Mr. Primuth develops estate plans for families and individuals in all stages of life.   From simple wills and living trusts to more complicated multi-generational trusts and special need trusts, Mr. Primuth creates your estate plan to fit your needs and goals.  Sure, you can use simple cookie cutter estate planning software and internet services to create documents that avoid probate, transfer assets and appoint agents to act for you, but there is no substitute for the experience and personal attention of a local practitioner. 

        Mr. Primuth will sit down with you to explain your options and explore alternatives, ask key questions and provide expert advice.   More than one meeting may be required to fully flesh out your plan.  And that's just fine.   Mr. Primuth takes the time to explain the legalese and concepts, and provides helpful illustrations and graphics of your plan.   And he provides follow up advice and service to assist with implementing your plan.

        Mr. Primuth does not sell financial products, and is not affiliated with any financial service, management or insurance firm. 

ESTATE PLANNING FAQ:

Who can benefit from an estate plan?

Why is a living trust so important?

What's the difference between a will, living trust, durable power of attorney and advance health care directive?

How do I make an estate plan?

Who can benefit from an estate plan?

Almost everyone can benefit from a carefully prepared estate plan. When you create an estate plan, you are putting in place a set of personalized legal arrangements covering some of the most important things in your life: your children, your spouse, your health and your property.
 
A properly drafted estate plan can:

• Provide a flexible, needs-based financial support system for your children and spouse, while minimizing estate tax liability and ensuring that your property is distributed according to your desires.

• Avoid the long, costly, open-to-the public process of probating your will and estate property in probate court.

• Appoint the people you want to be in charge of your property, health, estate administration and minor children.

• Make your wishes known in an authoritative way so that your loved ones will honor your choices regarding health care, medical treatment, property management and lifestyle if you are no longer able to make decisions in these areas.     

• Provide for the efficient, private transfer of your property to your intended beneficiaries after your death.

Why is a living trust so important?

A living trust can be a great tool for saving time, money, emotional trauma and headaches for those who take over your estate when you die, while at the same time giving you complete control over how your assets will be disposed of. The advantages of a living trust are many:

1. A living trust avoids probate. Unless you plan to give everything to your surviving spouse when you die, without a living trust your estate will have to go through probate court. Probate is expensive, time-consuming and open to the public.
2. A living trust is private. Probate court will expose the details of your estate and financial relationships to the public. A living trust is administered privately by your chosen trustee and his or her attorney working to maintain confidentiality to the greatest extent possible.
3. A living trust is relatively speedy. Probate court can take one year or more to settle a modest sized estate. Your trustee can administer the trust through to completion in as little as a few weeks, depending on the size and complexity of the estate.
4. A living trust costs less than probate court. Statutory fees for probating a one million dollar estate are $23,000 to the executor and $23,000 to the attorney. Fees can go much higher as the estate value increases or if there is substantial real estate. In comparison, fees for administering a living trust after death are typically in the $5,000-$20,000 range, depending on the size of the estate and the complexity of the plan.
5. You can act as your own trustee in full control of your assets. You don’t lose any rights or control over your assets as long as you remain trustee. If you appoint another person (or professional) as trustee to manage your estate, they must act according to the trust instrument, usually under fiduciary principles.
6. A living trust gives you control over disposition of your property at your death. You can instruct the trustee to set up successor trusts to administer your estate for your loved ones and charities, on flexible or fixed terms you decide in advance.
7. A living trust gives you peace of mind about your surviving spouse’s estate arrangements. You can breathe easier knowing that your surviving spouse has an estate plan already in place and does not need to create an estate plan from scratch.
8. A living trust is flexible – it can be changed at any time during your life to reflect your wishes.
9. A living trust does not increase your taxes or require additional tax returns or tax preparation fees. The IRS considers you and your living trust to be the same person, so you report all income and expenses for the trust on your normal tax return without any additional paperwork at tax time.
10. A living trust does not have any annual administration costs while you are trustee. When you die, your trust becomes irrevocable and there are expenses associated with settling your estate.
11. When you are incapacitated, your appointed trustee will manage your property and take care of you according to the instructions in your living trust.

Despite all these advantages, a living trust may not be appropriate for everyone.  In particular, estates with a probate estate of $100,000 or less in gross fair market value, or community property that is passing only to a surviving spouse may not see the benefits of a living trust.  You are encouraged to look at alternatives to a living trust before deciding that a living trust is right for you.  

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What's the difference between a will, living trust, durable power of attorney and advance health care directive?

Your will designates how your property will be distributed after your death and who will take care of your minor children (if your spouse is no longer living).  If you die without a will, the State of California writes a will for you and leaves your property to your family according to a certain percentage formula, which you may not agree with.  Most people don't like the plan dictated by the government.  By executing a will, you can give your property to whomever you like (subject to community property rules), state your final wishes, exercise powers of appointment in trusts where you are the beneficiary, and set up a trust for the benefit of your heirs.  A will can also be used to "pour over" property into your living trust to be distributed according to the trust's provisions.   
 
A living trust holds legal title to your property during your life, keeping it out of your "estate" that goes through probate after you die.  Each living trust has a plan of distribution that in most cases can be implemented with greater ease and lower cost than a probated estate.  By avoiding probate, your heirs will be spared the long, expensive, open-to-the-public probate process. At the same time, a living trust gives you tremendous flexibility in providing long term, tax-free gifts to your family, beneficiaries and charities.  Your assets tucked inside your living trust will be distributed efficiently without court intervention or supervision. Even if you forget to transfer something into your living trust, your executor can use the probate-by-affidavit procedure to circumvent full probate (with its costs and delays) for combined assets of $100,000 or less in value. In this way, the living trust is really the cornerstone of your estate plan. 
 
A living trust can have the following features:
 

• Divide into multiple trusts at your death to support your spouse, provide for your kids and support your local charities.

• Provide financial support to multiple generations -- your spouse, children and even grandchildren.

• Have a gifting mechanisms for safely and legally avoiding estate and generation-skipping taxation.

• Provide for named successor trustees to manage and distribute trust assets.

• Create a “special needs trust” to support a disabled loved one without endangering their government entitlement benefits (SSI, SSDI, Medical/Medicaid, Medicare, Calworks, Social Security).

• Grant special trustee powers and powers of appointment to your loved ones to adjust trust distributions and beneficiaries in light of changed circumstances and needs.

 

A durable power of attorney appoints someone to act in your place in your personal financial or business affairs if you are incapacitated.   Called a "springing" power of attorney (because it springs into action only if you become incapable of managing your affairs), the document can be outfitted with the specific powers you wish to transfer to your agent, called your "attorney in fact."  Typically, those powers include the power to sign checks, pay bills, open and close financial accounts, handle tax matters, sell property and manage retirement plans.  This can be an extremely useful tool for providing continuity in managing your affairs when you are unable to personally handle these matters due to injury or illness.  

Your advance health care directive (called a living will or durable power of attorney for health care outside of California) appoints the person you want to be in charge of your medical treatment decisions when you cannot speak for yourself. You can express your wishes for or against certain types of medical treatment or procedures. You can express your wishes regarding life-prolonging treatment when you are in a terminal and unconscious condition. The bottom line is that you will provide your family with a road map of your wishes so that they feel confident about doing the right thing with your medical treatment.   

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How do I make an estate plan?

Estate planning is a four step process involving at least two private consultations to help you understand your choices.  The four steps are:

• Information-gathering to assess your goals and needs.  

• Presentation of strategic choices on plan details.

• Document review and execution (signing, witnessing and notarization).

• Funding the living trust and notifying key people.

All original, executed plan documents will be presented in a professional three ring binder for safe and convenient storage. 
 
Unlike many estate planners, my flat fee includes my assistance in preparing documentation to fund your trust with your real estate and other property.  This saves you the time and inconvenience of having to do the transfers yourself.
 
I will meet with you in your home or at my office, explain the process, define your goals and move forward together making these important decisions.   

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