At Stierman & Zellmer we strive to provide exceptional estate planning services that encompass all of your unique needs. Because estate planning is a process that involves so many personal aspects in your life, we will take the time to get to know you, your spouse or partner, and your family to build a custom-tailored plan.

Through estate planning you can make important decisions concerning asset control and management now and in the future. Planning also enables you to designate someone to manage your assets and make health care and personal care decisions for you if you ever become unable to do so yourself.

We look forward to speaking with you personally to help answer any questions and help guide you to find the best estate plan for your goals. Please contact us for a complimentary consultation.

SUMMARY OF SERVICES
• Wills
• Trusts (revocable and irrevocable)
• Trust Administration
• Advance Health Care Directives and HIPPA releases
• Financial Durable Powers of Attorney
• Guardianships and Conservatorships
• Probate and Probate Litigation (although we generally work to avoid probate)
• Registered Domestic Partnership Agreements
• Parenting Agreements

Living Trusts
Living trusts are an important estate planning tool for individuals, married couples, domestic partners, couples who choose not to get married, and those couples who cannot legally marry. A living trust is a written legal document that is created to hold and manage your assets during life and then distribute those assets to your designated beneficiaries upon your death.

It is most common for people to name themselves as trustee in charge of managing their trust’s assets. This enables you to maintain control of your assets during life. You can also name a successor trustee to manage the trust’s assets if you ever become unable to do so yourself. At death, the beneficiaries designated by you in the trust instrument will receive your trust’s assets according to your wishes.

A living trust allows you to avoid probate. At death, your named trustee (similar to the executor of a will) would gather your assets, pay any debts, claims and taxes, and then distribute your assets according to your instructions. Unlike a will, however, this can all be done without court supervision or approval. The probate process is incredibly time consuming and expensive. Fees are statutorily set and are based on the size of your probate estate. Thus it is especially beneficial for homeowners to avoid probate by creating a living trust to hold their real property.

Even with a living trust, a will is required. If you have a living trust, your will should contain a pour-over provision which states that all assets should be transferred to the trustee of your living trust after your death. The pour-over will affects any assets that are titled in your name at your death but are not in your living trust.

A living trust affords a great deal of flexibility in planning for distributions, especially when dealing with beneficiaries who are minor children and/or individuals with special needs. Living trusts allow you to manage property in trust for the benefit of the minor child until an age specified by you.

Because California is a community property state, joint living trusts are a helpful planning tool for married couples and domestic partners. Joint living trusts allow both spouses or domestic partners to hold community property in one trust instrument and then distribute their respective interests in their property upon each of their deaths.

Funding the Trust
Although signed, a trust is not valid until all of your assets have been transferred to the trustee of your living trust. This is known as funding the trust. Deeds to your real estate must be prepared and recorded. Bank accounts and stock and bond accounts or certificates must be transferred as well.

Trust Administration
Depending on the type of trust created, assets may be distributed outright to named beneficiaries or they may continue to be held in trust for the benefit of the named beneficiaries. Trust administration is the process that occurs upon death. At this time trust assets are collected, debts are paid off, and the remaining assets are distributed to the named trust beneficiaries. Title of the trust assets may need to be changed where a named beneficiary acquires outright ownership or under a continuing trust.

Wills
A will is a legal document that allows you to name an executor to manage your estate at death and to distribute your assets to named beneficiaries who are either individuals or charitable organizations. A will also allows you to nominate guardians for your minor children. If you die without a will, your assets will be distributed according to the laws of intestacy and not to the beneficiaries of your choosing.

Most assets titled solely in your name will be subject to your will at death. Some exceptions include securities accounts that have designated beneficiaries, life insurance policies, IRAs, other tax-deferred retirement plans, and some annuities. Such assets will pass directly to the beneficiaries and will not be included in your will. Additionally, certain co-owned assets will pass directly to the surviving co-owner regardless of any instructions in your will. Assets that have been transferred to a revocable living trust will be distributed through the trust.

A valid will does not help you to avoid the costly and time-consuming probate process. An estate that goes through the probate process is subject to steep statutory probate fees for both attorneys and executors. These fees are based on the fair market value of the probate estate and can add up quickly, especially for homeowners. Unless your estate is under $100,000 or is being left in its entirety to your surviving spouse, the only way to avoid probate is with a living trust.

Advance Health Care Directive
An advance health care directive, also known as a living will, is a legal document that allows you to state in advance the end-of-life decisions you would want made on your behalf should you ever become unable to make these decisions yourself. Specifically, you would decide whether you would like to remain on life support in the event of a terminal illness should you become incapacitated.

The advance health care directive allows you to appoint someone of your choosing, an agent, to make health care decisions for you when you can no longer make them for yourself. The authorized agent is allowed to access your medical information.

A HIPPA waiver or release is also an essential component of an estate plan because it allows your doctor to discuss your health and medical condition with the person(s) who have been designated to make decisions for you. Without this release, your doctor will not discuss whether you are incapacitated and the courts will have to get involved which will place an unnecessary emotional burden on family and friends, in addition to wasting valuable time and money.

Financial Durable Power of Attorney
A financial durable power of attorney is a legal document that allows you to name an agent who is authorized to act on your behalf with respect to financial decisions in the event you become incapacitated. The person would have authority to deal with third parties, such as banks, on your behalf.

The financial durable power of attorney allows the agent appointed by you to manage the assets that were not transferred to your living trust before you became incapacitated and any assets that you receive afterward. This power of attorney cannot replace a living trust because it expires at death, thus it cannot provide instructions for the distribution of your assets after your death.

Probate
Probate is a court-supervised legal process that occurs at death whether you have a will or not. The probate process involves the collection of your assets, paying your debts, and then distribution of the remaining assets to your heirs or beneficiaries.

Probate is a time consuming and expensive process. A typical probate can take at least 9 months to one year to complete. A complicated estate can take more than a year to complete. Probate fees are statutorily set and are based on the fair market value of the probate estate.

California Probate Code section 10810 sets out the following fees:
(1) Four percent on the first $100,000.
(2) Three percent on the next $100,000.
(3) Two percent on the next $800,000.
(4) One percent on the next $9,000,000.
(5) One-half of one percent on the next $15,000,000.
(6) For all amounts above $25,000,000, a reasonable amount to be determined by the court.

Thus, a probate estate consisting of one personal residence valued at $500,000 would result in attorney fees of $13,000. The executor would also be entitled to $13,000. In addition to statutory attorney and executor fees, a probate estate must also pay probate filing fees.

The only way to avoid the time and expense of probate, and to keep your financial affairs private, is to create a living trust.

ESTATE PLANNING PACKAGES
We offer the following comprehensive estate planning packages. Please call for a complimentary consultation to determine which package best suits your needs.

Revocable Living Trust Package: Includes Living Trust, Pour-Over Will(s), Durable Power(s) of Attorney for Finances, Advance Health Care Directive(s) & HIPPA Waiver(s), Certification of Trust, Assignment of Tangible Personal Property, and Grant Deed Transferring Real Property into the Trust.

Testamentary Trust & Will Package: Includes a Testamentary Trust & Will(s), Durable Power(s) of Attorney for Finances, Advance Health Care Directive(s) & HIPPA Waiver(s), Assignment of Tangible Personal Property.

Will Package: Includes Will(s), Durable Power(s) of Attorney for Finances, Advance Health Care Directive(s)& HIPPA Waiver(s), Assignment of Tangible Personal Property.

Durable Powers of Attorney Package: Includes Durable Power(s) of Attorney for Finances, Advance Health Care Directive(s) & HIPPA Waiver(s).

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