A: Spoiler alert: No, California probates are still excruciatingly expensive and long court procedures, which is why probate avoidance through a living trust is such a valuable planning tool in California. Feel free to reach out to us...
Trust And Estate Administration
Q: My father died without a trust; all he owned was a huge pot of gold that he brought here all the way from Ireland. What will happen to the pot of gold I just inherited?
A: This question came in from an anonymous follower! Unfortunately, since his father never had a trust prepared, and because the gold is worth more than $166,250, the family gold will have to be probated. In order to pay all of the court, administrative, and...
Q: What is a Notice of Proposed Action?
A: A Notice of Proposed Action essentially requires a beneficiary to “speak now or forever hold their peace.” California Probate Code sections 16500-16504 permit a trustee to give notice to the beneficiaries of a trust that the trustee intends to take (or not to take)...
Q: My mom, who is divorced, didn’t name any beneficiaries on the only bank account she owned when she died. Can my siblings collect the money without probate?
A: The answer depends on how much money was in the account! If the amount is under $166,250, then yes, you can most likely submit to the bank what we call a “Small Estate Affidavit” to collect the proceeds. Remember, if there is a will that states who the account...
Q: If I set up a living trust, will I still be able to control my financial assets and decisions during my lifetime?
A: We have heard a number of our clients voice this concern over the years, and the short answer is yes, you will have 100% absolute control over all of your decisions, all of your finances, and all of your assets with a revocable trust! A revocable trust means that...
Q: What are “contingent beneficiaries” and do I need to include them in my will or trust?
It is very common and understandable for people to set up their estate plan assuming all the people you want to leave money to are still living at the time of your own death. However, far too many court battles have taken place due to a lack of contingency planning,...
Q: My mom just signed her house over to me. Wasn’t that the easiest and best way to avoid probate?
It may have been easy, but it is far from the best way! With respect to capital gains tax liability, when your mom gifted you her property, she unfortunately also gifted you her tax basis. This means, for example, that if your mom paid $50,000 for the property - and...
Q: As an active service member, are there any special considerations I should take in doing my estate planning for my family and children?
Service members have life insurance through Servicemembers’ Group Life Insurance. If you have a living trust, name it as the beneficiary of the life insurance policy. If you have minor children but don’t have a trust, you should definitely create one and name it as...
Q: I think my mom’s will is inside her safety deposit box! Will the bank allow me to look inside to verify if it’s there?
A: Yes, as long as you are in possession of a key to the safety deposit box, Probate Code Section 331(a) requires the bank to give you access to do a “will search”. The bank will then log your identity as the requester, supervise you while you inventory contents, make...
Q: Should I update my estate plan if I am getting a divorce?
A: Although Probate Code Section 6122 largely disinherits a former spouse automatically upon entry of a divorce judgment, the same is NOT true while the divorce is in process. Therefore, as soon as possible after the divorce proceedings have been initiated, you should...
