ESTATE PLANNING

Wills: Your will is the last statement you make to those you love. If you are single and have few assets, you still have the opportunity to designate distribution of your personal property to friends and family members. If you have accumulated wealth, your will allows you to direct the distribution of those assets among your heirs. If you are a parent, your will is the instrument that appoints a guardian for your minor child. When discussing your last will and testament, I will help you evaluate all factors and determine how to proceed.

Every adult should have a basic estate planning package:

• A will that provides for a guardian for minor children, appoints a trusted person as executor and directs the distribution of property without probate costs.
• A living will/health care directive/advance medical directive that provides guidance regarding your health care if you are unable to make your wishes known.
• A durable power of attorney that designates a representative to handle your financial affairs if you are unable to do so yourself.

Trust: A trust provides for the speedy and private distribution of assets without probate and may provide significant tax savings. Through trust administration your attorney can modify a trust in light of changed circumstances.

Common types of trusts include:

• A-B trusts, also called bypass trusts, survivor trusts, A trusts (marital trusts), B trusts (family trusts) and credit shelter trusts minimize federal estate taxes on a married couple's combined estate. Property automatically transfers to one spouse upon the death of the other.
  
  
• Homes, personal property, businesses, stocks, mutual funds, and bank accounts can be transferred into a living trust, also known as a revocable or inter vivos trust during your lifetime (a process called funding the trust), to avoid probate, provide for the smooth transfer to heirs upon your death and avoid a court-appointed conservatorship in the event of your incapacity.
  
  
• Domestic partnerships do not have federal recognition, but a lawyer can draft a standard two-person trust to provide for the transfer of assets.

Avoiding Probate: As an attorney, I work to draft wills that are written clearly and simply, preventing any confusion or openings for contests. However, if something has changed (a divorce, a child born, an asset acquired) since the will was written, that issue might need to be determined by the probate court.

When you are preparing to draft a will or trust, it is important to work with a lawyer who has the experience to protect your interests and understands your unique concerns. If you would like to discuss representation or have another question about my firm, please call (949)553-1311 or e-mail mbh@mbhollowaylaw.com to schedule a consultation.