Legal Question in Wills and Trusts in California

Re: Which type of will to use

You are wrong. A will is not the propert document to use. If something happened to both of you at the same time, your estate would need to go through probate. That will cost thousands of dollars and take about 6 months to complete.

You need to meet with an estate planning attorney. With an integrated estate plan, which includes a trust, a will and other documents, you can have much more control of your wishes for each other and your children.

Don't try doing it yourself, either. An improperly drafted, executed or funded trust could be worthless.

Re: Which type of will to use

You need a will and a living trust.

To begin, a will is the only document where you can name a guardian for your minor children.

A living trust is where you should hold title to your home and assets including your life insurance policies.

If something were to happen to you and your spouse at the same time, you will have already named a guardian for your children and have your assets placed into a living trust for their benefit.

It is also wise to have a durable power of attorney and advance health care directives prepared at the same time.

I would recommend seeing an estate planning attorney in your area to develop your estate planning documents.

Re: Which type of will to use

Based upon what you have said, a trust is probably more suited for your purposes. A trust will (1) help you minimize, if not completely eliminate, estate taxes, (2) avoid probate, and (3) give you the opportunity to delay complete distribution of your entire estate to your children once they reach age 25.

I also strongly encourage you not to draft estate documents, and instead seek out an estate planning attorney.

If I can be of assistance, please do not hesitate to contact me at (408) 268-2580.

Re: Which type of will to use

in your situation you should retain an experienced and qualified estate planning attorney to ensure that you have considered all the options available to you and that your estate plan will actually have the results you desire for your family.

Re: Which type of will to use

If your house is worth the $650,000, plus a lot of life insurance, your estate plan should have estate tax planning as well--currently estate taxes begin on assets over $1,500,000--this number is likely to change in the future, but the estate plan should be flexible enough to deal with that. Everything you have, including the life insurance proceeds and retirement plans, will be included.

A trust is probably the best way to plan, because it will have the tax planning and also avoids probate on your house/investment accounts, business, etc. Probate fees are generally about 4-6% of the value of the estate, while trust administration fees are more like 2%. Also, it will be more difficult to run the business under the probate court's supervision than if it were in a trust, which is important for preserving its value. Finally, you'll need to make sure your trust includes language allowing for the supervision of an "S" corporation, if your business is that type.

You can accomplish the same results with wills, but the probate fees will still be there.

I'd also recommend powers of attorney for property and health care in case either of you becomes incapacitated.

It'd be a good idea to have an estate planning attorney prepare these after reviewing all your assets, but if you're going to do it yourself, I'd recommend at the very least having wills with trust provisions in case your children are minors.

Re: Which type of will to use

Actually, a trust is still preferable because of the tax benefits and additional protection it provides.

Plesae take a moment to review the pitfalls, and extreme costs, of Probate (which will be required if you only use a will) on our firm's site

www.No-Probate.com

If you would like to discuss your particular desires as they relate to a trust, please feel free to call our office at 626-578-0708 for a free consultation.

Scott

Re: Which type of will to use

A will would not be the proper choice for your family. You should have a revocable living trust because you will have more control over your assets, you will be able to better protect your assets and you will avoid the cost and time of probate.

You should seek the assistance of an attorney that specializes in estate planning. Please contact me if I can be of any assistance.

Good Luck!