Gloria D. Córdova, Estate Planning & Probate Attorney

The Law Office of Gloria D. Córdova provides Estate Planning  including Wills, Trustees and Power of Attorney, regardless of the size of your estate. Everyone needs an estate plan—whether your estate is large or small, you should designate someone to manage your assets and make health care and personal care decisions for you if you ever become unable to do so for yourself. If you fail to plan ahead, a judge will simply appoint someone to handle your assets and personal care. And your assets will be distributed to your heirs according to a set of rules known as intestate succession. An estate plan gives you much greater control over who will inherit your assets after your death. Through estate planning, you will determine:

• How and by whom your assets will be managed for your benefit during your lifetime if you ever become unable to manage them yourself.
• When and under what circumstances it makes sense to distribute your assets during your lifetime.
• How and to whom your assets will be distributed after your death.
• How and by whom your personal care will be managed and how health care decisions will be made during your lifetime if you become unable to care for yourself.

Many people mistakenly think that estate planning only involves the writing of a will. Estate planning, however, can also involve financial, tax, medical and business planning. The nature of your assets and how you hold title to those assets is a critical factor in the estate planning process. A will is part of the planning process, but you will need other documents as well to fully address your estate planning needs:

A will is a traditional legal document which names individuals (or charitable organizations) who will receive your assets after your death, either by outright gift or in a trust, nominates an executor who will be appointed and supervised by the probate court to manage your estate; pay your debts, expenses and taxes and distribute your estate according to the instructions in your will and nominates guardians for your minor children. Most assets in your name alone at your death will be subject to your will. Some exceptions include securities accounts and bank accounts that have designated beneficiaries, life insurance policies, IRAs and other tax-deferred retirement plans, and some annuities. Such assets would pass directly to the beneficiaries and would not be included in your will. In addition, certain co-owned assets would pass directly to the surviving co-owner regardless of any instructions in your will. And assets that have been transferred to a revocable living trust would be distributed through the trust—not your will. For some, a California Statutory Will (a fill-in-the-blanks form) may be sufficient. This form can be printed out from the California State Bar Web site at www.calbar.ca.gov (go to Public Services and Making a Simple Will). Keep in mind, however, that you must execute your will in the manner required by California law. Failure to do so could invalidate the entire will. For more information, order a free copy of the State Bar pamphlet entitled Do I Need a Will?

Revocable Living Trust is a legal document that can, in some cases, partially substitute for a will. With a revocable living trust (also known as a revocable inter vivos trust or grantor trust), your assets are put into the trust, administered for your benefit during your lifetime and transferred to your beneficiaries when you die—all without the need for court involvement. Most people name themselves as the trustee in charge of managing their living trust’s assets. By naming yourself as trustee, you can remain in control of the assets during your lifetime. In addition, you can revoke or change any terms of the trust at any time as long as you are still competent. (The terms of the trust become irrevocable when you die.) In your trust agreement, you will also name a successor trustee (a person or institution) who will take over as the trustee and manage the trust’s assets if you should ever become unable to do so. Your successor trustee would also take over the management and distribution of your assets when you die. A living trust does not, however, remove all need for a will. Generally, you would still need a will—known as a pour over will—to cover any assets that have not been transferred to the trust. For more detailed information, see the California State Bar pamphlet Do I Need a Living Trust?

Testamentary Trusts are trusts that are based on instructions in your will; such trusts are not established until after the probate process. They do not address the management of your assets during your lifetime. They can, however, provide for young children and others who would need someone to manage their assets after your death.

Irrevocable Trusts are trusts that cannot be amended or revoked once they have been created. These are generally tax-sensitive documents. Some examples include irrevocable life insurance trusts, irrevocable trusts for children, and charitable trusts.

A durable power of attorney allows your designated agent or attorney-in-fact to make financial decisions and manage your assets on your behalf if you become unable to do so. An advance health care directive/durable power of attorney for health care, allows you to designate an attorney-in-fact to make health care decisions for you if you ever become unable to make such decisions. In addition, this legal document can contain your wishes concerning such matters as life-sustaining treatment and other health care issues and instructions concerning organ donation, disposition of remains and your funeral. Both of these attorneys-in-fact lose the authority to make decisions on your behalf when you die. If you have not made any such arrangements in advance and you become unable to make sound decisions or care for yourself, a court could appoint a court-supervised conservator to manage your affairs and be responsible for your care.