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FAQs

I don’t have a lot of money, do I still need to have a basic estate plan in place?

How in depth is an estate plan?

Where do I start?

Does everybody need a will?

I though a trust was just for the wealthy?

Does my family need to be a part of my meeting with an Estate Planning Attorney?

What is the maximum amount you may leave to heirs free of federal tax?

What is the maximum amount you may leave to your spouse free of federal tax?

How may I give a gift tax-free to reduce my estate?

Is there a way to give charitable gift that keep on giving?

I don’t have a lot of money, do I still need to have a basic estate plan in place.

The simple answer is YES. Seek the legal advice of a Riverside Estate Planning Attorney for detailed steps but remember such a plan ensures that your family & financial goals are met when you die.

How in depth is an estate plan?

A well written estate plan has several key elements.

A will
A power of attorney
A “Living Will” or what is referred to as a healthcare proxy or a medical power of attorney.
Additionally you might also want to include a trust.

Due to the fact that federal and California state laws govern the estates you really need to seek the advice of a local Riverside Estate Planning attorney.

Where do I start?

First off you need to just take inventory of all of your assets. Your assets include:

Investments
Retirement savings
Insurance policies
Real estate
Businesses

Then answer these three questions:

Who do I want to inherit my assets?
Who do I want handling my financial affairs if I am ever incapacitated?
Who do I want making my medical decisions if I become unable?

Does everybody need a will?

Yes, a will lets everyone know exactly where you want your assets distributed when you die. If you live in Riverside California and you die without a will - also known as dying "interstate" – it can be costly to your heirs and leaves you no say over who gets your assets. Keep in mind; even if you have a trust, you still need a will to take care of any holdings outside of that trust when you die.

I though a trust was just for the wealthy?

If you have any assets and you want to have a say in how they are distributed when you die you need a Trust. Trusts also allow you to reduce your estate tax & to distribute assets to your heirs without the cost, delay, and publicity of probate court.

Does my family need to be a part of my meeting with an Estate Planning Attorney?

Here is the deal, this is up to you? Keep in mind an inheritance can be a loaded issue. At the Riverside Estate Planning offices of Joe Blow we recommend that you be clear about your intentions, this will help mitigate potential conflicts after you're gone.

What is the maximum amount you may leave to heirs free of federal tax?

That number will be $3.5 million in 2009; however the estate tax is scheduled to phase out completely by 2010, but only for a year. Unless Congress passes new laws between now and then, the tax will be reinstated in 2011 and you will only be allowed to leave your heirs $1 million tax-free at that time.

What is the maximum amount you may leave to your spouse free of federal tax?

The number is unlimited. However you really want to speak with your Riverside Estate Planning attorney on this one because by leaving all your assets to your spouse, you don't use your estate tax exemption and instead increase your surviving spouse's taxable estate. That means your children are likely to pay more in estate taxes if your spouse leaves them the money when they die. Plus, it defers the tough decisions about the distribution of your assets until your spouse's death.

How may I give a gift tax-free to reduce my estate?

There are two easy ways to give gifts tax-free and reduce your estate.First, you may give up to $12,000 a year to an individual (or $24,000 if you're married and giving the gift with your spouse).Second, you may also pay an unlimited amount of medical and education bills for someone if you pay the expenses directly to the institutions where they were incurred.

Is there a way to give charitable gift that keep on giving?

Yes. If you donate to a charitable gift fund or community foundation, your investment grows tax-free and you can select the charities to which contributions are given both before and after you die.