FAQ: Frequently Asked Questions
What is estate planning?An estate plan is a series of legal documents (including a will, trust, and durable powers of attorney) that give guidance and direction to your family and your trustee about how to carry out your wishes. A careful estate plan avoids the unnecessary time and cost of probate, but it does more than that. It gives directions on how you want to be cared for if you suffer a prolonged illness. A complete plan also provides durable powers of attorney for health care and financial management decisions, assists in setting up a conservatorship-if necessary, and gives guidance on taxes laws and specific gifts. /\ TopWhat is a living trust, sometimes called a revocable trust?It is a document, along with a will, that provides for the management of your own assets during your lifetime. It also directs your trustee as to how you want your property managed or distributed upon death. A trust allows you to be a trustee, and thus, maintain control of the property included in the trust just like you always have done. The advantage of a trust is that it can eliminate the need for probate hearings, reduce estate taxes, and distribute the property to your beneficiaries much faster than a will. Administrating your trust upon your death is less costly than traditional probate because it is not based on a statutory fee schedule, reducing overall costs. /\ TopWhat does a will do?A will is a legal document that becomes irrevocable at your death. In it you can name your heirs, select a guardian for your minor children, and choose an executor for your estate. Traditionally upon death, when functioning by itself, a will must go through probate hearings before any property can be distributed to your heirs. /\ TopWhat is Probate?Probate is the court-supervised process by which all the assets you own are transferred to your heirs upon your death. A probate has advantages and disadvantages. The advantage is the State Probate Court will resolve any disputes that might arise concerning your asset distribution, and the court will carefully oversee the actions of your executor. The disadvantage is that your will becomes part of public record. It is usually more costly to complete probate than it is to administrate a trust, because probate fees and expenses are based on a statutory fee schedule. Expenses for executing a will often exceed those of a living trust. Also, in California the average probate can take up to a year or longer, thereby tying up your assets for that period of time. /\ TopCan I qualify for Medi-cal, maintain my assets and not lose my home?Regardless of what you have heard, California laws provide excellent planning options that do not force you to give up all your assets to qualify for Medi-Cal benefits. California has adopted less stringent asset transfer rules than other states. We can show you how to legally preserve your home and protect your assets while still qualifying for Medi-Cal benefits. Learn how to manage the burden of paying for skilled nursing home care without going br /oke. Medi-Cal laws are, however, complex and confusing. There are certain asset tests and qualifying guidelines you must know about BEFORE applying for Medi-Cal. Ford & Rosen provides experience and help getting through the qualifying process. We show you how to avoid losing your home when the State asks for its Medi-Cal money back at the end of your and your spouse's lifetimes. /\ TopAre all estate plans created equal, and can the internet give me what I need?No, not all estate plans do the same thing. Many "simple" estate plans available from paralegal services and the Internet do avoid probate if they are properly funded. Those "simple" plans, however, can fall short when unplanned circumstances touch your family because the "simple" often means it is inflexible. Whereas with our estate plan, we create a document that contemplates many of life's surprises and provides your family with the flexibility it needs during a time of crisis. Simple plans can require your family to incur heavy costs if an illness leads to a conservatorship or a prolonged stay at a skilled nursing facility. Other costly court-mandated orders can be avoided with a flexible estate plan by taking the time to ask the right questions a "simple" estate plan failed to ask. /\ TopHow are the costs determined for estate plans?Depending on the complexity of your circumstances, fees can vary. However, at Ford & Rosen, you are assured that traditional estate planning fees are fixed and capped. We tell you before we begin what it will cost, and we give you a written signed agreement stating the total costs up front. Our fees include discussing your estate plan with you, helping gather in all the necessary personal paperwork, drafting the appropriate legal documents you may need. On more complex and ongoing legal matters such as conservatorships or will contests, we sit down together and decide if fixed fees or hourly is the right way to solve your legal questions. /\ Top |
