COMMONLY ASKED QUESTIONS ABOUT ESTATE PLANNING
Q: What is estate planning?
A: Estate planning is the process of arranging for the management and disposal of a person's assets and property during their lifetime and after death. This typically includes drafting legal documents such as wills, trusts, and powers of attorney.
Q: Why is estate planning important?
A: Estate planning helps ensure that a person's assets and property are distributed according to their wishes and that their loved ones are taken care of after their death. It can also help minimize taxes and expenses associated with the transfer of assets and property. It also plans for living. Your plan will help keep things running even if you can’t.
Q: What types of legal documents are commonly used in estate planning?
A: Common legal documents used in estate planning include a will, revocable living trust, powers of attorney, and advance health care directive. If you have kids - we include standalone guardianship nominations.
Q: What is a will?
A: A will is a legal document that specifies how a person's assets and property will be distributed after their death. It also appoints an executor to manage the distribution of assets and property. This is filed with the probate court and is a public process.
Q: What is a trust?
A: A trust is a legal arrangement in which a trustee holds and manages assets and property for the benefit of one or more beneficiaries. Trusts can be set up for a variety of purposes, including managing assets for children or other beneficiaries who are unable to manage their own affairs. When you die - your trustees can manage your trust privately, without court intervention.
Q: What is a power of attorney?
A: A power of attorney is a legal document that gives another person the authority to make decisions on your behalf. This can include financial decisions, medical decisions, or other types of decisions.
Q: What is an advanced health care directive?
A: An advance health care directive is a legal document that specifies what medical treatments a person would like to receive or not receive in the event that they become incapacitated.
Q: Do LGBTQIA+ couples in California need estate planning if we’re legally married?
A: Absolutely. Even though California recognizes your marriage, estate planning protects against disputes, ensures your chosen family is included, avoids costly probate, and protects family harmony.
Q: If I put my assets in a trust, do I lose control of the assets?
A: If your estate plan has a revocable living trust, you retain absolute control over everything you put in there. You can use your money and other assets however you’d like while you’re alive. There are trusts that restrict your control, however, for most plans in California, a revocable living trust is the most suitable type of trust. If you have significant assets (over $15M), specialized planning may be needed.
Q: Do I need a new tax ID number if I create a revocable trust?
A: While you’re alive, you do not need a new tax ID number for your revocable trust. The IRS disregards your trust and you’ll file your tax returns just as you normally do. After you pass (or if you’re married after the second spouse dies), the trust becomes irrevocable and your successor trustee will need to file for a new tax ID number.
Q: Is it a huge pain to update the title of my assets to my trust?
A: It can be, especially if you have a lot of bank accounts scattered across providers. Here’s the thing, if you don’t follow through with the funding (updating title) portion of your plan, you’ve basically just spent a lot of time and money for some paper. The funding portion of your estate plan is one of the most important things you need to do after you finish signing your documents. For clients with California real estate, we take care of recording your deeds and can help coordinate with out-of-state attorneys if you own real estate elsewhere. You don’t have to go into this process wondering what you need to do. We take the time to help you understand what accounts or assets need to be updated (not everything goes into the trust) and what beneficiary designations need to be updated. Working with a financial advisors? Great! We invite them into this process to help you keep things on track as well.
Q: What happens if I die without an estate plan in California?
A: The State of California will decide who inherits - usually biological relatives - which may leave people that you want to receive things out or give things to people you never wanted. It also does not protect your minor kids from inheriting too early (they’ll get everything at 18). Your family also ends up in probate court, which is very time-consuming and expensive. Want to know just how expensive it can be? Use our calculator at the end of this section to calculate what your family will pay in statutory (determined by law) fees they’ll have to pay.
Q: How can I get started with estate planning?
A: The best way to get started with estate planning is to consult with an estate planning attorney. Our law firm specializes in estate planning and can help you understand the process and develop a plan that meets your needs and goals.
How Much Does California Probate Actually Cost?
California has one of the most expensive probate systems in the country. Under California Probate Code §§ 10800-10805, attorney and executor fees are set by statute based on the gross value of the estate, not the net value. That means fees are calculated before subtracting any mortgage, debts, or liens.
Here's how that breaks down for a typical California homeowner:
Estate valued at $500,000: Attorney fees of $13,000 + executor fees of $13,000 = $26,000 in statutory fees alone.
Estate valued at $1,000,000: Attorney fees of $23,000 + executor fees of $23,000 = $46,000 in statutory fees alone.
Estate valued at $1,500,000: Attorney fees of $28,000 + executor fees of $28,000 = $56,000 in statutory fees alone.
And those are just the statutory fees. There can be additional "extraordinary fees" approved by the court for more complex estates, plus court filing costs, appraisal fees, and bond premiums. On top of the cost, California probate typically takes 12 to 18 months, and in busier counties like Los Angeles or San Diego, it can take even longer.
All of this is avoidable with a properly funded revocable living trust. When your assets are held in a trust, they pass directly to your beneficiaries without court involvement, without public record, and without statutory fees.
What Could Probate Cost Your Family?
Estimate California’s statutory probate fees based on the gross value of an estate.
For estates over $25 million, the court sets an additional reasonable fee for the amount above $25 million, which is not included here.
Estimate based on California Probate Code §§ 10800 and 10810. Statutory fees are calculated on the gross value of the estate, without deducting mortgages or other debts. Actual costs may be higher and can include extraordinary fees, court costs, publication, probate referee fees, and bond premiums. This calculator is for general information only and is not legal advice.
