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Yes, a properly created and funded trust can help certain assets avoid probate in California. For many families in Wildomar and throughout Riverside County, a revocable living trust can be an important estate planning tool because assets held in the trust can generally pass according to the trust's instructions without going through the traditional probate process. However, simply creating a trust is not enough. Assets generally must be properly transferred into the trust for the trust to accomplish its intended purpose. If you have questions about a trust, probate, trust administration, or a dispute involving trust assets, King Law Firm Attorneys at Law is located at 34859 Frederick Street, Suite 108, Wildomar, CA 92595. Call 951-834-7715 or contact King Law Firm Attorneys at Law to discuss your situation. more How Can a Trust Help Avoid Probate? Probate is the court-supervised process that may be used to administer assets remaining in a deceased person's estate. Whether probate is required depends on factors including how assets were owned, their value, beneficiary designations, and the estate planning documents in place. A properly funded living trust works differently. When assets are transferred into a trust, legal title to those assets is held by the trustee according to the terms of the trust. During your lifetime, you may serve as trustee of a revocable living trust and continue managing the trust property. You can also name a successor trustee who can take responsibility for administering the trust after your death or if circumstances described in the trust require a successor to act. Because property properly held in the trust does not need to be transferred through a will at death, those assets can generally be administered outside of probate. Creating a Trust Is Only Part of the Process One of the most important aspects of using a trust for probate planning is funding the trust. Creating and signing a trust document does not automatically place all of your property into it. Depending on the type of asset, additional steps may be necessary to transfer ownership or otherwise coordinate the asset with the estate plan. For example, real estate intended to be held in a trust generally requires appropriate documentation to transfer title to the trustee of the trust. If an asset remains individually owned at death without another method of transfer, the existence of a living trust alone does not necessarily prevent that asset from becoming part of a probate estate. For questions about how a trust may affect probate in California, call King Law Firm Attorneys at Law at 951-834-7715 or request a consultation online. Types of Trusts Used in California Estate Planning There are many types of trusts, and each serves a different purpose. Two broad categories people commonly encounter are revocable and irrevocable trusts. Revocable Living Trust A revocable living trust is commonly used as part of an estate plan. As the name suggests, a revocable trust can generally be amended or revoked by the person who created it while that person is living and has the legal capacity to make those decisions. The person creating the trust may also serve as the initial trustee, allowing that individual to continue managing property placed in the trust. The trust can provide instructions concerning: Who will serve as successor trustee How trust assets should be administered Who should receive property after death When and how beneficiaries receive their distributions How certain property should be handled if the creator becomes incapacitated When assets are properly titled in the trust, the successor trustee can generally administer those assets according to the trust rather than transferring them through probate. Irrevocable Trust An irrevocable trust generally provides substantially less flexibility than a revocable living trust. Depending on the type of irrevocable trust and its terms, the person establishing it may give up significant rights or control over the transferred property. Irrevocable trusts may be used for specific estate planning, asset-management, tax, or beneficiary-related purposes. They should not be viewed simply as a "better" version of a revocable trust. Whether an irrevocable trust is appropriate depends heavily on the circumstances and objectives involved. Does Everything in a Trust Automatically Avoid Probate? No. The important question is not simply whether someone has a trust. It is whether the relevant property was properly transferred to or otherwise coordinated with the trust. This is why periodically reviewing an estate plan can be important. Someone might establish a living trust and later purchase a home, open financial accounts, acquire investments, or receive other property without considering how those assets fit into the existing plan. When property is left outside the trust, additional procedures may be necessary after death. What About Assets With Named Beneficiaries? A trust is not the only way property can potentially transfer outside probate. Certain assets may pass through beneficiary designations, survivorship rights, or other legally recognized transfer mechanisms. The correct approach depends on the particular asset and how ownership and beneficiary designations are structured. An effective estate plan therefore involves more than simply preparing a trust document. The trust, property ownership, beneficiary designations, and other estate planning documents should work together. Why Should a Trust Be Reviewed? Estate plans should not necessarily remain untouched for decades. A review may be appropriate following significant personal or financial changes, such as: Marriage or divorce Birth or adoption of a child Death of a beneficiary or trustee Purchase or sale of significant real estate Major changes in financial circumstances Acquisition of substantial new assets Changes in family relationships or planning priorities Changes in California law may also affect estate planning considerations over time. A review provides an opportunity to determine whether the trust still reflects your wishes and whether assets have been properly coordinated with the plan. What Happens After the Trust Creator Dies? Avoiding probate does not mean that nothing has to happen after death. A successor trustee generally has responsibilities associated with administering the trust. Depending on the circumstances, these duties can include identifying and safeguarding trust property, reviewing the trust's instructions, communicating with beneficiaries, addressing debts and expenses, maintaining appropriate records, and ultimately distributing assets as directed by the trust. Trust administration can also lead to disagreements. Beneficiaries may question a trustee's decisions, distributions, accounting, handling of property, or interpretation of the trust. Trustees may also encounter disagreements among beneficiaries or uncertainty concerning their responsibilities. King Law Firm Attorneys at Law handles trust litigation matters involving trustees, beneficiaries, trust administration, and disputes over trust assets. If you are involved in a trust dispute or have concerns about how a trust is being administered, call 951-834-7715 or contact King Law Firm Attorneys at Law. Can a Trust Guarantee That Probate Will Never Be Necessary? No estate planning document should be treated as an absolute guarantee that probate will never be required. Whether probate or another court procedure becomes necessary depends on the assets involved, how they were titled, their value, applicable California law, and the circumstances existing at the time of death. A properly established and funded trust can nevertheless be an important tool for reducing the amount of property that may otherwise have to pass through probate. Talk With King Law Firm Attorneys at Law in Wildomar, CA Trust and probate issues can become complicated when property ownership, beneficiary rights, trustee responsibilities, or family disagreements are involved. King Law Firm Attorneys at Law is located in Wildomar, California, at: King Law Firm Attorneys at Law 34859 Frederick Street, Suite C Wildomar, CA 92595 If you have questions involving a trust, probate matter, trust administration, beneficiary rights, or trust litigation, call 951-834-7715. You can also contact King Law Firm Attorneys at Law online to request a consultation. This article is intended for general informational purposes and does not constitute legal advice regarding a particular estate, trust, or probate matter.

Another new year has begun, which means dozens, if not hundreds, of laws have gone into effect as of January 1st, 2024. While we cannot cover all new 2024 laws in California, Arizona, Texas, and Kentucky, we will focus on a few we feel have the greatest impact on your everyday lives. California Gavin Newsom signed 890 bills into law last year. Some were relatively insignificant, while others were more impactful. For a comprehensive list, click here. California understands the importance of your health. Under AB 352, companies handling electronic health records are required to safeguard sensitive information, such as abortion, gender-affirming care, and pregnancy loss, for residents and visitors of California. Meanwhile, AB 663 enables mobile pharmacies to dispense treatment for opioid addictions in any community across the state. As California’s minimum wage rises to $16 per hour, fast food workers will see their minimum wage increase to $20 per hour thanks to AB 1228, while SB 525 raises the minimum wage for healthcare workers to $23. For anyone looking to rent an apartment, AB 12 limits the security deposit amount a landlord charges to a single month. And finally, the California Privacy Protection Agency (CPPA) will create a way for consumers to force data brokers to delete their personal information by 2026. In order to activate this resource, SB 362 requires data brokers to register with the CPPA. Arizona Several new laws in Arizona focused on bettering your finances. Prop 206 increases the minimum wage to $13.85, based on the 2021-2022 inflation rate. At the same time, a tax reform package replaces the state’s income tax scale with a 2.5% flat tax rate — a year ahead of schedule. Also, depending on the situation, one of Arizona’s new laws allows someone arrested, charged, or convicted of a crime the opportunity to request case records for that specific crime to be sealed. Texas Texas had a grueling year as it concerns the number of laws drafted and passed last year. Click here for a more comprehensive list. SB 3 will affect 70,000 businesses, which exempts them from the state’s franchise tax. The exemption will now allow for up to $2.47 million on the business’s total taxable revenue, doubling the previous exemption rate. Universities across the state may not be as excited. SB 17 bans publicly funded universities from activating Diversity, Equity, and Inclusion (DEI) initiatives. This includes creating DEI offices, hiring employees to work for DEI initiatives, and implementing DEI training as a condition of hiring or admission. Kentucky Less than a dozen laws go into effect in Kentucky. The most important involves income triggers from previous laws, which have now allowed the state income tax to drop from 4.5% to 4%. Meanwhile, electric vehicle owners must now pay $120 per year for road maintenance and upkeep. (Hybrid and electronic motorcycle owners will pay half that cost.) Learn more here.

Once again, as a new year begins, a bevy of new laws across the nation have officially gone into effect. Below are three important 2023 laws in California, Arizona, Texas, and Kentucky that residents of each state should know. California AB 2011, also known as the Affordable Housing and High Road Jobs Act, allows for expanded housing to be built in areas currently zoned for commercial property. Unused retail spaces, office buildings, and parking lots can now be transformed into affordable housing and residential communities without the need to go through local approval processes. Almost every state will be raising its minimum wage this year. SB 3 will be raising California’s minimum wage to $15.50, but more importantly, AB 257, also known as the FAST Recovery Act, creates a council made up of workers, employers, and government officials. This council will set rules regarding minimum wage standards and other working conditions for fast food chains with at least a hundred employees nationwide. If someone has served time after Jan 1, 2005, SB 731 will allow that persons record to be expunged. Those with past violent felonies or who have been convicted of a felony within four years of the request may not be automatically eligible but may still petition for expungement. Arizona The minimum wage in Arizona is directly tied to inflation. Due to the current rate of inflation between August 2021 and August 2022, the minimum wage will increase $1.05 to $13.85. ARS 13-911 follows in the footsteps of California’s SB 731, except only those who are arrested and/or convicted after December 31, 2022 are eligible to petition the court for expungement. One year before it was originally scheduled to take effect, Arizona’s 2.5% income tax will dissolve Arizona’s current 4-tier tax structure into one flat rate for all citizens. Texas The court system in Texas is getting a major overhaul. HB 3774 creates new district, statutory county, statutory probate, and criminal law courts, will allow public access to the state court database, and changes certain regulations and how some proceedings are handled. SB 12 reduces the amount of ad valorem taxes—or taxes based on the assessed value of real property—that a school district can impose on elderly or disabled residents. As an amendment to the Texas Clean Air Act, SB 1210 forbids the prohibition of hydrofluorocarbon refrigerant substitutes during construction of residential and commercial buildings. Kentucky The first of 230 new 2023 laws in Kentucky going into effect, HB 9 creates a new model for funding charter schools. These schools may now receive tax dollars from both local and state levels. To help students in higher education, colleges and universities in Kentucky must increase the due process protection rights for students under HB 290. Finally, HB 7 will require individuals to prove to the Cabinet for Health and Family Services that they are working or volunteering in some capacity to receive public benefits. It will also impose stricter penalties for those abusing food assistance programs.

When someone is mentally or physically incapacitated, they may not be able to perform tasks necessary to live. When this happens, family members or friends may have the right to become a guardian or a conservator and take legal responsibility for performing personal and financial tasks for them. Which one, guardianship or conservatorship, is right for your situation? That mostly depends on which state you live in. Because King Law Firm Attorneys at Law, Inc. practices in both California and Arizona, we’ve compiled some key similarities and differences these states have when it comes to guardianship or conservatorship. Guardianship Becoming a guardian over another person Is taking legal responsibility over day-to-day medical, educational, and personal decisions for that person because they have become physically or mentally incapacitated. However, in California, guardianships refer to only those persons who represent the affairs of a child. When a child’s parents pass away or are no longer able to safely care for the child, a family member can assume permanent or temporary guardianship. If petitioning for guardianship becomes combative, there are a couple of other options to guarantee a child’s safety: 1) a clear and concise private agreement can be entered into between the guardian and the parents; or 2) the guardian can present a Caregiver’s Authorization Affidavit, which gives the guardian legal right to make educational and medical decisions. Both alternate options can be revoked by the parents at any time. In Arizona, guardianships are appointed for anyone, regardless of age. Guardianships can be general (covering all medical, educational, and personal decisions) or limited to a specific purpose, such as making emergency medical decisions or finding specific living arrangements. Guardian’s may also suspend a ward’s driver’s license or ability to vote. Conservatorship In general, conservators provide care and protection for the ward, such as providing meals, purchasing clothes, maintaining the home and hygiene, arranging for medical care, and managing the estate. Conservatorships are not normally setup if the person in question drafted a durable power of attorney prior to becoming incapacitated. In California, a conservatorship acts the same as a guardianship but for adults. This includes both personal and financial responsibilities. These conservatorships can be limited (usually meant for the developmentally disabled) or general (which covers all other types of mental or physical issues, such as dementia, physical injury, or those susceptible to undue influence). In Arizona, though, a conservatorship strictly focuses on financial responsibilities, such as a person’s everyday bills or the estate, for a child or adult. There are three types of conservatorships in Arizona: General (covers all financial responsibilities), limited (covers only a select type of financial responsibility), or single transactional (covers one specific task, such as investing funds or paying taxes). If you aren’t sure if you should take the next step, King Law Firm Attorneys at Law, Inc. can help you decide between guardianship or conservatorship for you and your loved one.