What is Estate Planning?

Planning for your assets.

Minimizing costs and taxes.

Minimizing hassles and delays.

Preventing possible disputes.

YOU SHOULD MAKE YOUR OWN PLAN

Who will manage your assets if you are incapacitated?

Who will inherit your assets after you pass away?

Your Estate, but whose plan?

1. Without proper estate planning, your assets will be handled according to state law, no matter what you intend. In many cases, court involvement will be necessary.

2. If you plan now, your wishes and intentions will be honored.

The Do Nothing Plan

• If You Do Nothing, Your Wishes are Irrelevant

• During Lifetime: Conservators hip

• After Your Death: Probate

Going to Court is

Conservatorship• Court proceeding for an incapacitated person

who is unable to manage his own assets.

• Someone petitions the court to be appointed the Conservator.

• The Court appoints a lawyer for the proposed Conservatee. Later determines if Conservator is necessary, and who it will be.

• Conservator manages Conservatee’s assets.

A judge will decide who manages your money.

Probate• Court proceeding to settle the estate of a

deceased person.

• Required whether or not there is a will.

• Someone petitions court to be appointed Administrator or Executor.

• If no will, heirs determined under California law.

A judge will decide who will inherit your money.

Statutory Fees for ProbateFor Attorney and Executor

• 4% for 1st $100,000.00

• 3% for next $100,000.00

• 2% for next $800,000.00

• 1% of the next $9,000,000.00.

Not a pleasant experience for your loved ones.

But cost is not the only problem….

There may be unintended consequences of not planning.

Guardianship For Heirs Who are Minors

Disputes among Heirs

Irresponsible Heirs

Heirs who are unable to handle money. Addictions, disabilities,

creditors.

The Best Plan for Most of Us

1. Living Trust

2. Pour Over Will

3. Power of Attorney

4. Advance Health Care Directive

Living Trust• Trust: Legal document containing your

instructions regarding your own assets.

• Trustee: You are the trustee until you are unable. You choose who will manage your assets if you are unable.

• Beneficiaries: You choose who will inherit after you have passed away. You decide who will inherit, what they will inherit, and when they will inherit.

Without a Living Trust – Example: Real Estate

• Joe Sato and Mary Sato, Husband and Wife as joint tenants with right of survivorship.

• Joe dies first – who becomes the owner? How?

• Then Mary dies – who becomes the owner? How?

With a Living Trust – Real Estate

• Transfer to Joe Sato and Mary Sato, Trustees of the Sato Family Trust.

• Joe dies first – who becomes the owner? How?

• Then Mary dies – who becomes the owner?

• Provides for incapacity.

Pour Over WillJust One Part of Complete Estate Plan• Back up plan for assets not in the living trust.

• Requires probate to be effective.

• In most cases, will not be needed.

• Nominate guardians for your minor children.

Stand Alone WillIs NOT a Complete Estate Plan

You decide who will inherit.

BUT, the Will requires probate to be effective.

Will does not help you if you are incapacitated.

The process is not complicated.

Something you can do now for your loved ones.

Avoid costs of conservatorship and probate.

Avoid headaches for yourself and your loved ones.

For your own peace of mind.

Your loved ones will appreciate it.

How do I choose a lawyer?