|
 The
cost of leaving this earth and probating
your estate is ever increasing. Recently,
the State Legislature increased the
Statutory Fee and Commission paid to attorneys and personal representatives.
On a small estate of $100,000.00 the
increase was $850.00 each. The initial court filing fee is $410.00 and the publication fee is appoximately $150.00. Presently, the
Attorney Statutory Fee, alone, on
a $250,000.00 estate is $8,000.00
and that does not account for the
court filing fees and
cost of publication, mentioned above, or the Probate Referee's fee of 1/10th
of one (.001%) percent of the estate
value, and all those extraordinary
fees, costs and expenses that you'll
be charged. Refer to http://www.noevalleylaw.com/probate_fees.html for the schedule for Attorney Statutory Fees and the Personal Representative's Commission and our link for the court's schedule of filing fees.
The primary purpose of proper estate planning is to preserve as much of your estate, as possible for the benefit of your family, your heirs or designated beneficiaries. To accomplish this a thorough review of your estate is necessary to determine its value, the manner in which title is currently held and the consequences of any survivorship rights. This is done by reviewing the original title papers and contracts, current account statements and an inventory of your personal possessions.
In 2009, a Three and One Half Million Dollar estate was exempt from Estate Taxes and for the year 2010 there were no Estate Taxes; however, the Attorney Statutory Probate Fee for such an estate would be $48,000.00. The Attorney Statutory Probate Fee and Representative's Commission can be avoided with proper planning.
As stated above, there is no federal estate tax for the year 2010. Generally, no federal estate tax return will be required, except under special circumstances and then only as an informational filing. For the years 2011 and 2012 the Life Time Estate Tax Exemption is $5,000,000.00 with a thirty-five (35%) tax on the balance of your estate.
One must be forever on guard. For example, for the year 2013 and beyond the federal goverment, under the current administration, has scheduled to lower the exemption from $5,000,000.00 to $1,000,000.00, raising the tax from thirty-five (35%) to fifty-five (55%), leaving you with a fifty-five (55%) Estate Tax Bill on the excess. On a $5,000,000.00 estate the increased bill will be $2,200,000.00, that is TWO MILLION TWO HUNDRED THOUSAND DOLLARS AND NO CENTS, while in 2011 and 2012 no tax is due.
In 2013, on a $2,000,000 Estate, tha Estate tax bill will be $550,000. Your heirs and beneficiaries get to keep a little less than three quaters of the estate.
With proper planning much of this tremendous estate tax burden may be sheltered, preserving these valued assets, whether tangible or intangible properties, for your love ones and their future.
Step One: You have already taken your first step by obtaining this Estate Planning Preparation Guide.
Step Two: Gather your documents:
1) Real Property (homes, buildings and land): The Grant Deed or Court Order for each piece of real property and the most recent Property Tax bill to confirm the Assessor's Parcel Number. Additionally, documentation of any Leasehold rights or other estates in land that you may own.
2) Personal Property: A complete itemization of all heirlooms and valuable personal property (jewelry, antiques, paintings, lithographs, porcelains, etc.).
3) Vehicles: (automobiles, boats and other vehicles): The 'pink slip' or other title paper identifying the License Plate and Vehicle Identification Number.
4)
Stocks and Bonds: Most people
have their stock investments held
by a brokerage firm and therefore
receive a monthly Brokerage Statement.
The most current statement is required.
For those of you who possess the actual
stock certificate and the actual Savings
Bond, these certificates and bonds
are required, as well.
5) Bank Account Holdings: The most current Bank Account Statement for all savings, checking, Certificates of Deposit and Treasury Bill accounts, whether held solely in your name, with others or for the benefit of others.
6) Business Relationships: The Partnership Agreement, whether general or limited, Fictitious Business Name certification, business location Rental/Lease Agreement, and all other legal papers concerning operations and ownership interests.
7) Inheritance Rights: If you have been granted a Power of Appointment under another's Last Will and Testament or Declaration of Trust, or are currently a beneficiary under another's Trust, a copy of the Will or Trust is necessary.
8) Other Intangible Property: Debts (Notes and Deeds of Trusts), Judgments, Judgment Liens, and other promises to pay; actual Patents, Copy Rights, and Royalty Agreements; and any other documentation of intangible property rights that you may own.
9) Life Insurance and Annuities: The actual policy with the coverage and designated beneficiary page and the current statement for the annuity.
10) Pensions: Employment By-Laws/Agreements and determination as to whether there is a survivor's benefit or right to assignment.
11) Tax Deferred Retirement Plans: The initiating documentation for each plan with the designated beneficiary page and the current Investment Retirement Account (IRA) statement.
12) Miscellaneous: Any preexisting Wills and Codicils, Declarations of Trust and Amendments, or any Pre-need Agreements for funeral, burial or cremation services.
Step Three: Call Noe Valley Law Offices at (415) 641-8687 and make an appointment. Meet with an attorney to review your estate and discuss your options. The initial interview is free. If you have any questions concerning any item above, feel free to call Noe Valley Law Offices. Advice as to whom to contact or the place to go for a document will be readily given. No question is too small nor unimportant. |
