Estate Planning, or “How to Survive Death (at least financially)”

One of the important features of owning property is the right to give it away. How to transfer assets to our beneficiaries when we die– without losing it to taxes, attorneys, courts and litigious relatives — is the subject of Estate Planning. A person with substantial assets has the choice of several possible ways to arrange for the after-life disposition of assets.
1. You can execute a will. If you leave more than $150,000 of gross, aggregate assets in your own name, alone, the disposition of those assets by will usually requires a probate procedure in the Superior Court. Probate is a matter of public record. Probate of an estate takes a year or longer, and typically costs thousands of dollars in attorneys’ fees, publication and appraisal fees, and court costs.
2. To avoid the expense, inconvenience and publicity of probate, you might hold property in joint tenancy, with right of survivorship. While clearance of title to joint tenancy assets is quick and inexpensive, the disadvantages of joint tenancy may include loss of control of the property during your lifetime and adverse capital gains tax consequences for your beneficiaries after your death.
3. Married persons may find significant tax advantages in holding title to real property as “Husband and Wife as Community Property with Right of Survivorship.”
4. Consider the implementation of a revocable living trust. The advantages of a living trust include privacy, ease of transfer of assets, the avoidance of all the costs, time and nuisance of probate and the possible saving of hundreds of thousands of dollars of Federal estate taxes.
What’s the best plan for you? A knowledgeable attorney and your tax professional are in the best position to help you decide. In any case, don’t procrastinate. Do your estate planning while you can. Sudden illness, accidents and earthquakes happen.
A word of caution: You are well advised to have your will or trust prepared by an attorney experienced in estate planning. The consequences of imprecise drafting are potentially devastating.  Even basic estate planning is too important to “do it yourself” or to entrust to an amateur or to “standard” forms that were not created with you, especially, in mind.
Jerry Kessler practices law in Santa Clarita. You may call him at 661-255-1001.