FREQUENTLY ASKED QUESTIONS

An estate plan is a set of legal documents that outlines how your assets will be managed and distributed after your death and who will make decisions if you become incapacitated. It helps avoid probate, reduces taxes, and ensures your wishes are followed. 

A comprehensive estate plan typically includes a Revocable Living Trust, Will, Durable Power of Attorney, Advance Health Care Directive, and transfer documents to place assets into trust or provide beneficiary designations for retirement accounts and life insurance. 

If you die without an estate plan, your assets will be distributed according to your heirs under California’s intestacy laws, which may not align with your wishes. This process often requires probate court involvement. 

A will alone requires probate, whereas a properly funded trust avoids probate and provides more control over asset distribution. A trust is generally recommended for those with real estate, minor children, or significant assets. 

Yes. You should review and update your estate plan periodically, especially after major life events like marriage, divorce, birth of a child, or acquiring new assets. 

Trust administration is the process of managing and distributing the assets in a trust after the settlor (the person who created the trust) passes away. It includes legal, financial, and administrative tasks to ensure the trust's terms are fulfilled. 

The trustee's primary duties include notifying beneficiaries, inventorying and valuing assets, paying debts and taxes, distributing assets according to the trust's terms, managing trust property, and keeping accurate records. They must act in the beneficiaries' best interest at all times. 

Trust administration typically takes 12 to 18 months but can vary depending on the complexity of the trust, the number of beneficiaries, disputes, and any tax issues that need to be resolved. 

A trustee can be held personally liable for any losses due to improper administration, including breaching fiduciary duties or failing to follow the trust's terms. Beneficiaries may pursue legal action against the trustee. 

While not required by law, hiring an attorney is highly recommended. An attorney can help navigate the complexities of trust administration, ensure compliance with California law, avoid costly mistakes, and handle disputes that may arise. 

The trustee must notify all beneficiaries and heirs within 60 days of the settlor's death, according to California Probate Code Section 16061.7. The notice must include specific information about the trust and inform beneficiaries of their right to request a copy of the trust document. 

Yes, beneficiaries have 120 days from receiving the notification to contest the trust. If the trustee fails to provide proper notice, the time to contest may extend up to four years. 

Trust assets are distributed according to the trust's terms. The trustee must prepare a distribution plan and ensure that all assets, such as property or investments, are transferred correctly. This may involve selling assets, transferring titles, or preparing deeds. 

The trustee must file the decedent's final personal income tax return, the trust's income tax returns, and any applicable estate tax returns. It’s crucial to ensure all taxes are paid before distributing assets to beneficiaries. 

The trustee must identify and pay any outstanding debts of the decedent before distributing assets to the beneficiaries. Failure to do so can lead to personal liability for the trustee. Creditors should be notified early in the process to settle claims efficiently. 

The successor trustee takes over the duties of the original trustee if they are unable to continue due to incapacity or death. The successor trustee assumes all responsibilities, including managing and distributing trust assets.

Trust assets must be accurately inventoried and appraised. The trustee is responsible for obtaining appraisals of real estate, personal property, and financial assets to determine their fair market value at the time of the settlor’s death. 

Trust administration is generally quicker, less expensive, and more private than probate. Unlike probate, which is a court-supervised process, trust administration is handled privately by the trustee without court involvement. 

Yes, a trustee is entitled to reasonable compensation for their services, which is often outlined in the trust document. The amount can vary based on the complexity of the trust and the duties performed. 

A trustee must keep detailed records of all actions taken on behalf of the trust, including receipts, disbursements, correspondence, tax filings, and reports to beneficiaries. These records must be transparent and available for beneficiaries to review. 

If a trust does not have enough assets to cover its debts, the trustee must prioritize payments according to California law. Creditors will be paid based on the hierarchy of claims, and beneficiaries may receive reduced or no distributions. 

A trust is terminated when all assets have been distributed according to the trust's terms, all debts and taxes have been paid, and any final reports are completed. The trustee must also file a final tax return for the trust. 

Generally, a trust becomes irrevocable upon the settlor's death, meaning it cannot be amended. However, there may be circumstances under which certain modifications can be made, such as through court approval or if allowed by the trust's terms. 

Administering a trust without professional assistance can lead to errors in asset distribution, tax filing, and legal compliance, potentially resulting in personal liability for the trustee and disputes among beneficiaries. 

Trust accounting involves providing detailed financial reports to beneficiaries, showing all income, expenses, and distributions from the trust. It ensures transparency and helps prevent disputes by keeping beneficiaries informed about how trust assets are managed. 

Probate is the legal process of administering a deceased person's estate, including validating the will, paying debts and taxes, and distributing the remaining assets to beneficiaries.

Probate can take anywhere from a few months to several years, depending on the complexity of the estate and whether there are disputes among heirs or creditors.

Costs vary, but they typically include court fees, attorney fees, and other administrative costs. The total can range from a few thousand dollars to tens of thousands, depending on the estate size and complexity.

California probate fees are set by law and based on the estate's value. For example, a $1,000,000 estate incurs $23,000 in attorney’s fees and the same amount in executor fees. These fees are calculated on the gross value of the estate, meaning debts or mortgages are not subtracted when calculating fees. 

Fees are calculated at the following scale:

4% of the 1st $100,000.00 plus

3% of the 2nd $100,000.00 plus

2% of the next $800,000.00 plus

1% of the next $9 million plus

.5% of the next $15 million

Yes, probate can be avoided through proper estate planning, such as creating a living trust, jointly owning property, or designating beneficiaries on accounts.

Assets that were solely owned by the deceased without designated beneficiaries or joint owners typically go through probate. This can include real estate, personal property, and financial accounts. 

If someone dies without a will, they are said to have died   intestate. The estate will be distributed according to California's intestacy   laws, which prioritize spouses, children, and other close relatives.

The executor, or personal representative, is responsible for managing the estate during probate, including gathering assets, paying debts, and distributing the remaining assets to beneficiaries.

Yes, beneficiaries or other interested parties can contest a will if they believe it is invalid due to reasons such as undue influence, lack of capacity, or fraud.

The executor is responsible for paying the deceased's valid debts and taxes using estate assets before any distributions can be made to beneficiaries.

If multiple wills exist, the court will determine which one is valid, often by examining the circumstances under which each will was created and the intent of the deceased.

Not all estates require probate. Small estates, typically valued under a certain threshold (e.g., $184,500 in California as of 2023), may qualify for simplified procedures, avoiding formal probate.

A living trust is a legal document that places your assets into a trust during your lifetime. Upon death, these assets are transferred to your beneficiaries without going through probate, which can save time and money.

If the estate's debts exceed its assets, it is considered insolvent. The executor must prioritize debt payments according to legal guidelines, and beneficiaries may receive little to nothing.

Estate taxes, final income taxes, and property taxes must be settled during probate. The executor is responsible for filing necessary tax returns and paying taxes owed before distributing assets.

If the deceased owned property in another state, ancillary probate may be required in that state. This can complicate and prolong the probate process.

An executor is named in a will to manage the estate, while an administrator is appointed by the court when no will exists or the named executor cannot serve. Both roles have similar responsibilities. 

Executors are legally liable for managing the estate according to the law and the will's terms. If they mishandle the estate, they could be held personally responsible for losses.

The probate court oversees the administration of the estate, ensures the executor or administrator follows legal procedures, and resolves disputes among beneficiaries, creditors, or other parties.

Yes, an executor is entitled to receive compensation for their services. In California, the compensation is typically a percentage of the estate's value, but it can be adjusted by the court.

While not legally required, hiring an attorney is advisable, especially for complex estates. An attorney can help navigate the probate process, ensure compliance with state laws, and address any disputes.