Estate planning and probate services since 1983
Rita Holder Law is a premier estate planning law firm with a reputation for cost-effective, high-quality service. As a former probate court judge, Holder has a deep understanding of California law and how decisions you make while drafting a will or trust will impact your heirs after your gone. For more than 35 years, residents in the East Bay area have trusted attorney Rita Holder for their wills, trusts and probate law needs.
Estate planning services
Estate planning primarily involves wills, trusts, powers of attorney and guardianships. Depending on the size and complexity of your estate, you may need all of these planning tools, just one or a specific combination of documents to meet your needs. Services we provide include:
- Drafting wills
- Creating revocable and special needs trusts
- Creating durable powers of attorney
- Preparing guardianships for minor children
- Drafting advanced directives
- Trust administration
- Creating limited conservatorships
We also provide assistance to families going through probate after the loss of a loved one. Rita Holder’s experience as a probate judge makes her an ideal representative to help guide you through the probate process.
When a will or trust is missing
Wills and trusts are sometimes lost or nonexistent. When documents cannot be located, the deceased is considered intestate. At this point, your loved one’s estate goes to probate court where the state begins its meticulous process of searching for heirs, creditors and assets. Without an attorney to help guide you, probate can drag on for years. Rita Holder uses her experience as a probate judge to help you through the probate process and free up your inheritance.
Estate planning and tax law
In case you didn’t know, your real estate and other assets pass to your beneficiaries without them paying any income tax or federal estate taxes. Yes, it’s true. That’s because for 2020, the estate and gift tax exemption is $11,580,000 Million per individual. That’s right. An individual may leave $11.58 Million to their heirs without paying any federal estate or gift tax. A married couple may leave twice that: $23,160,000.
Very, very few of us have that kind of money. The high limit means that 99% of Americans don’t pay estate or gift taxes.
Top 5 Reasons Why You Need an Estate Plan
Truth be told, most estate planning is done to avoid taxes and court costs. After a loved one’s death, the family living trust becomes both a channel for money and property passing to the beneficiaries and the trust itself becomes a taxpayer. Sometimes there are tax consequences and tax returns that must be filed by both the deceased’s estate and the beneficiaries.
Most income or property passing to a beneficiary is free from income tax. And, for most of us, we will not need to pay estate taxes after a loved one’s death. That’s because the federal estate tax exemption for 2025 is $13.99 million per individual. This means that individuals can transfer up to $13.99 million of assets free from federal estate tax. For married couples, the combined exemption is $27.98 million. There are a variety of special tax planning options we can discuss with you if you are lucky enough to reach this limit, either as an individual or a married couple.
The high limit for estate and gift taxes means that we mere mortals will not usually pay estate or gift taxes. But that doesn’t mean you shouldn’t have some essential estate planning documents written up before you or your loved one passes away. Here are my top 5 reasons:
1. Pour-Over Will. The Pour-Over Will specifies that your property is to be added to your Revocable Trust upon your death. A pour-over will, combined with a revocable trust agreement, avoids the cost and hassle of having to get probate court approval for every action with respect to your assets upon your death. Under the terms of the Will, any assets held by you which have not previously been transferred into your Trust will be added to the Trust at the time of your death. The purpose of this is to make sure all of your assets, whether in your Trust or not, are distributed according to your plan set forth in the Trust.
Many times people use the Will to name beneficiaries for personal assets. You can use the Will to gift your baseball card collection, your Barbie Doll collection, or your antiques. Should you die without a will, state intestacy laws govern how your property will be dispersed. Your property will go to your closest relatives, first your spouse and children, then to your grandchildren or your parents, then siblings, grandparents, aunts and uncles, cousins, and even your spouse's relatives. Uncle John could end up with your favorite golf clubs.
2. Revocable Trust Agreement. The main reason for a Trust Agreement is to avoid the time and expense which is involved in a probate proceeding if you don’t have a Trust. The Trust ensures that your property passes to your beneficiaries with a minimum of hassle and expense. Another important feature is that it allows your designated successor Trustee to promptly take over your care and the management of your financial affairs if you should become unable to manage your affairs due to illness, accident, Alzheimer's, etc.
A Revocable Trust Agreement creates what is called a "Living Trust." It can be amended by you at any time during your lifetime; it becomes irrevocable only upon your death. Property that you transfer to the trust during your lifetime avoids the court probate process upon your death. You name the persons you want to serve as trustees of your estate after your death.
3. Durable Power of Attorney. The Durable Power of Attorney names the persons you want to serve as your attorney-in-fact, also called your "Agent," to deal with matters affecting your property. You can give your Agent the power to act on your behalf, both while you are alive and healthy and if you become incapacitated. However, this document gives your Agent broad powers to dispose of, sell, convey and encumber your real and personal property; if you have any concern about granting such broad powers, please proceed with caution.
In California, you can add “Estate Planning Powers” to your power of attorney. This will give your Agent flexibility to modify your revocable trust (and related documents) on your behalf. This is important because you could lose capacity long before death and be unable to amend your estate planning documents in response to tax law changes, MediCal qualification rules, or significant changes in your estate size or family situation.
4. Nomination of Guardians. A Nomination of Guardians for Minor Children names the person or persons you do and do not want to care for your children if you and your spouse should die. Parental nomination of a guardian in a will or related document is authorized by CA Probate Code §§1500 and 1502. In California, there is no other legal substitute for naming guardians.
In the event of your death, if you are divorced your minor children would be in the full custody of the other parent. That means that your nomination of guardians for the children would not take effect. However, your nominees could file a petition seeking their appointment as guardians if they believe that their appointment would be in the best interests of the children. It is also possible that, if you die before the other parent, she or he might still die before the children reach age 18. In this situation, your children would need a guardian and the court would consider your nominee.
5. Advance Health Care Directive. The Advance Health Care Directive and related documents enable you to name the persons you want to act for you if you become unable to make medical decisions.
The Advance Health Care Directive gives your named Agent the power to make medical decisions, sign consents and releases with hospitals and doctors. It also acts as your "living will" for end-of-life decisions. The Directive may also include final disposition instructions, giving you the opportunity to specify how you wish your remains to be dealt with (i.e., cremation or burial); to provide information of any prior arrangements and to designate the persons to carry out your wishes.
A HIPAA Authorization and Waiver is a “stand-alone” document to authorize your health care providers to release information concerning your otherwise confidential medical information to the individuals you have designated to act on your behalf in the event of disability and to any other individuals who you would also want to have such access.
If you have any questions, please call my office at 925-482-8910 for a free 30-minute consultation. Let us help you plan well for the future. Your loved ones will thank you for it.