A Video Guide to Estate Planning & Living Trust
Below is the Full Transcript of the video
Hi, my name is Paul Horn. I am a California Estate Planning Specialist.
In my office all we do is Living Trusts and Probate.
We don't do immigration law, we don't do divorces, criminal law,
this is all we do- this is our specialty.
I'm a State Bar California certified specialist in this area of the law.
Today, before we get into talking about Estate Planning,
just a little about myself- in addition to being
an Estate Planning attorney I'm also a CPA
This is a picture of my family
This is my wife, my 4 year old son, my 6 year old daughter.
Alright, so let's get into Estate Planning
So this cartoon drawing that you see in front of you
is the receptionist saying to you, "Hey,
there's death and taxes- they're here to see you.
Taxes wants to come in first,
followed by death."
Death, unfortunately, is 100% undefeated. Right?
We're all heading that way.
So Estate Planning is important
So the goal of Estate Planning- the goal of your trust
ought to be to give what you have, to whom you want,
the way you want to give it to them,
and when you want it.
When you create your Trust you're going to be putting all your assets
in the Trust
You want to have a mechanism where if you have dementia, Alzheimer's,
that all these assets are used for your benefit first to take care of you.
once you pass away how do we protect your minor children?
How do we protect the surviving spouse?
We want to make sure that
there is no litigation
in distributing your assets to your children
we will make sure that your values, your ideas,
are passed onto your children and grandchildren
and to maximize the assets that goes to your loved ones
and protect it from the creditors as well
A good Estate Plan, a comprehensive Estate Plan ought to have
So the Trust is what avoids Probate
your Trust is what allows the house to go to your children
when they sell the house it's tax-free; that's the Trust
There will be something called a Pour-Over will in here that says,
"All my assets go to my Trust for my children"
this binder- this comprehensive Estate Planning binder
ought to have an Advance Health Care directive
a Durable Power of Attorney, a Living Will
a HIPAA authorization
a Personal Property Memorandum
an assignment of all your personal property to the Trust
A Certificate of Trust and your Trust ID Card
So your Trust,
you're going to have a Trust ID Card that identifies what the name of your Trust is
If you own an LLC- a corporation
all that will be assigned into your Trust
So, what is a Revocable Living Trust?
A Revocable Living Trust is a private document
where you say, "Hey, I'm going to put all my assets
into the Trust
and as long as I'm alive I'm in charge of these assets
and once I die then it goes to my children
Okay? So that's what a Living Trust is
So when it goes to your children it avoids Probate
It goes in such a manner
where there are less fees involved
maximizing the amount that your children will get
What assets are included in your Revocable Living Trust?
All your real estate, all your cash
stocks, bonds, investments, retirement accounts
and upon your death it will go to your children
in a tax-free manner and protected
Alright, so, a Revocable Living Trust
when you go and create the Living Trust
we put the house into the Trust
your bank accounts and all your assets your assets,
as long as you're alive you're the Initial Trustee
meaning you're in charge.
You're in charge of it, you can sell the house,
or re-finance the house, whatever you want.
and the Trust will say, "Hey,
if I'm disabled, if I'm incapacitated,
someone will be there to take care of it for me.
To use my money to take care of me."
"And upon my death,
I have 4 children, I'm going to choose so-and-so
to be in charge."
For example, to sell the house, divide by four and so forth
So, a Revocable Living Trust
is important in the sense that it's very private.
If you have a Trust it avoids Probate
Probate is very public- Probate exposes all your assets
and who are your children.
Imagine having the world
finding out that your daughter, your son,
is getting $4 or $5 million dollars.
You don't want that!
So a Trust keeps things private:
the value of your estate
who are the beneficiaries?
That's very private.
And the Trust also escapes Medi-Cal Recovery
In California, if you are on Medi-Cal
and you do NOT have a Trust
if you're on Medicaid
California is going to want their money back.
In plenty of cases
if you pass away the government is going to want the children to sell the house
so they can recoup
their Medi-Cal reimbursement.
You don't want that to happen to you so get a Trust.
Get a Trust so you can avoid Medi-Cal recovery so your house can go to your children
We've talked about you, your husband, and your wife
putting all the assets in here
so now upon the first spouse to pass away
we want the surviving spouse to live a fabulous life
to enjoy life, to be happy.
but at the same time we don't want unnecessary
of the second spouse moving in
to take all your hard-earned assets
and nothing left for your children.
So how do we do that?
We can create the Trust in such a manner to protect
the surviving spouse.
Meaning the surviving spouse
"I love you very much, my dear."
You can use whatever you want
But if you ever were
But let's build in some
safeguard so if you get remarried
we don't want third party interference
to come in a drain all our assets
and leave our children with nothing.
So we can create the Trust to prevent
that sad situation.
Alright, so now we move on to
You and your husband, you and your wife both
pass away so it goes to your 3 children.
How do we get the money to your 3 children
in a safe, protected manner?
Meaning, for example,
if they were to get a divorce, if they were to lose money
or creditors are suing them.
Or maybe your son or daughter is not financially
sound at managing money. How do we protect them? Right?
What we do is this
we make sure that your Trust
is able to protect your children, right?
Maybe they're too young,
maybe they're ill, disabled-
maybe they are
maybe they have an addiction problem
we can build your Trust in a manner
where we deliver the money to them
in a vault. Meaning that
upon your death
should your children be going through some
or legal nightmare
your money that's going to your son or daughter is protected.
Okay? So how we do that
is we sit down with you
we'll determine together which works out best
because the majority of Trusts just say,
"Hey when I die the house goes to my son, my daughter."
That's called outright distribution
and that may not be the answer because
your son may run out and get a Lamborghini immediately
right? You may not want that.
Maybe we say, "Okay hold on a second."
Let's stage out the distribution at various stages.
a third at age 25
a third at age 30
and 35 and so forth
Or we can say, "Hold on a second"
maybe a better way
to pass on our money
is through a lifetime beneficiary-controlled trust
called an Inheritor's Trust
where we give them the money
in such a manner where it stays in the vault
for them only and only them.
Where it can withstand a divorce
withstand a huge lawsuit nightmare, bankruptcy and so forth
Alright, so yeah
How do you want to be remembered?
What values do you want to pass on to your children?
How do you want to protect your hard-earned assets?
That's what makes a great Trust
a great Estate Planning.
A Durable Power of Attorney is very important
It ought to be in this binder
It's called a Durable Power of Attorney
A Durable Power of Attorney says, "Hey,
if I become incapacitated
I trust my husband, I trust my wife
I trust my daughter, I trust my son
to sign my name on my behalf."
Because if you don't have a Durable Power of Attorney built in
what's going to happen is the government is going to take over.
The government says hey, you're over 18
you've lost mental capacity, you're unable to sign
that's called Conservatorship- where the court takes over.
You don't want that.
So a Durable Power of Attorney
built into your Estate Planning
as part of your Trust
will avoid this embarrassing Conservatorship process.
An Advance Health Care Directive is very important because
currently when you go to the hospital,
when you go to the doctor
you speak on your own behalf.
But in situations where you are unconscious
where you need someone to step in your shoes
speak on your behalf
the legal document to do that
is known as the Advance Health Care Directive.
Very critical to have, okay?
In certain situations you want
Your wife, your son, your daughter
to access your medical records to bring you to a specialist
to save your life.
Because medical records is confidential you're going to need the HIPAA Authorization
and that will be in here as well, too.
And, something called a Living Will
because we've seen cases where
the family are fighting- you are brain dead, you are a vegetable
but they're fighting in the family to keep you that way
to hook you up to a machine just to pump your blood
even though you are permanently brain dead
We have documents that says, "Hey,"
-if you wish-
just to let you go. Don't fight in court, don't waste
the Estate money.
We can do that too, through something called a Living Will.
We'll also give you a Pour-Over Will that says
everything that I own goes to the Trust
for my children.
So, Estate Planning
Who is it for? Well it's for everyone, right?
The only persons that do not need
is someone who never dies.
So we know that
everybody needs a Living Trust because everybody
at one time or another is going to face
So Estate Planning is for everyone.
So, beware of the "Bare Bones" Trust out there.
A Trust that is not personalized to your needs.
A Trust that doesn't protect against remarriages.
A Trust that doesn't protect against divorces, lawsuits,
and so forth.
A good Trust ought to say "it goes to my children,
and when my children pass it goes to my grandchildren.
So only a good Trust done by a specialist by myself
is going to have that catered to your family.
So our Estate Planning Process, we meet with you,
we understand your family dynamic,
Then we design the Trust,
communicate back and forth,
meeting, email, phone call, whatever it takes.
Once it's done you come into the office and you sign
the legal documents, you sign this binder.
Then we take the houses (deeds) and go and record it for you.
We give you funding instructions
All this takes 2 weeks to do
it takes 2 weeks to do.
So, finding the right attorney is very important
you *must* find an attorney that has this logo.
You see on the screen this logo? This logo
is the State Bar of California helping
helping the public.
It says, "Hey, this lawyer
is a Certified Specialist."
Less than 1% of all attorneys in California are
State Bar Specialists
so you want to look for this logo, like myself.
I am a State Bar Specialist
So make sure you have that, and reputation is important too.
Google, Yelp, check them out.
What are people saying about them?
I am tell you how great I am
But my past clients, what do they say about me?
Check us out, we have the best reviews
on Google, on Yelp
So a Certified Specialist is important because we
have to go get additional education in Estate Planning, in Trusts
We have to pass extra examinations,
we have to be practicing a certain amount of years.
All this comes together, all this criteria
State Bar of California, they look at
to see if you're worthy of being a Board Certified Specialist
I look forward to helping with your Trust, with your family
so give me a call, thank you so much.
Why a Living Trust is the Most Important Estate Planning Document in California?
The biggest benefit of a trust is that it will avoid probate at the time of the settlor’s death. A probate refers to the California court supervising the process of administering the decedent’s estate. Because the living trust represents an enforceable contract between the decedent and the successor trustee, there is no reason for a court to get involved, thus, no probate is necessary.
If you own a business, the living trust will allow continued, uninterrupted management of the business. If you die or become incapacitated then your business will come to a dead stop. However, if you named a successor trustee in your living trust to run your business, your business will have no interruption in management.
A living trust can be a useful device for planning for incapacity. Once the assets are transferred into the living trust, then the trustee can manage the assets for you in your absence due to you being out of the country or temporarily incapacitated.
Tax benefits to your heirs. Giving your home to your children in a living trust means that they will get the house after your die, which ensures that the children will get a full stepped-up basis and will not have to pay any capital gains if they choose to sell the house.
There are many other benefits of a living trust. Schedule a consultation to see how your family can benefit from having a comprehensive trust package.
7 Essential Components of a Living Trust
Check if your trust fully protects you and your loved ones!
There are no do-overs once you pass away: you can't come back and correct the mistakes. Use our free tool to see if your trust has all the essential components.
Why Attorney Paul Horn?
Less than 1% of California attorneys have been recognized by the State Bar of California as Certified Specialists in Estate Planning, Trust, and Probate law. Paul Horn is one of them!
In order to be certified, Paul was required to take and pass a comprehensive full-day written exam in estate planning, trust, and probate law. He was also required to demonstrate a high level of expertise and the requisite number of years of experience in estate planning.
Lastly, in order to become certified by the State Bar of California, Paul was favorably evaluated by other attorneys and judges familiar with his work in estate planning, trust, and probate.
Any attorney can say they practice a specific field of law, but how can you be assured that they really do?
Our practice focuses entirely on estate planning and probate.
Paul Horn is admitted to practice law in the United States Federal District Court or the Central District of Calfornia, and in all California state courts. Paul is a member of the Los Angeles County Bar Association, NAELA, CANHR, Wealth Counsel, and Elder Counsel.
He is a distinguished speaker on probate, trust, asset protection, and real estate issues to trade associations, banks, attorneys, and the general public.
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