Estate planning, particularly through trusts, is a cornerstone of safeguarding your assets and ensuring your wishes are honored, and it’s a topic many families in and around Moreno Valley, California, are actively considering. Establishing a trust isn’t simply about transferring ownership; it’s about creating a legally sound framework that dictates how your assets are managed and distributed, both during your lifetime and after you’re gone. It’s a complex process, and choosing the right trustee is arguably the most crucial decision you’ll make. At Moreno Valley Probate Law, located at
23328 Olive Wood Plaza Dr suite h, Moreno Valley, CA 92553, we frequently guide clients through these intricate steps.
What Happens if I Don’t Have a Trust in California?
Many people assume they don’t need a trust, especially in California where there isn’t a state-level estate tax or inheritance tax. However, failing to establish a trust, or a valid will, can lead to a lengthy and expensive probate process. In California, formal probate is required for estates exceeding $184,500. The statutory fees for executors and attorneys involved in probate are percentage-based, quickly eroding the value of the estate. For example, a 4% fee on a $500,000 estate translates to $20,000 in expenses! This process can also be public record, exposing your family’s financial information. Furthermore, without a clear directive, the state will determine how your assets are distributed, potentially not aligning with your desires.
Can I Dictate Qualifications for My Trustee?
Absolutely. A key benefit of establishing a trust is the control you retain over how it’s administered. You are not limited to naming family members or friends as trustees; you can specify the qualifications required for anyone serving in that role. This includes requiring advanced fiduciary credentials, such as Certified Trust and Fiduciary Advisor (CTFA) designation, or even specifying a professional trustee – a bank or trust company specializing in wealth management. This is especially important for larger or more complex estates. The California Prudent Investor Act guides trustees in managing investments, and holding relevant credentials ensures they possess the necessary knowledge and expertise. A trustee with expertise is better equipped to navigate complex financial landscapes and make informed decisions. Consider a case we handled for a client named David. David was concerned about leaving a substantial sum to his children, who were still young and lacked financial experience. He stipulated in his trust that the trustee must be a CTFA. This provided his children with a qualified manager until they reached a certain age and demonstrated financial maturity.
What Types of Wills are Valid in California?
While trusts offer greater control and probate avoidance, a valid will is also a crucial component of a comprehensive estate plan. California recognizes two types of valid wills: a formal will, which requires signatures and witnesses (two people present at the same time), and a holographic will, which is entirely handwritten by the testator (the person making the will). However, a holographic will must be entirely in the testator’s handwriting; it cannot be typed or pre-printed. A well-drafted will, in conjunction with a trust, can provide a seamless transition of assets and minimize potential disputes. For example, we worked with a client, Maria, who unexpectedly lost her husband without a will. The absence of a clear directive created a family conflict over his separate property. Eventually, the estate had to go through probate, incurring significant legal fees and emotional distress. Had Maria and her husband established a trust and a will, the process would have been far smoother and less contentious.
How Do I Protect My Digital Assets in an Estate Plan?
In today’s digital age, digital assets – email accounts, social media profiles, online banking accounts, cryptocurrency wallets – represent a significant portion of an individual’s estate. An estate plan must explicitly grant authority to a fiduciary to access and manage these assets. Without this authorization, accessing these accounts can be incredibly difficult, even with a court order. California has specific laws governing digital assets, and it’s crucial to ensure your estate plan complies with these regulations. We recently assisted a client, James, whose father passed away without providing access to his online accounts. It took months of legal maneuvering and court orders to finally recover the funds from his father’s online investment accounts. A simple clause in his estate plan granting access to his designated fiduciary would have prevented this entire ordeal. At Moreno Valley Probate Law, we stay abreast of the latest changes in digital asset laws to ensure our clients’ estates are adequately protected.
Don’t leave the future of your estate to chance. Steven F. Bliss ESQ. at Moreno Valley Probate Law, (951) 363-4949, is here to help you navigate the complexities of estate planning and create a plan that protects your assets, honors your wishes, and provides peace of mind for your loved ones. Contact us today for a consultation and let us help you build a secure future.