Estate Planning FAQ

10 Important Questions Regarding Estate Planning

California has a unique set of laws that may affect you. We have included the 10 most important questions that Californians will need to ask in the process of planning for an estate.

If you have a question that is not answered below, please e-mail Mike@WalnutCreekElderLaw.com.

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Q. How large should my estate be before I prepare a Living Trust?

A. An estate that has a gross value over $100,000 is subject to probate and the resulting probate costs and fees. These estates could be placed into a Living Trust.

 

Q. Will my real property be reassessed if I transfer it to the trustees under the Living Trust?

A. No. There are exceptions under California Law for this type of transfer.

 

Q. Will the transfer of my real property into the trust trigger the “due on sale” clause?

A. No. There are exceptions to this under State and Federal Law.

 

Q. Is a separate tax I.D. number required for my Living Trust?

A. No. A separate tax I.D. number is not required until the passing of the fist spouse.

 

Q. Can I transfer partial interests of real property into a trust?

A. Yes you can. The interest will be reflected in the “trust transfer” deed.

 

Q. I have a will. Won’t this prevent a probate?

A. No. On the contrary, a will is probated upon the passing of the individual who made the will

 

Q. Will I lose control of my assets when I place them into a Living Trust?

A. No. Nothing in your life changes until the passing or the incapacity of one of the spouses.

 

Q. How long would it take to prepare a Living Trust?

A. The normal turn around time is two to three weeks between the first visit with the clients, and the second visit when the documents are executed. The work can however at times be performed in less time.

 

Q. Can we save Federal estate taxes with a Living Trust?

A. Yes. The present exemption of $1,500,000 can be preserved for each spouse.

 

Q. Can I be both trustor and trustee under my Living Trust?

A. Yes. The law provides for this. A successor trustor is named if you can no longer act.