Wills and Trusts Lawyer in Hanford, CA | Griswold LaSalle Cobb Dowd & Gin LLP

Setting up a will and trust is one of the best things you can do for your loved ones. Providing directions for how your property and assets are to be handled can save your family from extensive, difficult, and painful legal proceedings after you are gone. A Hanford, CA wills and trusts lawyer can help you be proactive and be prepared for unexpected life events.

Griswold LaSalle Cobb Dowd & Gin LLP can help you prepare for the future by ensuring you have the right will and trust in place. We can help you draft, manage, and/or execute the will and trust that best suits your particular needs. With the guidance of a Hanford estate planning lawyer, you can rest easy knowing that your documents will be sound and effective for providing for your loved ones.

The Purpose of Wills and Trusts

If you are wondering if you need a will or trust, the answer is yes if you want to prevent the state of California from deciding for you. Wills and trusts are the vehicles by which property and assets are distributed according to your wishes. They are primarily used to execute your estate after your death and ensure that it is settled per your directions. These documents can help minimize or eliminate the need for the estate to be settled through probate. Wills and trusts also protect and provide for your heirs and beneficiaries so they receive what you intend for them to inherit.

Types of Wills and Trusts You Could Include in Your Estate Plan

Several types of wills and trusts exist to meet the unique needs of each person’s estate. Moreover, the details of each person’s will and trust can also vary widely. Preparing for your estate plan is essential to ensuring your goals are met and your loved ones are provided for upon your death. However, you must first get clear on your goals and what assets you have in order to select the right will and trust to suit your needs. Wills and trusts lawyers in Hanford, CA can guide you through this process, provide recommendations, and help draft and implement the documents. Below is a closer look at some of the wills and trusts they can help you with.

Last Will and Testament

A last will and testament provides direction on how your property and assets are to be distributed after your death. In it, you can specify who will inherit your possessions and what they will receive. You may also leave directions for any additional actions you wish your property to undergo. Wills must go through probate court before they can be distributed to ensure that they are valid, debts and applicable taxes are resolved, and that there are not issues with beneficiaries and heirs.

Living Will

A living will allows you to set and adjust your health care directives so you can ensure the type of medical decisions you wish a designated individual to make on your behalf. This type of will is primarily used in the event that you become incapacitated and cannot make decisions for yourself. It ensures that your wishes are carried out and makes the decision-making process easier on your loved ones.

Revocable Trust

A revocable trust, also known as a living trust, allows you to make changes to it throughout your lifetime. You can manage your assets and your beneficiaries at any time. Upon your death, the trust circumvents the need for probate court and allows property to be distributed directly to the designated beneficiaries.

Irrevocable Trust

An irrevocable trust is most generally permanent from the time it goes into effect. Once you have decided what you want to include, who the trustee will be, and how you want it to be structured, you cannot make any changes to it at a later date without a court order. It also offers specific tax benefits.

Asset Protection Trust

An asset protection trust allows you to protect your assets and set up safeguards against various risks. This type of trust can be helpful in protecting against taxation and creditors. It can also ensure that certain beneficiaries who may not have a true tie to your assets cannot access your property.

Charitable Trust

A charitable trust allows you to designate a charity to receive the assets you have placed into the trust. This is often an organization, university, or church, and may be chosen by values and/or a personal connection with the entity.

Special Needs Trust (SNT)

A special needs trust is discretionary set up for beneficiaries who have disabilities. Through a special needs trust, a child or adult with a disability can have access to assets in the trust without jeopardizing their eligibility for government benefits related to their disability, such as Supplemental Security Income (SSI) or Medicaid.

Setting Up Your Will and Trust in Hanford, CA

Once you have narrowed down the best option for the unique needs of you and your family, it is time to begin creating the will and trust you have decided upon. You must determine what assets you have and how you will distribute them. You must also select and name the heirs and beneficiaries who will receive property from your estate upon your death. If you are creating a trust, then you will also need to transfer your chosen assets over into the trust. Your lawyer will also guide you through the steps to sign and validate your completed documents.

Trust Administration

When you are creating a trust, you will have additional decisions to make to meet legal requirements. Trusts are managed by a trustee, and this person must be designated when setting up the trust. This person could be you if you have a revocable trust, but for irrevocable trusts you will need to name another individual. This should be someone you trust to handle your property. Depending on the complexity and particular trust you have chosen, you may also be required to make additional decisions about how your trust operates.

Taxation on Trusts

Revocable and irrevocable trusts are each taxed differently. Because they serve different purposes and are structured differently, your tax obligations will be dictated by the type and terms of the trust.

Revocable trusts are considered part of your estate since you can manage it throughout your lifetime. Taxes are likely to be paid by you on the income the trust has generated. Conversely, irrevocable trusts may pay taxes directly out of the trust when they are withdrawn, and at a higher rate, but taxes can be minimized while kept in the trust.

The assets in your trust, their value, and their level of complexity can also determine how your trust is taxed. To ensure you understand the tax implications and meet the requirements, it is important to seek the help of wills and trusts attorneys and financial advisors or accountants.

Keeping Your Wills and Trusts Updated

Like any other part of your estate plan, you should periodically review the will you have created, as well as any living trusts. As changes to your family structure or economic situation occur, your will and trust may need to be updated to stay current. Distributions are generally carried out in accordance with a valid, written will, so if life changes are not reflected in your estate planning documents then your updated wishes may not be honored. If you have experienced any of the following life events, then it is important to update your will and trust as soon as possible:

Becoming a parent
Divorcing from your spouse
Getting remarried
A death in your immediate family
Changes to your beneficiary selection or their information
Changes to who your heirs are or who will inherit your property
Business ownership

As a best practice, it can be good to review your will and trust every three to five years. This review allows you to assess the current state of your estate, what may be out-of-date, and what else you may like to include or remove.

Mistakes to Avoid When Creating Your Will and Trust

While the biggest estate planning mistake you can make is to not have an estate plan, there are still several mistakes that could be made during the process of creating a will and trust. These mistakes could potentially hurt your family down the line, and lead to legal complications and significant costs. What happens to your estate after your death is not something you want to leave up to chance or the California court system.

In order to avoid making mistakes with your will, it is important to designate an executor whom you trust, coordinate your beneficiaries, allocate all assets, plan for incapacitation, plan for taxes, keep your will updated, and communicate your end-of-life wishes. Similarly, you should also aim to avoid trust mistakes by ensuring your trust is fully funded and updated, designating a trusted and capable trustee, and taking financial needs into account.

To avoid making any of these mistakes, it is essential to work with a trusted estate planning lawyer. They can not only guide you through the overall process, but they can also ensure you make all possible considerations and decisions about your will, trust, and other estate planning matters. They will also make sure all documents are filed correctly so your will and trust is valid and enforceable.

The Ramifications of Not Having a Will or Trust

More than 50% of the population does not have a will or trust in place, according to Caring.com. Two of the biggest reasons behind this trend are that individuals report not having made time for it, and believing that they do not have enough assets to warrant it. However, many individuals seem willing to make a will or trust if they experience life milestones, such as health issues, buying a home, retiring, or starting a family, to name a few.

These statistics highlight how unprotected Americans are in terms of their estate planning. Failing to create a will or trust can have profound ramifications on your family and estate should you die without one in place. Your estate could get tied up in a lengthy probate process and be subjected to the state making decisions for your family. When a valid will or trust does not exist, California’s intestate succession laws govern what happens to the estate.

When an estate enters into an intestacy process, the court divides up the decedent’s property according to the decedent’s surviving family. If there is a surviving spouse, they will generally receive the largest share of the estate, followed by a share for any surviving children. If there is no surviving spouse or children, then the estate may be distributed according to degree of kinship. This could include parents, siblings, grandparents, and so on.

Discussing Your Wishes With Your Heirs and Beneficiaries

Creating a will and trust ensures that your family is taken care of and your wishes are known. However, setting up a will and trust is only part of the process. The other part is sharing the details of your will and trust with your heirs and beneficiaries. Your heirs in particular are likely to be the ones navigating the terms of your will and trust in the event of your death, so sharing this information ahead of time can help them be prepared.

When talking to the future recipients of your will and trust, share your estate plan with them and the reasons and goals behind it. Communicate who serves in various roles as outlined in your will and trust, as well as who may have power of attorney. It is also important to share logistical information about where these documents can be found and accessed as well as who your lawyers and financial advisors are.

How to Prevent Family From Fighting Over Your Will and Trust

It is not uncommon to see fighting amongst families and beneficiaries over inheritance matters, or even contested wills and trusts. This often creates a contentious environment and can lead to a drawn-out legal process. However, there are steps you can take to prevent, or at least minimize, inheritance disagreements after your death.

One preemptive step you can take is to include a no-contest clause in your will and trust. This is designed to discourage fighting and litigating the provisions in your will. While this clause may not always be enforceable, California does outline the circumstances where it can be upheld. According to California Probate Code § 21311, this clause can be enforced if an individual attempts to contest the will or trust without probable cause, or tries to take action in a way that is not provided for in the will or trust.

There are also other steps you can take to prevent feuds regarding these two estate planning documents. The more you can do ahead of time, the smoother the execution and distribution of your will and trust will be upon your passing. As such, talking to your family during your lifetime or spelling out the reasons for your decisions in a letter of instruction can help provide clarity around the directions in your will and trust. You can also provide inheritance gifts to individuals while you are alive, as another step to limit fighting after your death. You could also discuss inheritance plans with your family prior to estate planning so an agreement can be reached in advance.

A Lawyer in Hanford, CA Can Provide Guidance as You Create Your Will and Trust

Whether the needs of your estate are simple or complex, there are many legal requirements that apply to wills and trusts. As such, it is in your best interest to hire an experienced wills and trusts attorney in Hanford, CA to ensure that your documents are filled out correctly and that you have completed all the steps required by California law. It is also essential to ensure that your will and trust are legally binding and valid so that they will be recognized by California and executed correctly.

Your lawyer will discuss your options and the various factors you should consider when you sit down for your first consultation. After learning about your situation and goals, they may make recommendations about what estate planning structures are most suited to your needs. While it is good to have both a will and a trust, both may not be needed depending on your situation. As you make decisions about your will and trust with your lawyer, they will carry them out to ensure all is set up properly. A lawyer can also help you manage, periodically review, or execute your will and trust.

Create Your Will and Trust Today With the Experienced Team at Griswold LaSalle Cobb Dowd & Gin LLP

Griswold LaSalle Cobb Dowd & Gin LLP can help you secure your family’s future by drafting a will and trust that best suits your unique needs. We help you assess what assets you have, what is most important to you and your family, and what is the most effective way to provide for your family after you are gone. Our team makes this process as painless as possible so you can have peace of mind knowing that your loved ones are taken care of. Contact us online or call our office at 559-608-4598 today to schedule an initial consultation with our team.

Wills and Trusts Lawyer Hanford, CA