Newport Beach, California, October 2018 – Max Alavi, Attorney at Law, APC, would like to announce the successful conclusion of another litigated trust matter. After a two-year battle in the Orange County Courthouse, Max Alavi, Attorney at Law, APC, could reclaim trust assets denied to our client, who had been refused access to these benefits for over two decades by the trustee was her uncle. She states her results with Mr. Alavi in her own words:

“I was the sole beneficiary of my grandfather’s trust who had passed away almost 20 years ago. I had not received any payments or distributions from the trustee, who was my uncle. I called Mr. Alavi when I could not get any information from anybody and I was not even able to find out where my uncle, the trustee, was living. Mr. Alavi tracked him down in Canada and served him with the lawsuit to finally get my inheritance paid to me. After two more years of work on my case, we were finally able to settle the case with results that I am very very happy about. I have used the money from the settlement to buy land for myself, my husband and two sons to build a house to live in.”

Max Alavi, Attorney at Law, APC’s dedication crossed the northern border to conclude our client’s two-decade-long struggle to fulfill the final wishes of her grandfather to pass his life’s hard-earned benefits to the betterment of his granddaughter. Max Alavi, Attorney at Law, APC, celebrates this moment as both a professional and personal success that our firm was able to close this chapter for our client happily and to realize the wishes of our client’s grandfather.

Max Alavi, Attorney at Law, APC is a boutique law firm focusing on Probate, Estate and Trust Litigation, Estate Planning, and Probate and Trust Administration with multiple locations across Southern California.

With decades of combined experience, our Estate and Trust litigators are experienced trial attorneys representing clients in the most complex disputes involving wills, trusts, and estates. This experience allows our attorneys to foresee issues before they arise when drafting your customized and tailor-made estate plans, saving you and your family the expense and frustration of costly litigation. The firm publishes a regular blog on estate matters and can be reached via the contact information below:

Max Alavi, Attorney at Law, APC
2424 SE Bristol St., Ste 300
Newport Beach, CA 92660
O: 949.706.1919
F: 949.706.6060
email: info@octrustslawyer.com

What Happens When the Trust and Transfer on Death Instructions on Accounts are Different?[/caption]

In an ideal estate planning scenario, a living trust is fully funded with assets, allowing the entire estate to pass to beneficiaries without dispute or need for probate court. Sadly, this is not always how things work out. Sometimes there may be a discrepancy between the living trust provisions and the Transfer on Death indication of an old investment or banking account. What happens in these situations? What do California’s probate laws say? Find out in the latest blog post from Max Alavi APC, OC Trusts Lawyer, and trusted estate planning attorney.

What Happens When the Trust and Transfer on Death Instructions on Accounts are Different?

In an ideal estate planning scenario, a family will have a living trust fully funded with assets, allowing their entire estate to pass to their beneficiaries through the trust itself. Of course, not every estate planning scenario is so neat and tidy! It is much more common for families to have at least a few banking and investment accounts with old beneficiary designation systems, often inconsistent with the terms of a living trust.

An Estate Planning Case Study

Here’s an illustration that might be helpful.

Imagine that Ashley sets up a living trust in which she names her three daughters as equal beneficiaries of her estate. Before establishing the trust, Ashley had a checking account on which she named only one of her daughters, Diane, as a Transfer on Death (ToD) beneficiary.

The three daughters are embroiled in a dispute regarding the checking account upon Ashley’s death. Diane claims that she is the account’s sole beneficiary, while her two sisters claim that the account should be equally shared among the three of them, according to the terms of the trust. So who’s right?

What Does the Probate Code Say?

Let’s take a closer look at what California’s estate planning laws say. Probate Code § 5302 dictates that a ToD designation, like the one associated with Ashley’s checking account, can fail if there is clear evidence that the deceased account owner intended to distribute assets differently than the ToD indicates. Case law in California establishes that a trust may prove this clear and convincing evidence.

Now let’s get back to our illustration. Since Ashley’s living trust called for an even division of her trust assets, and since the trust was created after she established Diane as the sole ToD beneficiary, there’s a decent chance that Diane’s sisters would win the day in probate court.

Get Help from a Probate and Estate Planning Attorney

But, of course, no family wants to face this level of tension or acrimony. One of the primary goals of estate planning is to provide clarity so that this kind of discord never happens. That’s what makes it so important to ensure that all elements of your estate plan are harmonized, something that a good law firm can help you with.

Max Alavi APC, OC Trusts Lawyer, has a proven track record of helping clients in Orange County, Los Angeles, and Long Beach Area arrive at sensible and effective estate plans. He has countless reviews that attest to his skill and his helpfulness. To find out more about coordinating a living trust with ToD accounts, schedule a consultation with Max Alavi APC, OC Trusts Lawyer.

As a law firm specializing in living trusts, estate planning, and probate solutions, we understand that legal terminology can be overwhelming and confusing. Therefore, we have compiled a glossary of legal terms to help our clients and users better understand the legal concepts central to our practice. This glossary includes definitions for critical legal words such as living trust, estate planning, and probate, as well as other important legal concepts such as trustees, beneficiaries, wills, power of attorney, guardianship, conservatorship, trust administration, estate tax, and more. By familiarizing yourself with these legal terms, you can better understand the legal processes involved in protecting and managing your assets. As always, our legal experts are here to provide you with the guidance and support you need to navigate these complex legal matters.

Glossary of Estate Planning Terms

1. Living Trust: A legal document allowing you to transfer your assets to a trustee during your lifetime and then to your beneficiaries upon death without going through probate.
2. Estate Planning: Preparing to transfer your assets to your heirs or beneficiaries after your death. Estate Planning can include the creation of a will, a living trust, and other legal documents that outline your wishes.
3. Probate: The legal process of distributing the assets of a deceased person according to their will or, if there is no will, according to state law.
4. Trustee: The person or entity named in a living trust responsible for managing and distributing the trust assets according to the trust document’s terms.
5. Beneficiary: The person or entity named in a living trust entitled to receive the trust assets upon the grantor’s death.
6. Will: A legal document outlining how a person’s assets will be distributed upon death.
7. Power of Attorney: A legal document that gives another person the authority to act on your behalf in legal or financial matters.
8. Executor: The person named in a will responsible for carrying out the deceased’s wishes.
9. Guardianship: The legal process of appointing a person to care for the personal and financial needs of a minor or incapacitated adult.
10. Conservatorship: The legal process of appointing a person to manage the financial affairs of a minor or incapacitated adult.
11. Trust Administration: Managing and distributing a living trust’s assets after the grantor’s death.
12. Estate Tax: A tax imposed on the transfer of assets upon the death of an individual.
13. Gift Tax: A tax imposed on transferring assets as a gift during a person’s lifetime.
14. Intestate: A person who dies without a valid will.
15. Living Will: A legal document that outlines a person’s wishes regarding medical treatment in the event of incapacity or terminal illness.
16. Advanced Healthcare Directive: A legal document that outlines a person’s healthcare wishes and appoints a healthcare agent to make decisions if they become incapacitated.
17. Community Property: A form of joint property ownership in which spouses have equal rights to all property acquired during the marriage.
18. Separate Property: Property owned by one spouse is not considered community property.
19. Revocable Trust: A living trust that can be amended or revoked during the grantor’s lifetime.
20. Irrevocable Trust: A living trust that cannot be amended or revoked once created.

Contact Max Alavi APC, OC Trusts Lawyer Today.

This glossary has helped clarify some legal terminology related to a living trust, estate planning, and probate. If you have further questions about these concepts or need assistance creating a living trust, developing an estate plan, or navigating the probate process, don’t hesitate to contact Max Alavi APC, OC Trusts Lawyer law firm. Our experienced legal experts are dedicated to providing the guidance and support you need to protect your assets and secure your legacy. Contact us today to schedule a consultation and learn how we can assist you with your living trust, estate planning, probate, and trust litigation needs.

Curious about why you’d want to bypass probate court… and how to effectively do so? Consider some tips from estate planning attorney Max Alavi.

Three Reasons to Avoid Probate Court

A common misconception about estate planning is that, if you die but you have a will in place, your assets will automatically be transferred to the appointed heirs and beneficiaries. This isn’t necessarily the case. Upon your death, your loved ones may be required to sign certain documents as part of the probate process. Only then can they receive their inheritance.

Having a will in place doesn’t mean that your loved ones get to skip this process. Your will can be a helpful way of informing the courts about your wishes, but your family members will still need to go to probate court in order to claim the assets you name for them.

Why You Want to Avoid Probate

If at all possible, you’ll want to avoid going to probate.. There are a few reasons why.

1) Probate is a matter of public record.

First, there are concerns about privacy. Keep in mind that everything that happens within the court system, including probate court, is a matter of public record. So, in order to claim their inheritance, your heirs may need to supply the courts with personal financial information; that information could then be retrievable by anyone who wishes to request it through the court system.

Now, it’s important to note that the courts do place some basic identity theft protections in place; things like bank account numbers and Social Security Numbers will be safeguarded. But information related to the value of your accounts, or the identities of your appointed beneficiaries could be known to the general public. Most people would prefer to keep such details confidential, which is why avoiding probate is so vital.

2) Probate is expensive.

Another reason to avoid probate pertains to expense. Hiring a probate attorney, paying court costs, handling executors fees… these things all add up, and can potentially cost thousands of dollars just for your loved ones to claim a modest inheritance.

If you want your assets to pass directly to your family members, not to be chewed up by the probate court, then avoiding probate is the way to go. Indeed, proper estate planning can help you reduce or even eliminate these probate costs altogether.

3) Probate takes time.

The timeline involved with probate can vary depending on the state, and on the size and complexity of your estate. With that said, it isn’t known for being a quick or easy legal process. Even a very simple probate case can last for six months or even a full year. What this means is that your beneficiaries will have to wait at least that long to receive the assets you desire them to have.

Bypassing probate can significantly expedite the distribution of your assets, and save your heirs a lot of time, hassle, and expense. Thankfully, there are some estate planning practices that can be employed to do exactly that, including the use of living trusts.

How to Avoid Probate? Hire an Experienced Living Trust Attorney

Max Alavi has years of experience as a living trust and probate attorney and can help you design an estate plan that will allow you and your beneficiaries to avoid probate altogether. Schedule a consultation by reaching out to the OC Trusts Lawyer today.

A financial power of attorney authorizes a loved one to manage your finances and to conduct business transactions on your behalf, should you become unable to handle those matters yourself. But what happens when a third party, such as a bank or credit union, refuses to acknowledge a properly executed power of attorney document? This may result in significant hassle and frustration, but California law provides a structure to make a claim against those third parties and even to recoup legal fees. The first step? Talking to a skilled living trust lawyer. Find out more in this post from Max Alavi APC, OC Trusts Lawyer.

What Happens When a Bank Refuses to Accept Your Power of Attorney?

The financial power of attorney is one of the most valuable estate planning documents, allowing you to ensure that your financial wishes are carried out, and your duties fulfilled, even if you become incapacitated for some reason. More specifically, a financial power of attorney is a document that lets you name someone as your agent, authorizing them to manage your finances when you’re unable to do so yourself.

At the office of Max Alavi APC, OC Trusts Lawyer, our attorneys have received a number of inquiries from clients who say that a bank or credit union has refused to recognize their legitimate financial power of attorney. In this post, we’ll share some insight.

Financial Power of Attorney Denial: A Case Study

There are several reasons why a financial institution might look askance at your valid power of attorney document, but typically the situation unfolds like this: Imagine a woman by the name of Mary. She’s listed as her mother’s power of attorney. What this means is that, legally speaking, Mary is authorized to conduct any kind of financial or business transaction on her mother’s behalf, particularly if her mother becomes unable to handle those transactions on her own. And that’s just what happens: Mary’s mom is diagnosed with dementia, and has doctors’ notes to verify it.

A dementia diagnosis is always tragic, but Mary decides to do her best to make certain her mom gets the highest standards of care. She places her mother in a residential care facility that offers around-the-clock nursing and other support services.

Of course, these communities can be pricey. To cover the significant expenditure, Mary decides to draw from some of her mother’s bank accounts and investment portfolios. This is something that, as a financial power of attorney, she feels she is authorized to do.

And so, Mary reaches out to her mother’s bank, providing both the financial power of attorney document and the doctors’ notes, verifying the dementia diagnosis. Mary doesn’t hear back for weeks, and when she finally does get in touch with someone from the bank, they give frustrating news: They claim that the power of attorney document is too old, and thus they cannot recognize its legitimacy.

If the story ends there, and Mary simply settles for the bank’s verdict, then she is left with no way to cover her mom’s assisted living and dementia care expenses. Thankfully, Mary has other options available to her.

The Answer: Talk with a Living Trust Attorney

The scenario we’ve outlined here is all too common, but thankfully, there are legal remedies in place. For example, under California Probate Code § 4406, Mary is authorized to file suit against the bank for not recognizing the validity of a properly executed financial power of attorney document. And if the courts determine that the bank acted unreasonably, the law further authorizes Mary to recoup all attorney’s fees, which may place her back on solid footing, financially.

To succeed in a case against a bank, of course, you’ll need to match their resources and legal expertise. That means enlisting the services of a skilled living trust attorney who focuses on power of attorney and living trust law. Max Alavi APC, OC Trusts Lawyer, has an extensive track record working on cases just like this one, and a portfolio of reviews that speak to his excellency and his consistency in getting results.

Speak with a California Living Trust Attorney Today

Our firm is here to help you with any crises or conflicts that emerge over your estate planning documents, including a financial power of attorney dispute. To speak with a lawyer today, contact Max Alavi APC, OC Trusts Lawyer directly.

What happens when a trustee fails in their duty to provide beneficiaries with a copy of the living trust? This scenario happens all too often, but California Probate Court has some provisions in place, allowing beneficiaries to compel the trustee to provide a true and complete copy of the trust. To find out more about this provision, connect with Max Alavi APC, OC Trusts Lawyer.

What Can I Do if the Trustee Won’t Give Me a Copy of the Trust?

It is generally assumed that the trustee will provide a copy of the trust to any named beneficiaries. Having said that, we have run into a few situations in which the trustee refused to do so, leaving the beneficiaries with a feeling of unease. After all, the trustee is tasked with managing the assets contained within a trust, and those who stand to benefit naturally want to have plenty of information about how the trust is being maintained.

What the California Probate Code Says

Thankfully, the California Probate Code has some language to address just this situation.

When the holder of a living trust dies, or the trust becomes irrevocable upon its own terms (e.g., the creator of the trust becomes incapacitated in some way), California Probate Code § 16061.7 requires the trustee to provide notice to all beneficiaries and heirs. This must be done within 60 days of the original trust holder’s death.

If the trustee fails to do this, beneficiaries may file a petition in probate court, compelling the trustee to furnish them with a true and complete copy of the trust. In addition, the probate court can order the trustee to pay for any of the beneficiary’s attorney’s fees, specifically covering any costs incurred with trying to obtain a copy of the trust.

What to Do if You Need a Copy of the Trust

If you find yourself in a situation where the trustee has failed or simply refuses to provide you with a copy of the trust, we recommend making a written request to the trustee as soon as possible. Date your letter and be sure you have proof that the letter was mailed to the right person (e.g., use certified mail). If the trustee still fails to respond, then you will have all the evidence required to take matters to a living trust attorney.

Speak with a Living Trust Attorney in Orange County

As the beneficiary of a trust, you have a right to know the terms of that trust. If you require assistance navigating probate court, we invite you to contact Max Alavi APC, OC Trusts Lawyer. Our firm has a proven track record of success in probate and trust litigation and a rave review portfolio that attests to our skill and professionalism. Contact Max Alavi APC, OC Trusts Lawyer, for any questions related to a living trust or trustee relations.v

Having a living trust can be a convenient, cost-effective way to transfer assets to an heir after you die. Merely having a living trust is insufficient, however, if that trust is not properly funded. In cases involving real estate assets, this means ensuring the property is titled to the trust. Find out more about funding a trust via Max Alavi APC, OC Trusts Lawyer.

The Importance of Properly Funding Your Trust

A living trust can be an effective way to transfer assets to your heirs upon your death. However, it’s important to remember that creating trust is merely the first step. It’s equally essential to ensure that the trust is fully funded. In other words, it’s important to transfer the title to your assets and property from yourself to your trust.

This is an especially important concern when using a living trust for real estate. One of the most common errors people make is not titling newly purchased property in the name of their trust. This error can frustrate the entire reason for creating the trust in the first place.

Titling Assets in the Name of Your Trust

Keep in mind that a trust can only control those assets that are titled in the name of the trust. So, if you fail to title an asset or piece of property in the name of the trust, then that asset will be treated as though you had no trust at all. This will likely mean that, upon your death, your heirs must go through the costly, time-consuming probate process in order to claim their inheritance, something that a properly funded living trust could help you avoid.

Again, these concerns are especially important when considering a living trust for real estate. This is because the deeds to your real estate must not only be titled in the name of the trust, they also must be accurately reported to the office of the county recorder.

Living Trusts and Pour Over Wills

It’s worth noting that a pour over will may be used to transfer assets into your trust after you have passed away. This is far from an ideal solution, however, as any will must be approved by the probate court before it can go into effect. This means your heirs may still incur significant court costs or experience major delays before they may claim their assets.

The bottom line? There is simply no substitute for ensuring that your assets are properly titled in a fully funded trust.

Talk with a Living Trust Attorney

Living trusts can provide a smooth and cost-effective transfer of assets to your intended heirs. To ensure the proper setup and funding of your living trust, make sure you speak with an experienced living trust attorney.

Max Alavi APC, OC Trusts Lawyer, is an experienced living trusts attorney with a proven track record of success, and a broad portfolio of five-star client reviews. To discuss using a living trust for real estate, contact Max Alavi APC, OC Trusts Lawyer at your convenience.

A living trust can be an important estate planning tool, helping you pass along your assets to the intended heirs without the need for the probate courts to intervene. Find out more about the benefits of establishing a living trust, and the reasons to hire an experienced living trust lawyer, in this blog post from Max Alavi APC, OC Trusts Lawyer.

Do I Really Need to Create a Living Trust?

All too often, individuals believe that simply creating a will is sufficient for properly distributing their assets to intended heirs. If you die with only a will in place, you run the risk that your assets could be entered into probate court, creating additional expenses and hassle for your loved ones. Additionally, a will alone is not always sufficient to ensure your assets are distributed according to your wishes; sometimes, the court may intervene, going against your express wishes.

One solution to these problems is to create a living trust. A qualified living trust lawyer can help you use your trust to ensure the optimal outcomes for your intended heirs. 

Why Set Up a Living Trust?

The main reason to set up a living trust is to protect your heirs from having to go through probate court once you die. Probate simply refers to the state’s legal process of assessing how a person’s assets should be allocated upon their death, and it will prove both costly and time-consuming for your heirs. It’s desirable to help them avoid probate altogether, and in California, the best way to do so is by working with a living trust attorney.

Exceptions: When Don’t You Need a Living Trust?

There are a few circumstances in which a living trust might not be needed. Examples include:

• If the entire value of your estate is under $150,000,  your heirs may use the small estate probate process, meaning a living trust is not necessary. 
• Bank accounts and investment accounts can have a “Transfer on Death” designation, allowing the immediate transfer of those assets to the designated beneficiary without the need for probate. Again, a living trust is not needed here.

What Does a Living Trust Do?

When you establish a living trust, you’re effectively creating the rules and parameters by which your heirs will receive your property when they die, without the need to have the probate courts intervene. This helps preserve the value of your estate while ensuring your heirs all get the assets you intend for them, as promptly as possible.

A living trust can also prevent headaches should you become incapacitated due to dementia or a similar condition. Assets in a living trust can then be managed by a trustee you have appointed, on behalf of your heirs, without the need for a legal conservator.

Why Hire a Living Trust Lawyer?

Living trusts can certainly be helpful but be advised that they come with their own special rules and protocols. To establish an effective living trust, you’ll want to work with an experienced lawyer.

Max Alavi APC, OC Trusts Lawyer, has a proven record of success, and a wide range of knowledge concerning probate law. Contact him whenever you’re ready to speak with a living trust attorney in the State of California.

The Basics of California’s Intestate Inheritance Law

What happens to your assets if you die without a will in place, or without your assets being properly assigned to the will on file? According to California’s intestate inheritance laws, there may be some situations in which your assets are divided among surviving relatives, simply on the basis of your relationship to them.

In summary, if you die without properly naming heirs and beneficiaries, interstate laws take over. Your assets will likely pass first to a surviving spouse, then children, and finally parents or siblings.

Here’s what California residents should know about this inheritance law, also known as intestate succession.  To learn more about California inheritance law, connect with Max Alavi APC, OC Trusts Lawyer.

Intestate Succession in California: Covering the Basics

Your Spouse

You might assume that, if you die without naming heirs or beneficiaries, all of your assets will go immediately to your spouse. This isn’t quite the case.

According to California’s intestate succession law, if the deceased person was married and has no living children, their spouse will inherit the entire estate. If the deceased person was married and does have living children, the spouse will typically inherit half of the estate, with the children inheriting the other half.

Your Children

According to inheritance law in California, if you die and do not have a living spouse but do have living children, then your children will inherit the entire estate. The estate will be decided and allocated between them in equal shares.

Your Parents

Intestate succession laws also dictate that, if you die without a living spouse or children, your assets will then go to your parents.

Your Siblings

In the event that you die without a living spouse, children, or parents, then your estate will go to your siblings. It will be divided and allocated between them in equal shares.

The State

Should you die without a will in place, and without any living relatives at all, then your estate will pass to the State of California itself.

Exceptions and Other Guidelines

What we’ve outlined here is the general rule of California’s intestate succession laws. However, there are a number of exceptions and special circumstances, which make it essential to talk with your estate planning lawyer about your specific situation.

For example:

• If you name a beneficiary or heir but that person dies within 120 hours of your own death, that person is not considered to inherit your estate.
• Immigrants, regardless of their legal status, may inherit assets through California’s intestate succession process.
• If you die due to nefarious causes, the person who caused your death may not inherit your assets, even if they might otherwise be named your successor via California’s inheritance laws.
• There are certain types of assets that are not encompassed by intestate laws and may pass directly to a named heir or beneficiary. Examples include life insurance policies, retirement accounts, bank accounts, and living trusts.

Using Living Trusts in Your Estate Planning

Intestate succession laws provide some guidance regarding the allocation of assets upon your death. To gain greater control over how your estate is distributed upon your death, a living trust may be the solution.

Max Alavi APC, OC Trusts Lawyer, has significant experience helping individuals establish effective estate planning through living trusts. Schedule a consultation today in order to discuss the best ways to meet your CA estate planning goals.