Essential Estate Planning
Estate planning can be confusing – so much so, that it’s easy to become overwhelmed and put it off. But planning your estate today is essential to making sure your children and family members are protected in the event of sudden, unexpected death or incapacity.
At Thea Law, A Professional Corporation we form lifelong relationships with our clients. We charge flat fees so you don’t receive any surprise bills in the mail, and have an open door policy when it comes to asking questions. We want you to understand your plan, and more importantly, feel comfortable with the planning you’re doing for your family.
To foster those lifelong relationships, we offer a plan review every 3 years at no extra charge to you. Let’s face it, your assets are bound to change during that time, and so is the law. So it’s best for us to stay on top of any changes, and quickly incorporate them into your planning.
WHERE SHOULD I START: A WILL OR LIVING TRUST?
Most people equate estate planning with having a will, and that may be the best place to start for some people. Wills are the traditional way to leave your assets to your children and other family members, but can create unintended issues, including probate.
Probate, a court-supervised process that makes sure your estate doesn’t owe money to creditors, is designed to transfer your remaining assets to your beneficiaries in an orderly way. But probate can be very lengthy and also means that the value of your estate is public information, along with the names of your beneficiaries, creditors and natural heirs.
Settling your estate through probate will require an executor, and if you haven’t appointed one, the court will do so for you. Your assets will need to be accounted for, and any claims made by creditors may hold up the process as well. Finally, tax returns need to be filed before the beneficiaries can receive your estate’s assets. From start to finish, this process can take a year and often even longer.
Not all estates have to go through probate. In California, estates of less than $100,000 may take advantage of simplified estate administration procedures. But that’s $100,000 of assets unreduced by any debt. For that reason, almost no one who owns a home in the San Francisco Bay Area would qualify for the simplified estate administration procedure.
If someone has more than $100,000 in assets, the only fail-safe way to avoid probate is through a fully-funded revocable living trust. Some people use other strategies to try to avoid probate, such as holding title in joint tenancy with right of survivorship, but there are serious drawbacks to such techniques.
Placing your assets in a revocable living trust can help avoid probate after your death. Revocable living trusts, also called simply “living trusts,” act as a substitute for a will, and give instructions about how you wish your assets to be managed during your life and after your death.
Living trusts require that you transfer your assets into a trust during your lifetime, typically with you serving as trustee. Done properly, your assets can be distributed to your beneficiaries without court involvement. You retain the right to amend or revoke the trust and appoint or remove trustees of your choosing. The trustee must, if specified, consult with you before buying or selling assets. And the trust does not need to file a separate income tax return until after your death.
An extremely important benefit of a living trust is that it is a private document. Neither its terms, nor any record of its assets, are made part of the public record after your death. This protects your heirs from unscrupulous people who might prey upon them and makes it more difficult for anyone to contest your estate at your death.
But because estate-planning law is complicated and always changing, it’s best to work with a qualified estate-planning attorney to put your plan in place. Living trusts require that assets be titled properly before your plan will work to its highest advantage.
To schedule a consultation to discuss your estate planning options, please contact us.
Testimonials
"I knew the minute I met Thea that she was just what we needed – she is so warm and so real. I feel like she is our friend.
The benefits of working with Thea? I can't talk this up enough: being able to download everything and have Thea and her team do the rest, feeling a great connection with Thea as a person, having her explain everything so you understand the choices you're making, and finally knowing she has left nothing to chance.
I feel so relieved that we have taken care of this important task and the money was so worth spending. Her fee is just pennies on the dollar for the benefit she provides. The amount of work that goes into her plans is huge and I feel like we got a great bargain!!!
I would and have recommended Thea to everyone we know. She is truly amazing and I look forward to working with her over the years as our lives change. I know we are in good hands!!!!!"
—Camille M., Mill Valley
"Although my husband and I are both attorneys, we definitely appreciated the way Thea broke the seemingly daunting estate planning process down into accessible terms. Thea always made us feel like we were her most important clients."
We greatly appreciated the special touches that Thea offers that other estate planners don't, such as transferring our assets into our new family trust and creating a recording of our hopes and dreams for our children. There were tears involved, but it was such a good exercise and I am so glad that we did it. It was good for our marriage too.
After researching various estate planners, I really felt that Thea was worth the money and we were happy with the project from start to finish."
—Rebecca J., Mill Valley
"From the first, we felt privileged to be guided by Thea personally through the very detailed, well thought-out and comprehensive plan.
Thea and her staff combine the highest level of professional expertise and conduct with wonderfully warm personalities. They go the extra mile, always with unflappable graciousness and patience.
We will unequivocally recommend Thea to everyone we know."
—Michael K, San Geronimo