Author: Matthew L. Tonkovich, JD, MBA

Attorney at Law

CERTIFIED SPECIALIST ESTATE PLANNING, PROBATE AND TRUST LAW*

Experienced Trusts and Estates Counsel

CALL 714-273-0883 or email matt@tonkovich.com FOR A FREE INITIAL CONSULTATION

Revocable Trust Estate Plans, Probate, Conservatorships & Guardianships, Trust & Probate Litigation, Financial Planning

              Matt Tonkovich has practiced law in Orange County for 27 years.  He has assisted numerous families with their Revocable Trust Estate Plans and matters in the Probate Courts throughout the entire Southern California region.  He draws on his extensive experience to provide effective and efficient representation to accomplish your goals.   Always available for free consultations or to answer email questions. 

              Revocable Trust Estate Plans.  The primary goal of Estate Planning is to get a basic plan in place.  No one should want to force their loved ones to go through the Probate process when it can be easily avoided.  .  Since the Pandemic there has been a lot of interest in doing the Estate Planning process remotely, with consultations by phone, email or video call.  The documents can be sent to you for execution and you can have them notarized at your convenience.  Complete Revocable Trust Estate Plans start at $1,450.

              Probate.  If you do not have a Revocable Trust Estate Plan your property will have to pass through the Court-Supervised process of Probate.  It is common to experience delays in Probate for multiple years. Unique  Time is money.  You need an attorney who is familiar with the Courts and knows how to move a Probate case to closure as quickly as possible..

              Conservatorships & Guardianships.  Conservatorships and Guardianships are tools the Probate Court uses to protect the elderly and minors.  They are very similar and both require detailed accountings and annual reports with the Court. 

              Trust & Probate Litigation.  Trust and Probate cases are won or lost based on the intricacies of the Probate Code and the procedures it sets forth.  Trust and Probate is an entirely different type of law than regular litigation.  You need an attorney who knows the Probate Code and how the Probate Court works.

              Financial Planning.  Matt was a Certified Financial Planner and Registered Investment Advisor for over 20 years.  Now he provides hourly Financial Planning as an attorney.  Do you have an important financial question that you need answered?  Maybe you are concerned about your current Advisor’s recommendations or their fee structure?  Has someone presented you with an investment idea that sounds to good to be true.  A truly independent review of your finances can provide you with peace of mind. And do-it yourself investors can always benefit from a second opinion. 

                                                                                                                                                                  7545 Irvine Ctr. Dr., Suite 200, Irvine, CA  92618                                                     matt@tonkovich.com

*CALIFORNIA BOARD OF LEGAL SPECIALIZATION      

We would be pleased to hear from you, so contact our Irvine, CA Estate Planning Law Firm via telephone or email with your questions, comments or concerns.  We are conveniently located to serve all of Orange County, Riverside County, San Bernardino County, Ventura County, Los Angeles County, and San Diego County.

California Prop. 19 provides that your child/grandchild can inherit your residence and keep your current property tax assessment (subject to the same annual increases you have).  This is a valuable gift and a benefit that you can pass to future generations. 

Compliance with Prop. 19 is fact based.  The primary fact being that your child/grandchild  has to be in legal possession of and occupy  your primary residence as their own primary residence, within 1 year of your death.  Most Probates will take close to 2 years, so it will be extremely difficult to comply with Prop. 19 if you do not have a Revocable Trust.  Even with a Trust, Prop. 19 is not kind to those who procrastinate with administration of the Estate.

Some will want to preserve the  exemption by making the transfer through a lifetime gift.  However, with a lifetime gift,  you lose the capital gains step-up in basis that your residence will receive at your death.  While the step-up in basis only matters if your child/grandchild later sells the residence, losing the step-up in basis could  result in a tax bill that is much greater than any property tax savings under a Prop. 19 exempt gift.  A gift through your Revocable Trust preserves both the Step-Up in basis and the Prop. 19 exemption.

Also, the Trustee of a Trust can apportion the assets between the beneficiaries in order to preserve the Prop. 19 exemption, while providing for an overall equal distribution of the Trust Estate amongst your beneficiaries.

For example, if you have 2 kids and a residence worth $500,000 and you have $400,000 in other investments, you can preserve the Prop. 19 exemption for 1 of your children who wants to live in your residence.   The Trust language can provide that the residence be purchased from the Trust with a loan, in this case $50,000, in order to equalize the gift between 2 children.  The loan would be distributed to the other child along with the $400,000 in other investments.

If your Estate will not be large enough to distribute your residence outright to a single beneficiary, the Trust can provide sale provisions allowing the beneficiary to purchase your residence from the Trust.  The Trust can provide a specific beneficiary a Right Of First Refusal to purchase your residence from the Trust.  The Trust can provide for valuation and payment procedures so that you know your Estate will be managed in a fair and orderly manner, and within the 1 year timeframe required by Prop. 19.

The bottom line is that without a Trust, or changes to your existing Trust, your Prop. 19 exemption can easily be lost.  Get a  Trust Tune-Up  that includes an amendment to your Trust with Prop. 19 provisions custom drafted for your own unique situation.  Send me an email or give me a call with questions.

– Matt