Estate Planning FAQs
Understanding Estate Planning
1. What is estate planning?
Estate planning involves documenting your wishes for managing your finances, making health care decisions, and distributing your assets after death. It can also include naming proposed guardians for minor children and identifying people to act on your behalf.
2. Is estate planning only for people with significant wealth?
No. Estate planning documents can address health care decisions, financial authority, family responsibilities, and the distribution of assets—not just large estates.
3. What documents can LDA Document Services prepare?
Our estate planning services include revocable living trusts, pour-over wills, durable financial powers of attorney, advance health care directives, HIPAA authorizations, certifications of trust, schedules of assets, and related documents. Certain packages also include real estate deed preparation.
4. Can you tell me whether I should choose a will or a trust?
We can explain the document preparation services we offer and provide general educational information. We cannot recommend which legal arrangement is best for your circumstances. If you need help making that decision, consult a licensed estate planning attorney.
5. Do I need an attorney to use your services?
You do not need to retain an attorney simply to request document preparation. However, you must provide your own decisions and instructions. An attorney is appropriate when you need advice about your rights, your options, or the legal consequences of those decisions.
Revocable Living Trusts
6. What is a revocable living trust?
A revocable living trust is a legal arrangement created during your lifetime to hold and manage assets according to written instructions. It identifies who will manage trust assets and who will receive them under the terms of the trust.
7. What does “revocable” mean?
Generally, the person creating the trust retains the ability to amend or revoke it while legally capable, subject to the trust’s terms and applicable law. Joint trusts may have different rules concerning each person’s authority.
8. What is the difference between a trust and a will?
A trust can govern assets held in it during your lifetime and after death. A will generally addresses the distribution of certain assets after death and can nominate an executor and proposed guardians. The documents serve different purposes and may be used together.
9. Does a living trust help avoid probate?
Assets properly held in a living trust generally can pass to beneficiaries without probate. Assets left outside the trust may require a different transfer procedure. Preparing and signing the trust does not automatically place every asset into it.
10. Do I lose control of my assets when I create a revocable living trust?
Typically, you can continue managing trust assets when you serve as trustee and retain the applicable powers under the trust. The document’s terms determine your authority.
11. Can I sell a home or other property held in my trust?
A trustee with the necessary authority generally can sell trust property. The transaction may require trust documentation, and you should confirm any title, lender, or tax requirements with the appropriate professional.
12. Can I change my beneficiaries or successor trustee?
Generally, a revocable trust can be amended while the person authorized to make changes is legally capable. Changes must follow the trust’s amendment requirements and applicable law.
13. What is a successor trustee?
A successor trustee is the person or institution designated to take over when the current trustee can no longer serve, such as because of incapacity, resignation, or death. The successor trustee manages trust assets according to the trust and applicable law.
14. Does a trust handle medical decisions?
No. A living trust concerns trust assets. An advance health care directive addresses medical decision-making and health care wishes.
15. Is a living trust completely private?
A living trust generally is not filed with the court when created, but complete confidentiality is not guaranteed. Certain people may become entitled to information, and deeds recorded to transfer real estate become public records.
16. Does a revocable living trust protect my assets from creditors?
A standard revocable living trust generally does not protect your own assets from your creditors. Asset-protection questions require individualized legal advice.
17. Does creating a revocable living trust eliminate taxes?
No. A revocable living trust does not automatically eliminate income, estate, gift, or property taxes. Tax treatment depends on the trust, assets, transactions, and individual circumstances. Consult a qualified tax professional for advice.
Individual and Joint Planning
18. Can I create a trust if I am single, divorced, or widowed?
Yes. Our individual packages provide document preparation for one person creating an individual revocable living trust.
19. Can a married couple create one trust together?
Yes. Our joint packages include preparation of one joint revocable living trust for two spouses, based on their instructions. Each spouse also receives the individual supporting documents listed in the package.
20. Can a married person create an individual trust?
A married person may request an individual trust. Before proceeding, questions about separate property, community property, and spousal rights may require legal advice. An individual trust does not, by itself, make marital assets separate property.
21. Can unmarried couples or registered domestic partners use a two-person package?
Please contact us before purchasing so we can confirm the arrangement and preparation scope you are requesting. Our standard joint package is described as one joint trust for two spouses; other arrangements require review.
22. Does the joint package include two separate trusts?
No. It includes one joint trust. Two separate individual trusts require a separately confirmed scope and price.
23. What if we have children from previous relationships?
Blended-family planning can involve competing interests and questions about a surviving spouse’s authority and children’s inheritance. Obtain legal advice about the arrangement you want before instructing us to prepare documents.
24. What if an intended beneficiary receives disability-related or needs-based benefits?
Tell us before purchasing or completing your intake. An inheritance may affect benefit eligibility, and specialized planning may be appropriate. Special needs trusts are outside our standard revocable living trust packages.
Wills and Supporting Documents
25. What is a pour-over will?
A pour-over will directs certain assets remaining outside your trust at death to the trust. It acts as a backup document, but it does not automatically avoid probate for those assets.
26. Can I nominate guardians for my children?
Yes. When requested, guardian nominations can be included in your will. A nomination communicates your wishes; the court makes the appointment.
27. Can my trust include instructions for young beneficiaries?
You may provide instructions about how and when beneficiaries receive trust assets, subject to the preparation scope. If you need advice about distribution ages, restrictions, or protections, consult an attorney.
28. What is a durable financial power of attorney?
It authorizes a person you appoint to handle specified financial matters. “Durable” generally means the authority can continue during incapacity. The document determines the powers granted and when they become effective.
29. Does a financial power of attorney remain effective after death?
No. Authority under a power of attorney ends at death. An executor, court-appointed personal representative, or trustee may then have authority over the relevant assets.
30. What is an advance health care directive?
It allows you to name a health care agent and document treatment preferences. It addresses health care decisions rather than general financial management.
31. What is a HIPAA authorization?
A HIPAA authorization permits specified health information to be disclosed to the people you identify, within its terms. It does not, by itself, authorize someone to make medical decisions.
32. What is a certification of trust?
It summarizes certain facts about the trust and the trustee’s authority. Financial institutions or other parties may request it when conducting transactions without needing the complete trust document.
33. What is a schedule of trust assets?
It identifies assets associated with your trust. Listing an asset on the schedule does not necessarily complete the ownership transfer required for that asset.
Trust Funding and Real Estate
34. What does “funding the trust” mean?
Funding means completing the steps needed to place appropriate assets into the trust. Depending on the asset, this may involve changing account ownership, signing an assignment, or preparing and recording a deed.
35. Does signing my trust automatically transfer my assets?
No. Many assets require separate transfer steps. Your package includes funding instructions, but you remain responsible for completing transfers unless additional services are expressly agreed.
36. Do you transfer my bank and investment accounts for me?
Our standard packages include instructions and standard supporting materials. They do not include completing account retitling or submitting beneficiary changes to financial institutions.
37. Should every asset be transferred into my trust?
Not necessarily. Retirement accounts, insurance policies, jointly owned assets, and other property may require different treatment. Ask an attorney or qualified tax professional how particular assets should be coordinated with your plan.
38. Can I transfer my IRA or 401(k) into my trust like a bank account?
Retirement accounts generally should not be retitled into a living trust like ordinary bank accounts. Naming a trust as a retirement-account beneficiary is a separate decision with potential tax consequences. Obtain professional advice before making changes.
39. What does “without real estate” mean in your package descriptions?
It means the package does not include real estate deed preparation. It does not mean you cannot have savings, investments, personal belongings, or other assets.
40. What is included in a package with one real estate property?
It includes preparation of one deed for one property, the applicable Preliminary Change of Ownership Report, and signing and recording instructions, subject to review of the current deed and your instructions.
41. Are recording, county fees, notary services, and deed retrieval included?
No. Recording services, county recording fees, notary services, and retrieval of existing recorded deeds are always additional charges when requested or required. Applicable charges are disclosed before those services are performed.
42. What if I own more than one property?
Contact us so we can confirm the number of deeds and the preparation scope. Additional properties and additional deeds are charged separately.
43. What if my property is outside California?
Contact us before purchasing. Out-of-state real estate requires review, and preparation or recording may require assistance from a professional in that state.
44. What if another person also owns the property?
Provide a copy of the current recorded deed and identify all owners. We cannot determine another owner’s rights or advise how ownership should be changed. Those questions may require legal advice.
45. Can a business interest be included in a trust?
Some business interests may be held in a trust, but transfers can be subject to governing documents, ownership restrictions, and tax rules. Business-interest transfer documents are not included in our standard packages.
Packages, Preparation, and Delivery
46. What are your four trust package options?
We offer:
-
An individual trust without real estate deed preparation.
-
A joint trust for two spouses without real estate deed preparation.
-
An individual trust with deed preparation for one property.
-
A joint trust for two spouses with deed preparation for one property.
-
Review each package’s included and excluded services before purchasing.
47. What supporting documents are included?
Packages include a schedule of assets, pour-over will, durable financial power of attorney, advance health care directive, HIPAA authorization, certification of trust, standard funding materials, and signing instructions. Joint packages include separate wills, financial powers of attorney, health care directives, and HIPAA authorizations for each spouse.
48. What information should I gather before starting?
Gather your existing estate planning documents, relevant names and contact information, intended beneficiaries, selected trustees and agents, asset information, and any applicable recorded deeds. Have your substantive decisions and instructions ready.
49. How does the preparation process work?
You select the requested service, complete the required agreement and intake, provide supporting documents, and give your instructions. We prepare the documents for your review, address requested revisions, and provide completed documents with signing instructions.
50. Can the process be handled remotely?
Much of the intake, communication, and document review can be handled remotely. Signing requirements may still involve original signatures, witnesses, or notarization.
51. How long does preparation take?
Timing depends on the package, the completeness of your information, and any follow-up or revisions required. We provide an estimated preparation timeline for your request. Preparation time is separate from recording or other third-party processing.
52. Are revisions included?
Yes. Revisions are included at no additional charge for 12 months from the original date of purchase. You must contact us directly to request them. Revised documents are delivered by email.
53. Are original documents mailed to me?
Yes. Mailing of your original prepared documents by standard mail is included at no additional charge.
54. Are all estate planning documents notarized?
No. Signing requirements differ by document. Some require witnesses, notarization, or other execution steps. Follow the instructions supplied for each document; notarization does not replace required witnesses.
55. Can you update a trust I already have?
Contact us for review before purchasing a new-trust package. An amendment or restatement of a preexisting trust is a separate request and is not automatically included in a new-trust package.
56. When should I review my estate planning documents?
Consider reviewing them after marriage, divorce, a birth, a death, a move, a significant asset change, or a change in your selected trustees, agents, or beneficiaries. Seek legal advice when you need help deciding what changes to make.
57. Where should I keep my signed documents?
Keep originals in a secure location that the appropriate trusted person can access when needed. Let your successor trustee and agents know where to find relevant documents, and provide copies where appropriate.
58. Does LDA Document Services provide legal or tax advice?
No. LDA Document Services is not a law firm. We prepare documents according to your instructions and the written service agreement. We do not recommend legal strategies, determine which estate plan is best for you, provide tax advice, or represent you in court.
59. What if I need legal advice during preparation?
You can obtain advice from a licensed attorney before continuing. Once you have made the necessary decisions, we can confirm whether the requested preparation remains within the agreed service scope.