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Basic Estate Planning 101

Basic Estate Planning 101
Our Competitive Fee Commitment
 
"Clients who are in the market for a patient, accessible, and informative attorney will not need to look elsewhere for a more competitive price."

      We sincerely care about our clients, and strongly believe that we can provide peace of mind by delivering superior quality estate planning services to fit the budget of any individual or family.  It is our commitment to be as flexible as possible with our fee structure and payment terms, with those who are willing to retain our services.
 
GETTING STARTED . . .
 
     Estate Planning is one of those things that is always in the back of our minds.  Ever since we became adults, got married, got our first job, etc. we always knew "we had to get things in order," but for some reason or another we procrastinate.  I hear time and time again from individuals and families that the greatest reason for procrastinating the looking into any sort of estate planning is the lack of knowledge or direction of what to do.  There is so much information to understand regarding estate planning, that there is an entire area of the law dedicated to it!
 
     My purpose here is to synthesize all of that information in order to walk you through the process of learning about the practical basics of estate planning, and what your family needs (or doesn't need).  My ultimate goal for you to achieve by the time you get to the bottom of the page is for you to know how you can "get things in order."
 
 
WHAT IS THE PURPOSE OF ESTATE PLANNING?  WHY DO I NEED TO BE
CONSIDERING THIS?

     Everyone needs some sort of estate plan, even if it is a simple one.  There are many issues that face individuals, families, small business owners that really need to be addressed through some sort of estate planning vehicle.  Regardless of whether one feels these issues are worth addressing, it is always more economical to plan.  Consider the following:
  • Should you have any minor children upon your death, the decision of who will be the guardians will be made solely by a judge, without any required input from any other family member, no mater how close a relationship.  Proper estate planning can put this decision back in your hands.
  • Should you own any real estate with a fair market value of at least $100,000 (regardless of any outstanding debt on that real estate), or have other combined assets that total $100,000 or more, the distribution of your assets will only occur after the estate has gone through the legal probate process, which costs your family tens of thousands of dollars, and can take years to complete.  Proper estate planning can avoid this.

  • The California Probate Code has already chosen who your beneficiaries will be, and those beneficiaries will receive portions of your estate per the applicable code section, regardless of what your wishes are.  Proper estate planning can allow you to make these decisions.

  • Should you ever find yourself in a situation where you are unable to take care of yourself (injurous accident, severe alzheimer's, etc.), your entire life is frozen until a court makes the determination that you are incompetent after a series of public hearings.  And after that, the one who has the authority to manage your life, assets, and decisions is appointed by the court, and may be a stranger or someone you don't want to have that authority.  Proper estate planning can put this decision back in your hands.

  • Any beneficiary that receives any portion of your estate can lose it before they receive it to creditors, lawsuits, etc.  Your hard earned money could also go to fund a drug habit, promote a sustain a gambling addiction, or even disqualify someone from government assistance of student financial aid that they may be receiving.  Proper estate planning can protect your assets.

  • Families of clients that are subject to the estate tax (more often than one would suppose), are required to pay 50% of your assets above a certain amount to the IRS in cash within 9 months of the date of death.  Proper estate planning can reduce, or in most cases, eliminate any estate tax exposure.
     Aside from proper estate planning allowing you and your family to avoid these few (of the many) horribly inconvenient and expensive realities, proper estate planning seeks to accomplish three goals in the lives of each client: First, each client should be able to manage and enjoy their assets during life, while minimizing exposure to unnecessary taxes and inconvenience.  Second, each client should have a plan to manage their lives and finances should they find themselves in a situation where they are unable to do so themselves.  And third, proper planning should allow clients to ultimately distribute their property to their chosen heirs and beneficiaries in the manner they so wish, minimizing legal costs and court delays in so doing.
 

NOW THAT I KNOW I NEED TO DO SOMETHING, WHAT ARE MY OPTIONS?

     There are many methods and alternatives that an individual or family can choose to plan their estate.  Below are the four most common choices, and account for nearly all estate planning decisions made:
  1. Do nothing;
  2. Place the bulk of one’s property into joint tenancy, own assets / accounts jointly;
  3. Execute a will indicating how one’s property will be distributed; or
  4. Establish and fund a Revocable Living Trust / Comprehensive Estate Planning Package.
     The most common misunderstandings of estate planning center around one trying to take a shortcut, or save a few dollars in their estate planning, thinking they can accomplish the same had the done it properly.  These poor decisions are based on the myth that the first three options listed above are adequate estate planning techniques – THE TRUTH IS THEY ARE NOT:
 
     Under the first alternative, you allow the California legislators in Sacramento to determine how your property will pass to your heirs.  A surviving spouse is not assured receipt of all property, and any children who receive distribution, will do so immediately at the age of majority  This choice will also ensure that the estate will certainly go through the costly and time-consuming process of probate.  Furthermore, no issues are addressed relating to guardians for your children or protection should you become incapacitated.
 
     Under the second alternative, joint tenancy would allow you to avoid probate on the death of the first spouse, but the joint tenancy becomes extinguished and all assets will later be subject to probate upon the death of the second spouse.  The use of joint tenancy has some significant tax disadvantages that almost always make it a non-preferable alternative.  Under this alternative no issues are addressed relating to guardians for your children or protection should you become incapacitated, just as the first.
 
     Under the third alternative, executing a Will guarantees that your estate will go through probate.  Probate is a costly and time-consuming process: attorneys' fees, executors' fees and court costs can eat up tens of thousands of dollars of your estate.  Additionally, the process can take many years for even a simple estate.  During this time, the assets are held in the estate and are not available for distribution to the beneficiaries.  Probate is a very costly and lengthy process, and having only a will is almost never a preferable choice.  Although you can appoint guardians under this alternative, no issues are addressed relating to protection should you become incapacitated.
 
     Under the fourth alternative, by establishing and funding a Revocable Living Trust, the costs and delays of probate can be avoided.  Although it takes some intiative to have one prepared, a Living Trust is the most powerful estate planning tool available, and along with the corrolary documents included in The Comprehensive Estate Planning Package, all of the issues and concerns of improper or incomplete planning are completely eliminated.
 
 
SO OUT OF ALL OF THESE OPTIONS, WHICH DO I NEED?  WHAT IS THE BEST FOR ME?
 
     The first three alternatives cause the estate to go through probate and may have negative tax implications, and also lack in protection of your decision-making authority should you become incapacitated, but by executing and funding a Living Trust, as part of a Comprehensive Estate Planning Package, you will accomplish the following objectives:
  1. Appointment of a guardian for your minor children;
  2. Avoidance of all probate at the death of the first spouse (elimination of attorneys' fees, executors' fees, administration expenses, and the delay of the probate administration);
  3. Avoidance of all probate at the death of the second spouse;
  4. Avoidance of all death taxes at the death of the first spouse;
  5. Avoidance of all death taxes on the first $7,000,000 (in 2009) of net worth upon the death of the surviving spouse;
  6. Avoidance of the necessity of a court-appointed conservator should either spouse become incapacitated;
  7. Direction of how your assets will be distributed at your death and what they will be used for, protection from your beneficiaries' creditors and legal judgments; and
  8. Family privacy.
     The Comprehensive Estate Planning Pacakge is everything one needs to accomplish all of the goals of estate planning.  It is designed to provide peace of mind by providing all of the needed documents in one convenient location and for one flat rate.
 
 
TELL ME MORE ABOUT "THE COMPREHENSIVE ESTATE PLANNING PACKAGE."

     The “Comprehensive Estate Planning Package” provides the client all of the estate planning documents that they will need to 1) avoid probate, 2) designate how and when their assets are to be distributed, 3) plan and make the appropriate decisions for instances of incapacity, and 4) grant legal authority to trustees, powers of attorney, guardians, and other agents to act on their behalf when appropriate.  In instances where the client is married, The Comprehensive Estate Planning Package can reduce or eliminate estate taxes up to double the amount of the applicable estate tax exclusion amount.  In some instances, a living trust can defer payment of any estate taxes realized on the death of the first spouse to the death of the second spouse.
 
     The primary objective of The Comprehensive Estate Planning Package is to give the client all of the estate planning documents they will need in one concise package.  Unless the client has extraordinary circumstances involving the value or classification of assets, everything they need will be included in The Comprehensive Estate Planning  Package.
 
     The Comprehensive Estate Planning Package includes the following documents:
  1. Revocable Living Trust;
  2. Last Will and Testament of Husband;
  3. Last Will and Testament of Wife;
  4. Declaration of Trust;
  5. Certificate of Trust;
  6. Marital Property Agreement;
  7. Assignment of Personal Property;
  8. Directive to Physician for Husband;
  9. Directive to Physician for Wife;
  10. Health Care Power of Attorney for Husband (HIPAA Compliant);
  11. Health Care Power of Attorney for Wife (HIPAA Compliant);
  12. Springing / Durable Power of Attorney for Husband;
  13. Springing  / Durable Power of Attorney for Wife;
  14. HIPAA Authorization for Husband;
  15. HIPAA Authorization for Wife;
  16. Grant Deed / Assignment of Real Estate to the Trust;
  17. Final Disposition Instructions for Husband;
  18. Final Disposition Instructions for Wife;
  19. Letters of Instruction; and
  20. Comprehensive, Plain-English Summary of Trust Provisions.

     As stated above, there are many methods or alternatives that an individual or family can choose to plan their estate.  Although there are some minor advantages to other techniques, it is ultimately the wiser choice to take advantage of all of the benefits and peace of mind The Comprehensive Estate Planning Package has to offer.  And with the affordability of putting together a basic estate planning package, there is little, if any, utility in looking into other options or shortcuts.

     Furthermore, we offer a level of service and quality of product that is unparalleled, and to make estate planning with our firm more of an economical value for you, our Comprehensive Estate Planning Package is prepared with the following commitments to you:

  • There is no fee or obligation to inquire about your situation and how estate planning can be incorporated.  We offer a free initial consultation which includes a complimentary estate and tax analysis.
  • The Comprehensive Estate Planning Package is billed at a flat rate.  This rate includes all of the meetings, phone calls, conferences, and work necessary to complete the estate plan.
  • We do not charge additional fees for situational clauses; every client gets every possible add-on included in the flat fee.  For example, every client’s plan will have provisions addressing issues of substance abuse, special needs, S-corporations, etc., even if the client doesn’t necessarily need such a provision at the time.
  • Every client is entitled to unlimited lifetime consultations of every document we prepare for them.  Subsequent clarification of the meaning, purpose, or any concern of any document will be personally addressed by an attorney free of any charge.
  • Each Comprehensive Estate Planning Package includes the preparation of one grant deed and the accompanying Preliminary Change of Ownership Report (for properties in California).  Additional grant deeds can be performed for a very reasonable fee.
  • Each Comprehensive Estate Planning Package typically has a two-week turnaround.  It is very rare that we are unable to meet this timeframe.  Estate Plans can be completed at a rush for an additional fee.
  • All of our documents are HIPAA compliant.
  • Every Comprehensive Estate Planning Package comes in an attractive faux-leather binder, and tabs are included to later receive and organize advanced estate planning documents.
    For additional information regarding the benefits and advantages of The Comprehensive Estate Planning Package, visit our Frequently Asked Questions below, or contact me at Bryan@EisenbiseLaw.com.
 
 
FREQUENTLY ASKED QUESTIONS
 
WHAT IS THE PROCESS LIKE TO PUT TOGETHER AN ESTATE PLAN?

     Most clients are suprised at how easy and convenient it is to actually get an estate plan completed.  After setting up our initial appointment, our office sends you an "initial consultation packet," which includes an introduction to the firm and the process, which allows you to come to our first meeting armed with some knowledge.  You are not expected to make any preparations for this initial consultation, but there are a few documents that you will need to bring.
 
     The initial consultation lasts anywhere from one to two hours depending on any questions you have, or the depth of explanation that you would like.  Assuming all of the information and decisions are collected and made at the initial consultation, a period of one to two weeks is needed for our office to draft the documents, and a signing appointment is made at the end of the intial consultation.
 
     Occasionally there will be a question or two that remains unsettled after the initial consultation, so occasionally some added follow-up by phone (or even another meeting) is required.  Given the fact that our firm bills flat rates only, there is no concern of additional legal fees for additional meeting.
 
     The signing appointment is usually one to two weeks after the inital consultation, and usually lasts anywhere from one to two hours depending on the depth of explanation you would prefer.  At the end of the signing meeting, the estate plan is completed and you leave with your new estate plan.
 
     Should you have any questions regarding any aspect of your estate plan, you can always feel free to contact our office with any questions ot concerns.  With our free unlimited lifetime consultation promise, you will never have to worry about additional legal fees later on down the road for rountine questions and review.

Top   FAQ

 
HOW MUCH DOES IT COST?  HOW DO YOUR RATES COMPARE?
  
     Our promise to you is a flat-rate billing structure, so after our intiial consultation you will know (to the penny) what fees you are expected to pay for your plan.  This flat rate billing structure allows you to communicate with our office as often and as much as you like without having to worry about incurring additional expenses.
  
     On the spectrum of legal fees associated with creating an estate plan, our firm strives to be at the middle to lower end--the bottom line is that we strive to make our services affordable, and an economically good decision for you.  Nevertheless, should a potential client be in the market for a patient, accessible, and informative, attorney, we will most likely be able to put together a thorough estate plan to fit any budget.
 
     Some attorneys bill by the hour, and at $300+ per hour, fees for estate planning with hourly attorneys are often greater than $5,000 for a basic estate plan; attorneys that charge a flat rate are typically less.   In terms of the range of fees one can expect to pay a flat-fee attorney with a practice dedicated to estate planning, and who has a significant amount of education and experience behind him/her, anywhere from $995 to $3,000 for an individual Trust and estate plan is typical.  And a married couple can expect to pay $1,200 to $5,000.

     Although you can always expect to pay near the lower / middle area of that range, only after an initial consultation can an exact fee be quoted.  I always tell my clients that working with our firm, one can expect to pay anywhere from $995.00 to $3300 for their estate plan.  Factors such as marital status, estate tax exposure, distribution plans, and overall complexity of the estate all factor into the overall fee.  But if you are pleased with our initial consultation, and are motivated to work with us, we will usually be able to move forward with a relationship that is beneficial for both of us.

Top   FAQ

 
DO I REALLY NEED A COMPLETE COMPREHENSIVE PACKAGE? CAN'T I JUST GET A LIVING TRUST?
     
     Although it is true that the living trust is the "backbone" of a comprehensive estate plan, the other documents included in the comprehensive package are necessary to the proper functioning of your trust.  Documents in a comprehensive package either support the living trust, defend the living trust against attack, or facilitate administration of the trust.
 
     Most discount estate planning providers (websites, software, discount attorneys, etc.) usually advertise a much more affordable rate because they only provide the living trust.  And creating an estate plan containing only a living trust provides very limited protection should anything go wrong.  And if the living trust is not properly maintained, the entire document could be fatally flawed.

     If you are going to invest any money to create an estate plan, do not waste it getting a trust if you are not willing to invest a little more to do it right.
 
Top   FAQ
 
 
WHAT IS THE DIFFERENCE BETWEEN WORKING WITH A DEDICATED ESTATE PLANNING ATTORNEY AND GOING THROUGH A DISCOUNT PROVIDER?
    
     The old saying that "you get what you pay for" is very applicable to estate planning.  Your least expensive option for putting together an estate plan is to have a computer do it, whether it be online or through software purchased at an office supply store.  This is probably the most dangerous option given the fact that these software products intend to empower the purchaser to make legal decisions based on assumption without any sound legal advice.
 
     Quite a few clients have come into my office hoping to save some money by doing a trust online, and then paying me a small fee to review it.  As I see these estate plans, it is disheartening to observe that even the most basic requirements of an estate plan are not present.  And it is very rare when I can tell the client that there plan is at least adequate.
 
     In my opinion, going through a discount attorney is not much better.  Attorneys that charge rock bottom rates tend to have a business model that makes up revenue in volume.  High volume operations are often referred to as "Trust Mills" due to the tendency for such organizations to produce cookie-cutter trusts at an extremely high volume.  To accomodate this, the first thing that is sacrificed is the individual legal attention given to the client.  Unfortunately, most clients never receive the education or legal counsel that can really make a difference in their estate plan.
 
     The comment I hear most often from clients having once worked with discount attorneys is something to the effect of ,"Wow! I did not know I had that option!" or "I was simply never told that!"  I hear similar comments from clients that have worked with attorneys who practice in multiple areas of the law, with "living trusts" as a side source of revenue.  The Internal Revenue Code and the Probate Code are so complicated and dynamic, that Ifind it absolutely necessary to dedicate one's practice solely to estate planning.
 
Top   FAQ

 
WHAT ARE THE ADVANTAGES OF WORKING WITH YOUR FIRM AS OPPOSED TO ANOTHER ESTATE PLANNING ATTORNEY OR FIRM?

     First and foremost is the fact that our Estate Planning practice focuses solely on this area of the law, and a huge distinguishing factor is the amount of experience and education Bryan has.  Mr. Eisenbise has dedicated his practice exclusively to comprehensive estate planning, trusts, and probate.  He has represented and counseled hundreds of individuals, families, and business owners in all areas of estate planning, including gift and estate tax planning, living trusts, advanced trusts, asset protection, business succession planning, probate, and trust disputes and litigation.  Bryan received his BA in Business Management from California State University, Fullerton. He received his JD and MBA from Texas Tech University, and an LLM in Tax and Estate Planning from Chapman University School of Law.
 
     Aside from education experience, our firm is committed to principles of accessibility, education, and communication.  As so, we deliver estate planning legal services of only the highest quality, and we ensure you peace of mind bevery step of the way providing unparallelled customer service through constant communication and education.

     Please visit the "Our Principles" page for more information on how we excel in serving our clients.

Top   FAQ

 
 
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