Live Oak Estate Planning

Estate planning encompasses both planning for the distribution of your assets after your death and planning for your potential incapacity. Without an estate plan, the state of California has made a plan for you. If you want a say in who will care for your children, who will receive which of your assets, or how to be cared for in the event of incapacity, then you need an estate plan. 

Revocable Living Trust estate plans include:

• revocable living trust
• pour-over will 
• financial power of attorney
• healthcare power of attorney
• HIPAA authorization
• end of life decisions
• tangible personal property memorandum

At Live Oak Estate Planning you will work directly with the attorney to develop the best estate plan based on the specific needs of you and your family. All estate plans are done on a flat fee basis. The fee is determined by the complexity of your estate. Some examples of higher complexity planning include blended families, large taxable estates, or special needs planning.

The estate planning process generally consists of 3 meetings: an initial consultation to go over your goals and needs (1-2 hours in person or virtual), a review meeting to go over the plan design and important players in your plan (30 minutes, typically a virtual meeting), and a signing meeting to review your documents in person one last time and go over instructions for funding your trust (1.5 - 2.5 hours in person).

When someone dies with assets in a trust, the trust must be administered according to the rules laid out in the trust document. The successor trustee is typically the person responsible for administering the trust after the death of the trust creator. Regardless of the specifics of the trust, there are generally four categories of tasks to be performed by the successor trustee:

1. Provide legally required notices and filings
2. Collect, or marshall, the assets
3. Pay outstanding valid debts and taxes
4. Distribute the assets to the named individuals according to the terms of the trust

Although having a fully funded trust does avoid the formalities and expense of probate, there are still some formalities that must be followed. Hiring an attorney to guide you through this process can provide peace of mind knowing you are performing your fiduciary duty as intended. Trust administration pricing is charged at the attorney's current hourly rate of $300, with a 4 hour minimum. 

If I prepared the trust to be administered, I offer a free consultation to the successor trustee to discuss next steps and determine whether you need attorney assistance. 

If someone dies without a trust, the court supervised probate process is used to identify the deceased person's heirs, property, and valid debts. If there is a will, the court will usually appoint the executor named in the will and the assets will pass to the named beneficiaries. If there is no will, the court will appoint a friend or family member as executor and the assets will pass according to the California Probate Code. 

The probate process can be very long and involved for the surviving loved ones. It requires significant time and effort by both the executor and the probate attorney. The The California Probate Code provides a statutory fee structure for probate attorneys, equal to the amount paid to the executor:

• 4% of the first $100,000
• 3% of the next $100,000
• 2% of the next $800,000
• 1% of the next $9 million

For example a $1 million dollar estate can cost roughly $23,000 for attorney's fees plus $23,000 for the personal representative of the estate (often called the executor) plus the additional costs for filing fees, appraisals, publication fees and the like. 

Attorney review and amendment of an existing estate plan is charged at the attorney's current rate of $300 per hour. Depending on the complexity of the trust, this could take between 1 and 3 hours.