The question of whether an estate planning attorney will review plans drafted by others is a common one, and the answer, particularly at the firm of Steve Bliss, is nuanced. While we don’t offer a simple “second opinion” service in the traditional sense, we absolutely assist clients in understanding and potentially improving existing estate plans. Approximately 60% of new clients come to us with pre-existing documents, seeking clarification or a comprehensive evaluation, according to internal firm data. It’s crucial to understand that a true “review” requires a deep dive into the client’s current circumstances, assets, and goals, things we can only know through thorough consultation. We approach these situations not as simply identifying “errors,” but as ensuring the plan aligns with the client’s evolving needs and current laws. This involves assessing if the documents are properly funded, if beneficiary designations are current, and if the overall strategy remains effective.
Can an estate plan drafted in another state be valid in California?
California, like many states, generally recognizes valid estate planning documents created in other states, provided they meet certain requirements. However, this isn’t always a straightforward yes or no answer. If the documents were properly executed under the laws of the original state, and don’t violate California public policy, they’re likely to be honored. The concern arises when the laws of the two states differ significantly, particularly regarding spousal rights, tax implications, or specific types of trusts. For example, a trust valid in a state with no state estate tax might have unintended consequences in California, which does have its own estate tax rules. We often find that clients moving to California with out-of-state plans benefit from a California-specific review to ensure full compliance and avoid potential challenges during probate. It’s estimated that around 35% of plans we review from other states require some level of modification to fully align with California law.
What happens if my trust isn’t properly funded?
A trust document, no matter how well-written, is essentially useless if it isn’t properly funded. Funding a trust means transferring ownership of assets – like bank accounts, real estate, and investments – into the name of the trust. It’s a surprisingly common mistake, with estimates suggesting that around 50% of trusts are never fully funded. I recall a case a few years back where a man had spent considerable money creating a living trust, believing his family was fully protected. Sadly, upon his passing, the vast majority of his assets remained in his individual name, triggering a costly and lengthy probate process. His well-intentioned plan essentially failed because he hadn’t taken the crucial step of actually transferring ownership of his property into the trust. That family could have avoided probate costs and delays with proper funding of the trust, but now, they face additional hardship.
Are beneficiary designations on accounts more important than what’s in my will or trust?
In many cases, beneficiary designations on accounts like retirement plans (401(k)s, IRAs) and life insurance policies take precedence over instructions in a will or trust. This is because these accounts are often considered “contractual” assets, governed by the terms of the contract rather than by the laws of probate. This can create conflicts if the beneficiary designations don’t align with the overall estate plan. We always advise clients to review and update their beneficiary designations regularly, particularly after life events like marriage, divorce, or the birth of a child. It’s not uncommon for us to discover outdated or conflicting beneficiary designations during a plan review, causing the need for updates to the estate plan. One client, a lovely woman named Eleanor, came to us concerned about her husband’s passing and the distribution of his retirement funds. She had assumed his retirement account would pass through their trust as intended, but upon examination, the beneficiary designation still listed his former spouse. Correcting that oversight required additional legal work and caused unnecessary stress for Eleanor.
How often should I review and update my estate plan?
An estate plan isn’t a “set it and forget it” document. It should be reviewed and updated periodically, at least every three to five years, or whenever there are significant life events. These events include marriage, divorce, the birth or adoption of a child, the death of a beneficiary, a major change in financial circumstances, or changes in tax laws. The tax laws alone are reason enough to review and update a plan on a regular basis. For example, changes to the estate tax exemption amount can significantly impact the overall estate tax liability. We recommend scheduling regular check-ins with your estate planning attorney to ensure your plan remains aligned with your goals and current laws. It’s a proactive step that can save your loved ones significant time, expense, and emotional distress.
What are the potential consequences of a poorly drafted trust?
A poorly drafted trust can lead to a multitude of problems, including increased probate costs, family disputes, unintended tax consequences, and even the complete failure of the plan’s objectives. Ambiguous language, incorrect legal terminology, or a failure to address specific contingencies can all create significant challenges during administration. One client, a successful entrepreneur, had a trust drafted by an online legal document provider. While it seemed straightforward at the time, it lacked the nuanced provisions necessary to address the complexities of his business holdings. After his passing, his family found themselves embroiled in a costly legal battle over the ownership of his company. That could have been avoided with proper legal counsel and a tailored estate plan.
Can I contest a trust if I believe it’s invalid?
Yes, it is possible to contest a trust, but doing so is often complex and requires strong evidence. Common grounds for contesting a trust include undue influence, lack of capacity, fraud, or improper execution. Undue influence occurs when someone exerted excessive control over the grantor (the person creating the trust), causing them to create a trust that doesn’t reflect their true wishes. It’s a difficult claim to prove, as it requires demonstrating that the grantor’s free will was overcome. Lack of capacity refers to the grantor’s inability to understand the nature of the trust or the consequences of their actions. We’ve assisted families in navigating these challenges, helping them gather evidence and present a compelling case.
What’s the difference between a will and a living trust?
A will and a living trust are both estate planning tools, but they function differently. A will is a legal document that specifies how your assets will be distributed after your death. It must go through probate, a court-supervised process that can be time-consuming and expensive. A living trust, on the other hand, is created during your lifetime and allows you to transfer ownership of your assets into the trust. This allows your assets to bypass probate, saving your loved ones time and expense. There are several advantages to a living trust, but it requires more upfront work to establish and fund. The best option depends on your individual circumstances and financial situation.
Ultimately, while we don’t offer a simple “review” service, we do provide comprehensive consultations where we analyze existing estate plans, identify potential issues, and offer recommendations for improvement. It’s about ensuring your plan provides the maximum protection for your family and reflects your wishes, regardless of who drafted the original documents. We approach each client’s situation with a commitment to clarity, education, and effective estate planning.
About Steven F. Bliss Esq. at San Diego Probate Law:
Secure Your Family’s Future with San Diego’s Trusted Trust Attorney. Minimize estate taxes with stress-free Probate. We craft wills, trusts, & customized plans to ensure your wishes are met and loved ones protected.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Probate Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Map To Steve Bliss at San Diego Probate Law: https://g.co/kgs/WzT6443
Address:
San Diego Probate Law3914 Murphy Canyon Rd, San Diego, CA 92123
(858) 278-2800
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Feel free to ask Attorney Steve Bliss about: “Who should be my successor trustee?” or “What happens if an estate cannot pay all its debts?” and even “How can I ensure my beneficiaries receive their inheritance quickly?” Or any other related questions that you may have about Trusts or my trust law practice.