Estate Planning
What is estate planning?
Estate planning involves your assets (your property) and the various forms of ownership and title that those assets may take. And it addresses your future needs in case you ever become unable to care for yourself. Through estate planning, you can determine:
*How and by whom your assets will be managed for your benefit during your life if you ever become unable to manage them yourself.
*When and under what circumstances it makes sense to distribute your assets during your lifetime.
*How and to whom your assets will be distributed after your death.
*How and by whom your personal care will be managed and how health care decisions will be made during your lifetime if you become unable to care for yourself.
Many people mistakenly think that estate planning only involves the writing of a will. A will is part of the planning process, but you will need other documents as well to fully address your estate planning needs.
A complete Estate Plan includes the following documents:
*Will
*Revocable Living Trust
*Durable Power Attorney for Financial and Property
*Advanced Health Care Directive
*HIPPA Authorization
*Final Disposition Authorization and Instructions
Do You Need Estate Planning?
Yes - whether your estate is large or small. Either way, you should designate someone to manage your assets and make health care and personal care decisions for you if you ever become unable to do so for yourself. For many, such "life planning" is the most important aspect of an estate plan.
What is a Will?
A Will is a traditional legal document that:
*Names individuals (or charitable organizations) who will receive your assets after your death, either by outright gift or in a trust.
*Nominates an executor who will be appointed and supervised by the probate court to manage your estate; pay your debts, expenses and taxes; and distribute your estate according to the instructions in your will.
*May include nominations of guardians for your minor children.
Most assets in your name alone at your death will be subject to your will. Some exceptions include securities accounts and bank accounts that have designated beneficiaries, life insurance policies, IRAs and other tax deferred retirement plans, and some annuities.
In addition, certain co-owned assets would pass directly to the surviving co-owner regardless of any instructions in your will. Assets that have been transferred to a revocable living trust would be distributed through the trust -- not your will.
What is a Revocable Living Trust?
It is a legal document that can, in some cases, partially substitute for a will. With a revocable living trust (also know as a revocable inter vivos trust or grantor trust), you assets are put into the trust, administered for your benefit during you lifetime and transferred to your beneficiaries when you die --- all without the need for court involvement
Most people name themselves as the trustee in charge of managing their living trust assets. By naming yourself as trustee, you can remain in control of the assets during your lifetime. Also, you can revoke or change any terms of the trust at any time as long as you still are competent. (The terms of the trust generally become irrevocable when you die. However, in trusts created by married couples, some or part of the trust may continue to be revocable by the surviving spouse.)
In your trust agreement, you will name a successor trustee who will take over as the trustee and manage the trust's assets if you (an your spouse, if applicable)ever become unable to do so. Further, your successor trustee would take over and the management and distribution of your assets when you die, in accordance with the provisions set forth in your trust.
A living trust does not, however, remove all need for a will. Generally, you would stiff need a will -- known as a pour over will -- to cover assets that have not been transferred to the trust, either intentionally or by mistake. And, as noted earlier, a will could include your choice for guardian of your children.
What is Probate?
Probate is a court-supervised process for transferring a deceased person's assets to the beneficiaries listed in his or her will. The executor named in your will would start the process by filing a petition in the probate court seeking to be appointed executor. Once appointed, the executor would take charge of your assets, pay your debts, and after receiving court approval, would distribute the rest of your estate to your beneficiaries. If you were to die intestate (that is, without a will), an interested person my start the process. However, your property would be distributed in accordance with law - - not necessarily how you would like.
In certain circumstances, simpler procedures are available for transferring property to a spouse or domestic partner or for estates under $150,000.
Advantages of the probate process are as follows: The probate court is accustomed to resolving disputes about the distribution of assets fairly quickly through a process with defined rules. Also, the probate court reviews the executor's or personal representative's handling of each estate, which can help protect the beneficiaries' interests.
Disadvantages of the probate process are as follows: Your estate plan and the value of your assets will become public record. Also, lawyer's fees and executor's fees may cost more than the management and distribution of a comparable estate under a living trust. A probate proceeding often takes longer than the administration under a living trust.
What is a Durable Power of Attorney?
A durable power of attorney for financial matters is a document you sign (as principal) authorizing another person to act on your behalf (your agent). It takes effect when you specify and continues even when you no longer are capable of caring for you own financial matters.
What is an Advanced Health Care Directive?
An advanced health care directive (sometimes called a living will) is a document you sign (as principal) authorizing another person (agent) to make health care decisions for you when are unable to do so. It also specifies your wishes concerning live sustaining treatment.
How Much Does Estate Planning Cost?
It depends on your individual circumstances. Generally, the costs include the lawyer's time for discussing you your estate plan with you and for preparing your will, trust agreement, power of attorney, advanced healthcare directive, and other necessary legal documents. Usually, Mr. Mele charges a flat fee for estate planning that he will quote in advance after discussing your circumstances. That way, there at no surprises.
Mr. Mele has more than 40 years experience helping people with estate planning, wills, trusts, and probate. He is on a special panel for referrals from the Fresno County Bar Association Attorney Referral program to help those who need legal assistance in this complex area of law.
If you would like Mr. Mele to assist you with your estate plan, please complete the “CONTACT MR. MELE” form on the Contact page.
What is estate planning?
Estate planning involves your assets (your property) and the various forms of ownership and title that those assets may take. And it addresses your future needs in case you ever become unable to care for yourself. Through estate planning, you can determine:
*How and by whom your assets will be managed for your benefit during your life if you ever become unable to manage them yourself.
*When and under what circumstances it makes sense to distribute your assets during your lifetime.
*How and to whom your assets will be distributed after your death.
*How and by whom your personal care will be managed and how health care decisions will be made during your lifetime if you become unable to care for yourself.
Many people mistakenly think that estate planning only involves the writing of a will. A will is part of the planning process, but you will need other documents as well to fully address your estate planning needs.
A complete Estate Plan includes the following documents:
*Will
*Revocable Living Trust
*Durable Power Attorney for Financial and Property
*Advanced Health Care Directive
*HIPPA Authorization
*Final Disposition Authorization and Instructions
Do You Need Estate Planning?
Yes - whether your estate is large or small. Either way, you should designate someone to manage your assets and make health care and personal care decisions for you if you ever become unable to do so for yourself. For many, such "life planning" is the most important aspect of an estate plan.
What is a Will?
A Will is a traditional legal document that:
*Names individuals (or charitable organizations) who will receive your assets after your death, either by outright gift or in a trust.
*Nominates an executor who will be appointed and supervised by the probate court to manage your estate; pay your debts, expenses and taxes; and distribute your estate according to the instructions in your will.
*May include nominations of guardians for your minor children.
Most assets in your name alone at your death will be subject to your will. Some exceptions include securities accounts and bank accounts that have designated beneficiaries, life insurance policies, IRAs and other tax deferred retirement plans, and some annuities.
In addition, certain co-owned assets would pass directly to the surviving co-owner regardless of any instructions in your will. Assets that have been transferred to a revocable living trust would be distributed through the trust -- not your will.
What is a Revocable Living Trust?
It is a legal document that can, in some cases, partially substitute for a will. With a revocable living trust (also know as a revocable inter vivos trust or grantor trust), you assets are put into the trust, administered for your benefit during you lifetime and transferred to your beneficiaries when you die --- all without the need for court involvement
Most people name themselves as the trustee in charge of managing their living trust assets. By naming yourself as trustee, you can remain in control of the assets during your lifetime. Also, you can revoke or change any terms of the trust at any time as long as you still are competent. (The terms of the trust generally become irrevocable when you die. However, in trusts created by married couples, some or part of the trust may continue to be revocable by the surviving spouse.)
In your trust agreement, you will name a successor trustee who will take over as the trustee and manage the trust's assets if you (an your spouse, if applicable)ever become unable to do so. Further, your successor trustee would take over and the management and distribution of your assets when you die, in accordance with the provisions set forth in your trust.
A living trust does not, however, remove all need for a will. Generally, you would stiff need a will -- known as a pour over will -- to cover assets that have not been transferred to the trust, either intentionally or by mistake. And, as noted earlier, a will could include your choice for guardian of your children.
What is Probate?
Probate is a court-supervised process for transferring a deceased person's assets to the beneficiaries listed in his or her will. The executor named in your will would start the process by filing a petition in the probate court seeking to be appointed executor. Once appointed, the executor would take charge of your assets, pay your debts, and after receiving court approval, would distribute the rest of your estate to your beneficiaries. If you were to die intestate (that is, without a will), an interested person my start the process. However, your property would be distributed in accordance with law - - not necessarily how you would like.
In certain circumstances, simpler procedures are available for transferring property to a spouse or domestic partner or for estates under $150,000.
Advantages of the probate process are as follows: The probate court is accustomed to resolving disputes about the distribution of assets fairly quickly through a process with defined rules. Also, the probate court reviews the executor's or personal representative's handling of each estate, which can help protect the beneficiaries' interests.
Disadvantages of the probate process are as follows: Your estate plan and the value of your assets will become public record. Also, lawyer's fees and executor's fees may cost more than the management and distribution of a comparable estate under a living trust. A probate proceeding often takes longer than the administration under a living trust.
What is a Durable Power of Attorney?
A durable power of attorney for financial matters is a document you sign (as principal) authorizing another person to act on your behalf (your agent). It takes effect when you specify and continues even when you no longer are capable of caring for you own financial matters.
What is an Advanced Health Care Directive?
An advanced health care directive (sometimes called a living will) is a document you sign (as principal) authorizing another person (agent) to make health care decisions for you when are unable to do so. It also specifies your wishes concerning live sustaining treatment.
How Much Does Estate Planning Cost?
It depends on your individual circumstances. Generally, the costs include the lawyer's time for discussing you your estate plan with you and for preparing your will, trust agreement, power of attorney, advanced healthcare directive, and other necessary legal documents. Usually, Mr. Mele charges a flat fee for estate planning that he will quote in advance after discussing your circumstances. That way, there at no surprises.
Mr. Mele has more than 40 years experience helping people with estate planning, wills, trusts, and probate. He is on a special panel for referrals from the Fresno County Bar Association Attorney Referral program to help those who need legal assistance in this complex area of law.
If you would like Mr. Mele to assist you with your estate plan, please complete the “CONTACT MR. MELE” form on the Contact page.