LAW OFFICES OF ALON DARVISH

Estate Planning & Probate | Business & Corporate Formation | Real Estate | Bankruptcy

Estate Planning & Probate
 

Everyone has two choices: they may choose to dispose of their assets and provide for family members, friends and charities at their death, or they may allow the state to do so. Clearly, no one enjoys governmental control over assets.

Although one often thinks of estate planning as being important for the wealthy, anyone who owns money or has property has an estate. An estate refers to the total of your assets, whether very valuable or quite modest. Everyone has property they expect to leave to their heirs. However, doing so might create an exceptional amount of tax burden on heirs. Our firm handles a variety of estate planning matters, including planning for the distribution of an individual's property at his or her death and the provision of preparing powers of attorney in the event of an individual's incapacity. Together you and Mr. Darvish will explore every aspect of estate planning options to help ensure the transfer of your assets to the people you treasure the most. Types of services our firm provides include:

• Wills - A will is a document expressing the wishes of a person (known as a testator) concerning the disposition of her property after their death. If a person dies intestate, i.e., without a valid will, statutes determine how her property is divided up among her relatives. If no relatives can be found, the property goes to the government.

• Trusts - A trust is an arrangement whereby property legally owned by one person is administered for the benefit of another. Three parties are ordinarily needed for the relation to arise: the settlor, who is the current owner of the property; the trustee, in whose hands the control of the property is vested and who receives a fee fixed by law; and the beneficiary, for whose use the proceeds of the property are to be applied. The trustee's duty is to make the capital or earnings available to the beneficiary in the manner prescribed by the settlor and to manage the property prudently and honestly. The beneficiary may bring suit if this duty is breached. In modern times banks and trust companies, with their special facilities for handling investments, are often named the trustees of substantial properties.

• General Power of Attorney - While we explore all options of estate planning, the client will appoint an agent to manage all or part of his business and/or personal affairs. This allows a person a client trusts to sign checks, pay bills, transfer funds and handle other legal and financial matters. A power of attorney is very flexible because it may limit the authority of an agent, giving the agent as many or as few powers over your assets as you wish, attaching conditions if necessary.

• HealthCare Directive - this document allows another to make medical decisions if you are unable to make them yourself. If you do not have such document, a family member or friend may have to file a court action requesting appointment as your guardian.  Going through such legal court proceedings can become expensive and time consuming, and ultimately the decision will be made by the judge. You may alleviate these problems if you have the care and foresight to use a formal document to express your wishes for your healthcare needs. 

Without a Living Trust, your real estate and other personal assets may be subject to Probate - an administrative process which may cost your family thousands of dollars and unnecessary delay in the distribution of your estate.

Let us use an example to demonstrate.  Dough J. owned real estate with a market value of $500,000.  On this property, he had a mortgage of $450,000.  That means he had equity of $50,000. Even though he had equity of $50,000, Probate fees are calculated based on the GROSS Value of $500,000.  Probate fees, in this case, cost Doug's heirs approximately $34,000 - $34,000 his heirs did not have unless they sold the home.

A real estate agent was hired to sell his home. The commission real estate agents earn is approximately 5% or $25,000. To distribute this estate, it cost his heirs nearly $59,000. Unfortunately, the heirs inherited NOTHING. The Probate attorney and the real estate agent received all of the benefit.

As your estate grows larger, so do Probate fees. If you own a home worth $1,000,000, your heirs will pay, at the minimum, $60,000 in Probate fees. Through the use of a Living Trust, you can avoid Probate expenses and avoid the many months of entanglement in this administrative process.

Who does Estate Planning?

Most people do estate planning because they want to control who will receive their assets after they die, and they want this to happen with the least amount going to legal fees and taxes.  But But estate planning is not just about what happens after you die.  A good estate plan will also protect your at incapacity. It will let you – not the courts – keep control of your assets and control of decisions about your medical care when you can no longer handle your own affairs.

Who Needs Estate Planning?

Everyone. Certainly, the older you get, the more you start thinking about how to transfer your assets to your grown children or other loved ones. But families with young children need to do estate planning. So do people who have children from previous marriages. Single adults – young or old – need to plan as well. Estate Planning is not just for “wealthy” people – whatever that word means. Good estate planning is important for everyone

When Should You Plan?

The best time to plan your estate is now, while you can – before you need it. Because with estate planning, there is no second chance. None of us like to think about our own mortality or the possibility of becoming incapacitated. And, that’s exactly why so many families are caught off guard and unprepared when incapacity or death strikes.

contact us for more info.

Law Offices of Alon Darvish

9454 Wilshire Boulevard, Penthouse Floor

Beverly Hills, California 90212

Telephone: (310)205-5529

Telephone: (800)890-7780

Facsimile: (310)496-0171

Email: Info@DarvishLaw.com

Website: www.DarvishLaw.com

Attorney, Alon Darvish, Represents Clients Throughout Southern California: Anaheim, Apple Valley, Arcadia, Azusa, Bakersfield, Barstow, Beverly Hills, Burbank, Chino, City of Industry, Claremont, Claremont, Costa Mesa, Covina, Culver City, Dog Beach, Downey, El Segundo, Encino, Fresno, Garden Grove, Gardena, Glendale, Glendora, Hawthorne, Hermosa Beach, Hesperia, Highland, Hollywood, Huntington Beach, Inland Empire, Irvine, La Quinta, Laguna Hills, Long Beach, Los Angeles, Malibu Beach, Manhattan Beach, Marina del Rey, Mission Hills, Modesto, Monterey Park, Newport Beach, Northridge, Orange County, Pacific Beach, Pacific Palisades, Palm Springs, Palmdale, Pasadena, Playa del Rey, Pomona, Rancho Cucamonga, Rancho Mirage, Redding, Redondo Beach, Reseda, Riverside, Salinas, San Bernardino, Santa Ana, Santa Barbara, Santa Clarita, Santa Monica, Santa Rosa, Sherman Oaks, Studio City, Sun City, Sunset Beach, Tarzana, Temecula, Temple City, Topanga, Torrance, Universal City, Valley Village, Van Nuys, Venice Beach, Ventura, Victorville, West L.A., Whittier, Woodland Hills, Yuba City