Frequently Asked Questions
Answers to common questions about estate planning, probate, and planning for incapacity in California.
What is Estate Planning?
Estate planning is the process of anticipating and arranging for the management and disposal of a person's estate during their life and at and after death, while minimizing gift, estate, generation skipping transfer, and income tax.
Do I need a Will or a Trust?
In California, a will on its own still goes through probate: a court process that typically takes 9 to 18 months, becomes part of the public record, and carries statutory fees set by the Probate Code. A funded revocable living trust lets your successor trustee manage and distribute your assets without going to court. Most California plans pair a revocable trust with a pour-over will, which catches any assets left outside the trust. The right structure depends on your assets, your family, and your goals.
What is Planning for Incapacity?
Planning for incapacity puts the people you trust in charge if illness or injury leaves you unable to manage your own affairs. A complete plan names a successor trustee to manage your trust assets, an agent under a durable power of attorney for your finances, and an agent under an advance health care directive for medical decisions, along with a HIPAA authorization so they can speak with your doctors. Without these documents, your family may have to ask a court to appoint a conservator, which is public, slow, and expensive.
Why do I need a Power of Attorney?
A durable power of attorney lets you appoint someone you trust to manage your financial and legal affairs, such as bank accounts, bills, and tax filings, if you become incapacitated. Assets held in your trust are managed by your successor trustee, but a power of attorney covers everything else. Without it, your family may have to petition the court for a conservatorship to get that authority.
What is an Advance Health Care Directive?
An advance health care directive is the California document for medical decisions. It names an agent, and alternates, to make health care decisions for you if you cannot make them yourself, and records your own instructions about treatment, end-of-life care, and organ donation. Every estate plan we prepare includes one, along with a HIPAA authorization.
How long does probate take in California, and what does it cost?
Probate in California typically takes 9 to 18 months, depending on the county. The attorney and the executor each receive a statutory fee based on the gross value of the estate, before subtracting any mortgage, so a $1,000,000 home alone generates $46,000 in combined fees before court costs. Read more about probate and estate administration.
My spouse is not a U.S. citizen. Does that change our plan?
Yes. Assets left to a spouse who is not a U.S. citizen do not qualify for the unlimited marital deduction, so amounts above the federal estate tax exemption can be taxed at the first death. A Qualified Domestic Trust (QDOT) can defer that tax. Read more about planning for non-citizen spouses.
Can you help if I have assets or family outside the United States?
Yes. We coordinate California estate plans with assets, beneficiaries, and advisors in other countries, advise individuals on tax planning before they become U.S. tax residents, and handle California probate for non-U.S. citizens. Read more about international estate planning.
Can estate planning help when I sell my business?
Yes, and the earlier it starts, the more options you have. Entity choice, ownership structure, and transfers of business interests made well before a sale can reduce income and estate tax and make the business easier to transfer. Read more about tax optimization and business exit planning.
Do I need to live in California to work with you?
No. Yana Finkelstein is licensed in California, and Foros Law advises clients outside California on California law and federal tax matters, such as California property and trusts and federal estate, gift, and income tax. When a matter turns on another state’s or country’s law, we work with locally licensed counsel. See the Disclaimer for details.