Estate in Lancaster California law on Probate is complex and navigating it can be expensive, which is why Estate Planning 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 valid 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 Los Angeles tax law in California, 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 exorbitant. 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 Westlake Village 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 avoided with proper Tax 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 like probate in Valencia, leaving them free 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 modifications to the trust any time they wish and even dissolve the trust if they so decide.
Although Tax Planning 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 Thousand Oaks 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
22807 Lyons Avenue
Newhall, California 91321
Tax Law, Living Trust & Probate Attorneys
(661) 799-9225 phone
(661) 799-8838 fax
