FAQs

Although plans should be flexible, your plan may not work as expected, as family circumstances and relevant laws change.  To ensure your plan accomplishes its intended objectives, you should establish a reasonable plan for periodic reviews with your attorney.

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Trust administration is the process that must be completed after the creator of a trust dies.  It provides for the successor trustee of the decedent’s trust to gain control of the trust assets, notify certain parties as required by law, pay debts and taxes, sell assets as needed, and distribute the remaining assets to the beneficiaries of the trust in accordance with the terms of the trust.​​​​​​

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The trust itself, California law, and the Internal Revenue Code all place specific duties on the successor trustee. This may include dealing with real property tax issues, income tax issues, and, in some cases, estate tax issues.  A trustee is required to provide accountings to trust beneficiaries to explain the income and expenses of the trust since the death has occurred and until distributions to the beneficiaries are completed.  An attorney will assist the trustee throughout the trust administration process, making sure that all responsibilities are completed properly to ensure that beneficiaries receive their inheritance as intended and that the trustee avoids any personal liability.

One of the valuable benefits of a revocable trust is that it allows your heirs to avoid probate if the trust is properly funded. As such, it will help you transfer your assets to your beneficiaries faster and with less expense. In addition, it provides protection in the event of incapacity during lifetime, which, without planning, can end up being more expensive than probate and create incredible stress during the lifetime, not just for your heirs.

If you own assets without named beneficiaries that exceed the statutory limit in California (generally $208,500 in 2025), and a spouse is not the beneficiary, your assets must go through the court process of probate, whether you have a Will or not.  The benefit of having a Will is that you can select your executor and can designate how you wish to distribute your assets, but probate will not always be avoided simply because you have a will.

Proposition 19 in California significantly altered the property tax benefits that were available under Proposition 58.  While there were broader property tax benefits for your beneficiaries inheriting real estate under Proposition 58, there are still some benefits under Proposition 19.  Under Proposition 19, if a child makes their parent(s)’ former primary residence their primary residence, there is up to a $1,000,0000 exemption from property tax reassessment. 

Yes, maintaining corporate and LLC formalities is essential. Requirements like annual meetings and filing required state forms regularly are legal obligations. Ignoring them can jeopardize your entity’s legal and tax benefits, potentially exposing your personal assets to judgments for business liabilities.

The contract is the foundation of any real estate transaction. It defines the terms, protects your rights, and ensures both parties understand their obligations. A thorough contract helps avoid misunderstandings and expensive disputes by clearly defining the parties' rights and responsibilities.