Free seminar to address common estate-planning mistakes
By Steve Greenwood
Attorney at Law

Estate planning is a very complicated area of the law where myths abound and which can be harmful to you and your loved ones. Below are some of the more common myths being perpetrated.

If I have a good will, probate will not be required and my assets can be transferred immediately to the beneficiaries of the will. In fact having a will mandates a probate in most circumstances and the assets may not be transferred to the heirs for months or years.

Probate is a court proceeding to transfer title from the decedent’s name to the living beneficiaries. Probate occurs in the state of your legal residence as well as any state where you own real property. The length of time to complete a probate varies from state to state but can take six to 18 months on average. Probate is frustrating to the heirs and is public record.

I don’t need a will if I have a small estate. Many people also believe that if there is no will, all the decedent’s assets will be distributed to the surviving spouse.

If you don’t create a valid will, the state of California has a statute that will dictate where your assets go and who will administer your estate. State law may not distribute your assets to the people you want to have them.

If my assets do not exceed $600,000, I will avoid probate. In California, if you have over $100,000 or real estate, your estate will probably require probate unless you use a living trust or some other probate-avoidance technique.

A will covers all my assets. Wills do not cover assets held as joint tenants with right of survivorship, retirement plans, annuities, life insurance, financial account with payable on death or transfer on death designations.

I can do my own estate plan. Estate planning is more than just creating documents. It is understanding the big picture and how the legal documents will work in concert with the assets at the time they are needed.

Only the wealthy need to worry about estate taxes. In fact, any estate exceeding $1,500,000 is subject to estate taxes and with today’s property values, these numbers add up fast.

I don’t need an estate plan because I hold all my assets jointly with another. In fact, this is one of the worst ways to plan your estate. The asset may be exposed to estate and gift taxes. It does not avoid probate, just delays it until the last owner’s death. It may cause estate, gift and capital gains taxes. It is subject to the creditors of all owners and it will result in the transfer of the property though the joint owner when one owner dies, even if that was not intended for taxes.

You can’t afford to reply on myths when it comes to your estate. Find out the facts, plan carefully and execute a plan to provide you with peace of mind and security for your loved ones.

Steve Greenwood is an estate planning attorney in Westlake Village and can be reached at (805) 777-7240, ext. 15. Greenwood will be presenting a free one-hour workshop, "Estate Planning 101: The Fundamentals" at 6:30 p.m. Tues., Wed. and Thurs., May 24, 25 and 26 at his office, 2801 Townsgate Road, Ste. 210, Westlake Village. Light refreshments will be served. A free handout, "Twenty-Five Ways to Mess Up Your Estate Plan" and a free initial consultation with Greenwood will be available as his gift to those attending. For more information please call (805) 277-5020 ext. 15.