Estate planning and probate lawyer for preparing trusts and wills

	Who needs an estate plan? Everyone should have at least a simple estate plan including: Senior citizens Property owners Investors Parents with minor dependents or dependents with special needs Married persons with children from a prior relationship Business owners
	I am not wealthy; why do I need estate planning? You need estate planning: To avoid conservatorship in the event of your incapacitation To make sure your property goes to the loved ones you choose rather than who the state chooses To avoid the cost, time and hassle of probate To protect your assets To protect your family especially minor dependents or dependents with special needs To keep family peace To provide for business continuity for closely held businesses
	What are some of the common Estate Planning tools? The main tools used in a typical estate plan include: Wills Living Trusts Powers of Attorney for Property/Financial Management Property and trust funding documents Advance Health Care Directives There may be other more complex tools used for estate tax mitigation such as charitable trusts or irrevocable life insurance trusts.
	What is the difference between a living will and a living trust? A "living will" is a document that directs your end-of-life decisions. It is currently known as an advance directive and is included in an Advance Health Care Directive document. A "living trust" is a grantor, revocable trust that allows you to put your assets into a trust for yourself and your spouse during your lifetimes and then transfers the assets to your beneficiaries without going through probate. The living trust may be amended or revoked during your lifetime.
	Do I file a separate income tax return for my living trust? No, not during your lifetime. The living trust is a grantor trust and is consider by the IRS to be your alter-ego, so your social security number is used for the trust's tax identification and a separate income tax return for the trust is not required until after your death.
	Do I need estate tax planning? It depends on the value of your estate. The estate tax applicable exclusion amount is $2,000,000 for 2006 - 2008, and then it increases to $3,500,000 in 2009 and is unlimited in 2010. However, Congress has a sunset clause which brings the exclusion amount back down to $1,000,000 in 2011 unless Congress can agree to a new estate tax exclusion amount before then.
	Does a living trust avoid estate taxes? No, not by itself. Certain provisions can be built in to a living trust such as a bypass trust that may help eliminate or reduce estate taxes. Or, you may choose to set up a charitable trust or an irrevocable life insurance trust, but all of these options have pros and cons and should be discussed with a competent tax planning professional.
	What is an Advance Health Care Directive and why is it important? An Advance Health Care Directive (AHCD) is a document that includes a power of attorney for health care decisions. This allows your agent to make health care decisions for you in the event of your incapacitation. It also includes an advance directive (formerly known as a "living will") which provides end-of-life directions if you are terminally ill or permanently unconscious. The AHCD also contains optional directions for organ donation and physician selection. This document is critical to provide proper health care for you in the event of an emergency and provides clear guidance on your choices for your care if you an unable to make these decisions for yourself.
	Who will control my estate plan? You control your estate plan during your lifetime so long as you have capacity. You choose your successors which may include your spouse, children or other family members even if they benefit under your estate plan. The persons in charge include: Executors of your will Guardians of your minor children Successor Trustees of your trust Agents of your power of attorney for property/financial management Agents for making health care decisions You may want the same person to manage all aspects of your estate plan or you may choose different people depending on their abilities. In ALL cases, you should very carefully choose people who you trust to carry out your wishes and who will do the right thing when no one is looking over their shoulders.
	What does Trust funding mean? Trust funding is the most often overlooked part of estate planning. As long as the trust document contains a list of trust property and language satisfying the requirement for a declaration or conveyance, the property listed becomes trust property as soon as the document is executed. Even so, it is very important to properly fund the trust. "Funding" the trust means the process of changing title to property so that the title reflects the existence of the trust and the identity of you as the trustee. The primary purpose of funding the trust is to make it easier for the successor trustee to gain control of the trust assets in the event of your incapacitation or death. If the trust is not funded, your successor trustee may be unable to manage the trust estate without obtaining a court decree declaring that the trust property belongs to the trust. Funding also eliminates potential disputes over ownership of particular assets and is also the primary means of adding newly acquired assets to the trust. You should take title to newly acquired assets in the trust's name and periodically update your schedule of assets. Nontransferable property such as retirement plan assets and IRA types of investments should be coordinated with the trust through the beneficiary designations. Also, ownership of life insurance policies is generally not transferred to the trust. Instead, it is common to name the trust as an alternate beneficiary. The typical trust assets include: Real Property Investment Accounts Stocks and Bonds Collectibles Bank Accounts (if greater than $100,000) Vehicles are listed as trust property but it is not necessary to change their title
	Disclaimer The Law Office of Clare Chesley publishes this web site for informational purposes only. The information provided does not constitute legal advice. We take care in providing and maintaining this web site, however, we do not guarantee that the information is correct, complete, or up-to-date. Furthermore, this web site does not create an attorney-client relationship and you should not act or rely on any information in this web site without seeking the advice of an attorney. Email is a convenient means of communication and we take all reasonable efforts to protect your privacy, but cannot guarantee the confidentiality of email communications. In addition, email communications may not be subject to attorney-client privilege.

The Law office of Clare Chesley, Estate Planning and Trusts, is located in Monrovia, CA serving the San Gabriel Valley and cities of Alhambra, Arcadia, Azusa, Baldwin Park, Bradbury, Burbank, Claremont, Covina, Duarte, Eagle Rock, Flintridge, Glassell Park, Glendale, Glendora, Highland Park, Irwindale, La Canada, La Crescenta, La Verne, Los Angeles, Los Feliz, Monterey Hills, Monterey Park, Montecito Heights, Montrose, Mount Washington, Pasadena, Rosemead, San Dimas, San Gabriel, San Marino, Sierra Madre, Silverlake, South Pasadena, Temple City, and West Covina