Escondido Estate Planning Lawyer

About Living Trusts

The creation of a revocable trust, also known as a living trust, is an interesting process.  You will actually be setting up an independent entity that will continue on beyond your lifetime.  When you pass on, your living trust will keep moving along, carrying out your wishes.  Once the revocable trust is created, we will assist you with transferring your assets into the trust.  The trust will actually hold the assets; however, because it is revocable you will retain control of your assets during your lifetime.  For the most part, it will be as if nothing had changed.  You will file tax returns just like before and manage your assets just like before.  You will be free to move assets in and out of the revocable trust or modify them however you wish during your lifetime.  The only significant difference you will experience is that the title to certain assets, such as your home, will be held in the name of the trust.  After a free consultation with the Liljegren Law Group, we will be able to design a living trust specifically for you.  Our customized approach, one client at a time, will maximize your benefits based on your particular circumstances.

About Wills

Executing a will is the first step towards establishing an estate plan. While a revocable trust is superior for many reasons, a will is an excellent device for passing minimal assets to your loved ones or favorite charity.  Unfortunately, upon death, a will is subject to the probate process.  Probate is a lengthy and public process that can cost up to ten percent of the gross value of your assets in fees.  Most people prefer that their hard earned money and assets go to their loved ones, rather than to lawyers, executors and the like.  In smaller estates, less than $100,000 in gross assets (including retirement funds, life insurance proceeds, and all other assets NOT including any debt), a formal probate will not be required.  As such, a will may very well be appropriate.  However, it is highly recommended that you speak to an attorney before making a final determination on whether a will or a trust is the best vehicle for you.  While Liljegren Law Group generally advocates living trusts over wills for estates larger than $100,000 in gross assets, we recognize that some estate planning is better than none.  On that basis, a will is certainly superior to no plan at all.  And as with any estate plan, it is extremely important to execute powers of attorney and a living will along with your will. For more information see information about powers of attorney/living wills.

About Living Wills

Living wills, often called "Health Care Directives," are documents that instruct healthcare providers about the conditions under which you do not want to be artificially sustained by life support.  While it is uncomfortable to think about this issue, almost fifty percent of us will be incapacitated to some extent prior to death.  Therefore, a living will is an imperative device to protect ourselves and ensure that our wishes are carried out.  Moreover, a properly executed living will prevents a contest between family members and avoids situations akin to the Terri Schiavo case.  With the personal matter of Terri Schiavo in the news, many people are thinking about how they can protect themselves.  If you do not have a living will, decisions regarding your health care are left to family members, and often they cannot agree or are in conflict about your wishes.  A living will ensures that your wishes are respected and will be followed.  We include living wills (powers of attorney) with all of our estate planning packages, including wills and living trusts.  If you are simply seeking a living will and the associated powers of attorney, we would be happy to prepare these documents for you at a discounted flat fee.  It is so important that each and every one of us have these documents in place.  The flat fee includes the initial consultation with an attorney and will be current with all HIPPA requirements to ensure your maximum protection.

About Powers Of Attorney

We can draft powers of attorney with any of our estate planning packages, including wills and livings trusts.  Each person needs two powers of attorney; a power of attorney for health care and a power of attorney for finance.  Everyone should have powers of attorney.  They are an important tool in providing for who is to handle your affairs in the events you become temporarily or permanently incapacitated.  The fact is that almost one in every two people is incapacitated or incompetent prior to death.  This means that someone needs to be designated to handle your affairs if this occurs, keep in mind that auto accidents, illness, or other catastrophe can render someone incapacitated even if only for a short time.  Who will make your financial decisions?  Who can fight with the insurance company for your recovery treatment if need be?  It is a very good idea to put powers of attorney in place regardless of your age.  A power of attorney for finance enables your agent to make financial decisions on your behalf and write checks if necessary.  A power of attorney for health care gives the designated party the right to make health care decisions for you under the circumstances.

About Probate

Anyone who has been through the probate process will probably tell you what a nightmare it was, and to do whatever you can to avoid it. This is because the process moves at a snail's pace and digs into many personal matters. Frankly, it is a considerable hassle, and something most people do not want to deal with while they are grieving.  Probate consists of the following:

  • The court is notified that a person has passed away by someone who has an interest in the estate;
  • An inventory of assets is taken;
  • The assets are appraised;
  • The deceased person's debts and taxes are paid;
  • The validity of the deceased person's Last Will and Testament is proved to the supervising court;
  • A long waiting period commences whereby the remainder of the assets are distributed in accordance with the will or, under state intestacy laws if there is no will or the will is invalid.

There are THREE significant drawbacks to probate:

  • It is costly. In fact, it can cost up to ten percent of the gross estate in probate fees. That is ten percent of the gross, NOT the net; i.e. 10% of the $200,000 estate is $20,000, even if there are significant loans against the estate assets (such as mortgage). The minimum probate fees for a $200,000 estate are approximately $14,000. There are no probate fees if probate is avoided by way of a living trust.
  • It is public. Even if everything runs smoothly, a great deal of private information regarding the estate, its contents, and its distribution will be a matter of public record. Living trusts are completely private.
  • It is lengthy. It will seem to be never-ending. The last thing a family wants to deal with when a loved one has passed away is a costly, highly public process that drags on for years. Technically, probate can be as short as six months, but in reality, probate usually takes one to three years. A living trust avoids unnecessary delay.