David Solitare: Los Angeles Estate Planning Attorney, Los Angeles Living Trust Attorney David Solitare: Los Angeles Estate Planning and Living Trust Attorney
 

The information provided here is for informational purposes only. It is not,
nor is it intended to be, legal advice.
You should consult an attorney for
individual advice regarding your own situation.

2012 David A. Solitare
Los Angles Estate Planning Attorney

 
Los Angeles Estate Planning and Administration
 

Attorneys in the Los Angeles Law Offices of David A. Solitare are experienced in all types of estate planning techniques and their tax implications. We begin by consulting with you to analyze the extent of your assets and clarify your objectives in conserving and transferring them. Based on your situation, objectives and family dynamics, we identify estate planning options and help you evaluate their benefits. We take care of the details to implement your estate plan.

We realize that the distribution of personal assets can be a source of friction in the best of family and business situations. We assist you in thinking through steps to avoid possible conflicts.

Our services include Estate Planning, Post-Death Estate Administration, and Probate Matters:
Estate Planning
Wills
Living Trusts
Irrevocable Trusts
Life Insurance Trust
Personal Residence Trust
Grantor Retained Income Trust
Charitable Trusts
Powers of Attorney
Asset Management
Advance Health Care Directive
Estate and Gift Tax Planning
Life Insurance Review
Family Limited Partnerships
Charitable Planned Giving
Post-Death Estate Administration
and Probate Matters
Probate
Non-Probate Asset
Collection/Distribution
Trust Administration
Estate Tax Compliance
Beneficiary Representation
Conservatorships
 
Case Briefs
Typical Living Trust Case Brief
Irrevocable Trust Case Brief
 
 
 
 

Learn more about Irrevocable Trusts: Life Insurance Trust, Charitable Remainder Trust, Grantor Retained Income Trust, and Qualified Personal Residence Trust.


Typical Los Angeles Living Trust Attorney Example

Situation:
Client is a Los Angeles double income married couple in their early forties with three minor children. Their estate is currently (2005) valued at $1,400,000 as follows:

Cash & Marketable Securities
200,000
Retirement
200,000
Life Insurance
600,000
Home Equity
400,000
TOTAL
$1,400,000

They expect their estate to continue to grow, especially in light of Southern California real estate values. Their objective is to minimize future estate taxes and transaction costs.


Solution:
Establish a revocable living trust (also known as an inter vivos trust or a family trust). As the name suggests, the trust is revocable at any time. The couple will be able to manage their own assets in the trust. All trust assets pass to designated beneficiaries without probate.

Benefit:
If the client's estate continues to grow at a conservative 5% a year, while adding $10,000 to savings annually through earnings, it will be worth $2,050,000 in 2011. If both spouses were to pass away at that time, with a revocable living trust the client receives the following benefits over the do-nothing approach:
$439,000 tax savings. In 2011 in a do-nothing approach, they would pay $459,500 in estate tax under existing law. Their taxes would be $20,500 with living trust.
$100,000 probate transaction costs savings, usually estimated at 5% of the estate's value. They would, however, have to pay some transaction costs with the trust.
Estate assets readily available to provide for their children. In a do-nothing approach, their estate would likely be in probate for two years or more, tying up many of the assets.
Children taken care of by designated guardians. In a real do-nothing approach, without a will, they would not have designated their preferred guardian for their three children.
Privacy regarding family wealth transfers. All probate actions are a matter of the public record.

Benefit if the clients are incapacitated:
A designated trustee manages the assets. If the clients are incapacitated without a trust, their children will have to petition the court for a conservatorship to manage the assets, a time-consuming and expensive process.



 Irrevocable Trust Estate Planning Case Brief

Situation:
Client is a married couple in their late thirties with two young children in 2005. They are planning to have another child in 2006. Client owns a Los Angeles business which they expect to grow at a rate of 10% per year. They would like to transfer a portion of the ownership of the businesses to their children now, while the value is relatively low, to leverage the reduction in the size of their taxable estate. If possible, they would like to make the gift to the class composed of their children (including the planned child).

Solution:
Establish an irrevocable trust. Use the maximum statutory gift tax exclusion of $11,000 per donor per recipient per year to transfer trust assets to the children. The portion of the assets transferred, and any appreciation of those assets, will be excluded from estate tax.

Benefit:
The business is currently worth $2,500,000 and is expected to be worth about $5,000,000 in 2011. Each year the two existing children are gifted a combined total of $44,000. If the third child is born in 2006 and is gifted $22,000 annually, the total value of the children's portion of the trust with 10% appreciation is about $646,000 in 2011. If both parents were to pass away at that time, the $646,000 would be excluded from estate tax at a rate of 49%. The resulting savings is $316,000.

 

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