may be valued even close to $1 million, it is critical you speak to an estate planning attorney to avoid problems down for your heirs.
8. YOU MAY LEAVE AN UNLIMITED AMOUNT OF MONEY TO YOUR SPOUSE TAX-FREE, BUT THIS ISN'T ALWAYS THE BEST STRATEGIC ESTATE PLANNING DECISION.
By leaving all your assets to your spouse (either through a will or estate planning and trusts), you don't use your estate tax exemption and instead increase your surviving spouse's taxable estate. That means your children are likely to pay more in estate taxes if your spouse leaves them the money when he or she dies. Plus, it defers tough decisions about the distribution of your assets until your spouse's death. This can place an unnecessary, and unreasonable burden on your spouse, an estate planning attorney can counsel you through these types of touch decisions by preparing an estate planning checklist for you.
9. THERE ARE TWO EASY WAYS TO GIVE GIFTS TAX-FREE DURING YOUR LIFETIME, AND REDUCE YOUR ESTATE.
You may give up to $12,000 a year to an individual (or $24,000 if you're married and giving the gift with your spouse). You may also pay an unlimited amount of medical and education bills for someone if you pay the expenses directly to the institutions where they were incurred. This is an old estate planning attorney trick to filter money to loved ones tax free.
10. THERE ARE WAYS TO GIVE ESTATE PLANNING TRUSTS CHARITABLE GIFTS THAT KEEP ON GIVING.
If you donate to a charitable gift fund or community foundation either individually or through estate planning and trusts, your investment grows tax-free and you can select the charities to which contributions are given both before and after you die.
Few people relish estate planning, preparing estate planning checklists or estate planning and trusts. After all, deciding how you want your assets and possessions disbursed after you die can serve as a depressing reminder of your own mortality. But there are plenty of reasons to tackle the estate planning checklist task with some enthusiasm, hopefully through a qualified estate planning attorney:
  • You get to name the heirs to whom you wish to give your assets and know that your wishes carry the word of law through estate planning and trusts.
  • You can arrange it so that taxes siphon as little from your estate as possible.
  • And you have the satisfaction of knowing that your financial affairs are in order through estate planning and trusts and that you're not burdening your loved ones with an administrative nightmare through estate planning trusts.
YOUR FIRST STEP FOR ESTATE PLANNING AND TRUSTS?
Take stock of all your assets and valuable personal possessions for your estate planning checklist. These include your investments, retirement accounts, insurance policies, real estate, and any business interests.
Next, decide what you want to achieve with those assets and personal effects and who you want to inherit them. This is also the time to think about people you would trust to handle your business affairs and medical care in the event that you become incapacitated. Often trustors choose to have a professional handle their financial affairs such as an estate planning attorney or other professional.
Once you decide what kinds of bequests and gifts you wish to make, be sure to discuss your plans with your loved ones. The sooner and more distinctly you outline your intentions to your family and friends, the less chance there will be for bitter disagreements when you're gone.
"If you treat your wealth as a hidden kingdom, a box that no one can open until you're gone, you're setting your family up for disaster," says Norman Ross, of the Ross Companies, a New York estate-planning and benefits consulting firm.
In creating your estate plan, keep in mind that the laws governing estate planning are not set in stone, but can be used in the most advantageous way for your situation. In fact, the Tax Relief Act of 2001 made several sweeping changes that are being phased in over a 10-year period. They include:
  • A gradual increase in the estate tax exemption (i.e., the amount of money you may leave heirs free from federal tax) and the eventual repeal of the estate tax;
  • A reduction in the estate and gift-tax rates - the top rate will fall, but may rise again, an estate planning attorney can elaborate further;
  • The gradual repeal of the federal credit for estate taxes paid to a state government; and
  • A revision in how the tax basis of inherited assets is calculated.
It's a complex estate planning and trusts law made more complicated because it sunsets at the end of 2010. Between now and then, Congress may pass other measures that either extend provisions in the Act or eradicate them. Often estate planning and trusts can insulate you from such changes.
What that means is estate planning and trusts have become far more complicated for people with sizeable estates, and having a trusted and competent estate planning attorney is essential if you wish to protect as much of your assets and possessions from the government tax collectors (and your state tax collector) as possible. Such an estate planning attorney can create legal documents, offer advice, keep your estate planning and trusts current with new laws and help administer the disposition of assets through estate planning trusts and in accordance with your estate planning checklist.
The truth is estate planning and trusts may be a useful tool for your family if you have a net worth of at least $100,000 and meet one of the following conditions, says Mike Janko, executive director of the National Association of Financial and Estate Planning (NAFEP) who provides the following estate planning checklist:
  • A sizeable amount of your assets is in real estate, a business, or an art collection;
  • You want to leave your estate planning trusts to your loved ones in a way that is not directly and immediately payable to them upon your death, rather it is paid over time. For example, you may want to stipulate that they receive their inheritance in three parts, or upon certain conditions being met, such as graduating from college, or yearly distributions, or based on "need";
  • You want to support your surviving spouse, but also want to ensure that the principal or remainder of your estate planning trusts goes to your chosen heirs (e.g., your children from a first marriage) after your spouse dies for example;
  • You and your spouse want to maximize your estate-tax exemptions and minimize tax burdens;
  • You have a disabled loved one whom you would like to provide for without disqualifying him or her from Medicaid or other government assistance, estate planning and trusts may be able to achieve this objective.
AMONG THE CHIEF ADVANTAGES OF ESTATE PLANNING TRUSTS, THEY LET YOU:
  • Put conditions on how and when your assets and possessions are distributed after you die;
  • Estate planning trusts reduce estate and gift taxes (both state and federal);
  • Estate planning and trusts distribute assets to heirs efficiently without the cost, delay, and publicity of probate court. Probate can cost between 5 percent to 10 percent or more of your total estate;
  • Estate planning trusts better protect your assets from creditors and lawsuits;
  • Estate planning trusts name a successor trustee, who not only manages your trust after you die, but is empowered to manage the trust assets if you become unable to do so, often through your estate planning attorney or trusted advisor.
Estate planning trusts are indeed flexible, varied and complex, however, each type has advantages and disadvantages, which you should discuss thoroughly with your estate planning attorney before setting one up.
When it comes to cost, basic estate planning trusts plans may run anywhere from $3.500 for something very simple to $10,000, or possibly more depending on the complexity of the estate planning trusts. Such a plan should include the estate planning trusts set-up, a will, a living will, and a healthcare proxy (or advanced health care directive). You will also pay fees to amend the trust if it's revocable and to administer the trust after you die.
Additionally, assets you want protected by the trust must be retitled in the name of the trust. Anything that is not so titled when you die will have to be probated and may not go to the heir you intended but to one the probate court chooses, an irrevocable trust offers more protection than a revocable trust.
For estate planning and trusts in which you want to put the majority of your assets - known as a revocable living trust or a revocable trust - you also have to have a "pour-over will" to cover any of your holdings that might be outside of your trust if you die unexpectedly. A pour-over will essentially directs that any assets outside of the trust at the time of your death be put automatically into the estate planning trusts so they can go to the heirs you choose.
If you'd like to learn about different kinds of trusts, read on. Five standard forms of estate planning trusts
CREDIT SHELTER ESTATE PLANNING TRUSTS:
With a credit-shelter trust (also called a bypass or family trust), you write a will bequeathing an amount to the trust up to but not exceeding the allowable estate-tax exemption. You then pass the rest of your estate to your spouse tax-free. You may also specify the manner in which you want the estate planning trust to be used - for example, you may decide that income from the trust after you die goes to your spouse and that when he or she dies, the principal will be distributed tax-free among your children.
Since your spouse is also entitled to an estate-tax exemption, the two of you can essentially double (or more than double) that portion of your loved ones inheritance that is shielded from estate taxes by using this strategy. An estate planning attorney can more fully consult with you on these options.
ESTATE PLANNING CHECKLIST ADDED BONUS: Once money is deposited into a bypass trust it is forever exempt from estate tax, even if it grows. So if your surviving spouse invests it wisely, he or she may add to your loved ones inheritance.
Of course, you can pass an amount equal to the estate-tax exemption directly to your loved ones when you die. The reason for a bypass estate planning trusts is to protect your spouse in the event he or she has need for income from the trust or in the event you think your heirs will squander their inheritance before the surviving parent dies.
GENERATION-SKIPPING TRUST:
A generation-skipping trust (also called a dynasty trust) allows you to transfer a substantial amount of money tax-free to beneficiaries who are at least two generations removed - typically your grandchildren.
The generation-skipping exemption is increasing incrementally. The exclusion amount is $2 million for tax years 2006-2008. In 2009, it rises to $3.5 million. You may specify that your children may receive income from the trust and even use its principal for almost any purpose that would benefit your grandkids, including health care, housing, or tuition bills. Estate planning attorney minds never stop working to try and find ways to save you money.
Be cautious here, however. If you leave more than the exemption amount, the bequest (inheritance) will be subject to a generation-skipping transfer tax. This tax is separate and in addition to the estate taxes, and is designed to stop wealthy seniors from funneling all their money to their grandchildren. Estate planning and trusts can obviously be complex and detailed.
QUALIFIED PERSONAL RESIDENCE ESTATE PLANNING TRUSTS:
A qualified personal residence trust (QPRT) is a device that can remove the value of your principal residence or vacation home from your estate and is particularly useful if your home is likely to appreciate in value.
A QPRT lets you give your home as a gift - most commonly to your children - while you keep control and possession of it for a period that you stipulate, say 10 years or for your lifetime. You may continue to live in the home and maintain full control of it during that time.
In valuing the gift, the IRS naturally assumes your home is worth less than its present-day value since your kids won't take possession of it for several years. (The longer the term of the trust, and the longer you're going to stay in the home, the less present day value of the gift.)
Say you put a $675,000 home in a 10-year QPRT. The value of that gift in 10 years will be assumed to be less - say, $400,000 - based on IRS calculations that take into account current interest rates, your life expectancy, and other factors. Even if the house appreciates in 10 years, the children's basis will still be valued at $400,000.
HERE'S THE ESTATE PLANNING AND TRUSTS CATCH:
If you don't outlive the trust, the full market value of your house at the time of your death will be counted in your estate to pay tax on. In order for the trust to be valid, you must outlive it, and then either move out of your home or pay your children fair market rent to continue living there. That may not seem ideal, but the rent you pay will reduce your estate further.
IRREVOCABLE LIFE INSURANCE ESTATE PLANNING AND TRUSTS:
An irrevocable life insurance trust (ILIT) can remove your life insurance from your taxable estate, pay estate costs (if sufficient), and provide your heirs with cash for a variety of purposes. To remove the policy from your estate, you surrender ownership rights, which means you may no longer borrow against it or change beneficiaries (you lose total control). In return, the proceeds from the policy may be used to pay any estate costs after you die and provide your beneficiaries with tax-free income. These are confusing and generally must be set up by an estate planning attorney to be valid.
This type of estate planning and trusts can be useful in cases where you leave heirs an illiquid asset such as an ongoing business. The business might take a while to sell and liquidate, and in the meantime your heirs will have to pay operating expenses and overhead. If they don't have cash on hand, they might have to conduct a fire sale just to pay the bills. But proceeds from an ILIT can help tide them over.
QUALIFIED TERMINABLE INTEREST PROPERTY TRUST:
If you're part of a family where there have been divorces, remarriages, and stepchildren, you may want to direct your assets to particular relatives through a qualified terminable interest property (QTIP) trust. It is difficult to get into too many details here as these are complicated arrangements for you estate planning attorney to set up.
Your surviving spouse will receive income for life or for a period of time from the trust, and the beneficiaries you specify (e.g., your children from a first marriage) will get the principal or remainder (what's left) after your spouse dies. People typically use QTIP trusts to ensure that a fair portion of their wealth ultimately passes to their own children and not someone else's heirs.
Money in a QTIP trust, unlike that in a bypass trust, is treated as part of the surviving spouse's estate and may be subject to estate tax. That's why it is advantageous to create a bypass trust first, which shelters assets up to the estate-tax exemption, and then if you have assets left over you can put it in a QTIP.
Obviously these are complex estate planning and trusts issues to be discussed with your estate planning attorney. Generally, the first step is to create an estate planning checklist outlining your goals. At that point, an estate planning attorney can help advise you as to what the most appropriate estate planning and trusts vehicles might be. McFarlin & Geurts, LLP would be happy to discuss these issues with you free of charge.
McFarlin & Geurts, LLP can offer you a qualified and experienced estate planning attorney to meet your estate planning trusts needs. An estate planning attorney can make an enormous difference both in the quality and planning of your life as well as the eventuality of the proper distribution of your assets, possession, and care of your children. Call and speak to an estate planning attorney today.