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TRUSTS AND ESTATE PLANNING
The Guldjian Law Group, APC considered the average
family living in Orange County with assets that should
be protected. Similar to protecting assets of our business
clients, the Guldjian Law Group, APC has extended that
same notion to individuals, particularly families, who
wish to protect and secure their assets against the
expensive, public, and long process of Probate. Accordingly,
we developed a streamlined process of creating a Revocable
Living Trust with a Pour Over Will and supplemental
documents that include a Power of Attorney for Property
and an Advance Health Care Directives.
The following is a background of what a living revocable
trust, probate, and how a trust can protect the client
and her family
What is a Living Trust?
A Living Trust is a document that
creates a legal entity. It is a "Living" Trust
because it remains "alive" after your death.
The Trust’s purpose is to assure proper management
of your affairs during and after your lifetime, even
if you become incapacitated. While you are living you
have complete control over your assets - they belong
to you as Trustee of your Trust.
A Trust does not pay any taxes or require
you to file any extra income tax returns during your
lifetime. You file and pay just as you do now, as though
the Trust did not exist. A Trust gives you control over
what happens to your home, bank accounts and personal
property after your death.
A Trust allows you to specify who gets
your assets, under what conditions, and in what manner
distributions are made. A Trust can be changed or even
revoked entirely during your lifetime, but cannot be
changed after you die. You should always consult with
an attorney when creating a Living Trust.
A properly funded trust completely avoids
probate.
Is a Will Good Enough?
With a Will, your chosen agent distributes
your estate according to your wishes. How¬ever,
a Will alone will not avoid probate, will not reduce
estate taxes, will not make funds immediately available
and may result in financial hardship for your family.
Your Will is public information and may
be viewed in the probate court by anyone after your
death. Sadly, the probate process is very slow, often
nine months to two years or more.
What Happens If I die Without a Will or a Trust?
The court will probate all but the smallest estates.
This almost certainly includes anyone owning a home.
The probate court judge will appoint an executor to
manage and distribute your estate (this person will
likely be a complete stranger). Distribution will be
made to legal heirs whether you want this or not. Court,
legal, and administrative fees will be taken out of
your estate. If you own a business, activities may be
disrupted during probate.
Your family, even while mourning your death, will
be burdened with red tape while clearing up your estate.
What happens if I die with a Trust? When you protect
your assets and family with a Trust, your affairs are
kept private and all your wishes are carried out as
you instruct. There is no probate, no probate fees,
no court or judge involved, and no surprises!
What is Probate?
Probate is a court proceeding that results when a
person with assets worth over $100,000 dies without
a Living Trust. The process is often slow, public and
expensive. Your heirs will not have access to your assets
until the judge says they can be released. A Will alone
does not avoid Probate.
Is Probate Expensive?
Yes, it is generally many times more
expensive than the cost of trusts, wills or other estate
planning instruments. And expensive as it is, the cost
in dollars is probably less important than the cost
of the emotional turmoil experienced by the family who
is left to straighten out affairs that a trust would
have avoided altogether.
Costs include court filing fees, attorney’s
standard fees (and often, in addition, what the court
calls attorney’s “extraordinary fees”),
and personal representative fees. It is not uncommon
for fees on an average size estate to be as much as
$25,000 or more.
How Does A Trust Benefit Me?
• Protect your family from
enduring the expense and red tape of Probate.
• Avoid having a Judge determine how your estate
will be distributed.
• Reduce or eliminate the need for the court to
appoint a conservator if you become incapacitated.
• Allow your chosen Successor to arrange for your
long-term care.
• Reduce or eliminate estate tax (for couples)
by preserving and utilizing your federal estate tax
exemption after your death.
• Allow you to maintain control over your assets
while you are living and to control the distribution
of your estate after your death.
• Give you Peace of Mind, knowing that you have
a plan in place that benefits you now, and your family
and heirs after your death.
Guldjian Law Group’s Estate Plan
contains a complete set of documents including, where
needed:
• Revocable Living Trust
• Pour Over Wills
• Power of Attorney for Property
• Advance Health Care Directives
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