Stierman & Zellmer is dedicated to creating the proper estate plan for your unique needs. We look forward to meeting with you personally to discuss the best strategy to preserve and maximize your wealth now and for future generations. To give you a general overview of what is involved in estate planning, we have compiled the following list of frequently asked questions. We are available to answer any additional questions you may have or to set up a complimentary initial consultation.

1. What is an “estate?”
   You do not have to own property or have a lot of money to have an estate. An estate is simply all of your tangible possessions. At your death, all of your assets transform into your estate. Thus, whether you have personal items with sentimental value or multiple properties and valuable assets, you should prepare documents to ensure that you make the final decisions regarding the disposition of your estate.
2. What is estate planning?
   Estate planning is the process by which you determine to whom your assets will be transferred upon your death to ensure your wishes are fulfilled. A comprehensive estate plan will also address your future needs in case you ever become unable to care for yourself. An estate plan will instruct how and by whom your assets will be managed for your benefit during life and who is authorized to make health care decisions on your behalf should you become unable to make these decisions for yourself.
3. Who needs estate planning?
   Everyone. Estate planning is important for any person who owns real estate or has assets with a total value of $100,000. An estate plan is also vital for people with minor children, children from different marriages, disabled heirs, and those couples who choose not to get married or are not allowed to get married yet still want the same rights and protection afforded to married couples.
4. What happens if I do not plan?
   Without an estate plan in place, the court will appoint someone to handle your assets and personal care if you are found to be incapable of making these decisions for yourself. At death, your assets will be distributed to your heirs according to a set of laws called “intestate succession.” According to these laws your property will be distributed to the closest living members of your family, but they may not be your choice of heirs. An estate plan gives you greater control over who will inherit your assets.
5. What is probate?
   Probate is the court process of distributing your property. Without a will in place, your assets are distributed according to “intestate succession”. With a will your assets are distributed according to your instructions, as long as no one is successful at contesting your wishes. Probate is a public affair, thus even with a will in place the value of your assets and the identity of your beneficiaries will become a public record.
6. Is probate expensive and time consuming?
   Yes. A typical probate can take 9 months to a year. A complicated estate can take more than a year to complete. In California, lawyer’s fees and executor’s commissions are based on a statutory fee schedule, thus probate may cost more than the management and distribution of a comparable estate under a living trust.
7. How can probate be avoided?
   Probate can be avoided by having a properly drafted and executed trust in place. When a living trust is established, you designate a trustee to handle your affairs and distribute your property according to your wishes. Bypassing probate with a trust ensures that property is distributed more quickly, less expensively, and in private.
8. If I have minor children do I need to name a guardian?
   A guardian is an individual appointed by the court to take custody of the minor child and/or their estate. If you do not name a guardian in your will, the court will choose one for you. A will is the only place where you can name a guardian for your minor children.
9. What is a will?
   A will is a legal document that allows you to distribute your property to whomever you wish and name an executor to oversee the distribution. If you die without a will, then the California laws of intestate succession will decide who receives your assets. A will also allows you to name a guardian for your minor children. Even with a will at the time of death, your estate is required to go through the probate court unless your estate totals less than $100,000.
10. What is a Living Trust?
    A living trust is a legal document that is created to hold and manage your assets during life and then distribute your assets to your named beneficiaries upon death. In the event of incapacity, a living trust provides for the management of your assets without court involvement. A living trust also allows you to avoid probate upon death.
11. What are the benefits of a Living Trust?
    There are multiple benefits of a living trust: it allows you to avoid the time and expense of probate upon death; it affords a great deal of flexibility in planning the distribution of your estate, especially when dealing with minor beneficiaries or those with special needs; it enables couples to hold community property in one trust instrument; and it enables you to participate in tax planning.
12. What is a Testamentary Trust?
    These are trusts that do not address the management of your assets during life but instead become effective at death. Testamentary trusts are based on instructions in your will and are not established until after the probate process. A testamentary trust can still provide adequate instructions for the care of minor beneficiaries and those with special needs.
13. What is an Irrevocable Trust?
    These are trusts that cannot be amended or revoked once they have been created. They are generally tax-sensitive documents and examples include: irrevocable life insurance trusts, irrevocable trusts for children, and charitable trusts.
14. What is a Financial Durable Power of Attorney?
    A Financial Durable Power of Attorney is a document that allows you to appoint an agent to act on your behalf. The appointment can become effective immediately or only in the event of incapacity.
15. What is an Advance Health Care Directive?
    An Advance Health Care Directive is a document that allows you to appoint an agent to make medical decisions for you in the event you are unable to do so. It also allows you to indicate what your wishes are with respect to end-of-life choices.
16. What should an estate plan include?
    A comprehensive estate plan should include a living trust, pour-over will, financial power of attorney, advance health care directive and HIPPA waiver.

To assist you in getting started and help you to understand the benefits of an estate plan, the following chart summarizes the differences between not having an estate plan and having either a will or living trust.

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