Daniel E. Hanley
Attorney at Law for Estate Planning
San Jose, California, Estate Planning Attorney at Law since 1974 and licensed Real Estate Broker and Private Lender since 1980. In addition to estate planning law, I specialize in elder law, real estate transaction law and small business matters. Call me now for a free phone consultation.
Most people don't like to think about dying. That's understandable. However, no one knows what the future holds. Tomorrow is not promised to any of us, and making plans for your estate now - while you still can - is not only smart, it's essential to preserving your memory and ensuring your assets and belongings are distributed according to your wishes.
Not thinking about the future and how your estate will be handled is a serious mistake that can leave many unresolved issues for your family and loved ones to deal with.
Estate planning not only makes things easier for your heirs after you have died, it can be used to benefit your own interests while you're alive, should you become unable to make financial and health care decisions on your own.
At the Law Offices of Daniel E. Hanley, we have been helping Californians make solid estate planning decisions for more than thirty years. Contact our San Jose, California, estate planning attorney today to take the first step toward peace of mind. We'll listen carefully to your needs and goals, then custom-tailor a plan that is designed to meet you and your family's needs.
We can ensure that by structuring your estate, we accomplish the following:
Distribute your estate to family, friends, or charities according to your wishes.
Avoid the expense and hassle of probate with a Living Trust.
Save on "Death Taxes" and "Income Taxes" using various trusts to preserve assets.
Avoid, or at least minimize, legal problems such as challenges to wills and trust administration.
The easiest place to begin is with a Living Trust. Our Santa Clara County estate planning lawyer can structure a Living Trust designed to accommodate your family situation. Our office employs the following process to ensure that your needs are met:
We insist on an initial face-to-face meeting with us. In this meeting, we discuss your objectives and answer your concerns.
Once we agree upon a plan to suit your needs, we quote a firm fee at that time.
We prepare the documents and mail, fax, or email (whichever is most convenient for you) them for your review.
After your review and consultation with the office (usually by phone), final documents are prepared for signing. At signing, we provide witnesses and a Notary Public at no extra charge.
After signing, we process the documents, including transferring real property into your Living Trust to avoid probate. The appropriate documents will then be mailed to you for your records. We can keep the originals in our safe at no extra charge.
In sum, just 2 to 3 meetings will take care of the Estate Planning process. If you ever have a question regarding your trust, feel free to contact the office by phone at no extra charge.
From time to time, the Trust may have to be amended because of family or financial reasons. Trusts are easily amended; therefore, we only charge our usual hourly rate for any trust amendments (plus any costs such as recording fees). During the time the trust is in effect, you are free to conduct business in the normal manner.
The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the US financial system by insuring deposits in banks and Thrift Institution for at least $250,000. (on 10/14/08 the FDIC extended the $250,000. deposit limit of coverage from expiring on 12/31/09 to now expire on 12/31/13, thereafter the FDIC insurance coverage will revert to $100,000.).
The FDIC has been in existence since 1933. Since it's creation no depositor has lost a single cent of insured funds as a result of a bank failure.
Deposits over $250,000. are not insured by FDIC. For example, if a deposit is $300,000. in an individual name and Bank fails then first $250,000. is covered by FDIC. The remaining $50,000. is not covered by insurance and is at risk.
For this reason depositors will allocate these funds in many banks to provide maximum FDIC coverage.
Using Living Trust to hold bank deposits can maximize the amount of insured deposits significantly more than deposits held by individuals.
For example John and Jane have accumulated Time Certificates of Deposits and cash worth $1,000,000. They have three young children. The most they can insure their bank accounts and TCD's is $500,000. (John for $250,000. and Jane for $250,000.). If all of their deposits are in one bank they are under insured by $500,000.
Creating a Living Trust in proper form that complies with the FDIC regulations actually increases the amount of FDIC coverage. By creating and funding a Living Trust John and Jane can obtain FDIC deposit insurance that not only covers their deposit of $1,000,000. but will cover up to a limit of $1,500,000. in one financial institution.
If the bank fails when John and Jane are alive and the children are alive the amount of coverage available to John and Jane who hold their accounts in their Living Trust is as follows:
Grantors (John and Jane) 2x (3 children) x $250,000. = $1,500,000.
Our Living Trusts are FDIC compliant.
For Living Trusts, coverage applies as follows:
Formula: Number of Grantors x number of Beneficiaries x $250,000.
Example:
2 grantors 3 beneficiaries then max coverage is 2 x 3 x $250,000. = $1,500,000.
Note:
Grantors are not counted. They can however have other accounts not in trust and can get coverages up to $500,000.
If grantor dies - FDIC gives up to 6 months to arrange finances.
If up to 5 beneficiaries then it makes no difference if beneficiaries are not equal in terms of distributions.
Example:
2 grantors 5 beneficiaries - 1 beneficiary gets 50% of estate then other 4 shares 50% equally.
Coverage:
2 x 5 x $250,000. = $2,500,000.
If over 5 beneficiaries and all shares equally then coverage is same as above.
If over 5 beneficiaries and not equal distributions then coverage is determined as follows:
Example:
2 grantors 6 beneficiaries - one beneficiary gets 50% of the Estate then other 5 share 50% equally.
Formula:
$250,000. ÷ .50 = $500,000. or $1,250,000. which ever is greater x 2 = $2,500,000.
These examples show how the FDIC rules are applied in more detail.
Click the link below to access the estate planning worksheet and questionnaire. You will need to have the free Adobe Reader installed on your computer in order to view the pdf file.
Your answers to the worksheet and questionnaire are confidential. The sole purpose of this document is to gather enough information to process your estate planning documents.
In addition to estate planning, our firm also offers a full range of legal, real estate and loan related services including bankruptcy, foreclosure, elder law, probate, real estate exchanges, real estate loans, real estate transactions and small business matters.
If you have questions about how an estate plan can work for you today and in the future and protect your assets for your family and other loved ones, please do not hesitate to contact our San Jose estate planning attorney today. Call us now for a free phone consultation at 408-293-0344 or contact us via e-mail by filling out the form on the Contacts page and a representative from our office will reply immediately.
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