FAQ

Estate Planning Basics

1. Do I really need a full estate plan, or can I just get a will or a power of attorney?

This is one of the most common questions I hear on a first call. Most people come in already knowing they need something, whether that is a trust, a durable power of attorney, or a will, but they are not sure which one. The honest answer is that estate planning is rarely about a single document. What you actually need is a comprehensive, coordinated plan made up of multiple documents that are each designed to address a specific objective.

A durable power of attorney handles financial decisions if you are incapacitated. An advance health care directive handles medical decisions. A revocable living trust governs how your assets are managed and distributed both during your lifetime and after your death. A pour-over will acts as a safety net. These documents work together as a system. Asking for just one piece is like asking a contractor to build you only the foundation. The foundation matters, but the house is not done.
 

When you work with Gipe Law, we do not just draft the document you asked for. We identify your objectives, your family's circumstances, and your assets, and then we design the plan that actually meets those needs.

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2. Is estate planning only for wealthy or older people?

This is one of the most persistent myths I encounter. Estate planning is most critical, not least critical, when you are younger and have minor children at home. The idea that estate planning is something you do when you are older or wealthy comes from what we have seen in movies and on television. It could not be further from the truth.

If you have children, a home, a bank account, or anyone who depends on you financially, you need an estate plan. An estate plan is not just about distributing money when you die. It determines who raises your children, who makes medical decisions for you if you are incapacitated, who manages your finances if you cannot, and how your assets are protected along the way. These questions are most urgent when you are young, active, and have people who depend entirely on you.

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3. I had an estate plan done years ago. Am I still covered?

Not necessarily, and this is one of the most important conversations I have with families. Estate planning is not a one-time, check-the-box item. I do not care how good the attorney is who drafted your plan. Nobody has a crystal ball. A plan that works perfectly today may not function as intended in five or ten years because your life has changed, your finances have changed, your family has changed, and the laws have changed.
 

I regularly see trusts walk out of my office that have not been reviewed in a decade. In that time, clients may have had more children, moved homes, acquired new assets, lost a named trustee, or experienced a significant change in tax law. Any one of those things can cause a well-crafted plan to fail. When I sit down with someone who has an existing plan, my first question is always: when did you last look at it? And the follow-up questions tell the story from there.
 

An estate plan should be reviewed any time you experience a major life event, including marriage, divorce, a new child, a significant change in assets, the death of a named trustee or beneficiary, or a major shift in tax law.

4. How has recent legislation, specifically the One Big Beautiful Act, affected estate planning in California?

At the beginning of 2026, the One Big Beautiful Act significantly increased the federal estate tax exemption and made it permanent. Individuals can now pass up to $15,000,000 free of federal estate tax, and married couples can pass up to $30,000,000 using portability. Under prior law, that exemption was scheduled to sunset and revert to approximately $5,000,000 per person, which would have been a massive difference for high-net-worth families.

What this means practically is that many families who created trusts 10, 15, or 20 years ago, when exemption amounts were as low as $1,000,000 per person, have plans that are far more complex than they need to be today. That complexity costs money to administer and often introduces friction and frustration for surviving family members. We now have better, simpler planning tools available given the current tax environment, and many existing plans are strong candidates for simplification and modernization.

Additionally, portability, which is the ability to use a deceased spouse's unused exemption without funding a separate trust, was not always available. Many older plans required the funding of a bypass trust at the first spouse's death, which created significant restrictions for the surviving spouse. That requirement has been eliminated for most families under current law. If your plan was drafted before portability was widely available, it is very likely worth reviewing.

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Trusts and Other Documents

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5. What is the difference between a will and a revocable living trust?

Both a will and a revocable living trust are legal documents that specify how your assets should be distributed. The critical difference is how that distribution happens.

A will goes through probate, the public court process administered by the Superior Court. Even with a well-drafted will, your estate must pass through court before your heirs receive anything. That process in Southern California typically takes 18 to 24 months and costs between 4% and 7% of the gross value of your estate in fees and costs.

A revocable living trust allows your assets to pass to your beneficiaries entirely outside of probate court. The distribution is private, faster, and significantly less expensive. A trust also provides continuous management of your assets during your lifetime if you become incapacitated, which is something a will cannot do.

For most families in Orange County, a revocable living trust is the more efficient and appropriate planning vehicle. A will still plays a role, specifically as a pour-over will that acts as a safety net for any assets not transferred into the trust, but the trust is the foundation of the plan.

6. I have a trust. Why is my estate plan not complete?

Creating a trust is step one. Funding it is step two, and it is the step most people never complete.

A trust only controls the assets that have been legally transferred into it. If you sign a trust today but never retitle your home, your bank accounts, or your investment accounts in the name of the trust, those assets will not pass through the trust when you die. They will go through probate instead, which defeats the primary purpose of having a trust in the first place.

I use a simple analogy with clients: a trust is like a vehicle. No matter how well-engineered that vehicle is, it is completely useless if you never get in and drive it. An unfunded trust is an expensive lawn ornament. It sits in a binder, it looks impressive, but it does nothing.

The good news is that a well-drafted trust will include safeguards. If assets are left outside the trust, there are options. A Heggstad petition can bring certain assets into the trust through a court petition relatively quickly and easily. Small estate affidavits can address assets outside the trust when the amount is under California's threshold. The pour-over will can probate remaining assets as a last resort. But each of these options costs time and money, and are no substitute for a well drafted and fully funded trust.

Proper trust funding means starting with your largest assets, typically real property, and working down. In California, transferring real property into a trust requires recording a deed. It is a real legal step, not a formality.

7. What documents should be included in a complete estate plan?

A comprehensive foundational estate plan typically includes the following documents working together as a coordinated system.

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Revocable Living Trust. The centerpiece of most plans. Governs how your assets are managed during your lifetime, provides for incapacity management, and distributes your assets to your beneficiaries after death without going through probate.

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Pour-Over Will. A safety net that captures any assets not titled in the trust at your death and directs them into the trust through the probate process. Every trust should be paired with a pour-over will.

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Durable Power of Attorney. Authorizes a person you trust to manage your financial affairs if you become incapacitated. Without this, your family may need to petition the court for a conservatorship just to pay your bills.

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Advance Health Care Directive. Designates who makes medical decisions on your behalf if you cannot make them yourself, and documents your wishes regarding end-of-life care.

Depending on your circumstances, your plan may also include provisions addressing guardianship of minor children, special needs planning, asset protection structures, and insurance coordination.

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Families with Minor Children

8. My spouse and I have young kids. What happens to them if we both die?

This is the most important question any parent can ask, and it is the reason estate planning is most urgent when your children are young. Without a plan in place, California's default rules take over, and those rules were not designed with your family's specific values, circumstances, or wishes in mind.

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If both parents die without naming a guardian, a California court will decide who raises your children. That proceeding involves attorneys, court appearances, and potentially competing family members, all while your children are in a state of crisis.

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If both parents die without a trust, any assets or life insurance proceeds intended for your children cannot be released directly to them. Minor children cannot legally take possession of an inheritance. Every dollar will be subject to a court-supervised guardianship proceeding with annual accountings, annual attorney fees, annual court costs, and annual CPA fees until each child turns 18. At that point, they receive a single lump sum check for the full remaining balance.

An 18-year-old receiving a large, unstructured inheritance is a situation most parents would not willingly choose. A well-drafted trust allows you to set the terms: when your children receive distributions, how those funds can be used, and who manages the money on their behalf in the meantime.

9. We named our kids as beneficiaries on our life insurance. Is that enough?

No, and this is one of the most consequential misunderstandings I see. Life insurance companies have done an excellent job marketing the idea that a policy alone protects your family. It does not, not without a trust in place to receive the proceeds.

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Here is what actually happens. If you and your spouse both die and your minor children are listed as beneficiaries on your life insurance policy, the insurance company will see that the beneficiaries are under 18. They will not release the funds. Every dollar of that policy will be subject to a court-supervised guardianship proceeding until your children reach 18, the same expensive and slow process described above.

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The solution is to name your revocable living trust as the beneficiary of your life insurance policies, not your children directly. The trust receives the funds, the trustee you selected manages the money according to your instructions, and your children are protected and provided for without court oversight.

10. How much life insurance do families with young children actually need?

This is a question that deserves a thoughtful, formulaic answer, not a generic rule of thumb. When I work with families who have minor children, I apply what I call a foundational insurance structure. The goal is simple: if both parents die unexpectedly, the surviving family must have the financial resources to maintain their standard of living, cover immediate expenses, and fund the future.

Most families with young children are not self-insured. You are likely early in your career, still building toward your peak income-earning years, which statistically occur in your mid to late forties and early fifties. A sudden loss of one or both incomes is financially catastrophic without proper coverage.

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The calculation needs to account for income replacement, outstanding mortgage debt, childcare costs, education costs, and the financial impact on the guardian who will be raising your children. That guardian is taking on an enormous responsibility. Their financial life will be affected. A well-designed plan accounts for that.

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Term life insurance is relatively inexpensive for young, healthy families and provides exactly the type of foundational coverage needed at this stage of life. But the policy alone is not enough. It must be coordinated with a properly funded trust to ensure the proceeds reach your children the way you intend.

11. What financial burden does a guardianship proceeding place on my children's inheritance?

More than most people realize. When minor children receive an inheritance without a trust in place, whether from a life insurance policy, a bank account, or any other asset, those funds become subject to court-supervised guardianship. This is not a one-time proceeding. It continues every year until each child turns 18.

Each year, the guardian must provide a penny-by-penny accounting of every dollar received and every dollar spent on behalf of the child. That accounting requires an attorney. It requires court appearances. It typically requires a CPA to prepare the financial documentation. These costs repeat annually for as long as the guardianship continues.

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When you add those costs year over year, you are looking at tens of thousands of dollars, sometimes significantly more, being redirected away from your children's care and into administrative overhead. That is money that was intended for their school, their health, their stability, and their future. A properly funded revocable living trust eliminates this entirely by removing your children's assets from court oversight and placing them under the management of a trustee you selected and trust.

Probate

12. What is probate, and how does it work in Orange County?

Probate is the court-supervised legal process of settling a deceased person's estate. When someone dies without a trust, or with assets that were never transferred into their trust, those assets must pass through the Superior Court of California before they can be distributed to heirs.

In Orange County and throughout Southern California generally, a full probate proceeding takes conservatively 18 to 24 months under best-case conditions, meaning no disputes, no complications, and everyone cooperating. If there are contested assets, family disagreements, or real estate and business interests involved, that timeline extends further.

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The process involves filing a petition with the court, notifying creditors, inventorying and appraising all assets, managing estate debts and taxes, and ultimately obtaining court approval for distribution. Every step requires court filings, hearings, and attorney involvement.

13. How much does probate cost in California?

Probate in California is expensive, and the costs are often larger than families anticipate. There are several distinct categories of fees.

Statutory probate fees are set by the California Probate Code and are non-negotiable once you are in probate court. Both the attorney and the personal administrator of the estate are each entitled to these fees, which are calculated as a percentage of the gross value of the estate, starting at 4% on the first $100,000 and scaling down from there. Importantly, these fees are based on gross value, not net value. A home worth $900,000 with a $600,000 mortgage is still a $900,000 asset for purposes of calculating statutory fees.

Extraordinary fees are assessed on an hourly basis when the estate involves matters the court considers beyond ordinary, such as real property, business interests, tax complications, or disputed assets. These are in addition to statutory fees.

Court costs and filing fees add further to the total.

The Superior Court of California has published guidance suggesting that most families should expect to pay somewhere between 4% and 7% of the gross value of the estate in total fees and costs. On a $1,000,000 estate, that is $40,000 to $70,000. On a $2,000,000 estate, the numbers grow accordingly.

By comparison, a comprehensive estate plan typically costs between $4,000 and $8,000 depending on complexity. For most families in California, where real estate values alone frequently push estates well past probate thresholds, the cost of planning is a fraction of the cost of not planning.

14. Are there faster or less expensive alternatives to full probate in California?

Yes, in certain circumstances. California offers a few expedited options for smaller or less complex estates.

Small estate affidavit, also called an affidavit for collection of personal property, is available when the total value of assets subject to probate is below California's small estate threshold, which is currently approximately $200,000 and adjusts periodically. This process takes roughly 6 months and typically costs $5,000 to $10,000 in attorney fees, far less than a full probate.

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Heggstad petition is a court petition that can be used to bring assets into a trust that were inadvertently left out. If the decedent had a trust but failed to transfer certain assets into it, a Heggstad petition may be able to capture those assets without a full probate. This is also typically a 6-month process.

These options are significantly more cost-effective than full probate, but they are not available in every situation. The best approach is always to create and properly fund a revocable living trust before it becomes necessary to use any of these alternatives.

Asset Protection

15. What is asset protection planning, and who needs it?

Asset protection planning is the next level beyond foundational estate planning. It is the intentional structuring of your assets in a way that provides the greatest legal insulation from potential lawsuits, creditor claims, and liability exposure.

Foundational estate planning is for everyone with a family, a home, or assets that need to be managed and distributed. Asset protection planning becomes increasingly important once you have accumulated meaningful assets, particularly if you are in a high-income profession, own rental properties, run a business, or have significant investment accounts.

California is one of the most litigious states in the country. Personal assets held in your individual name, including bank accounts, investment accounts, and real property titled personally, have limited or no protection if you are named as a defendant in a lawsuit. Your primary residence has some protection under California's homestead provisions, but personal accounts have none.

Asset protection planning typically begins with an umbrella insurance policy, which increases the coverage limits across all of your existing personal liability policies and funds your legal defense in the event of a lawsuit. From there, we look at how your assets are owned and structured, particularly investment real estate and business interests, to provide greater legal insulation. The goal is not to hide assets or evade legitimate obligations, but to structure your financial life in a way that gives you the best possible position if you are ever involved in litigation.

16. Why is an umbrella insurance policy important for asset protection?

Because the moment you become a defendant in a lawsuit, the playing field is not level.

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California is home to some of the largest plaintiff's law firms in the country, firms that operate on contingency, meaning they front the entire cost of litigation and collect a percentage only if they win. These firms have enormous resources and can sustain litigation for years. Morgan and Morgan, for example, is a billion-dollar enterprise built entirely on contingency-fee litigation.

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If you are a defendant, no attorney will take your case on contingency. You are paying hourly from day one. Without insurance, that cost comes directly out of your personal assets.

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An umbrella policy solves this by increasing the liability limits on all of your primary personal insurance policies, including home, auto, and others, and directing your insurance carrier to pay for your legal defense up to those limits. The insurance company's attorneys defend you. The insurance company pays the legal fees. That is the war chest that protects your assets while the case is being resolved.

For families with meaningful net worth, an umbrella policy is not optional. It is the foundation of any serious asset protection strategy.

17. How does owning rental property or investments affect my liability exposure?

Significantly. Personal assets, including rental properties titled in your individual name, are generally exposed to any judgment entered against you personally. If you are sued for any reason and a judgment is entered, your rental property, your investment accounts, and your savings are all potentially reachable by a creditor.

The way to address this is through thoughtful ownership structuring. Rather than owning a rental property in your personal name, we look at whether holding it in a separate legal entity, such as a limited liability company, provides more effective protection. The goal is to create legal separation between the asset and your personal liability exposure.

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This analysis is specific to each client's situation. California law governs what protections are available, and the right structure depends on the type of asset, how it is financed, how it is managed, and your broader financial picture. Asset protection planning is not a one-size-fits-all solution. It is a strategy built around your specific circumstances.

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Working with Gipe Law

18. What does the estate planning process look like at Gipe Law?

We keep the process straightforward and structured so you always know what to expect.

It begins with a Discovery Phone Call, a no-cost introductory conversation where we learn about your goals, answer preliminary questions, and confirm that we are the right fit for your needs.

If we move forward, we schedule a paid consultation where we review your situation in detail, identify gaps in your current plan or the absence of one, and outline a clear path forward. If you decide to engage us after the consultation, the consultation fee is applied toward your plan. All pricing is discussed upfront with no surprises.

From there, we move into the Design Phase, where we develop your plan, walk you through the specific documents and strategies we recommend, and refine every detail until it reflects exactly what you want.

Finally, we Sign and Fund. We prepare your final documents, coordinate the transfer of assets into your trust, align beneficiary designations, and integrate any insurance components so your plan is not just signed, but functional.

19. Why does Gipe Law charge for consultations when some attorneys offer free consultations?

Because a paid consultation is a real meeting with a real attorney who has reviewed your situation and is prepared to give you substantive legal guidance, not a sales call.

Free consultations in the legal industry are typically discovery calls designed to qualify you as a client. You will spend the time providing information, and the attorney will spend the time determining whether to take your case. You will leave knowing very little more than when you walked in.

Our paid consultation is structured differently. We review your situation in advance, we come prepared, and by the end of the meeting you will have a clear picture of what your plan should look like, what gaps exist in your current situation, and exactly what we recommend and why. If you choose to move forward with us, that consultation fee is credited to your plan. If you choose not to, you have still received meaningful, actionable legal guidance that you can use.

We believe that approach respects your time and ours.

20. How often should I review my estate plan once it is in place?

At a minimum, you should review your plan every three to five years, and immediately following any major life event. Major life events include marriage or divorce, the birth or adoption of a child, the death of a named trustee or beneficiary, a significant change in your financial situation, a move to a new state, or a significant change in tax law.

The people named in your plan, including trustees, successor trustees, guardians, and agents under your power of attorney, need to be people who are still alive, still willing to serve, and still the best people for that role. Life changes. The people you named five years ago may not be the right choice today.

Tax law changes frequently and can significantly affect how your plan is structured, particularly for higher net worth families. The estate tax environment has shifted substantially over the past fifteen years, and it will continue to shift. A plan that was well-optimized for one tax environment may be unnecessarily complex or insufficiently protective under a different one.

Estate planning is an ongoing relationship, not a transaction. We encourage our clients to stay in contact with us as their lives evolve so their plans can evolve with them.