Full Service Estate Planning

Meeting the Estate Planning Needs of California Families

At the California Law Office of James D. Krupka, I take the time to get to know my clients and develop complete estate plans that reflect actual family dynamics, personalities and financial situations. For the past 15 years, I have offered full-estate planning services in Santa Rosa at an affordable price.

The Importance of Full-Service Estate Planning

An estate plan that does not provide you with the full funding and transfer documents required to make the plan effective is much like having a new car without gas. It may look good, but it will not accomplish what you need if it is just going to sit in the garage.

As your attorney, I will provide you with the full service you require to accomplish your goals by creating the following documents and ensuring all transfer documents and funds are in place:

• Last will and testament: Every adult should have a will, regardless of your financial or marital status.
• Trusts: The creation of a trust requires more than a well-crafted document. I ensure that your trust is accompanied with necessary transfer deeds, instruction letters, schedule of assets and other documents needed to ensure your trust is funded.
• Durable powers of attorney: If you become unable to communicate your wishes down the road, a power of attorney can give someone you trust the ability to make decisions on your behalf. I draft durable powers of attorney for health care and finance.

A Full-Service Estate Plan Can Help You Avoid Probate

Probate is the court administration of an estate that occurs after someone passes away. The process can be expensive and slow, especially if a large estate is involved. I am experienced with several estate planning tools that can help to avoid the probate process, including the use of beneficiary designations and living trusts.

If a loved one has passed, and you have been named as the personal representative, I have a team of skilled professionals standing ready to assist you through the probate process.

Who Wouldn't Want to Avoid Probate?

Probate is expensive, time-consuming and unnecessary. Most people think that you don't need to worry about estate planning unless you're filthy rich, but that couldn't be farther from the truth.

The threshold for probate is only $100,000, but for real estate it's only $20,000! Furthermore, probate fees are based on the fair market value of assets, not the equity. For example, a piece of real estate that is worth $500,000 has total probate fees of $26,000. A million dollar property, $46,000.00. These fees are not diminished by any mortgages. Even if your $500,000 home has $500,000 of debt, the fees are based on the fair market value, not the equity. Even if the property is upside down, it is still subject to the same probate fees. Wow! It's like paying a real estate commission. The commission is based on the sale price, not the equity. Probate is the same. It's like a real estate commission when you die. You're taking money, big money, right out of the pockets of your children, and giving the money to the executor and probate attorney (oftentimes the same person).

What's So Great About a Will?

Nothing, considering that a will is a guarantee of probate.

Then why do people have wills?

Because (a) they're ignorant; (b) their assets have very little value, (less than $20,000 of fair market value for real estate or less than $100,000 of value for other classes of assets); or (c) that they've gone to a will and probate attorney who told them that they don't need a trust, when in fact they do.

What's So Great About a Revocable Living Trust?

Trusts avoid probate, wills do not.

Then why doesn't everyone have a trust? See (a), (b) & (c) above.

The fact is, many people do have trusts, and there are many, many more that don't, who should.

I've Heard That If You Have a Trust, That Everything Happens Automatically, That It Avoids All Taxation, and That It Protects Your Assets From Creditors?

Wrong, wrong, & wrong.

For a trust to work the way that we want it to work, it must be funded, which means that the assets need to be transferred to the trust. Most law offices don't do this, or if they do, they charge a premium. My office does perform this service, but it is done at a reasonable fee.

As for taxation, estate taxes, capital gains taxes and property taxes, they are minimized or in some cases eliminated with proper estate planning, it's a case by case basis.

As for asset protection, a revocable trust offers no asset protection while you are alive. For married couples, after the first spouse's death, up to half the assets can be protected.

Estate Planning: Product or Service?

Some people think that they will "purchase" a living trust just like buying a can of corn off the shelf at Costco. You pay the lowest price, and get in and get out.

Do you want to pay the lowest price possible for a plumber, a realtor, a mechanic or a contractor? Paying discount prices in a service industry has inherent risks. By cutting corners, you get lack of professionalism and unlicensed workers. Is it really cost effective to pay the cheapest price if you have to pay to have it re-done, and worse, if there is a breakdown after it is too late to fix it? (Like after you die, in the case of a living trust)

A cut rate trust will be unfunded 99 times out of a hundred. A cut rate trust will be ill-conceived and poorly drafted 9 times out of 10. You don't want and avoid a cookie-cutter approach by inexperienced non-attorneys.

You don't simply "buy" a trust, and then never see the attorney again. There are ongoing issues, such as changing assets, changes in family dynamics, changing tax laws, incapacity and death. What you are doing when you have a living trust drafted by an experienced attorney is employing someone with whom you have a lifetime relationship. By assuring that your family's safety is important enough to go to a reputable, honest, and proficient mechanic for your car, why would your family's well-being be delegated to a "Speedy Lube" equivalent for important legal and tax issues?

How Do I Get Started?

Easy. Call my office. Talk to Valerie or Kathleen and set up an appointment. You'll be asked to think about who would make financial or health care decisions if you're unable to, and to bring in copies of deeds to real estate, and copies of statements for bank accounts, brokerage accounts, IRA's, etcetera.

The first meeting is a free consultation. Recommendations will be made, specific fees will be discussed and we will decide to either work together or not. It is simple as that.

Call 707-623-1158 or contact me online to schedule a free initial consultation at my Sonoma County office. I can discuss with you all possible options for your estate plan or will have my team assist you with the probate process.

FULL SERVICE ◊ REASONABLE FEES

Law Office of James D. Krupka

Toll Free: 1-888-572-9053 ◊ Fax: 707-542-4342