Rex Crandell has been in the tax and estates & trusts profession since 1976. He has many years of experience preparing thousands of tax returns, doing estate planning, estate administration and probate. 

Our Firm Specializes In:

• Estate Planning

• Income Tax Services

• Real Estate Deeds

• Probate Services

Contact Information

(925) 934-6320

Walnut Creek, CA 94598

rexcrandell@astound.net

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Estate Planning: Non-Technical Introduction

“ESTATE PLANNING”

A SIMPLE OVER-VIEW AND OUTLINE OFTHE ESTATE PLANNING PROCESS.

Presented by: Rex L. Crandell, CPA, Attorney | 925 934-6320 | rexcrandell@astound.net

DO I NEED ESTATE PLANNING? GET THE LEGAL FACTS OF LIFE!

 

1. What is estate planning?
  • Estate planning is a process.
  • It involves people—your family, other individuals and in many cases, charitable organizations of your choice.
  • It also involves your assets and all the various forms of ownership and title that those assets may take.
  • How your assets will be managed for your benefit if you are unable to do so.
  • When certain assets will be transferred to others, either during your lifetime, at your death, or sometime after your death.
  • To whom those assets will pass.
  • Estate planning also addresses your welfare and needs, planning for your own personal and health care if you are no longer able to care for yourself.
  • Like many people, you may at first think that estate planning is simply the writing of a will.
  • But it encompasses much more. As you will see, estate planning may involve financial, tax, medical and business planning.
  • A will is one part of that planning process, but other documents are needed to fully address your estate planning needs.
  • As you consider it further, you will realize that estate planning is a dynamic process.
  • Just as people and assets and laws change, it may well be necessary to adjust your estate plan every so often to reflect those changes.
  • What is involved in estate planning?
  • What are my assets and what is their approximate value?
  • Whom do I want to receive those assets—and when?
  • Who should manage those assets if I cannot, either during my lifetime or after my death?
2. What is involved in estate planning?
  • Who should have the responsibility for the care of my minor children if I become incapacitated or die?
  • If I cannot take care of myself, who should make decisions on my behalf concerning my care and welfare?
  • Who needs estate planning?
  • Whatever the size of your estate, you should designate the person who, in the event of your incapacity, will have the responsibility for the management of your assets and your care, including the authority to make health care decisions on your behalf.
3 . Who needs estate planning?
  • If your estate is small in value, you may focus simply upon who is to receive your assets after your death and who should be in charge of its management and distribution.
  • If your estate is larger, your lawyer will discuss with you not only who is to receive your assets and when, but also various ways to preserve your assets for your beneficiaries and to reduce or postpone the amount of estate tax which otherwise might be payable on your death.
  • If one does no planning, then California law provides for the court appointment of persons to take responsibility for your personal care and assets. California also provides for the distribution of assets in your name to your heirs pursuant to a set of rules to be followed if you die without a will; this is known as “intestate succession.”
  • Your relatives, no matter how remote, and in some cases the relatives of your spouse, will have priority in inheritance ahead of the state. Nonetheless, they may not be the people you would want to inherit from you; therefore, a will is the preferable approach.
4. What is included in my estate?

Everything that you own or have rights to at the time of your death.

5. What is a will?
  • A will is a traditional legal document which is effective only at your death to:
  • Name individuals (or charitable organizations) to receive your assets upon your death (either by outright gift or in trust).
  • Nominate an executor, appointed and supervised by the probate court, to manage your estate, pay debts and expenses, pay taxes, and distribute your estate in an accountable manner and in accordance with your will.
  • Nominate the guardians of the person and estate of your minor children, to care and provide for your minor children. Assets or interests in property in your name alone at your death will be subject to your will and subject to the administration of the probate court, generally in the county where you reside at your death.
6. What is a revocable living trust?

A trust is a written agreement between the individual creating the trust and the person or institution named to manage the assets held in the trust (the “trustee”)

7. What is probate?
  • Probate is the court-supervised process developed under California law which has as its goal the transfer of your assets at your death to the beneficiaries set forth in your will, and in the manner
    prescribed by your will.
  • It also provides for the relative quick determination of valid claims of any creditors who have claims against your assets at your death..
8. To whom should I leave my assets?

Once you have determined who should receive your assets at your death, your estate planning lawyer can help you clarify and appropriately identify your beneficiaries.

9. Whom should I name as my executor or trustee?
  • While you may act as the initial trustee of your living trust, if you become incapable of functioning as a trustee, the designated successor trustee will then step in to manage your assets for your benefit.
  • An executor or trustee may be a spouse, adult children, other relatives, a domestic partner, family friends, business associates or a professional fiduciary such as a bank.
  • You should discuss your choice with your estate planning lawyer.
10. How should I provide for my minor children?
  • A minor child is a child under 18 years of age. If both parents are deceased, a minor child is not legally qualified under California law to care for himself or herself. In your will, therefore,
  • You should nominate a guardian of the person of your minor children to supervise that child and be responsible for his or her care until the child is 18 years old.
11. When does estate planning involve tax planning?

Estate taxes are imposed upon an estate which has a net fair market value—in 2013 in excess of $5.2 million for each spouse. For estates which approach or exceed this value, significant estate taxes can be saved by proper estate planning, usually before death and, in the case of married couples, before the death of the first spouse. In some cases the surviving spouse can claim a tax benefit by transferring some of the first spouses lifetime estate tax exemption to be used on the second death, if an IRS Form 706 is prepared and filed with the government. Do not confuse not paying estate taxes (at the federal level) with avoiding probate which is governed by State of California laws, because the two concepts operate independently of each other.

12. How does the way in which I hold title make a difference?
  • Community property and separate property.
  • Joint tenancy property.
  • Community property with right of
  • Survivorship for Married couples
13. What are other methods of leaving property?

A number of assets are transferred at death by beneficiary designation, such as:

  • Life insurance proceeds.
  • Qualified or non-qualified retirement plans, including 401(k) plans and IRAs.
  • Certain “trustee” bank accounts. “Transfer on death” (or “TOD”) securities accounts.
  • “Pay on death” (or “POD”) assets, a common title on U.S. savings bonds.
14. What if I become unable to care for myself?
  • Conservatorship under court supervision.
  • Durable Power of Attorney for Financial Management.
  • Advance Health Care Directive
15. Who should help me with my estate planning documents?

Can I do it myself?

Do I need a professional to help? In addition, you should determine whether the professional advisor has any underlying financial incentive to sell you a particular investment, such as an annuity or life insurance policy, because that financial incentive may color the advice given to you. Unfortunately, some sellers of dubious financial products gain the confidence and private financial information of their victims by posing as providers of estate or trust planning services

16. How do I find a qualified lawyer?

If you do not already know a lawyer who is qualified to help with your estate plan, obtain referrals from someone whose judgment you can trust—friends, associates, or your employer. Your local bar association maintains a list of State Bar certified lawyer referral services in your area.

17. Should I beware of someone who is a “promoter” of financial and estate planning services?

There are many who call themselves “trust specialists,” “certified planners” or other titles which are intended to suggest that the person has received advanced training in estate planning.

California is experiencing an explosion of promotions by unqualified individuals and entities which have only one real goal—to gain access to your finances in order to sell insurance-based products such as Annuities, Reverse Mortgages and other commission-based products.

Report high-pressure tactics, misrepresentations or fraud to the police immediately.

18. What are the costs involved in estate planning?

The costs of estate planning depend on your individual circumstances and the complexity of documentation and planning required to achieve your goals and objectives. Costs may vary from lawyer to lawyer. The costs generally will include the lawyer’s charges for discussing your estate plan with you and for preparing your will, trust agreement or other legal documents which you may need.

CONCLUSION
  • You can’t take it with you.
  • Don’t leave a mess for those that follow you to sort out.
  • Give some thought to what you want to happen and think of the joy that may be possible by beneficiary receiving your bequest.
ESTATE PLANNING…Don’t leave earth without it…
Have questions regarding The Estate Planning Process?

Call Rex Crandell Firm in Walnut Creek, CA at 925-934-6320 or click here to contact through our website!