Estate Planning FAQs

1. What is Estate Planning?
2. What Documents Are Part of an estate?
3. What Are Some Estate Planning Tools and Techniques? (part 1) (part 2)
4. What About A Revocable Trust?
5. I’ve Heard of an AB Trust, What Does That Do?
6. What are my Options if I Want an Irrevocable Trust?
7. What About Estate Taxes?
8. What About Other Fees and Costs?
9. My estate is Really Pretty Small Must I Still go Through Formal Probate?
10. What Does Estate Planning Cost?
Estate Planning Package

7. What About Estate Taxes?

Your estate will have to pay estate taxes if its net value when you die is more than the “exempt” amount set by Congress at that time.

These limits may seem high, they affect many more estates than people realize. When calculating your net worth for estate tax purposes, you have to take into account almost all of your assets. This includes homes, boats, cars, IRAs, and life insurance "owned" by you. Due to California real estate making huge increases in value over the last 10 years, many people are potentially exposed to estate taxes that never would have been before. Please note that after the repeal of the Federal Estate Tax for 2010, it is reinstated in 2011 with only a $1 million exemption. Congress may change that before 2011, but it is likely there will be some exemption amount as opposed to the permanent outright repeal of the Federal Estate Tax. Federal Estate Taxes are expensive — the rate is 46% in 2006, 45% in 2007 and 2008—and they must be paid in cash; usually within nine months after you die. By planning ahead, estate taxes usually can be substantially reduced or even eliminated.

8. What About Other Fees and Costs?

Please remember that estate taxes are different from, and in addition to, probate expenses, (which can be avoided with a revocable living trust,) and final income taxes, (on income you receive in the year you die.) However, most people can avoid these "death taxes" altogether by use of proper estate and tax planning. Maximum attorney fees, administrator fees and probate court fees are regulated by the State of California.

9. My estate is Really Pretty Small Must I Still go Through
Formal Probate?

Not all wills require probate. Small estates of less than $100,000 that meet certain other requirements may be eligible for summary administration, an informal procedure for transfer of assets to the beneficiaries under the will or the laws of intestate succession.

10. What Does Estate Planning Cost?

There is no charge for your initial estate planning consultation with our office. During this initial consultation we will explain the process, help you decide what kind of plan you need and the documents that need to be created to fulfill the plan. After we have discussed your requirements and identified that work we will do to meet your needs, we will quote you a flat fee for all the tasks to be accomplished. We require advance payment of 50% of that fee before we start work on your documents. The balance of the fee is due when you come in to sign the final documents. We will retain a copy of the signed documents and provide you with the originals. If the plan includes a trust, we provide instructions for funding the trust.

The information in the FAQs describe in more detail some of the estate planning tools and techniques available to you through the Law Office of Steven Boster.

Complete Estate Planning Package

My complete estate planning package to you includes the following documents:

1. Appropriate Living Trust

2. Pour Over Will (one for each spouse; also appoints a guardian for minor children.)

3. Assignment of household goods and personal effects into the Trust.

4. Durable Power of Attorney for Asset Management

5. Durable Power of Attorney for Health Care Decisions (a.k.a. A Living Will or Advanced Health Care Directive)

6. Quitclaim Deed transferring your real estate into the Trust

7. Instructions for Transferring Assets to the Trust

8. Form for Giving Specific Items of personal property to Certain People

9. Form for Burial Instructions

10. Certification of Trust

If you would like to discuss your estate planning needs with us – or if you simply have some questions about our law practice or the legal services we provide – please call.