The firm’s founder, Edward Allebest, has been certified as a Specialist in Probate and Estate Planning by the State Bar of California for over 25 years. Our expertise covers everything from the simplest to the most complex of estates, including helping clients comply with the laws of both national and multi-national jurisdictions. Our estate planning practice includes the following:
A. Probate Avoidance
Avoid the COST of probate (4-8% of the FMV “gross”).
Avoid the DELAY of probate (1-2 years in court).
Avoid the COMPLEXITY (it’s a complex maze).
Avoid the PUBLICITY (the public has access to details).
Avoid the CONTESTS (it’s easy to contest an estate during probate).
B. Estate Tax Avoidance
The Estate Tax is on “net” worth + life insurance (due in 9 months).
The Unlimited Martial Deduction = no tax for the surviving spouse.
The Unified Credit, starting in 2020 = $11,580,000 free of tax at death.
An A/B Trust doubles the credit = $23,160,000 tax free from H&W.
The Charitable Deduction = no tax on funds to charity.
C. Orderly Plan of Distribution
Provide care for minor or handicapped children/grandchildren.
Postpone distribution if heirs are too young to receive the estate.
Provide management if heirs are inexperienced in handling money.
Avoid fighting among family members over the distribution.
For singles worth LESS than $11,580,000 in 2020, and For couples worth LESS than $11,580,000 in 2020.
Simple Family Trusts
a) Provides a vehicle to manage the assets
b) Avoids conservatorships
c) Avoids probate (and its cost, delay & publicity)
d) Provides an orderly Plan of Distribution
(e.g., distribute inheritance in installments)
In year 2020 each person can gift $15,000/per recipient to any number of people they want,
PLUS you can gift up to $11,580,000/ea of your “Unified Credit” during your lifetime, instead of using it at death.
Each year you can also gift an unlimited amount to charity.
Medium Size Estates
For couples worth MORE than $11,580,000 starting in 2020.
Credit Shelter Trusts
Double the Unified Credit, allowing couples to pass $23,160,000 estate tax free from 2020.
Secures a “Unified Credit” for EACH spouse of $11,580,000/ea starting in 2020.
Gifts in Trust
Annual or periodic gifts to adult or minor children may be placed in trust for future distribution.
Life Insurance Trusts
Removes insurance proceeds from the taxable estate, free of creditors.
Large Size Estates
Create your own Tax-Exempt Foundation or Charity
a) “The secret to wealth is to own nothing, but control everything”
b) Include generations in the “circles of influence”
c) Large tax deduction d) Estate tax avoidance
e) Creditor protection f) Ongoing contribution to community
a) No income tax on sale of assets
b) Increased cash flow for lifetime c) Large tax deduction
d) Diversify portfolio e) Estate tax avoidance f) Creditor protection
g) Increased inheritance - Gift to community
Family Limited Partnerships
a) Protects assets from creditors b) Discounts the value of business, farm, property, stock c) Lets you start transferring assets to family now
d) You maintain full management and control
Qualified Personal Residences Trusts
Put your residence into trust and live in it for a period of years. If you survive the period, the house is distributed, free of estate tax. Any gift tax due on the original transfer is reduced by the discount.
(Objectives & Tools)