Estate Planning Attorney North Hollywood
What Is Estate Planning?
In a nutshell, estate planning is a process that allows YOU to control the disposition of your assets and to mitigate the estate tax burden that your loved ones will encounter after your death.
Why Do I Need An Estate Plan?
If you die without an estate plan, you will be considered intestate. Intestacy is the condition of dying without a will. Your assets will be distributed pursuant to the intestate succession statute which determines who is entitled to property from your estate under the rules of inheritance.
What Is Probate?
Probate is a court procedure of proving a will is valid and thereby administering the decedent’s estate according to the terms of the will or, where a decedent dies intestate, appointing an executor to distribute the decedent’s estate according to the laws of intestate succession.
Why Is Probate Not The Best Option?
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Probate is a matter of public record which means that personal family and financial information become public knowledge;
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There are considerable costs in the form of court, attorney and executor fees associated with a probate proceeding, all of which are deducted from the value of the estate;
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Probate can be time-consuming, often taking months or sometimes years;
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Probate can be complicated and stressful for both the executor and the beneficiaries.
Why Is An Estate Plan The Best Option?
With an estate plan, you get to decide:
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If I die, HOW will my estate be divided and WHO will receive them?
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If I die, WHAT do I want done with my remains?
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If I become ill, HOW and WHO will manage my personal care and make my health care decisions?
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If I become ill, HOW and WHO will manage my assets for my benefit during my lifetime?
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If I die or become ill, HOW and WHO will take care of my minor children?
An estate plan provides privacy, is cheaper and quicker than probate:
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Living trusts, unlike probate, are completely private;
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Compared to the statutory fees in probate (up to 40% of your entire estate), the costs of having any estate plan prepared is substantially lower;
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By incorporating various tax shelter provisions in the trust, you will be able to shield a larger portion of your estate from taxation, which is currently at 40%
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An estate plan can be created in a matter of weeks in most cases (depending on the complexity of the estate), versus months or years for probate.