Wills & Trusts
Dying without leaving a will is just plain dumb. . .
Would you trust the most important decisions of your life to others. . .especially decisions that affect the welfare of your children? I think not. But, unless you have a will, that is precisely what will happen. Under California state law, the state will determine who, if anyone, is entitled to your assets upon your death.

A will is a binding, legal document, recognized by the courts, that specifically describes how, and to whom, your assets will be distributed upon your death. If you die without benefit of a will, you will be dying intestate and your assets will go to the state.

There are rules and regulations that limit who you may leave your estate to; for example, there are rules that prohibit you from leaving your estate to future generations of unborn children. Also, public policy considerations prohibit you from leaving gifts that would be viewed as waste, such as the maintenance of your pet’s grave. Under federal law, people with the largest estates are currently required to pay tax of 55 percent of the estate's assets.

According to an AARP survey back in December 1999, 60% of respondents age 50 or older have a will and 23% have a trust. That number is way too low. Especially for single people. Should an unmarried person die without benefit of a will, they will die intestate, and all their assets will go to the state for disposal and distribution. If you don't care about that, then, by all means, forget about a will. But you should care. . .

When you write a will or establish a trust, you will likely want to gain the most flexibility in being legally able to modify these documents.

Generally, you can modify a will at any time. However, you should ensure that a modified will does not compete with a previously written will. If you recorded your previous will, for example, you should also expect to record a modified will.

To avoid having conflicting wills, the latest modification may have to refer specifically to the earlier version. Otherwise, different beneficiaries may have conflicting claims against your estate as a result of you having two or more wills. You only need one will.

It is always a good idea to keep a copy of your will in a place that is easily accessible to others. In addition, it is wise to give copies of your will to one or two other people whom you trust. From time to time, your wishes may change as to how you would like your inheritance to be structured, and who you would like your beneficiaries to be. Amendments to a will are called codicils. As long as you are of sound mind, your will can be amended at any time.

Don't leave the decision up to others of how your estate is to be divided. Contact <mailto:martin@lawgross.com> us now so that we can begin the preparation of your will.

The living trust ... a better alternative to a will?
Simply put, living trusts are an expedient way to transfer property at your death. A living trust is a legal document that controls the transfer of property in the trust when you die.

Generally, living trusts are established during an individual's lifetime and can be modified or changed while that person is still alive. Circumstances do change and the option to make alterations in the trust is important.

For this reason, there is a revocable provision in a living trust which means that while you live, you still effectively own all of the property that has been transferred into the trust. You can sell it, spend it, give it away; in short, do anything you wish since the property is still yours. The trust itself is merely a document in your lifetime that truly doesn't begin to function until you die. Then, the trust operates to transfer your property privately, outside of the reach of probate, to the specific individuals or organizations to whom you wish to leave your worldly possessions. Your other option would be to create an irrevocable trust. Once put in place, you are unable to change the terms of the trust regardless of the circumstances.

As you will see, living trusts speed up the process by which your property moves to your designated beneficiaries after you die. Today, and into the foreseeable future, this is vitally important as the United States is experiencing an unprecedented wealth transfer.

It is estimated, according to Fortune magazine, that some $6.8 trillion worth of assets will soon pass from parents to children, grandchildren, friends, charities and others. The questions remains: how will this wealth be transferred? will it be the traditional methods of wills and probate or the new revolution of estate planning that has incorporated living trusts? Many legal experts believe that living trusts are the future of wealth transfers.

What is probate. . .and why you want to avoid it?
Probate is the process by which one proves the validity of a will in court. If there is no one contesting the will, this should not take long. If there are complications, probate can take years.

Probate has come to mean not just proving the validity of the will but the entire administrative sequence involving the passing of an owner's title to property after the owner's death. The deceased's property is inventoried and creditors are identified and paid after the payment is made to the estate's attorney, executor and tax entities.

The term probate also identifies the court which has jurisdiction over the estate probate and administration. Probate court also has jurisdiction over the guardianship of minors and mentally incompetent adults. All wills go through probate.

The average length of the probate process is twelve to eighteen months. Any estate transactions in that time must be approved by the probate court.

This can create havoc for beneficiaries. Since a living trust replaces a will and doesn't need validation from the probate court, considerable time and hassle can be saved.

This, then, is the purpose behind living trusts. The trust is simple to establish and, when carried out, makes it easy to transfer property. The trust is a matter of explicit instructions as to who gets what property after the owner dies. Like a will, the trust should cover all expected and unexpected events that might occur. The details tell the designated trustee how to use the money and property in the trust.

A living trust is a capable substitute for a will and a document that more and more people, disillusioned with the probate system, are turning to in their estate planning.

The type of trust that you establish largely determines whether or not you can modify it. For living trusts, a revocable living trust can be revoked or modified at any time while you are alive and replaced with another trust agreement. An irrevocable living trust cannot be revoked or modified once you establish it.

Some people deliberately establish an irrevocable living trust to add some finality to how you distribute your estate. However, you may wish to establish a revocable living trust to have the most flexibility. We can help you to determine whether a will or a Trust would be in your best interests.

At the Law Offices of Martin D. Gross will make the complicated task of drawing up a will or trust as simple as possible assuring the proper distribution of your estate

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