Practice Areas
Estate Planning Details
Introductory estate planning should concentrate on three ideas: (1) developing a “game plan” as to how your estate should be handled if anything were to happen to you; (2) keeping estate tax to a minimum; and (3) avoiding probate.
Developing a Game Plan
California provides a set of rules which apply when you have no will (these are known as the “intestacy” rules). Basically, your estate will be distributed under these rules if you have no will. The intestacy rules were developed over many years, and often may achieve the same result as many people would want under a will. A will gives you control over how your estate is handled.
For example, under the intestacy rules, an estate would be completely distributed to children at age 18; however, many people would prefer for their children to receive the estate at an older age (especially in cases involving large estates). A properly drafted will (or a Trust) can keep the estate from being distributed until the children reach the desired age(s).
To avoid the distribution of your estate being handled by the state, and to avoid the state dictating who will serve as guardian of your children, we recommend creating your game plan today. In developing a game plan, you should consider: (1) when assets will be transferred to heirs, and (2) who will oversee the process.
The documents most often associated with the estate planning process are the trust and will. A well-drafted estate plan addresses what happens to your assets in the event of death or disability. One of our firm’s most important jobs is to properly put your goals and wishes into writing.
Naming the Players
Perhaps the most important estate planning decision is determining who will be involved with overseeing your financial situation, and who will be involved in taking care of your children should anything happen to you. Without proper documentation, it is possible that someone other than your preferred choice as guardian could end up taking care of young children. Everyone should consider executing a will, if for no other reason than to name the executor and/or choice as Guardian.
Take Advantage of Tax Breaks
Without proper planning, married couples can “lose” many hundreds of thousands of dollars in estate tax credits that might have been otherwise available. This is because, without proper planning, the tax credits that would have been otherwise available at the first death might become permanently lost. A properly-drafted trust (or will) can take advantage of all of the available tax credits and deductions.
Avoid Probate
Even though an estate may be distributed, for example, to one’s children, without proper planning, probate is often necessary before title to any applicable real estate can pass to the children. Probate, as described in detail further below, is a court process that can take 18 months or more to complete. In addition, a certain portion of the estate gets taken away as statutory attorneys’ fees, and statutory executor fees. This can all be avoided with proper planning.
Advanced Planning
Our firm also specializes in many areas of advanced estate planning. Such planning includes many different types of wealth creation and wealth preservation strategies, ranging from complex trusts to family limited partnerships. Our philosophy is to keep planning as simple as possible, but to “layer in” any needed advanced strategies. For example, in situations where estate tax may be substantial, we will generally review the main strategies available to save estate tax, and implement only those techniques approved by the client.
Get Started
You can take control of your estate plan at any time. As a first step, you should retain our firm (and/or other qualified counsel) to assist you with your estate plan. Other qualified professionals, such as CPA’s and Financial Planners, can often help in making estate planning decisions. Ultimately, you can take control of your own plan at any time by making the decision to get started.
If you are interested in our firm assisting you with your Estate Plan, call us at (714) 754-6610 or email mcanaday@zebulonlaw.com. Please also visit our FAQ's & Forms page for questionnaires and checklists that will help you begin this process.
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Trust Administration Details
Our firm provides Trust Administration services for estates throughout Southern California. We have extensive experience in trust administration. In the event of death, a series of steps must be taken in order to carry out the decedent’s wishes, and to protect the executor (or successor trustee), as well as the rest of the family, from claims. We have found that, after the difficult time one faces with a recent death, a variety of legal needs arise. For example, did you know that, in California, a will is required to be delivered to the Clerk of the Superior Court of the county in which the estate of the decedent may be administered, within 30 days after death, regardless of whether a probate is necessary?
The legal process in administering an estate is very complicated. The process can become much more complicated if a dispute arises.
Experience
Our firm has assisted in administering over 100 estates and trusts. We are happy to assist you in this process should the need arise.
Our services include the following:
1. Working with the executor and/or successor trustee in meeting all of their statutory responsibilities (i.e., notice to beneficiaries, providing an accounting as needed, etc.);
2. Assisting in the preparation of Form 706, US Estate Tax Return (please note that our office does not actually prepare this return; we assist the CPA doing so);
3. Coordinating any special distributions, as well as charitable requests; and
4. Structuring the administration in a way to maximize estate tax benefits (taking discounts where applicable, etc.).
Get Started
If you are interested in our firm assisting you with a trust administration matter, please call us at (714) 754-6610, or email mcanaday@zebulonlaw.com. To begin the process, it may be helpful to review our Trust Administration checklists found on our FAQ's & Forms page.
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Probate Details
Probate is a state court process whereby a decedent’s estate is inventoried and distributed according to state law (i.e. California probate code). Probate offers the legal framework and a step-by-step process to protect creditor claims and to ensure the decedent’s assets are properly distributed to the rightful heirs. However, probate is also quite costly. Any estate with a value of $100,000 or more, without proper planning, is subject to probate. The minimum statutory attorney fee for a probate of an estate with a value of only $100,000 is $4,000.
In addition to being expensive, the probate procedure can also be very time consuming, and the beneficiaries of a decedent’s estate often have to wait for quite some time before receiving the property they are entitled to. Because of the budget issues in the state of California, probate cases are now taking even longer to complete.
Probate is easily avoidable by simple planning. If you are concerned your estate might end up in probate, we are happy to discuss this with you and create a plan to avoid this expensive and time consuming process.
Get Started
If you are interested in our firm assisting you with a probate matter, please call us at (714) 754-6610 or email mcanaday@zebulonlaw.com.
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Business Planning Details
Our firm has provided business planning services to Southern California business owners for many years. The focus of this planning has been to assist small and medium businesses with their tax and liability planning.
New Businesses
Individuals who are planning to start a new business face a variety of legal and tax hurdles which require the assistance of qualified counsel. If you are thinking of starting a new business, one place to start would be to visit the California Secretary of State Home Page to determine the availability of your corporate name. Assuming the name is available, you will want to look into incorporating your business (or forming your Limited Liability Company or Partnership) through our office.
If you are looking for the Secretary of State for a state other than California, see our Secretary of State listing for all 50 states.
Business Transactions
Our office represents hundreds of businesses (and their owners) in a variety of matters. We are often involved in drafting the applicable corporate documents, including buy-sell agreements (sometimes referred to as shareholders’ agreements) and partnership agreements. We have also negotiated and drafted complex purchase and sale agreements on behalf of our business owner clients. Our office will customize a program to fit the specific needs of your organization.
Get Started
If you are interested in our firm assisting you with forming a business, please call us at (714) 754-6610 or email mcanaday@zebulonlaw.com. Please also review our Corporate Formation Questionnaire, which can also be found on our FAQ's & Forms page.
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Tax Planning Details
In addition to taking advantage of the use of a deceased spouse’s estate tax exemption and other tax credits and deductions, proper tax planning might also take advantage of discount valuations or other techniques in order to lower one’s estate tax liability. For example, by using an entity to own real property (which we typically recommend for investment properties) and having multiple owners hold interests in the entity, you are able to obtain a discount on the total value of the real property. Another situation where discounting is available is by creating split interests in real estate, typically at the first death. If the interests in the real estate are split between two sub-trusts, for example, the property would be a candidate for a discounted valuation.
Proper tax planning can also save your business hundreds or thousands of dollars per year. In today's competitive environment you really can't afford not to take advantage of such planning. Comprehensive tax planning also includes developing a succession plan for the business (in case anything should happen to you), and also includes compensation planning for the owners and key employees of the business.
Get Started
If you are interested in our firm assisting you with forming a business, please call us at (714) 754-6610 or email mcanaday@zebulonlaw.com.
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