by Bezaire, Ledwitz & Associates, APC | Last updated Feb 22, 2023 | Estate Planning, Probate, Trusts, Wills
Probate is the legal procedure used to transfer title to assets upon death. The superior Court supervises the payment of debts, taxes and probate fees. The court the supervises the distributions of the estate to the heirs. Unfortunately however, the process is both expensive, time consuming and easily avoidable. A simple probate, without any complications, will take approximately nine months to one year to be completed. However, many probates take longer, sometimes as much as three years or more (particularly if budget and department cutbacks have strained the court’s resources). The most common misconception about probate is that if you have a will, you do not have to go through the probate process. This is actually the exact opposite. A will, by definition, must go through Probate. In addition to any taxes that may have to be paid, there are also fees involved. Some of these fees vary, but there are court mandated attorney and executor fees. It is extremely important to note, that the fees described in the chart below are based on the GROSS value of the estate. For instance, let’s assume that the major asset that you own is a home. Your home is worth $550,000 and you only owe $30,000 against it, leaving $200,000 worth of equity to for your heirs to inherit. According to the California Probate code, because your home has a market value of $550,000 you would have to pay, in addition to any other fees and taxes that you might owe, court mandated attorney and executor fees in the amount of $26,000. This is slightly over 10% of the net value... by Bezaire, Ledwitz & Associates, APC | Last updated Feb 22, 2023 | Advanced Estate Planning, Estate Planning
Estate Planning is the area of the law which deals with putting property to the best possible use for your benefit during your lifetime, and for the benefit of your “beneficiaries” after your death. If the estate has been well planned, your asses should be distributed according to your wishes at a minimum of time and expense. Poor planning may lead to lengthy probate, probate fees and taxes. Unfortunately, most people do not take the time to become aware of the difference between good estate planning and poor estate planning. Many people believe that if they have a valid will, their estate will not have to go through probate. This is simply not true. Wills, by their very nature must go through probate. The fastest and best way to avoid probate is the Revocable Living Trust the very cornerstone of our practice at Bezaire, Ledwitz, and Associates. The advantages of living trusts are significant. Under a will, an estate must be settled in probate court. Lawyer’s fees and court costs can be significant (see chart below). Additionally there may be exasperating delays, and the proceedings are a matter of public record. In sharp contrast, a living trust is settled without court proceedings. A successor trustee simply distributes assets according to the trust’s instructions, under the guidance of an accountant, notary public or lawyer to ensure titles are transferred properly. The process is cheaper, faster, and can save on estate taxes. Gross Estate Value Attorney and Executor Fees $100,000 $4,000 $200,000 $7,000 $300,000 $9,000 $400,000 $11,000 $500,000 $13,000 $600,000 $15,000 $700,000 $17,000 $800,000 $19,000 $900,000 $21,000 $1,000,000 $23,000 $1,500,000 $28,000...