ESTATE PLANNING

Estate planning involves arranging for the management and distribution of your assets after your death. It’s about ensuring that your assets go to the people or causes you care about, and it can help minimize estate taxes and avoid legal complications. Estate plans include:

Wills: A will is a legal document that outlines how you want your assets distributed after your death. It also allows you to appoint guardians for minor children.
Durable Power of Attorney: This legal document appoints someone to make financial decisions on your behalf if you become incapacitated.
Healthcare Proxy: Also known as a medical power of attorney, this designates someone to make medical decisions for you if you’re unable to do so yourself.
Living Will: This outlines your preferences for medical treatment in the event that you are unable to communicate your wishes.
Beneficiary Designations: These are forms that designate who will receive specific assets or accounts (like retirement accounts or life insurance policies) after your death.

WHY DO I NEED AN ESTATE PLAN?

An estate plan helps you manage your assets and make decisions about your future in a way that aligns with your wishes. Here are a few key reasons why it’s important:

Control Over Distribution: It ensures your assets are distributed according to your wishes, rather than defaulting to state laws which might not align with what you want.

Minimize Taxes: Proper planning can help reduce the amount of estate and inheritance taxes your heirs might have to pay, maximizing the value passed on to them.

Avoid Probate: An estate plan can help avoid or minimize the lengthy and potentially costly probate process, making things smoother for your loved ones.

Healthcare Decisions: It allows you to designate someone to make medical decisions on your behalf if you're unable to do so yourself, and outline your preferences for treatment.

Guardianship for Dependents: If you have minor children or other dependents, you can specify who you want to be their guardian, ensuring they’re cared for according to your wishes.

Business Succession: If you own a business, an estate plan helps ensure its smooth transition, minimizing disruption and guiding how it should be managed or sold.

Peace of Mind: Knowing that your affairs are in order and your loved ones will be cared for can provide significant peace of mind.

Estate planning can be complex. I can tailor a plan to your specific needs and circumstances.

WHAT IS A TRUST?

A trust is a legal arrangement where one party (the trustee) holds assets for the benefit of another party (the beneficiary). Trusts can be used for various purposes:

Creating a trust can offer several benefits depending on your personal and financial goals. Here are some common reasons why people choose to set up a trust:

Estate Planning: Trusts can help manage and distribute your assets according to your wishes after your death. They can streamline the estate settlement process and avoid the lengthy and potentially costly probate process.
Avoiding Probate: Assets placed in a trust typically do not go through probate, which can save time and legal fees. This means your beneficiaries may receive their inheritance more quickly and with fewer administrative hassles.
Privacy: Unlike wills, which become part of the public record, trusts generally remain private. This means the details of your estate and its distribution are not disclosed to the public.
Asset Protection: Certain types of trusts can offer protection against creditors and legal judgments, though this depends on the type of trust and the jurisdiction.
Control Over Distribution: Trusts allow you to set specific terms for how and when your assets are distributed. For example, you can stipulate that funds be distributed only when a beneficiary reaches a certain age or meets specific conditions.
Incapacity Planning: If you become incapacitated and cannot manage your affairs, a trust can ensure that your assets are managed according to your wishes. The successor trustee you’ve designated can step in to handle financial matters.
Tax Benefits: Some trusts offer tax advantages, such as charitable remainder trusts, which provide a charitable deduction and can help reduce estate taxes.
Special Needs Planning: Special needs trusts can provide for a loved one with disabilities without jeopardizing their eligibility for government benefits.
Blended Families: Trusts can be useful in blended families to ensure that all parties are taken care of according to your wishes and to minimize potential conflicts.
Overall, the decision to create a trust depends on your individual circumstances and goals. Consulting with an estate planning attorney can help determine the best approach for your situation.

Call Today

(626) 390-2597

Revocable Living Trusts: These trusts can be altered or revoked during your lifetime. They help avoid probate, a legal process required to distribute assets, and provide privacy since they don’t become public record. (Most Common)
Irrevocable Trusts: Once established, these trusts generally cannot be changed or revoked. They can help reduce estate taxes and protect assets from creditors, as the assets are no longer considered part of your estate.
Testamentary Trusts: Created through a will, these trusts come into effect only after your death. They are often used to manage assets for minor children or beneficiaries who may need time to manage their inheritance.
Special Needs Trusts: Designed for beneficiaries with disabilities, these trusts ensure that the individual receives financial support without disqualifying them from government benefits.
Charitable Trusts: These trusts are used to benefit a charitable organization while potentially providing tax benefits to the grantor.

Key Considerations

Tax Implications: Different estate planning tools have various tax implications, so it's crucial to understand how they will affect your estate and beneficiaries.
Asset Protection: Trusts can provide protection from creditors and legal judgments, depending on their structure.
Updating Your Plan: Regularly review and update your estate plan to reflect changes in your life, such as marriage, divorce, birth of children, or changes in financial status.

ESTATE PLANNING

WHY DO I NEED AN ESTATE PLAN?

An estate plan helps you manage your assets and make decisions about your future in a way that aligns with your wishes. Here are a few key reasons why it’s important:

Control Over Distribution: It ensures your assets are distributed according to your wishes, rather than defaulting to state laws which might not align with what you want.

Minimize Taxes: Proper planning can help reduce the amount of estate and inheritance taxes your heirs might have to pay, maximizing the value passed on to them.

Avoid Probate: An estate plan can help avoid or minimize the lengthy and potentially costly probate process, making things smoother for your loved ones.

Healthcare Decisions: It allows you to designate someone to make medical decisions on your behalf if you're unable to do so yourself, and outline your preferences for treatment.

Guardianship for Dependents: If you have minor children or other dependents, you can specify who you want to be their guardian, ensuring they’re cared for according to your wishes.

Business Succession: If you own a business, an estate plan helps ensure its smooth transition, minimizing disruption and guiding how it should be managed or sold.

Peace of Mind: Knowing that your affairs are in order and your loved ones will be cared for can provide significant peace of mind.

Estate planning can be complex. I can tailor a plan to your specific needs and circumstances.

WHAT IS A TRUST?

A trust is a legal arrangement where one party (the trustee) holds assets for the benefit of another party (the beneficiary). Trusts can be used for various purposes:

Creating a trust can offer several benefits depending on your personal and financial goals. Here are some common reasons why people choose to set up a trust:

Estate Planning: Trusts can help manage and distribute your assets according to your wishes after your death. They can streamline the estate settlement process and avoid the lengthy and potentially costly probate process.

Avoiding Probate: Assets placed in a trust typically do not go through probate, which can save time and legal fees. This means your beneficiaries may receive their inheritance more quickly and with fewer administrative hassles.

Privacy: Unlike wills, which become part of the public record, trusts generally remain private. This means the details of your estate and its distribution are not disclosed to the public.

Asset Protection: Certain types of trusts can offer protection against creditors and legal judgments, though this depends on the type of trust and the jurisdiction.

Control Over Distribution: Trusts allow you to set specific terms for how and when your assets are distributed. For example, you can stipulate that funds be distributed only when a beneficiary reaches a certain age or meets specific conditions.

Incapacity Planning: If you become incapacitated and cannot manage your affairs, a trust can ensure that your assets are managed according to your wishes. The successor trustee you’ve designated can step in to handle financial matters.

Tax Benefits: Some trusts offer tax advantages, such as charitable remainder trusts, which provide a charitable deduction and can help reduce estate taxes.

Special Needs Planning: Special needs trusts can provide for a loved one with disabilities without jeopardizing their eligibility for government benefits.

Blended Families: Trusts can be useful in blended families to ensure that all parties are taken care of according to your wishes and to minimize potential conflicts.

Overall, the decision to create a trust depends on your individual circumstances and goals. Consulting with an estate planning attorney can help determine the best approach for your situation.

Call Today

(626) 390-2597

Revocable Living Trusts: These trusts can be altered or revoked during your lifetime. They help avoid probate, a legal process required to distribute assets, and provide privacy since they don’t become public record. (Most Common)

Irrevocable Trusts: Once established, these trusts generally cannot be changed or revoked. They can help reduce estate taxes and protect assets from creditors, as the assets are no longer considered part of your estate.

Testamentary Trusts: Created through a will, these trusts come into effect only after your death. They are often used to manage assets for minor children or beneficiaries who may need time to manage their inheritance.

Special Needs Trusts: Designed for beneficiaries with disabilities, these trusts ensure that the individual receives financial support without disqualifying them from government benefits.

Charitable Trusts: These trusts are used to benefit a charitable organization while potentially providing tax benefits to the grantor.

Key Considerations

Tax Implications: Different estate planning tools have various tax implications, so it's crucial to understand how they will affect your estate and beneficiaries.

Asset Protection: Trusts can provide protection from creditors and legal judgments, depending on their structure.

Updating Your Plan: Regularly review and update your estate plan to reflect changes in your life, such as marriage, divorce, birth of children, or changes in financial status.

TYPES OF TRUSTS?

Law Office of Lana Cook