Bluebird Estate Planning

An estate plan involves preparing legal documents to arrange for the management and distribution of your assets after your death or incapacitation. A well-crafted estate plan can help minimize tax burdens, avoid probate, and ensure your wishes are carried out.

A will is a legal document that outlines how your assets will be distributed after your death. Your will names an executor to manage your estate and can designate guardians for minor children. Even if you establish a trust, a will is important to address any assets not included or left out of the trust.

A common misconception is that a will helps to avoid probate, but in fact, a will guarantees you will go to probate. When you have a will-based estate plan, the probate court must validate the will.

Formal probate in California is the legal process of settling and distributing a deceased person’s (“decedent’s”) estate. The process is intended to ensure that the decedent’s debts are paid, assets appraised, and that the remaining assets/property are distributed to the decedent’s heirs and/or beneficiaries as outlined in their will. In California, the probate process can be expensive (~6% of your estate’s total value). An estate worth $1.5million in California will cost the estate about $56,000.

One way to avoid probate is through establishing a revocable living trust. A revocable living trust is a preferred planning tool for many reasons, one of which is that it avoids the expensive and lengthy probate process.

A revocable living trust is a legal entity that you create to hold your assets during your lifetime. You serve as the creator/grantor of the trust, the trustee that manages the assets, and the beneficiary of those assets. With a revocable living trust, there is no Judge involved nor probate court required. Your assets can be managed exactly as you had outlined in your trust.

If you die without any planning in place, California has a default plan for you and your estate will be distributed according to California’s succession laws. Usually, this means that your closest relatives will receive the assets- whether you intended for this to happen or not. Your loved ones will have to go through the probate process and wait up to two years to access the assets.  The Court will appoint guardians for your minor children, without knowing your preferences or values. 

Estate planning is for everyone! A customized estate plan addresses your particular concerns, needs, and goals pertaining to your assets, your wishes regarding your minor children, and your own requests and preferences for your own care in medical emergencies if the unexpected occurs.