An A-B Trust also known as a credit-shelter, bypass, or family trust is a tax saving device that allow the maximum amount of property to pass to your inheritors without tax for a couple whose assets are above the estate tax exemption, which is $2 million for 2008.  An A-B Trust, Credit Shelter Trust, Bypass Trust, or Family Trust preserves the estate tax exemption for each spouse to use when leaving assets to their inheritors in effect doubling the amount of inheritance that passes free from estate tax.

How an A-B Trust Works

A revocable A-B Trust is created a married couple and can be revoked or amended while both spouses are living.  Upon the death of the first spouse, A, the A-B trust is divided into two trusts, Trust A and Trust B.  Trust A is funded with up to the tax marital deduction, which is $2 million for 2008.  The remaining assets are transferred to Trust B tax free under the marital deduction.  Trust A becomes irrevocable upon the death of the first spouse.  During the lifetime of the surviving spouse, the property in Trust A can be used by the surviving spouse for “health, education, support, or maintenance.”  When the surviving spouses dies, the assets in Trust A pass to the inheritors designated by the first spouse tax free up to the exemption limit utilizing the first spouse’s exemption.  During the lifetime of the surviving spouse, Trust B remains revocable and amendable by the surviving spouse.  When the surviving spouse dies, Trust B is passed to the inheritors of the surviving spouse tax free up to the limit under that spouse’s exemption.

A-B Trust Attorneys

Our experience and expertise enables us to determine whether clients would benefit from an A-B trust, credit shelter trust, bypass trust, or family trust and identify the appropriate type of trust given their individualized situations.  Our Orange County estate planning firm drafts and incorporates living trust into overall estate plans to assists our clients in directing the distribution of their property with minimum tax liability and delay.

As an estate planning firm based in Orange County, Ca, we provide comprehensive estate planning services including wills, trusts, power of attorney, and advance care directives for a full range of clients from high net worth to working class.

Having a durable power of attorney in place saves loved ones the time, expense and public nature of petitioning the court.  If one becomes unable to make informed decisions (“incapacitated”) without a power of attorney loved ones must petition the court to appoint a conservator of estate to make financial decisions on the individual’s behalf or conservator of the person to make medical decisions on the individual’s behalf.  This petition process may require result in substantial costs such as attorney’s fees, filing fees, and investigator’s fees.

How a Power of Attorney Works

A power of attorney is an authorization for another person (call an “agent”) to make personal and financial decisions on the principal’s behalf.  A durable power of attorney can be general, covering all aspects of your personal and financial affairs, or may be limited to specific situations.  In Estate planning, there are typically two types of powers of attorney

• power of attorney for finances

• power of attorney for healthcare

A durable power of attorney for finances for allows an individual to designate an agent to make property and financial transactions on the principal’s behalf in the event the principal becomes unable to make informed decisions.  A power of attorney for finances can be effective immediately, or “springing,” meaning that it take effect at some future time, usually when the individual becomes incapacitated.

A health care power of attorney allows a principal to designate an agent to make health care decisions on the principal’s behalf in the event the principal becomes incapacitated. In California, a power of attorney for healthcare is generally combined with a healthcare directive into one document.  A health care directive allows the principal to provide the agent, and healthcare providers with written instructions regarding the kind of treatments that should or should not be given.

With a durable power of attorney for healthcare in place, the individual will continue to make his own medical decisions as long as he is capable of doing so and can communicate those decisions (known as being “competent”). The agent’s authority starts only when a licensed physician certifies in writing that the individual no longer has the capacity to make those decisions. Further, a power of attorney can be changed or revoked at any time and does not give the agent authority to override the decision-making of the principal.

Benefits of a Living Trusts

Trusts are powerful tools that serve the purpose of

• avoiding the probate process

• leaving assets to your beneficiaries, and

• minimizing tax liability.

How a Revocable Living Trust Works

A revocable living trust is a legal instrument created by the “grantor” that can be amended or revoked during the grantor’s lifetime.  The grantor transfers assets to trust to be managed by the “trustee” for the ‘beneficiary” who receives the income and principal of the trust.  During the grantor’s lifetime, the grantor typically acts as the initial trustee.  When the grantor becomes incapacitated or upon death, a “successor trustee” manages the trust assets.  During the grantor’s lifetime, the grantor is the beneficiary.  Upon death of the grantor, the assets will either be managed for the benefit of other beneficiaries or distributed to the beneficiaries.  Types of trust utilized in estate planning include:

• Living Trusts

• Bypass Trusts

• Children’s Trusts

Living Trust Attorneys

Our experience and expertise enables us to determine whether a clients would benefit from a living trust and identify the appropriate type of trust given their individualized situations.  Our Orange County estate planning firm drafts and incorporates living trust into overall estate plans to assists our clients in directing the distribution of their property with minimum tax liability and delay.

As an estate planning firm based in Orange County, Ca, we provide comprehensive estate planning services including wills, trusts, power of attorney, and advance care directives for a full range of clients from high net worth to working class.

Advance healthcare directives allow people to make choices about their medical care in advance of serious illness.  It is never too early to start this decision-making process, and people should not postpone it until they face serious illness.  A “power of attorney for healthcare provision” allows one to designate another to make their medical decisions should they become unconscious or incapacitated. A “living will provision” drafted by an attorney will allow one document their preferences as to the type of medical care they wish to receive in case the one becomes unconscious or incapacitated.

How an Advance Healthcare Directive Works

A California advance healthcare directive may have two components:

• a power of attorney for health care and
• a living will

A power of attorney for health care appoints another individual or “proxy” to direct health care decisions should the principal be unable to do so due to incapacity.  This proxy may provide or deny consent for treatment that is to be taken or not taken including those relating to prolonging life.  A power of attorney for health care is generally coupled with a living will provision because it is important for that person to know if you wish treatment to be continued as long as it can be effective or if you wish treatment not to be started or, if started, to be stopped.

A living will generally include specific directives as to the course of treatment that is to be taken, or in some cases forbidding treatment, should the principal be unable to give informed consent due to incapacity. Many people may want to avoid unnecessary suffering as a result of artificially prolonging of life in some situations.  Others may want to insure that they receive treatment until all options have been exhausted.  A living will records these preferences in advance of these situations.

Advance Healthcare Directive Attorney

As an estate planning firm based in Orange County, Ca, we provide comprehensive estate planning services including wills, trusts, power of attorney, and advance care directives for a full range of clients from high net worth to working class.

A will allows a testator to direct the distribution of the one’s property and assets to the loved ones of their choice.  If one passes away without a will, the State of California will distribute one’s property and assets under the default rules of intestate succession.  A will may also appoint a guardian to care for one’s minor children.  The will can give directions to the guardian for managing property left to minor children to provide financial safeguards for such children.  A will may also name the executor to carry out the instructions of the will and represent the testator’s estate in probate court, making the probate process more efficient for one’s heirs.

How a Will Works

A will is essentially a document governing how ones property is to be distributed upon death.  A will must strictly adhere to legal formalities in order to ensure their validity in California courts.  A formal will requires the testator to be of sound mind over the age of 18, have testamentary intent, and be signed and dated, and signed by two witnesses. When a testator passes away, the will goes through probate court.  The probate process determines whether the valid is valid, an executor of the will is appointed, property is gathered and inventoried, debts of the estate are paid, and remaining property is distributed to the heirs named in the will.

Will Attorneys

As an estate planning firm based in Orange County, Ca, we provide comprehensive estate planning services including wills, trusts, power of attorney, and advance care directives for a full range of clients from high net worth to working class.

Our clients spend a lifetime accumulating their assets.  As experienced estate planning attorney’s we specialize in maximizing the value of those assets for the benefits our clients and our heirs.  Estate planning is complex as both Federal and State laws frequently change the way we deal with wills, trusts and estates.  As estate planning lawyers, we utilize our expertise to help our client navigate through the complex process.

Expertise in Finance and Tax

The law offices of has established itself as a preeminent source for estate tax planning.  We provide high quality, cost-effective services to our clients based on a thorough understanding of their needs and a commitment to quality, integrity, and responsiveness.  Our estate planning attorneys dedicate themselves to understanding the unique issues facing each client in order to provide customized and personalized service to each of our clients.

Personal Attention

We strive to make estate planning as quick and convenient for our clients as possible.  Our investment in technology maximizes both the quality and the costs efficiency of our estate planning services.  Equipped with cutting edge technology, we can efficiently perform most of our services via telephone, email and fax.  Our estate planning attorneys welcome the opportunity to meet with each of our clients in person and can travel to meet them if an in-person meeting is desired.  Conveniently located in Orange County, CA, our estate planning lawyers serve clients throughout Southern California including Riverside, Los Angeles, and San Diego Counties.

Our clients have worked hard to build their assets.  We assist clients in preserving those assets for their beneficiaries efficiently and effectively.

Estate planning is the process of:

• identifying the persons inheriting the principles assets
• identifying the persons who will care for your minor children and their financial well-being
• minimizing tax liability and associated costs
• identifying the persons who will make important healthcare and financial decisions if one becomes incapacitated

How an Estate Plan Works

A well thought out and well drafted estate plan accomplishes three objectives 1. provides for the clients care during their twilight years, 2. directs the transfer of assets upon death to the intended persons, and 3. minimizes tax liability.

An estate is the total property, real and personal, owned by an individual prior to distribution. Real property is real estate and personal property includes everything else, for example cars, household items, and bank accounts. Estate planning distributes the real and personal property to an individual’s heirs.

Estate planning is the process by which an individual or family arranges the transfer of assets in anticipation of death. An estate plan aims to preserve the maximum amount of wealth possible for the intended beneficiaries and flexibility for the individual prior to death. A major concern for drafters of estate plans is Federal and state tax law.

Wills and trusts are common ways in which individuals dispose of their wealth.  Trusts, unlike wills, have the benefit of avoiding probate, a lengthy and costly legal process that oversees the transfer of assets. Sometimes, though, it will be useful to make inter vivos gifts (gifts made while the donor is alive) in order to minimize taxes. The Federal Gift Tax exempts certain levels of lifetime gifts.

With the assistance of a competent Orange County estate planning firm, our clients can leave clear directions to their loved ones regarding their care and distribution of their estates.  Furthermore, by carefully planning our clients may themselves and their beneficiaries considerable time and expense of court expenses and litigation.

Estate Planning Attorney

As an estate planning firm based in Orange County, Ca, we provide comprehensive estate planning services including wills, trusts, power of attorney, and advance care directives for a full range of clients from high net worth to working class.

Of course our Ladera Ranch estate planning attorneys are able to immediately respond to your needs when difficult unforeseen issues do arise. For example, we are able to assist in revise estate plans in light of life changing event such as divorces. Wherever possible, we assist clients in finding the best solution as to not trigger unnecessary income, estate, or gift tax costs. One of the primary goals in a majority of cases is to maximize the after-tax dollars to the firm’s client. Our attorneys have distinguished resumes that make them throughout the country as experts in tax and finance.

Whether you need a will, trust, or healthcare direct and you are unsure of the steps you need to take to protect your resources for yourself and your children, our Ladera Ranch estate planning attorneys can assist you.

Our California estate planning law firm has extensive experience in all types of estate planning matters from claiming unclaimed property to drafting California trust and California wills.  In addition, we can assist you with power of attorneys for health care and planning for you child’s college education.  A California estate planning attorney who is is proud to serve the estate planning needs of the California community is ready to help you today.

A Mission Viejo will attorney will help Mission Viejo residents determine if a revocable living trust is useful in their estate plan. You probably already started estate planning by naming beneficiaries on life insurance policies, retirement accounts and bank accounts. Legal instruments such as wills, powers of attorney and living trusts tailored for you by our Mission Viejo trust attorneys can complete other potential estate planning needs.

How Mission Viejo Estate Planning Lawyers Work

A Mission Viejo will attorney will assist you to determine whether a living trust is right for you. First, the Mission Viejo living trust attorney will help you to identify your goals. Many of our clients want to avoid having young beneficiaries potentially receive a large sum of money (including life insurance payouts) at age 18 until a more mature age is reached. Other common goals are reducing or eliminating the following: probate, the likelihood of your estate being contested and reduce estate taxes.

Mission Viejo Estate Planning Attorneys

Our licensed Mission Viejo trust attorneys provide clients with common documents used to complete an estate plan which include a Last Will & Testament, which appoints legal guardians, a Medical and Financial Power of Attorney to prepare for an incapacitation, and a Living Will, not to be confused with a Last Will or Living Trust, directs the use of life support.   A Mission Viejo estate planning lawyer will provide detailed explanations about the text and, very importantly, choices which are available to you as they draft your documents. Finally, the wills and trusts are reasonably priced.