Estate planning, probate, wills, living trusts, POwer of attorney

Irrevocable Trusts

What is an Irrevocable Trust? Just that! Irrevocable. You can’t change it after it has been created. This sounds kind of scary, but it has some wonderful uses.

Irrevocable Trusts Attorney Oeanside, CA

Do I Need An Irrevocable Trust?

What is an Irrevocable Trust? Just that! Irrevocable. You can’t change it after it has been created. This sounds kind of scary, but it has some wonderful uses. So, let’s talk about some basics.

An Irrevocable Trust is a legal document that is used to transfer property. In many respects it is like the Living Trust in that there are three “people” required to create this trust. Again, I say “people” because these roles can (sometimes) be played by fewer than three people. There is the Settlor, the Trustee, and the Beneficiary of the trust.

The Settlor creates the Trust and transfers property into the Trust that the trustee holds title to, protects, and distributes to the Beneficiary according to the terms of the Trust. The Beneficiary holds an equitable title and receives the benefit of the Trust.

The Trust is called an Irrevocable Trust because it is NOT revocable during the Settlor’s lifetime. So, what are these wonderful uses of Irrevocable Trust? Well, here are a few great uses of Irrevocable Trusts.

Special Needs Trust

Well, often the Irrevocable Trust is used to protect means tested public benefits such as Supplemental Security Income (SSI), Medicaid, EBT or Food Stamps, and others. Here we would use a Special Needs Trust which is an Irrevocable Trust.

Irrevocable Life Insurance Trust (or ILIT)

Also, one may wish to use an ILIT which is an Irrevocable Life Insurance Trust. They may wish to use this type of Irrevocable Trust to keep the Insurance proceeds out of their taxable estate for Federal Estate Tax purposes. Please read more about this in my Blog here: https://myestate-plan.com/blog

Standalone Retirement Trust (or SRT)

The U.S. Supreme Court decided a case called Clark vs Rameker, and in that case the court held that inherited IRAs are not “retirement funds” within the meaning of federal bankruptcy law. What this means is that if you inherit an IRA, the IRA will be available to pay creditors should you have to declare bankruptcy. Moreover, the IRA is vulnerable and available to satisfy not only creditors, but also any potential lawsuit judgments, or other potential “predators”.

Because of this decision and the potential ill effects of not planning your estate, I imagine you’d like to take some steps to protect the inheritance you’d like to give to your beneficiary. We need to take some steps to make sure your beneficiary is protected from losing the IRA to bankruptcy, predators, lawsuits, or other creditors.

A Standalone Retirement Trust (or SRT) should be created. Call today and let’s create your Estate Plan - Keep in mind that there are many legal twists and turns and other factors to consider before creating an Estate Plan. You should always consult an attorney to discuss all of your options. Please feel free to call me.
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The first step is fast and easy. Just tell us a few things. The next step will be a call from attorney Dan Powell and you will be well on your way to learning about your options, caring for your loved ones, and having a solid, attorney designed and drafted estate plan!

Our Practice Areas

Asset Protection

Asset protection is a crucial aspect of estate planning law in San Diego. It helps individuals and families safeguard their assets and property from potential threats. In this section, we will discuss the primary threats that asset protection aims to guard against.

Estate Planning

Estate planning is the process of planning for the management and distribution of a person's assets (such as property, investments, and personal belongings) after their death.

Probate

When someone dies without a proper estate plan, Probate is the process that the court will use in distributing the property, and figuring out who the property is to be distributed to.

Special Needs Trusts

A special needs trust is a trust created for minors or adults that have some special need due to such things as learning disabilities, physical disabilities, etc.

Wills

Estate planning is the process of creating a plan for how an individual's assets will be managed and distributed after their death.

Living Trusts

Whether you are a long-time resident or a recent transplant to sunny San Diego, setting up a living trust can provide peace of mind and protection for your assets.

Irrevocable Trusts

What is an Irrevocable Trust? Just that! Irrevocable. You can’t change it after it has been created. This sounds kind of scary, but it has some wonderful uses.

Power Of Attorney

A power of attorney is the means you use to have your affairs managed should you become unable to manage your own affairs.

Advance Healthcare Directive

You have both the right and the ability to make decisions about your own health care. Because of that, you may also allow another person to make these decisions for you.

Frequently Asked Questions

A Plan Built Especially For You

When it comes to wills, trusts, and other types of estate planning, no two situations are the same. This is why my most important job is to listen to what you want to achieve in order to advise you on the best plan possible. Each and every document of your estate plan will be prepared by a licensed attorney to ensure your wishes are properly achieved.

Once Again, Proof Positive! - A robust, superbly drafted Revocable Living Trust centered estate plan is a superior method to prevent loss of time and money, and achieve your desires.

Affordable Plans, Competitive Rates, and Peace of Mind

You do not have to trade sound professional legal advice for a reasonably priced will, trust, or complete estate plan. My law office offers packages that are affordable and competitively priced.

With so much riding on your decisions, you and your family cannot afford mistakes. An attorney, like myself, who practices estate planning is the only person who can properly guide you to ensure your wishes are carried out and give you the peace of mind that comes with a properly executed and implemented estate plan.

What Do I Get With an Estate Plan Prepared by William Daniel Powell?

You will get an affordable plan, at a competitive rate, and the peace of mind that comes with a plan built especially for you.

Your exact situation and desired distribution will dictate the means to be used, as well as the ultimate cost of the plan. However, every estate plan I create contains the Revocable Living Trust, Certificate of Trust, Trust Summary, Pour-Over Will, Durable Power of Attorney, California Advanced Healthcare Directive, funding instructions for various assets, and the funding of your residence with a new deed and Preliminary Change of Ownership Report prepared by my office to put the residence into your trust. All documents are attorney prepared, and all advice is given by an attorney.

Legal Zoom won’t help you with funding or provide legal advice on such a personal level! Further, I will review the estate plan I create for you every three years, upon your request, with you for no additional charge*. Moreover, I am more than happy to discuss future changes to your situation, or family situation, as they arise and how it may impact the plan I drafted for you, at no additional charge*.

*Modifications will be at an additional charge.

But If I Create A Revocable Living Trust, Will I Lose Control of my Property?

Absolutely not. Think of a Revocable Living Trust as a bucket. It is a bucket that you constructed, and one which you hold. You are free to put things into the bucket, and take them out whenever you like. In the event you become incapacitated, you can determine whom you would like to hold the bucket on your behalf. In the event of your passing, you determine how the bucket is to be poured out to your family and friends. Moreover, the bucket and its content are not public record.

What Does Probate Cost?

California Probate Code sets the rate currently as:

  • 4% of the first $100,000 of the gross value of the probate estate
  • 3% of the next $100,000
  • 2% of the next $800,000
  • 1% of the next $9 million
  • .5% of the next $15 million

Keep in mind that the value of the estate is based on the value of the asset, and not its equity. Therefore, if you own a home valued by the appraiser at $500,000 and you have a mortgage balance of $400,000 – the value is not $100,000 but the full $500,000. Also, for example, let’s say you also have other property such as accounts and a car or two (worth an additional $150,000) that raise the total value of the estate to $650,000.

So the attorney probate fees for the estate break down like this:

  • 4% of the first $100,000 = $4,000
  • 3% of the next $100,000 = $3,000
  • 2% of the remaining $450,000 = $9,000

For a total fee of $16,000

So given everything we know now, let’s see what the potential costs will be for a simple $650,000 estate. This can be any combination of probate property, but let’s say the home is $500,000 (not difficult in California) and an additional $150,000 in probate property. Please keep in mind that fees given are approximate and may vary by location, changes in laws, or other factors.

  • $400 Court filing fee
  • $650 appraisal fee
  • $150 publication fee
  • $16,000 attorney fees
  • $16,000 executor fees (potential)
  • $400 fee to file Petition for Final Distribution Total of $17,600 to $33,600

So you see that an average cost of $1,000 to $2,500 for a Revocable Living Trust Centered Estate Plan is far more affordable than the cost of a $10,000 to $30,000 probate.

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Estate planning to meet your goals

With information contained within this website about wills, trusts, and other estate planning instruments, clients will have a better understanding of the process and different methods of estate planning and will be better prepared to describe the goals they wish to carry out with their particular estate plan. This will help refine and streamline the process so that the client gets outstanding legal service without unnecessary costs. This will help Mr. Powell in his goal of forwarding the legal profession by providing excellent legal service and creating happy clients.

Customer Testimonials

We hired William Daniel Powell to do an estate plan for us. Dan was professional, knowledgeable and extremely patient. For our convenience he conducted all meetings at our home. Dan stepped us through the entire process answering all of our questions as well as making suggestions. He provided a mobile notary and presented us with all documents in a bound folder. We are extremely pleased his service and reasonable fees.

B.G.

My husband and I recently updated our trust and wills and all other important documents. We used William “Dan” Powell who made the whole experience painless. Dan explained everything so we could understand it throughout the process. I would highly recommend him for any/all your needs whether it’s preparing these documents for the first time or updating them as we did. I now have peace of mind knowing all our affairs are in order and up to date.

Val

As someone who helps the senior community for a living, I am always running across clients that need an estate plan or need their current trust updated. I always feel 100% comfortable referring Mr. Powell. He has always been a very thorough and kind professional to all of my clients that I have referred to him. They always are very complementary about him, his services and his rates. Just a good guy who is an estate attorney and can help with very important things. Give him a call.

Steve Korts

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