Frequently Asked Questions

Estate planning is the process of anticipating and arranging for the transfer of your assets (to your beneficiaries) in the event of your death. Estate planning typically attempts to avoid probate, maximize the value of the estate, and reduce taxes and other expenses. Traditional estate planning documents include wills, trusts, guardian nominations (for minor children), powers of attorney, specific final instructions, business succession instructions,
and more.

If you pass away without an estate plan in place, California law will dictate how your property is distributed. You will have given up your right to determine how you want your assets divided, who you want to inherit them, when you want children to have control of their inheritance, and even who will receive custody of minor children. Your loved ones will have to go through this very public, very long, very expensive process at the same time they are grieving your death.

If you want your family to know your love, get your estate planning handled. It’s not just for the rich. In fact, it has less to do with money and more to do with what really matters.

If you become disabled and lose the capacity to deal with your finances yourself, someone will have to establish a conservatorship over your finances. Doing so is expensive. If you have prepared a living trust or a financial power of attorney, a conservatorship is not needed and the person you have designated will handle your finances.

Your spouse is able to manage joint accounts only. He or she cannot sign on your behalf for financial accounts under your name alone unless you have prepared a living trust or a financial power of attorney naming your spouse as the person who will handle your personal financial matters.

Probate is a court process used to transfer assets (not held in a trust) of a deceased person to their heirs. After your death someone will have to petition the court to open probate so your assets can be transferred. If you have a will, the probate court will generally distribute assets in accordance with your wishes. If you do not have a will, the court will decide how to distribute your assets.

All assets passing through probate court become a matter of public record, and as such, vulnerable to creditors, predators, and opportunists. The court system in California is underfunded and overburdened and the probate process can take years to get through. Also, probate is very expensive, ultimately diminishing the overall value of your estate by a substantial margin. The probate process is generally the last thing family members want to endure after losing a loved one. Probate makes a hard time that much harder.

Avoiding probate is not hard to do. By creating and transferring assets into a revocable living trust there will be no need for probate at your death. In fact, probate is really only for people with little to no assets or for those who failed to plan during their lifetime.

Putting your assets in a trust avoids the probate process once you pass away. This saves your loved ones the time, money, and hassles associated with probate. A trust can also be kept confidential which allows families to keep their privacy in the process. Another advantage is that a trust can eliminate federal estate taxes. Finally, a trust can provide asset protection from your beneficiaries’ creditors.

In California, a traditional estate plan will include a last will & testament along with a living will, health care power of attorney, durable (financial) power of attorney, and a revocable living trust. There are many more documents that may be appropriate for your individual family situation such as a Children Protection Plan, legacy plan, ethical will, and more.

Depending on the type of estate plan documents you draft, you may not have to work directly with an attorney. That said, it is highly recommended that you do so to avoid the common mistakes, pitfalls, and omissions non-attorney drafted estate plans often contain. A personal relationship with your estate attorney gives you peace of mind knowing your legal documents will work exactly as you want them to after your pass and that your attorney will be there for your family in their time of need.

A trust is a relationship whereby assets are held by one party and managed for the benefit of another. These assets may accumulate interests and are not a matter of public record; thereby maintaining privacy regarding the assets. Trusts have been around since the Roman era and have three parties associated with them: the trustor (the person putting assets into the trust), the trustee (the person managing the assets in the trust), and the beneficiary (the person benefiting from the assets in the trust). There may be multiple trustors, trustees, and/or beneficiaries.

If it’s a revocable trust, absolutely, yes. You can always modify a revocable living trust. In fact, as your life situation goes through changes (births, marriages, asset growth, etc.), it is a must to change your trust, too.

Yes. Most of the time, you as the trustor will serve as a trustee for the trust until the event of your passing, at which time someone else will take over. Usually, this duty is given to a family member or a spouse, friend, child, or attorney.

After a passing, the trustee has a fiduciary duty to distribute the property from the trust to the beneficiary. Generally, the trustee has been appointed beforehand and is made aware they are responsible for this duty.

Also checkout Will vs. Trust

Estate planning should begin as soon as an individual acquires assets or has dependents. In Los Angeles, where property values are high, even young adults may benefit from early estate planning. Starting early allows individuals to protect their assets, designate beneficiaries, and legally document their wishes.

Life events such as marriage, having children, or purchasing a home often trigger the need for estate planning. However, we don’t recommend waiting for these milestones. Early planning provides peace of mind and can be adjusted as circumstances change. The following table outlines key life stages and corresponding estate planning considerations:

Without a will and testament in California, the state’s intestate succession laws determine how assets are distributed. This process can lead to unintended beneficiaries receiving portions of the estate, potentially leaving out close friends or favored charities. Additionally, the court appoints an administrator to manage the estate, which may not align with the deceased’s preferences.

Dying without a will and testament can also complicate matters for surviving family members, potentially leading to disputes and prolonged probate proceedings. In Los Angeles, where estate values can be significant due to high property prices, the absence of a will and testament may result in substantial tax implications and unnecessary legal costs for heirs. Estate planning attorneys strongly advise creating a valid will and testament to ensure assets are distributed according to one’s wishes and to minimize potential conflicts among beneficiaries.

We recommend reviewing and updating estate plans every three to five years or after significant life events. These events may include marriage, divorce, birth of children, acquisition of substantial assets, or changes in tax laws. Regular reviews keep estate plans current and aligned with the individual’s wishes and financial situation.

Updating an estate plan involves reviewing all existing documents, including trusts, powers of attorney, wills and testaments. Estate planning lawyers assist clients in assessing whether current plans still meet their goals and comply with California law. We may suggest modifications to account for changes in family dynamics, financial circumstances, or legal requirements. A comprehensive review schedule helps maintain the effectiveness of estate plans:

Clients can indeed make changes to their estate plans later. Most estate planning documents, such as wills and revocable trusts, can be amended or revoked as long as the individual has the mental capacity to do so. This flexibility allows for adjustments to reflect changing life circumstances, financial situations, or personal preferences.

To modify an existing estate plan, individuals should consult their estate planning attorney to follow proper legal procedures. Changes may involve executing a codicil to a will, amending a trust, or creating entirely new documents. The process for making changes varies depending on the type of document and the nature of the modifications:

Asset protection in Los Angeles safeguards wealth from potential creditors and lawsuits. High-net-worth individuals and business owners in this litigious city must protect their assets through legal strategies like trusts, LLCs, and insurance, ensuring financial security for themselves and their families.

An attorney in Los Angeles can help safeguard your wealth by creating a comprehensive estate plan tailored to your specific needs. It may include establishing trusts, implementing asset protection strategies, and minimizing tax liabilities to preserve and protect your assets for future generations.

Asset protection strategies in Los Angeles often include establishing trusts, limited liability companies, and family limited partnerships. Proper insurance coverage, asset titling, and retirement account planning are also vital. Consulting with an estate planning and trusts attorney can help tailor these strategies to individual needs.

When choosing an asset protection lawyer in Los Angeles, consider their experience in estate planning and asset protection, knowledge of local laws, and client reviews. Look for a professional who offers personalized strategies and clear communication to safeguard your wealth effectively.

Asset protection planning in Los Angeles typically involves assessing risks, identifying valuable assets, and implementing legal strategies to safeguard them. This may include creating trusts, structuring business entities, and utilizing insurance policies. An attorney can guide individuals through this process, tailoring solutions to their specific needs and circumstances.

The probate process in Los Angeles typically takes 9 to 18 months, depending on the complexity of the estate and any potential disputes. Factors such as estate size, asset types, and court backlog can influence the duration. Proper estate planning can help streamline the process.

Probate attorney fees in Los Angeles typically follow California’s statutory fee schedule, which is based on the estate’s value. For estates worth $1 million, attorneys may charge around $23,000. However, fees can vary depending on the complexity of the case and additional services required.

Probate can be avoided in California through proper estate planning. Common strategies include creating a living trust, using joint ownership with the right of survivorship, designating beneficiaries on financial accounts, and gifting assets during one’s lifetime. These methods can help transfer assets directly to beneficiaries without court intervention.

To initiate probate in Los Angeles, you typically need the original will (if available), death certificate, petition for probate, and inventory of assets. Additional documents may be required depending on the specific case and estate complexity. Consulting with a probate attorney is advisable for guidance.

When someone dies without a will in Los Angeles, their estate goes through intestate succession. California law determines how assets are distributed among surviving family members, typically prioritizing spouses, children, and parents. This process can be lengthy and may not align with the deceased’s wishes.

A will becomes effective after death and goes through probate, while a trust operates during life and avoids probate. In Los Angeles, trusts offer more privacy, flexibility, and control over asset distribution, making them a popular choice for estate planning.

A trusts and estates lawyer in Los Angeles can help protect your assets by creating a comprehensive estate plan. This may include establishing trusts, drafting wills, implementing asset protection strategies, and advising on tax-efficient wealth transfer methods. We work to safeguard your assets and distribute them according to your wishes.

Trusts attorneys in Los Angeles typically offer services such as creating living trusts, revocable trusts, and irrevocable trusts. They also assist with trust administration, asset protection planning, and estate tax minimization strategies. Additionally, trust attorneys often provide guidance on probate avoidance and trust modifications.

When choosing a trusts attorney in Los Angeles, consider their skills, focus on estate planning, and reputation. Look for someone who communicates clearly, understands your unique needs, and offers personalized solutions. Schedule a consultation with Talai Law Offices to discuss your goals.

Creating a will or trust in Los Angeles involves identifying beneficiaries, listing assets, choosing an executor or trustee, consulting an estate planning attorney, drafting the document, and having it properly signed and witnessed. Regular reviews and updates are essential to ensure the plan remains current and effective.

Trust administration is the process of managing and distributing assets after a trust creator’s death. In Los Angeles, tax administration ensures the smooth transfer of wealth, minimizes estate taxes, and avoids probate court. Proper administration helps fulfill the trust’s purposes and protects beneficiaries’ interests.

A trust administration attorney in California can guide you through managing and distributing trust assets. They facilitate legal compliance, handle tax matters, resolve disputes, and protect your interests, helping you fulfill your fiduciary duties as a trustee efficiently and correctly.

The trust administration process in Los Angeles typically involves gathering assets, notifying beneficiaries, paying debts and taxes, managing investments, and distributing assets according to the trust’s terms. A trustee must also keep accurate records, file necessary tax returns, and communicate regularly with beneficiaries throughout the process.

When choosing a trust administration lawyer in Los Angeles, consider their experience, knowledge of California trust law, and reputation. Look for a professional who communicates clearly, offers personalized service, and understands your specific needs. Request a consultation with an attorney to assess their compatibility and approach before making a decision.

Trust administration in California can involve legal challenges such as disputes among beneficiaries, interpretation of trust documents, fiduciary duty breaches, tax issues, and asset valuation disagreements. Trustees may face litigation if they fail to properly manage the trust or distribute assets according to the trust’s terms.

Establishing an irrevocable trust in Los Angeles offers several key benefits, including asset protection, estate tax reduction, and control over wealth distribution. It can shield assets from creditors, minimize estate taxes, and ensure beneficiaries receive assets according to specific terms, providing peace of mind for families seeking long-term financial security.

An irrevocable trusts attorney in Los Angeles can help you establish and manage complex estate planning tools. They can assist with asset protection, tax optimization, and securing benefits for beneficiaries while ensuring compliance with California law. Their experience is crucial for creating legally sound and effective irrevocable trusts.

Talai Law Offices provides comprehensive services for irrevocable trusts in Los Angeles, including creation, administration, and modification. Ali Talai assists clients with asset protection, tax planning, and charitable giving strategies through irrevocable trust structures tailored to individual needs and goals.

Creating an irrevocable trust involves defining trust objectives, selecting beneficiaries, appointing trustees, drafting the trust document, transferring assets, obtaining a tax ID number, and filing necessary tax returns. Consulting with an estate planning attorney in Woodland Hills or Los Angeles is crucial for proper setup and compliance.

To contact a Los Angeles irrevocable trust lawyer, search online for reputable estate planning firms in the area, such as Talai Law Offices in Woodland Hills. Call us at (818) 285-2850 and Request A Consultation to discuss setting up an irrevocable trust to help protect your family’s future.

Revocable trusts in Los Angeles offer unique flexibility compared to other estate planning tools. They allow individuals to maintain control over assets during their lifetime while providing for a seamless transfer upon death, avoiding probate. Unlike wills, revocable trusts offer privacy and can be modified as circumstances change.

Revocable trusts offer heirs several key benefits, including avoiding probate, maintaining privacy, and potentially reducing estate taxes in Los Angeles. They allow for smoother asset transfer, provide flexibility for changes during the grantor’s lifetime, and can help manage assets if the grantor becomes incapacitated.

Revocable trusts in California do not directly affect inheritance taxes, as the state does not impose an inheritance tax. However, these trusts can help manage estate taxes at the federal level by allowing for strategic asset distribution and potentially reducing the overall taxable estate value.

Revocable trusts generally do not protect heirs from creditors or legal claims in Los Angeles. While they offer benefits like avoiding probate, the assets remain under the grantor’s control and are considered part of their estate. For stronger asset protection, individuals may consider irrevocable trusts or other legal strategies.

Establishing a revocable trust in Los Angeles typically involves working with an estate planning attorney to draft the trust document, transfer assets into the trust, name beneficiaries, and designate a successor trustee. This process helps ensure your assets are managed according to your wishes during your lifetime and after death.