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« Back to articles from category "Legal"

The following article was published in our article directory on January 11, 2012.
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Why Better Life Planning Will Assist Everyone Navigate the Pasadena California Law on Living Trusts

Article Category: Legal

Author Name: Mortensen Law

Tax in Sherman Oaks California law on Living Trust is complex and navigating it can be expensive, which is why Estate Preparation is very important to ensure that you avoid this process. Probate is the legal procedure of allocating a deceased person s assets and property to their heirs and creditors. If there is a legal will then an executor is usually named who will handle the process of probate. On the other hand, if the person dies without a will, then an interested party must request the court must to be named the administrator who will handle the process of dispensing the assets. In case of disputes, the court will name a disinterested third party to fulfill this role.

According to Palmdale California law, probate is triggered when the value of the estate is $100,000 and up. The typical time to settle probate takes around 12 to 18 months and in many cases can take years. In addition, probate costs can be astronomical. Executors and probate attorneys can each take up to 4|of the first $100,000 of the estate, 3|of the next $100,000, 2|of the subsequent $800,000 and 1|of the following amounts. This means that an estate of $500,000 can have probate charges of $26,000. And these fees are computed based on the gross value of the estate before any liabilities are subtracted.

In addition, you also have to think about federal estate taxes. Although Woodland Hills California law has no state estate tax for those who died after December 31, 2004, the heirs still have to pay federal taxes on the estate if it goes over the exemption amount. In 2011, the exemption amount is $5 million; hence an estate valued at $7 million must pay the federal estate tax on the $2 million.

These issues can be eluded with proper Estate Preparation, which ensures that your heirs get the maximum benefit from your estate while guaranteeing that your wishes regarding the disposition of your assets are fulfilled. For example, you can set up a living trust that will allow you to retain control over your assets while transferring them into a living trust that will be administrated by a trustee, which can be the original owner, their spouse or any trusted individual. By creating this living trust, your assets will no longer be subject to probate, leaving them open to be disbursed according to the wishes of the deceased. The advantage of a living trust is that it is revocable meaning that the grantor can make changes to the trust any time they wish and even dissolve the trust if they so decide.

Although Probate Preparation strategies such as setting up living trusts and other forms of trusts can be done by individuals on their own, it is advised that they hire a qualified estate lawyer to assist them. This will ensure that any trusts set up are in accordance with California law, and thus will be recognized by the course and protected from challenge by the heirs or other interested parties. A qualified and experienced Westlake Village trust lawyer can also advise you on other estate planning measures that can minimize estate taxes, such as the creation of a bypass trust or changing beneficiaries.

Mortensen Law Office
Tax, Trust & Probate Attorneys, P.C.
22807 Lyons Avenue
Newhall, CA 91321
(661) 799-8035
Pasadena California Mortensen Law Office for your Tax Lawyer

About the Author: Dan Mortensen Law is an expert on Santa Clarita Trust Law Firm and Newhall Estate Law Office serving Los Angeles County Estate Tax

Keywords: California law, Tax law, Trust lawyer, Probate lawyer, Mortensen Law

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