Estate Planning Services
Foundational Estate Planning
We believe that quality estate planning is an essential part of a solid financial plan, and that everyone can and should have an estate plan. By leveraging the latest technologies, we are able to provide an exceptional estate planning experience for our clients. Not only is the experience more modern for our clients, but better technology reduces duplicative efforts, inefficiency and the amount of time we need to spend on routine matters. This opens up our time to focus on our clients: learning about who our clients are and what they need, and understanding their unique family situations, their assets, their values, and their wishes. We spend our time focusing on designing a plan and educating our clients, making the experience both custom as well as exceptionally convenient. There are a few sayings that come to mind: “You get what you put in,” “Junk in, junk out” and “You get what you pay for.” And they could not be more true with estate planning.
In addition to establishing a revocable living trust, which most adults in California really should have, a quality estate plan will also include planning for incapacity. Incapacity occurs when an individual is alive but no longer legally capable of making their own legal or medical decisions. In that circumstance, the financial power of attorney and/or health care power of attorney become critical to ensure that financial affairs are looked after by the right person and that medical decisions are made by the correct person.
We use the term “foundational estate planning” because this is the base upon which a solid estate plan is built. Many of our clients own businesses, own real estate or have taxable estates or beneficiaries with special needs. For these individuals, we may also implement additional trusts, business succession planning or other estate planning techniques to ensure that these additional assets and obligations are properly planned for.
Click the following link to learn more about our estate planning process:
PROFESSIONAL Practice Planning
For certain professionals, including mental health professionals and lawyers, it is crucial - and part of their ethical obligations to their clients - to have a plan in place in the event of their incapacity or death. A professional will addresses who will take over their practice, notify or take care of their clients, and how that transition will occur. A professional will creates a plan that ensures the continuity of a professional practice and that clients are properly cared for during the transition process.
A professional will is different than a Last Will and Testament (which provides for the disposition of an individual’s assets). A professional provides a roadmap for ensuring the protection and transition of patients or clients in a manner that complies with ethical requirements such as patient or client confidentiality by another licensed professional. This is a critical planning tool for any professional practice.
SPECIAL NEEDS PLANNING
Special needs planning is a specialized area of the law focused on enhancing the quality of life for individuals with special needs by planning for their financial support or inheritance of assets while protecting their rights governmental benefits. Such planning ensures a team is in place to provide financial management and care-giving for the beneficiary, and protect the beneficiary from influence and predators. In addition to the types of legal strategies used to implement planning for individuals with special needs (such as special needs trusts), there are many other considerations for special needs beneficiaries, and our team is equipped to plan for and address those needs. For example, leaving instructions for caregivers on daily care and direction for financial support, handling retirement accounts under the SECURE Act for individuals with disabilities (who are “eligible designated beneficiaries” and have a special status for inheriting retirement assets if it is done properly), and how to select a trustee who will be capable of administering a more complex situation.
Charitable Planning
Many of our clients have charitable intentions as well as charitable organizations that they care deeply about. Charitable planning can also be extremely tax efficient. For some, it makes the most sense to build charitable planning into their foundational estate planning (typically in their revocable living trust). For others, however, it may make sense to explore and implement more complex charitable planning, such as establishing a Charitable Remainder Trust (CRT) or setting up a Private Foundation (PF), or Donor Advised Fund (DAF).
Regardless of the vehicle used to implement a client’s charitable and tax-related goals, charitable planning involves much more than picking a charity and plugging the name into a form. Better and more impactful planning includes selecting the correct assets to leave to a charity, determining the timing of the gift, and often working with the charity’s planned giving department or personnel to ensure that the gift is structured properly. Even for modest gifts, working with the charity can ensure the greatest financial benefit. In addition, there are often many ways to plan for a charity in a way that minimizes the impact on your other beneficiaries (meaning, a lesser reduction of their inheritance).
IRREVOCABLE TRUST Planning
Irrevocable trusts are often used for tax planning, gifting and other strategic purposes. There are several types of irrevocable trusts that serve distinct purposes in estate planning. One type is the life insurance trust, which allows individuals to remove life insurance policy proceeds from their taxable estate, providing liquidity to cover estate taxes or other expenses. Another type is the charitable remainder trust, which enables individuals to transfer assets to a trust, receive income for a specific period, and then donate the remaining assets to a charitable organization. Irrevocable trusts can also be used for asset protection, such as the Qualified Personal Residence Trust, where individuals can transfer their primary residence into the trust while retaining the right to live in it for a specific period. These trusts offer unique opportunities for tax planning, wealth preservation, and charitable giving, allowing individuals to tailor their estate plans and achieve their specific objectives. We advise, draft and assist clients with the administration of irrevocable trusts.
Estate and gift Tax Planning
Estate and gift tax planning entails a comprehensive evaluation of various factors to effectively minimize tax liability and distribute assets as desired. One crucial consideration is the current federal and state tax laws and regulations, as they dictate the thresholds and rates for taxation. Analyzing the size and complexity of an individual's estate is another critical aspect, as larger estates may require more sophisticated planning techniques. In addition, understanding different gifting strategies, such as annual exclusions and lifetime exemptions, helps maximize tax savings. Taking into account the potential impact of future appreciation or depreciation of assets, as well as the liquidity needs of the estate, aids in making informed decisions during the planning process. Lastly, considering the diverse objectives and specific needs of beneficiaries is paramount to ensure the preservation and seamless transfer of wealth. By meticulously considering these planning considerations, individuals can effectively navigate the complex landscape of estate and gift tax planning.