Do I Really Need a Trust or is a Will Enough?

We get a lot of questions from our clients about whether or not they really need a Revocable Trust or whether a Will, a simpler legal document, is enough. Trusts are an increasingly popular estate-planning tool for a number of reasons. Trusts are private while a Will is a public document, available to anyone who wants to search public records. If your privacy is important to you, you want a Living Trust.

Let’s look at the case of the late North Carolina basketball coach Dean Smith

Smith died in 2015 and left $200 each to an estimated 180 players he’d coached over the course of his 36-year career. The small payouts come from his Revocable Living Trust—not a Will. Smith had set this up because he didn’t want attention on himself; rather, it was about his players, as it had always been. Coaching and mentoring young men, including Michael Jordan and James Worthy, was his legacy, and he was widely admired not just for his winning record but for running a consistently clean program with a high graduation rate; an estimated 97% of his athletes received degrees. Smith also helped promote desegregation by recruiting the university’s first African-American scholarship basketball player and pushing for equal treatment for African Americans by local businesses.

For Smith, each of his players was special and important

Each of Smith’s players who lettered received a check for $200 and a letter, suggesting he “enjoy a dinner out, compliments of Coach Dean Smith.” Because this was set up as part of a Revocable Trust, each transaction was completely private; it only became public when former players posted their letters and checks on social media and they went viral.

Other advantages of a Living Trust

• Revocable means that if you change your mind and want to dissolve the Trust at some point, you can do so without a problem or penalty.
• Assets that you transfer into the Trust don’t go through Probate when you die. Without a Living Trust, your heirs must go through Probate, and your Estate becomes a matter of public record. Probate can be time-consuming and expensive.
• Many of our clients are concerned that they will have forgotten to include some of their assets in their Living Trusts. For this purpose, there is a safety net that California Document Preparers includes in our Living Trust package called a Pour Over Will. It essentially transfers any remaining assets or property not previously transferred into the Trust—they “pour over” into the Trust so they may be distributed according to the terms of the Trust.
• As part of our comprehensive Living Trust package, we also include a Power of Attorney and Advance Healthcare Directive. We want our clients to be thinking about the full range of end-of-life document requirements and needs. Whom would you appoint to make healthcare decisions for you if you were no longer able to make these decisions for yourself and who is the best person to help with paying bills and managing your everyday needs.

One more thing: A Living Trust is meaningless if it’s not funded—your assets, including real property, must be moved into your Trust. Your Trust should also be updated with important life events—births, deaths and important investments.

Are you still putting off creating or updating your Living Trust? We prepare the legal documents and notarize them–most of our clients tell us they’re surprised at just how easy it was! Make an appointment today to get started on your Trust.

Divorce Finalized Within Six Months of Initial Office Visit

Sally and John came into our Walnut Creek office on a Saturday morning, seeking more information on uncontested divorce, what we call our friendly divorce. They knew their disintegrating relationship was affecting their two teenage sons; they’d tried both individual and couples counseling, but after 15 years, they had grown apart. While they hated the idea of shuttling their kids between two homes, they knew that it was better for their sons than the environment in which they were now living.

This couple had good jobs and assets

Sally was a nurse practitioner at Kaiser and John was an executive at Chevron. They had a home in Pleasant Hill, retirement accounts and other assets. They had tried do-it-yourself divorce packages, but quickly realized that they had neither the time nor the knowledge to properly prepare and file the legal forms. They heard about California Document Preparers from one of their neighbors, and because theirs was an uncontested divorce—they were in agreement about division of property and a parenting plan–we were a good fit for this family.

They had already identified division of assets and a parenting plan

Sally and John’s case was easier than many because they had already agreed on an equitable division of assets, and they’d worked out a parenting plan that fit their schedules, yet allowed for some flexibility as their family adjusted to the new normal. Both parents were prioritizing the wellbeing of their children, and it influenced all of their decision-making. Sally was keeping the family home in Pleasant Hill, and their sons would live with Sally during the week so they would stay in the same neighborhood and go to the same school. Sally and John believed this would provide the most continuity and least disruption for their sons. John planned to buy or rent a condo in the Pleasant Hill/Walnut Creek area so that he’d be close by to pick the kids up from sports and other activities. The boys would be spending weekends and some holidays, as well as half of their summer vacations with their dad.

Our family law team helps our clients identify financial responsibilities

John was keeping his Chevron retirement and 401K, which was nearly double Sally’s retirement plan. We ran the numbers for them, so John knew his child support would be $1,800/month. Sally was getting a substantial promotion in a few weeks, and they agreed that $1,500 would be enough. They also agreed to split 50/50 all other expenses for their sons, including school and sports activities, clothing, summer camp, music lessons, etc.

Sally became the petitioner and John would be the respondent

• Within two days, we had Sally’s first documents and the disclosures completed and Sally came in to sign them.
• We took everything to court and filed the documents the following day.
• John came in to be served just one week from the day they had first visited our office.
• Within seven dayswe had everything established with the court.
• One month later Sally and John came in together to sign their settlement agreement.
• When Sally and John left our office they each hugged each other—they were happy to be finalizing their divorce, remaining on good terms to share parenting responsibilities.
• They were legally divorced six months after their initial visit to our office.

Best of all: our one flat fee is inclusive. No surprises. 

Follow-up: A Living Trust for Sally

As a single mother, Sally felt new responsibilities, and she came back into our office to create a Living Trust to protect her assets for her children, and she had encouraged John to do one as well.

Divorce is never easy, but our family law specialists are compassionate and accessible. We’re available by phone and email throughout the process, and most of our clients tell us they’re surprised at how easy it was. If you have questions about getting an uncontested divorce, contact one of our three Bay Area offices today. Helpful. Compassionate. Affordable.

Mom’s Sudden Death Results in Probate

A client came into our Oakland office in late January to ask if we did Probate, and we assured him that we do. His father had died of cancer in 2015 and his mother had died over the Christmas holidays--a long, sad holiday for the entire family. His mother was just 75 and vigorous—always busy and active. She still lived alone, exercised regularly, loved to travel and get together with her many friends. He had often talked to his mother about creating a Living Trust and a Power of Attorney in case he needed to be making decisions for her, and she always added it to one of her many lists—but she never followed through.

She tripped and slammed her head on the railing

In December, she was on one of her daily walks when she tripped on debris, slammed her head on the iron railing of a bench and crashed to the sidewalk. Local schoolchildren saw her fall, ran over and called 911. She was rushed to the hospital, but she never regained consciousness and died in late December.

Facing both the loss of a loved one and Probate

Now our client was facing both the loss of his mother and the time-consuming, expensive prospect of sorting out her estate in Probate court. He knew it was going to become complicated; while his parents weren’t rich, over the years, they had acquired assets, and they had prepared for a comfortable retirement. The Piedmont home where he and his sister had grown up had appreciated significantly in value. There was a life insurance policy, and they had invested in artwork. There was an expensive car, antiques and jewelry. To complicate matters, his parents had owned a timeshare in Hawaii—the whole family looked forward to their yearly vacation together.

Uncontested Probate--no heir is seeking a larger portion of the estate 

California Document Preparers helps our clients with uncontested Probate—that in which no heir is seeking a larger portion of the decedent’s estate--which saves them a significant amount of money on legal fees. In this case, our client and his sister were the heirs and neither was contesting the estate.

The Court-appointed administrator’s role

As part of Probate, the Court appoints a personal representative, or administrator, to settle the estate, so we work with that administrator throughout the Probate process. In this case, the son became the administrator, who is responsible for:

• Collecting all Probate property of the decedent
• Paying all debts, claims and taxes owed by the estate
• Collecting al rights to income, dividends, etc.
• Settling all disputes
• Distributing or transferring the remaining property to the heirs

Access to the decedent’s accounts

The Court-apppointed administrator will be able to gain access to all of the decedent’s records–bank statements, savings accounts and income tax returns, to fully understand the financial landscape. This may include valuing assets, taking physical custody of assets and selling assets, as necessary, to pay off debts or expenses.

During Probate, the deceased’s estate becomes a separate tax entity, so the administrator must obtain a federal identification number and open a bank account in the name of the estate, from which to pay creditors. It is also necessary to file the estate’s tax return and a final individual tax return.

Distribution of remaining assets

Once all taxes and debts have been satisfied, the Court will then distribute any remaining assets according to state law. In California, as in most states, the first priority is given to the deceased’s spouse, followed by the deceased’s children.

If you’re facing Probate, call one of our three Bay Area offices today to schedule an appointment. Better yet, avoid Probate and get started on your Living Trust! Most of our clients tell us they’re surprised at how easy it was. Make it even easier by purchasing this from our secure online storefront—we’re still available by phone and email when you have questions.

Case Study: Deed Still in Mom’s Name, No Way to Avoid Probate

Last year a couple in their 70s came in to the Walnut Creek office to see Barbara Theobald. The husband’s mother, who was in her nineties, had died and he was going through her papers. They had moved in with his mother nearly ten years before. While still in fairly good health, she had become frail, and the house was more than she could care for. They were also concerned that she was not eating properly, and as her friends died, she was becoming increasingly isolated, and they worried that she was becoming depressed. Their living together solved a number of problems, and the mother was frankly relieved to have the company of her son and daughter-in-law at this stage of her life. There was also the understanding that the mother would add their names to the home’s deed so that when she died, the house and her other assets would belong to them.

The deed was in the name of the mom and the son

As the son was going through his mother’s papers, he found the deed to her house which he had thought was in his and his wife’s names also. He was distressed to see that the deed was in Mom’s name and his name only, without any vesting. This meant that Mom’s share of the property had to be probated. Barbara inquired if there was a Will, and he thought there was but couldn’t find it—Barbara suggested he try to find it, to see if it detailed his mother’s wishes. Since there were also two sisters in the family, if there was no Will, all three of them would inherit Mom’s half of the house. The sisters always thought the house would be theirs, even though it was the brother and his wife who had cared for their mother for the last ten years of her life.

They found mom’s Will, proceeded to Probate

Barbara gave this couple information about our Probate services, and since there was clearly a lot at stake, encouraged them to try and locate the Will, and when they were ready, to call her again. It took some time, but they found mom’s Will, which clearly stated that the son would inherit all of her property. Both of our clients were relieved and decided to proceed with Probate.

The appraisal determined that the value of mom’s half of the property was less than $150,000, so we were able to prepare a small Probate to determine succession, which only requires one court hearing. Within several months, the property belonged totally to the son. Barbara then prepared a new deed transferring the property to both him and his wife, with the proper vesting. When they came in to sign the new deed, Barbara showed them our Living Trust portfolio and suggested they think about protecting their assets. They promised to think about it.

It took nearly another year . . .

It took them almost a year, but in November of 2016, the couple came back to see Barbara and signed up for a Living Trust portfolio. Barbara was delighted that they decided to take care of their own estate so that when they died, their own son would not have to go through Probate, as they had.

Being able to help clients like this and provide good customer service make me especially proud of my work at California Document Preparers. When it comes to a Living Trust, our clients tell us they’re surprised at just how easy it was! Best of all, we’re there for you every step of the way. Make an appointment today to get started on your Trust. It’s the most thoughtful thing you can do for your loved ones.

Conservatorship for Mother with Advanced Alzheimer’s

Brook Thurston, in our Walnut Creek office, has been helping a client obtain a Conservatorship for her mother. When the mother had begun showing signs of dementia five years before, she had moved in with our client. In the early stages, the disease had been manageable. While our client had a demanding job, she was able to adjust her schedule, working more frequently from her home office, which allowed her to keep an eye on her mother.

The disease progressed from dementia to advanced Alzheimer’s

But the dementia became Alzheimer’s, and it’s a heartbreakingly progressive disease. The mother had reached the point where she could no longer engage in conversation and had to be constantly watched. Our client would find her mother eating banana peels, drinking detergent, trying to dress herself, but getting confused and wearing a sweater as pants. To complicate things, the mother had recently fallen, broken her hip and was now in the hospital. Her mother’s condition had reached the point where she required 24/7 care, and our client could no longer care for her mother alone.

No Power of Attorney to access assets

Her mother had never created a Living Trust with a Power of Attorney or Advanced Healthcare Directive. When our client finally intervened to take charge of her mother’s care, it was too late to get the Power of Attorney that would provide access to her mother’s assets to pay for the costs of the more comprehensive care she now required.

A Conservatorship would allow our client to make decisions about her mother’s care

Our client was applying for a Conservatorship for her mother. This legal status would allow her to make decisions about her mother’s care. As Conservator, she would also have access to her mother’s assets that would help pay for her care.

Brook filed the necessary papers with the court, petitioning for the Conservatorship. The court assigned an investigator to the case to confirm that there weren’t any signs of elder abuse or other illegal schemes to gain access to an aging woman’s finances. The court also scheduled a Conservator hearing to review the case.

Access to her mother’s assets, allowing her to pay for more comprehensive care

As her mother’s Conservator, our client now has access to her mother’s assets, which will help pay for her care. She is now legally responsible for making decisions about where her mother will live and the kind of care she will receive. She must keep financial records and submit regular reports to the court.

Responsibilities of a Conservator: 

• Making decisions about meals, living arrangements and housekeeping
• Providing for health and personal care
• Providing transportation, including taking the Conservatee to doctor’s appointments
• Making sure the Conservatee’s bills are paid
• Investing the Conservatee’s money
• Making sure the Conservatee gets all the benefits for which he or she is eligible
• Making sure the Conservatee’s taxes are filed and paid on time
• Keeping exact financial records
• Making regular reports of the financial accounts to the court and other interested persons.

In this situation, much of the anxiety and a lot of trouble could have been avoided if our client’s mother had created a Living Trust when she was still mentally alert, giving her daughter Power of Attorney and naming her the agent for her Advance Healthcare Directive. Instead, her daughter struggled with the economics of her mother’s care until the court eventually appointed her as her mother’s Conservator.

Still putting off your Living Trust? 

Our Trust package includes a Power of Attorney and Advanced Healthcare Directive. Most of our clients tell us they’re surprised at just how easy it was. Make an appointment today to get started on your Trust. Helpful. Compassionate. Affordable

Probate Case Study: The Story of Sally and the Sharks

About a year and half ago, a well-dressed woman came into the Oakland office and asked Ian, one of the owners, if he did Probate. “Yes, of course we do!” Ian loves doing Probates.

This woman was very professional and pleasant. She was accompanied by a past client, and apparently the two of them worked together. Ian had enjoyed working with this client, so he was delighted with the referral and was looking forward to working on a new Probate case.

Mrs. Cruikshank became a client. Her business? Buy low, sell high

Mrs. Cruikshank asked Ian if she could be a client: Ian would prepare Probate matters for her for the true Entitlees to the properties, as a vendor. Her business was buying and selling houses that were in Probate; she intended to clean up by buying low and selling high. Well, that’s how people like JP Getty and the Rockefellers made their fortunes—it’s the American way, right?

Meet Sally, the Estate’s Administrator

One could not have imagined a nicer, more caring person than Sally, who out of the goodness of her heart stepped up to administer the Estate after those named in the decedent’s Will refused to do so, even though they were going to inherit assets from the Estate. Sally had nothing to gain; she was the decedent’s longtime friend, and felt compelled to help.

The Shark Crew was trying to buy the Estate’s real estate for a price that was far below market value—a total violation of the probate code. They should have gotten a professional appraisal to determine current market value in the Bay Area’s red-hot real estate market. Instead, they circumvented this step and tried to practically steal the Estate’s property.

In Probate Court, the Court’s in charge

Thank goodness for the Probate Court. At a hearing for court confirmation of the sale, the court essentially forced the Shark Crew to pay a reasonable price for the property. Once the house was sold, Ian mistakenly figured that the Shark Crew was gone. Wrong.

One of the Estate’s less-functional beneficiaries was still living in the house. The home was no longer part of the Estate, so it was no longer CDP’s matter. But the Shark Crew convinced Sally to pay a distribution to all of the Estate’s beneficiaries before obtaining a court order to generate money to help this beneficiary move. This also cleverly saved Mrs. Cruikshank and the Shark Crew the time and expense of evicting this squatter.

Ian, a law and order guy, becomes her worst nightmare

Meanwhile, Mrs. Cruikshank was really sick of hearing from Ian—his constant hand-waving about pesky things like rules, procedure and the probate code. Ian’s a law and order guy, after all. She’s religious and figured God would either absolve her, take care of her—or at the very least, forgive her for her sins.

Now, as they wearily approach the end of this long, strange journey to close the Estate, Ian’s trying to keep his client from being sanctioned by the court for her extremely poor judgment.

The moral of this story: Avoid Probate by getting a Living Trust!

Stay out of probate! Do a Living Trust, for crying out loud, and avoid the sharks who want to “help” you sell your real estate.

If you do find yourself needing to go through Probate, find a good provider, such as a lawyer or Legal Document Assistant with a good reputation. There are no shortcuts. Real estate scams abound, and Probate creates low-hanging fruit. People are grieving, in a state of shock and loss, mourning their loved ones. They’re vulnerable and facing the long, confusing Probate process. When some nice person offers to “help” them, they’re delighted. Don’t get eaten by sharks–stay out of the water in the first place.

Of course we do Probate! Contact us one of our three Bay Area offices. Better yet, avoid Probate altogether and make an appointment to get started on your Living Trust. We help you through every step of the process. Helpful. Compassionate. Affordable

Case Study: Attorney MIA; Client Chooses CDP to Get Divorce

A woman came into our Walnut Creek office because she simply wanted to get divorced. She had begun divorce proceedings many months before with a divorce attorney who had come highly recommended, but she was frustrated with the process, the delay and the mounting costs.

She had to constantly remind him to file documents and he became very impatient with her requests for explanations of the divorce proceedings and expectations. A charge of more than $1,000 for a series of email exchanges full of legalese that did nothing to detail her husband’s support obligations was the final straw. When she couldn’t get hold of her attorney for more than two weeks because he was busy with more important cases, she knew it was time to find a better solution.

She began Googling for family law attorneys

California Document Preparers showed up on the first page of her search engine results page, she began reading testimonials from the many satisfied clients and called to schedule an appointment with Caitlyn, one of the family law specialists in our Walnut Creek office.

No wonder this client was frustrated

Hers was a relatively simple, uncontested divorce. She and her husband were still on fairly good terms and were in agreement about division of property and a parenting plan for their small daughter. The experience with her attorney had convinced her that he wasn’t really interested in a simple divorce such as theirs. He kept looking for reasons to create animosity and take their case to court; as the case dragged on, the fees kept mounting.

What a different experience working with Caitlyn

“Caitlyn explained my options, and it all began to make sense. I was regularly in touch with Caitlyn as she patiently guided me through paperwork and the divorce process. She is smart, efficient and explained everything so I could understand. Best of all, California Document Preparers charges one flat fee. My divorce is finally over–just three months after I began working with Caitlyn. She did more work for me than my attorney–at 1/20th of the fee.”

We’ve helped more than 2,000 couples get divorced

Divorce is never easy, but we prepare the legal documents, notarize and file them. Clients tell us they’re surprised at just how easy it was! Best of all, we’re there for you every step of the way. Make an appointment today to get started on your Divorce.