Probate Avoidance Attorneys in Los Angeles
One of The Benefits of Estate Planning: Avoiding Probate
When it comes to estate planning, most individuals have numerous questions about the legal process and how it can protect their family members. One of the most effective strategies for avoiding probate is to hire an attorney who can help you create a detailed estate plan that can help your family members avoid the time and expense of probate court.
Gomez Law, APC, has comprehensive experience helping clients, particularly in resolving probate issues. If you want more information about the benefits of estate planning and how you can help your heir and beneficiaries avoid probate, contact our law firm today to schedule a free consultation. A qualified probate lawyer will happily answer your questions and assess your legal needs.
If I Have a Will, Does My Estate Still Have to Go Through Probate?
One of the most common questions we are often asked is, “I have a Will, so why would I need a Living Trust to avoid probate?” There has been much misinformation about estate planning, and one of the most commonly repeated untruths is that having a Will drawn up will prevent the probate process. Unfortunately, having an existing Will is not enough to prevent probate in California (and most states). Even with a valid will, your estate will still go through probate if you lack the proper estate planning documents and your assets exceed $150,000. If you own a home, your assets will almost certainly exceed the $150,000 limit, meaning you must have an estate plan in place to avoid probate.
What is Probate and Why Do I Want to Avoid It?
Probate is a court proceeding that formally distributes the assets from an estate when a person dies. Assets are everything that you “own,” including any property, bank accounts, investment accounts, and more.
During probate proceedings, the assets in an estate are frozen, meaning no one can use them. During the probate process, the court will examine the validity of the will (if one exists) and determine who will serve as the executor. Even though the estate is frozen, the executor is still responsible for paying debts and taxes, which can often be very challenging due to the large number of expenses. However, even the executor will not have the final say on who gets what; the probate judge does. Probate can be a very frustrating time for the people you want to be your beneficiaries and can take years. Additionally, it is typically very costly.
How Much Does Probate Cost?
The legal fees for probating an estate are set by the state of California and are based on the estate’s gross asset value. Probate fees generally apply to everything you own, but nothing that you owe.
Yes, probate is a “gift” that you do not want to give your beneficiaries. The good news is that there are ways to avoid probate – one of which is to set up a California living trust. And did you know that by setting up a properly drafted will and living trust, you can not only avoid probate but also gain tax benefits? Gomez Law, APC, is here to help you properly prepare so that your beneficiaries will be able to access critical financial resources as you intended. Our estate planning package will also benefit you during your lifetime, as it includes a durable power of attorney and an advanced healthcare directive.
How Can Probate Be Avoided By Creating a Revocable Living Trust?
One of the most effective strategies for avoiding the probate process is to create a revocable living trust. When you transfer assets into a revocable trust, they are no longer considered to be your property and are not counted as estate assets. Instead, they become the trust’s property and are managed by a trustee and distributed according to your final wishes after your death. It is worth noting that you can act as the trustee of a revocable trust that you have created; however, you must ensure that you have a successor trustee who will administer the assets after your passing.
Because the trust holds the assets, they are exempt from the probate process. Creating a trust also streamlines asset distribution, as financial resources can be quickly disbursed according to the terms of the trust. Additionally, because probate is a matter of public record, the terms of a trust remain private, protecting your heirs and beneficiaries.
If you are interested in the benefits of creating a trust, it is always best to consult a knowledgeable attorney to ensure that the trust’s terms can withstand legal scrutiny.
What are Beneficiary Designations and How Do They Help Avoid Probate?
Another effective way to avoid probate is through beneficiary designations, which enable assets to be transferred directly to heirs and beneficiaries upon the owner’s death. Beneficiary designations are a standard method used to help family members avoid the costly probate process.
Some of the most common types of financial resources that utilize beneficiary designations include:
- Life insurance policies
- Retirement accounts, including IRAs and 401(k)s
- Investment accounts
- Annuities
Just as with a trust, these financial resources are not considered part of a decedent’s estate and are eligible to bypass the probate process. It is essential to note that even with a will, any assets that heirs and beneficiaries inherit become a public record, whereas they remain private if obtained through beneficiary designations.
Why is Your Law Firm the Best Choice to Help Me Plan for the Future?
Gomez Law, APC is a full-service real estate law firm representing homeowners and tenants, with offices throughout Southern California. When you come to us for help with your legal needs, we will craft a custom legal strategy that helps your family members avoid the time-consuming and costly process involved with probate.
Our attorneys recognize that having to think about your death and life for your heirs and beneficiaries after you pass away can be challenging. However, planning today can alleviate some of the legal and financial issues that may arise if you fail to create a thorough estate plan.
Before taking action, we recommend consulting with one of our attorneys about your specific matter. Contact Gomez Law, APC today. Contact our law firm today at 213-772-6404 to schedule a free case evaluation.