Trust and Probate Education
You are not alone. Most people don't know much, if anything, about estate planning, simply because they haven't been told. When you meet with Kris, you will leave with a feeling of knowing and empowerment.

Probate:
Probate is a public court proceeding required by law to wind up a deceased person's legal and financial affairs. Probate is time consuming and expensive. This Chart shows the cost of probate as set by the California Probate Code.

Gross Asset Value of Entire Estate*	Minimum Cost of Probate without Estate Planning	Cost of Probate with Proper Estate Planning
$200,000	$14,000**	$0
$300,000	$18,000**	$0
$400,000	$22,000**	$0
$500,000	$26,000**	$0
$750,000	$36,000**	$0
$1,000,000	$46,000**	$0
$2,000,000	$66,000**	$0

* Do NOT subtract your mortgage or other debt. Do not include private or government retirement plans, pensions, medicare.
** This is not a tax. One half of this will likely be paid to an attorney, and the other half may go to an Administrator unless you make and activate a plan.

These costs are what it takes for your executor and your executor's attorney to inventory and appraise your accounts and belongings, contact your relatives or others named in your will, publish notices to your creditors, settle claims by your creditors, friends and relatives, and get court approval of every step of the process.

Trust:
In most cases, a living trust, also known as a revocable living trust, avoids probate, and the delay, expense and public nature associated with probate. Additionally, a living trust avoids the need for a conservatorship in the event you become incapaciated or incompetent. It also offers potential tax savings. This same trust then can continue for the benefit of your loved ones.

A trust is created by drafting a trust document which names the "trustors," the persons setting up the trust, and the "trustees," the persons responsible for managing the trust. In family trusts, the trustors usually name themselves as trustees, so that they can preserve control of their assets. The trustors also name successor trustees, such as their children, or a bank, to act in their place upon their death or incapacity, thus gaining an additional measure of control.

The trust contains provisions providing for the distribution of the estate after the trustors pass away. These are similar to will provisions and may include trusts for younger children, gifts to charities, or giving specific items to certain people. For married couples with more than $1 million in net worth, the trust could contain an exemption trust in order to reduce or eliminate federal estate taxes.

After the trust document is completed, the trustors, with the aid of their estate planning attorney, transfers title of their assets into the name of the trust. This is referred to as "funding" the trust.

Although the cost to set up a trust is more expensive than an estate plan with just a will, the time and costs to your family to administer your estate are greatly reduced. Additionally, the administration is done privately, by a person of your choosing, and does not require court approval. Additionally, if
the trustor becomes sick or mentally incompetent, a trustee can take control of the trust immediately without the cost and delay of a conservatorship. A conservatorship is a public, court-supervised proceeding that can involve substantial legal fees.

Will:
You still need a will if you have a trust, but if you have a trust, your estate planning attorney should provide you with a special kind of will called a "pour-over" will. This will is a safety net that pours any asset into your trust that you forgot to put into your trust. Your will also contains provisions relating to the care of your minor children or other dependents.

If you don't have a will or a trust, the probate court will decide who will administer your estate and who will become guardian of your minor children. Whether you have children or not, the state "makes" a will for you (referred to as testate succession) and decides who will get your money and your belongings.

While do-it-yourself or handwritten wills are legal in California, they are frequently and easily legally challenged because of either unclear language, or because they often lack the proper witnessesing circumstances. The resulting lawsuits are often expensive and often result in compromise which usally means someone you would have disinherited receives some of your estate.

General Durable Power of Attorney and Advance Health Care Directive:
See our FAQs page for a description of the benefits of these vital estate planning documents.

Plan Your Legacy, Preserve Your Wealth, & Protect Your Children