California Estate Planning Basics Create, preserve, and share wealth (after all, you earned it!) by Jason S. Buckingham, Attorney at Law www.jsb-law.com The presentation is for general information purposes only and is limited to California law. It is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. RULE ONE ● What is the most important factor in making your Estate Plan? YOU. ● The Estate Plan is the manifestation of your wishes. Features of a well designed plan ● CREATE wealth during your lifetime PRESERVE your wealth FLEXIBILITY to enjoy your wealth CONTINGENCY PLAN for incapacity DISTRIBUTE your wealth to the loved ones you leave behind ● ● ● ● Your three planning options ● Do nothing - go to PROBATE Leave everything in a Will - go to PROBATE Use “Will Substitutes” - NO PROBATE – Trusts with a “pour-over will” – Joint ownership accounts – Insurance Policies ● ● Other considerations If you: ● ● ● ● ● ● Are MARRIED Have CHILDREN under 18 Own a HOME Own a BUSINESS Own INVESTMENTS Have RETIREMENT ACCOUNTS or LIFE INSURANCE ...then you should have some type of plan. Probate - is it so bad? ● Statutory fees based on GROSS ESTATE Attorney and Estate Rep. get same fee Total fees and costs: about 4-8% Several months to several years to close PUBLIC proceedings ● ● ● ● Plan ● vs. ● No Plan STATE LAW dictates: – Intestacy rules – Terms and timing of inheritance – Court appointed administrator – Probate fees, possible taxes – Court appointed guardian – Court may order a forced sale for creditors YOU decide: – Who receives assets – How and when loved ones get gifts – Who manages your estate – Whether to plan for cost and tax saving – Who should be your children’s guardian – How to allow orderly sale (or not) of a family business Tax planning GENERAL RULE - You cannot avoid some taxes if your estate is very large. TYPES OF TAX: Estate, Gift, Capital Gains, Income, Generation Skipping Transfer The good news is that you can structure your Estate Plan to maximize personal exemptions under the estate and gift tax rules. Put your team to work to achieve your goals. Who’s on your team? With any long-term plan, you need a TEAM of people behind you for best results: ● CPA - tax rules are complex and constantly subject to changes Financial Advisors - Careful management of assets lets you give more to loved ones Estate Planning Attorney - Having a plan is worthless unless it is funded and reviewed on a regular basis ● ● California Estate Planning Basics Create, preserve, and share wealth Law Offices of Jason S. Buckingham, Inc. 560 First Street, Suite C-205 Benicia CA 94510 TEL: (707) 745-2200 WEB: www.jsb-law.com copyright 2005-2008, Jason S. Buckingham (all rights reserved)