Frequently Asked Questions

What is an estate plan?

In California, a comprehensive estate plan typically includes a Revocable Living Trust, a Pour-Over Will, a Durable Power of Attorney, an Advance Health Care Directive, and a HIPAA Authorization.  It may also include Nomination of Guardian documents, if you have minor children.  (There’s a lot more to it, but these are some of the basic documents that we prepare.)

What is a Revocable Living Trust?

A Revocable Living Trust is legal document wherein you (the trustmaker) name a trusted individual (trustee) to manage accounts and property for your benefit and the benefit of others (beneficiaries).  The initial trustee is typically the trustmaker, and the trust is effective during the trustmaker’s lifetime, during any period of disability, and after death.

A Revocable Living Trust:

  • provides for the division and gifting of your accounts and property;

  • avoids involvement of the Probate Court, if the trust is fully funded (meaning the ownership of the accounts and property has been changed from you as an individual to the trust);

  • provides for successor trustees upon your death or if you are no longer able to handle your own affairs;

  • allows for the continuous management of your accounts and property – even if you are still alive but unable to do so yourself;

  • often includes protective trusts for your beneficiaries and tax planning; and

  • permits you to amend your wishes within the trust document during your lifetime.

What is a Will?

A will is a written document that is signed and witnessed. A will is considered a “death” document as it only goes into effect when you die.

A will:

  • provides for the division and gifting of your accounts and property at death, but not accounts and property directed to others through beneficiary designations (e.g. life insurance or retirement benefits);

  • sends accounts and property that do not have designations and that are owned solely by you, in your individual name, through the probate process;

  • allows you to appoint permanent guardians for your minor child;

  • names the person you wish to wind up your affairs (e.g. executor or personal representative);

  • permits you to cancel or change your decisions during your lifetime;

  • does not always include protective trusts for your beneficiaries and tax planning because many wills are simple 2-3 page documents; and

  • tends to cost less than a trust on the outset but may cost more to settle during court proceedings after death.

What is a Financial Power of Attorney?

A Financial Power of Attorney allows individuals you nominate to make financial decisions on your behalf when you are unable to do so.  A nominated agent, also referred to as an “attorney-in-fact” may have the power to deal with banks, the IRS and Social Security Administration, business affairs, etc.  There are many powers you can grant your attorney-in-fact, so you may want to take careful consideration deciding which powers your attorney-in-fact should have.

What is an Advance Health Care Directive?

An Advance Health Care Directive allows you to nominate agents to make medical decisions on your behalf, if you are unable to yourself.  Your agent will have the authority to consent or refuse treatment, direct or withhold artificial nutrition, and make end-of-life decisions. Having this document in place will give your agent peace of mind, knowing they’ve made decisions according to your wishes.

What is a HIPAA Authorization?

Most of us have signed a HIPAA form at a doctor or dentist’s office, which reassures us that our medical information will be kept private pursuant to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”).  Institutions take HIPAA very seriously, so if a loved one is unable to communicate, their family members may not be able to discuss important medical information with doctors, hospitals, etc.  A valid HIPAA Authorization allows one to name individuals who can have access to their medical information, avoiding the bureaucratic headache of trying to obtain this information on their own.

What is Probate and why should I avoid it?

One key element in deciding between a will and a trust is understanding the Probate process.  The term “Probate” refers to the process wherein a deceased person’s will must be determined by the court to be valid, that their outstanding legitimate debts are paid, and that their accounts and property are transferred to their beneficiaries.

Probate can take a long time (typically a year) before it is complete and it can also be costly.  The Probate process is also public meaning that unentitled heirs or nosy neighbors will know exactly how a deceased person’s assets were distributed.

How much do you charge?

We are happy to discuss pricing with you during your initial consultation.  Once we have thorough understanding of your unique situation and goals, we can share appropriate planning options and pricing.