Trust Administration Attorney Archives

Is There A California Estate Tax?

Many Californians ask: Is there a California estate tax? The short answer is no. California does not impose a state-level estate or inheritance tax. Most residents—regardless of how much they own—will never pay estate tax to the state of California. However, that doesn’t mean estate planning isn’t important. In fact, taxes are just one part of the bigger picture.

California has no estate or inheritance tax

The California State Controller’s Office confirms that for deaths on or after January 1, 2005, there is no California estate tax return required.
There is also no inheritance tax in California, which means heirs do not owe state taxes on what they receive from an estate.

Federal estate tax still applies—but only to the ultra-wealthy

As of 2024, the federal estate tax exemption is $13.61 million per person, or $27.22 million per married couple—meaning that only the largest estates are taxed. Note: The federal exemption is scheduled to drop roughly in half on January 1, 2026 unless Congress acts, which may affect higher-net-worth families.
For a broader look at planning strategies—including trusts, gifting, and preparing for future changes in tax law—City National Bank offers a helpful overview.

Solano County: What Local Families Should Know

Families in Fairfield, Vacaville, and other Solano County cities may not face estate taxes, but they still have to deal with local court procedures if no plan is in place.

The Solano County Superior Court Probate Division handles matters related to wills, trusts, conservatorships, and guardianships.
If your estate must go through probate, expect a public, formal court process that can take many months and involve court fees and statutory executor fees.
A revocable living trust is one of the most effective ways to avoid probate in Solano County.
The court also handles small estate affidavits and spousal property petitions, which may simplify things for smaller estates.

Why do estate planning if there’s no estate tax?

Even if your estate won’t owe federal or state estate tax, here’s why planning is still essential:

Avoiding probate: Probate is public, time-consuming, and often expensive. A trust can allow your assets to transfer privately and efficiently.
Naming guardians for minor children: A will ensures you—not a judge—choose who raises your children if something happens to you.
Control over distributions: You may want your beneficiaries to receive assets at certain ages, or with protections in place for special needs or addiction issues.
Medical and financial decisions: Estate planning includes powers of attorney and health care directives in case of incapacity—not just after death.
Preventing family conflict: Clear instructions and proper legal documents help avoid confusion and reduce the risk of disputes.

What other taxes might apply?

Even without estate tax, other taxes can still affect your estate or your beneficiaries:

Capital gains tax: Assets get a “step-up in basis” at death, but gifting assets before death can eliminate that benefit and result in higher taxes for the recipient.
Income tax on inherited retirement accounts: Beneficiaries of IRAs or 401(k)s now often must withdraw the funds within 10 years, creating taxable income.
Property taxes: Inheriting real estate in California may trigger reassessment unless certain exclusions apply (like the parent-child exemption).
Gift tax rules: Large gifts made during life may require IRS reporting and count against your lifetime exemption, even if no tax is due at the time.

Who needs estate planning?

Even though “no” is the answer to the question, “Is there a California Estate Tax,” there are still important reasons for estate planning. A plan is not just for the wealthy, and here are a few common situations where planning makes a big difference:

Young parents need to name guardians and ensure life insurance or other funds are managed wisely for their children.
Homeowners want to avoid probate delays and fees when passing their property on to loved ones.
Blended families often need to coordinate inheritances carefully to avoid conflict or accidental disinheritance.
Retirees may want to plan for incapacity, manage taxes on retirement funds, and protect surviving spouses.
Business owners need to prepare for succession or sale of the business in the event of death or disability.

Contact an Experienced Estate Planning Law Firm

While California has no estate tax—and federal estate tax impacts only a small percentage of families—estate planning is still crucial. A well-crafted plan protects your loved ones, avoids probate, reduces taxes, and ensures your intentions are carried out smoothly. For clients in Vacaville, Fairfield, and throughout Solano County, the Law Offices of David Knecht offer experienced guidance and peace of mind. Contact us at (707) 451-4502.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Living Will, Power of Attorney, Probate Lawyer, Taxes, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

What does a Trust Administration Attorney Do in California?

If you’ve been named a trustee in California, you may be wondering what your responsibilities are—and whether you need help managing them. Trust administration can be a complex process, especially when there are legal, tax, or family issues involved. That’s where a trust administration attorney comes in.

This article explains what a trust administration attorney does, why their role matters, and how the Law Offices of David Knecht can guide you through the process with confidence and care.

Understanding Trust Administration

When someone creates a revocable living trust, they typically serve as their own trustee during their lifetime. But when they pass away—or become incapacitated—a successor trustee takes over and the trust becomes irrevocable. At that point, trust administration begins.

This is the legal and financial process of carrying out the terms of the trust, including managing and distributing trust assets. In California, trust administration must comply with specific requirements under the Probate Code, even though it usually avoids probate court.

If you’re looking to change a trust during someone’s lifetime, that falls under trust modification, not administration.

What Does a Trust Administration Attorney Help With?
A trust administration attorney helps trustees follow the law, fulfill their fiduciary duties, and avoid costly mistakes. Here are some of the ways they assist:

Explaining the trustee’s legal responsibilities
Trustees are fiduciaries, which means they must act in the best interest of the beneficiaries. A lawyer helps explain what this means in practical terms.
Preparing and sending legal notices
California law requires trustees to notify beneficiaries and heirs when a trust becomes irrevocable (Probate Code § 16061.7). An attorney can draft and send these notices properly and on time.
Reviewing and interpreting the trust document
Trusts can be complicated. A trust administration lawyer helps interpret unclear language and resolves questions about how assets should be distributed.
Handling creditor claims and debts
Before distributing assets, the trustee must deal with debts, taxes, and any valid claims against the estate. A lawyer can help evaluate and handle these claims lawfully.
Assisting with asset management and transfers
The attorney helps identify trust assets, appraise property, manage real estate, and prepare documents needed to transfer assets to beneficiaries.
Preparing trust accountings
Trustees are often required to provide beneficiaries with an accounting. A lawyer can help prepare or review these accountings for accuracy and legal compliance.
Managing disputes or litigation
If beneficiaries disagree or legal challenges arise, a trust attorney can represent the trustee and help resolve the conflict—sometimes avoiding full litigation.

Trust Directors and California’s Uniform Directed Trust Act
Under California’s Uniform Directed Trust Act (Probate Code §§ 16600–16632), which became effective in 2022, a trust can formally appoint an advisor as a “trust director.” This person—such as a lawyer, CPA, or investment advisor—can be granted authority over specific aspects of the trust, like managing assets or approving distributions.

Trustees who act on the directions of a trust director are generally not liable for those decisions, which can reduce personal risk and allow more tailored, expert-driven trust administration.

For more on how trust documents can delegate control to advisors, see this article by Dennis Fordham on Lake County News.

Do You Always Need a Trust Attorney?
Not necessarily—but in most cases, yes. Even if the trust appears simple, the legal and tax obligations can be complex. A trust administration attorney is especially helpful when:

The trust holds significant or complex assets (like real estate or business interests)
There are multiple or contentious beneficiaries
The trust language is unclear or outdated
You’re concerned about liability or accusations of wrongdoing
There are unpaid debts, tax issues, or creditor claims
A co-trustee or former trustee is involved

Even experienced professionals seek legal help when serving as trustee—because the consequences of a mistake can be serious.

Trustee Mistakes Can Be Costly
Failing to follow trust terms, mismanaging assets, or distributing funds too early can lead to lawsuits or personal liability for the trustee. A trust attorney helps protect you by:

Keeping you compliant with California law
Making sure taxes and debts are properly handled
Helping you avoid missteps that could lead to delays, disputes, or court involvement

Think of it as insurance for one of the most important legal roles you may ever have.

How the Law Offices of David Knecht Can Help
At the Law Offices of David Knecht, we bring professionalism, clarity, and compassion to every trust administration case. Whether you’re serving as trustee for the first time or have questions about a trust you’re involved in, we’re here to help. Being a trustee is an honor—but it’s also a legal obligation. You don’t have to do it alone. A trust administration attorney can help you manage the process smoothly, protect your interests, and ensure the trustor’s wishes are honored. If you’ve been named trustee and need experiences guidance, contact the Law Offices of David Knecht today at (707) 451-4502 to schedule a consultation.

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Filed Under: California Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Living Trust , Living Will, Power of Attorney, Probate Lawyer, Trust Administration Attorney

Estate Planning: What Happens with Unknown Heirs?

Tech billionaire Pavel Durov, founder of the messaging app Telegram, recently made headlines — not for his innovations, but for his estate plan. According to reports, Durov intends to leave his entire fortune to 100 plus children, most of whom he may never even meet. This article will address estate planning and what happens with unknown heirs.

In his early years, Durov donated sperm to a fertility clinic.
Over 100 children are believed to have been born from those donations.
He also has six children with romantic partners.
Durov’s plan is to treat all of his biological children equally — whether or not he knows them personally.
Some of the children may not even be born yet, as the clinic retains stored sperm.

While Durov’s plan may sound extreme, it raises an important and increasingly relevant legal question: What happens in California when someone has children they don’t know about — and those children aren’t mentioned in their will or trust?

A recent case, Estate of Williams, offers insight into how California courts handle these situations.

The Williams Case: When a Child Is Left Out

In Estate of Williams, Benjamin C. Williams fathered seven children — five born outside his marriage and two within it. In 1999, he created a trust naming only the two children from his marriage as beneficiaries. One excluded child, Carla Montgomery, later discovered her half-siblings and petitioned for a share of the trust as an “omitted child.”

Montgomery argued that her father left her out because he didn’t know she existed when the trust was created. The Court of Appeal disagreed. It found that:

Montgomery failed to prove that her father omitted her solely because he was unaware of her birth.
Williams had also excluded four other children he did know about.
That pattern showed an intent to benefit only the two children of his marriage.

Under Probate Code § 21622, a pre-existing child must prove both that the parent was unaware of the child’s birth and that the omission occurred solely for that reason. Because Williams excluded multiple known children, the court inferred a deliberate choice — not an accident or oversight.

California Law on Omitted Children

California law allows a child to inherit from a parent’s estate if the child was unintentionally omitted — but the rules are narrow. The key statutes are found in California Probate Code §§ 21620–21623.

Here’s what those laws provide:

A child born before the execution of a will or trust is presumed to be intentionally omitted unless the child can prove otherwise.
To claim a share, the child must show that the omission occurred solely because the parent was unaware of the child’s birth.
Children born after the estate plan may have a stronger argument, particularly if the parent failed to update their documents after learning of the child’s existence.
A disinheritance clause — stating that any unnamed children are intentionally excluded — strengthens the case for exclusion, but courts also consider the overall pattern of inclusion and omission.

Why This Matters in a Changing World

Cases like Estate of Williams and stories like Durov’s show how estate planning is evolving alongside reproductive technology and modern family structures.

If there’s any possibility that you:

have children from past relationships or prior donations,
may have biological children you don’t have a relationship with,
or have stored genetic material that could be used in the future,

then it’s crucial that your estate plan addresses these realities.

Some key tips:

Be specific. Define “children” in your documents — are you including only legally recognized children, or all biological offspring?
Use disinheritance clauses thoughtfully. If there are people you intend to exclude, say so clearly.
Consider using a trust. Trusts offer more flexibility and precision than wills.
Update your plan as life changes. New relationships, births, or discoveries about past paternity should prompt a review.
Work with an attorney. Boilerplate estate plans may not anticipate the complexities of your family situation.

Planning for the Unexpected

Estate of Williams underscores the risks of unclear estate planning, while Pavel Durov’s plan illustrates the benefits of clarity and intent. Proper estate planning can set the course you want for what happens when you have unknown heirs. Whether your situation resembles Williams’s or Durov’s — or something in between — an experienced estate planning attorney can help ensure your legacy is protected and your wishes are honored.

To start creating or updating your estate plan, contact the Law Offices of David Knecht today at (707) 451-4502.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Living Trust , Living Will, Power of Attorney, Probate Lawyer, Taxes, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

10 Estate Planning Mistakes Celebrities Made —And How to Avoid Them

Even the most iconic names in entertainment have made avoidable estate planning mistakes. This article will summarize estate planning mistakes celebrities made. Their stories offer valuable lessons to help ensure your own plan works as intended.

1. Chadwick Boseman – No Will
Boseman passed away in 2020 without a will, which meant his widow had to file a probate case to manage his estate.
Lesson: Always create a will or living trust to prevent court intervention.

2. Aretha Franklin – Multiple Handwritten Wills
Several handwritten wills were discovered years after her death—including one found in a couch cushion—causing long legal disputes.
Lesson: Informal notes can lead to major confusion. Use legally drafted documents.

3. Prince – No Estate Plan
Prince died in 2016 without a will or trust, resulting in a six-year probate battle over his $156 million estate.
Lesson: Even if you’re private or hesitant, some plan is better than none.

4. James Gandolfini – Poor Tax Planning
The Sopranos star left a $70 million estate—almost 55% of which went to taxes due to insufficient tax planning and failure to use spousal deductions.
Lesson: Use marital trusts and tax strategies to preserve wealth for your family.

5. Whitney Houston – Outdated Will
Houston’s decades-old will allowed her daughter to receive her inheritance in lump sums at age 21, 25, and 30—terms that may not have matched her evolving wishes.
Lesson: Update your estate plan regularly as your circumstances and values change.

6. Heath Ledger – Didn’t Include His Daughter
Ledger’s will was signed before his daughter Matilda was born, and it left his entire estate to his parents and sisters—forcing legal workarounds to include his child.
Lesson: Review your plan after the birth of children or other major life changes.

7. Michael Jackson – Executor Disputes
Although Jackson had a trust, court proceedings were still needed to resolve disputes over executors, IRS audits, and debts.
Lesson: Be clear about who should manage your estate and ensure your documents are coordinated and thorough.

8. Amy Winehouse – No Updated Will
Winehouse died without a valid will, which meant her estate defaulted to her parents—excluding her ex-husband and any other intended recipients.
Lesson: Always update your estate plan after major life transitions like marriage or divorce.

9. Gene Hackman – Private Trust, But Still Potential Conflict
Hackman established a living trust and named his wife, Betsy Arakawa, as sole beneficiary of his will and successor trustee of the trust. The publicly-known documents do not list his three adult children as beneficiaries of the trust or will. Because the trust terms remain private and his wife died shortly before him (reportedly just days earlier), the estate’s disposition is now unclear. The children may pursue legal action or contest distribution depending on how the trust is interpreted.
Lesson: Even with a trust in place, lack of clarity and absence of named heirs can lead to disputes and uncertainty.

10. Matthew Perry – Unfunded Bank Accounts
Although Perry created the “Alvy Singer Living Trust,” he left $1.5 million in bank accounts outside the trust—assets now likely subject to probate.
Lesson: A trust only works if you transfer (or “fund”) assets into it.

Final Thoughts

These stories of estate planning mistakes celebrities made underscore a key truth: estate planning only works when it’s comprehensive, current, and properly executed. At the Law Offices of David Knecht, we help California clients take all the right steps—from creating your trust to funding it, minimizing taxes, and avoiding family disputes. Call (707) 451‑4502 today for guidance from an experienced estate planning attorney who knows how to help you avoid costly celebrity-sized mistakes.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, General, Living Will, Power of Attorney, Probate Lawyer, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

When Do You Need a Probate Lawyer in California?

Losing a loved one is never easy, and dealing with their estate can add stress during an already emotional time. This article will address the question: when do you need a probate lawyer in California. California’s probate process can be complex and time-consuming—but in many cases, a probate lawyer can help you navigate it with confidence and avoid costly mistakes. This article explains when you may need a probate lawyer in California and how they can help.

What Is Probate?
Probate is the court-supervised process of administering a person’s estate after they pass away. California law defines a probate proceeding in Probate Code § 50 as one that administers a decedent’s estate under court supervision. It typically involves:

Proving the validity of a will
Identifying and valuing assets
Paying debts and taxes
Distributing remaining assets to heirs or beneficiaries

While some estates can bypass probate, many in California must go through the formal process—especially when the total value of the estate exceeds the small estate threshold and no trust was in place.

When Is Probate Required in California?
You will likely need to go through probate if:

The decedent had a will but did not set up a trust (a will does not avoid probate in California—it just provides instructions to the court)
The estate includes real estate not held in joint tenancy or a trust
The estate’s total value exceeds the small estate threshold (currently $184,500 as of 2024)
There is no will (intestate estate), and court appointment of a personal representative is needed

Assets held in a revocable living trust or passed by beneficiary designation (like life insurance or retirement accounts) usually avoid probate.

When Do You Need a Probate Lawyer in California: Common Situations
While it’s possible to complete basic probate steps without a lawyer, it depends on the complexity of the estate.

Executors can represent the estate for routine probate tasks—like filing petitions, gathering assets, and attending probate hearings—but not in separate lawsuits or contested matters. If legal disputes arise, a lawyer is required because non-lawyers cannot represent an estate in civil litigation.

Hiring a probate lawyer is especially recommended when:

The estate is large or includes real estate
There are disputes among heirs or beneficiaries
The estate has significant debt or tax issues
There is no will or the will is contested
You are the executor and want to avoid personal liability

Executors have legal duties and can be held liable for mistakes. A probate attorney helps ensure proper filings, deadlines, and court compliance.

Why Legal Representation Matters: Estate of Sanchez (2023)
In Estate of Sanchez (2023) 95 Cal.App.5th 523, the California Court of Appeals held that a personal representative could not appear in propria person to prosecute causes of action on behalf of an estate when those actions involved third parties and were essentially for the benefit of the estate’s beneficiaries.

The court clarified that even though the fiduciary was appointed as executor and had broad authority under the IAEA, when the fiduciary is advocating for the estate’s beneficiaries (rather than only his or her own rights as executor), independent legal counsel is required — and appearing without counsel amounts to the unauthorized practice of law.

In other words: If you’re acting as executor and filing or defending civil-type claims on behalf of the estate or its beneficiaries, you must retain counsel. Attempting to represent an estate in such proceedings without a lawyer puts the case (and the fiduciary) at risk.

The court clarified that fiduciaries must hire separate legal counsel when representing the estate in court, unless they are formally acting as the estate’s attorney. This rule applies even to lawyers who are executors.

You can read the full case here on Google Scholar. See also Estate of Sanchez – California Lawyers Association

This decision reinforces the importance of hiring a probate lawyer when:

You’re managing legal disputes or civil claims tied to the estate
You’re unsure whether probate or litigation rules apply
You’re handling complex procedural issues

Attempting to represent an estate in legal proceedings without a lawyer could result in dismissal or loss of rights.

What About “Small Estates”?
If the total value of the estate is less than $184,500 (as of 2024), you may be able to use simplified procedures without opening full probate. According to Probate Code § 13100, a successor can use a small estate affidavit to collect certain assets.

However, even small estates can run into issues such as:

Unclear ownership of assets
Missing or outdated documents
Uncooperative heirs

A probate lawyer can help determine whether simplified procedures apply and guide you through the process efficiently.

Experienced Probate Attorneys
Probate in California typically takes 9–18 months. Delays can occur if forms are filed incorrectly, court deadlines are missed, or conflicts arise. A probate attorney can keep the process on track and help you avoid unnecessary stress.

If you’re dealing with the estate of a loved one—or have questions about whether you need a probate lawyer—the experienced attorneys at the Law Offices of David Knecht are here to help. We bring experience, compassion, and professionalism to every probate matter and can guide you through the process with confidence. Contact us today at (707) 451-4502 to schedule a consultation.

Filed Under: California Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Power of Attorney, Probate Lawyer, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

Understanding Power of Attorney in California: A Quick Guide

When life throws unexpected challenges your way—like illness, travel, or aging—having a Power of Attorney in California in place can provide peace of mind and legal protection. If you become temporarily or permanently unable to handle your affairs, a POA ensures someone you trust is legally empowered to act on your behalf.

What Is a Power of Attorney?

A Power of Attorney is a legal document that allows one person (the “principal”) to authorize another person (the “agent” or “attorney-in-fact”) to act on their behalf. In California, POAs can be used for many purposes, including:

Managing bank accounts and paying bills
Handling real estate transactions
Making healthcare or end-of-life decisions
Filing taxes or applying for government benefits

Types of Power of Attorney in California

General Power of Attorney – Grants broad authority over financial and legal matters. It becomes void if the principal becomes incapacitated.
Durable Power of Attorney – Remains in effect even if the principal becomes incapacitated. This is commonly used for long-term planning.
Limited (or Special) Power of Attorney – Grants authority only for specific tasks or for a limited time.
Medical Power of Attorney – Also called a health care power of attorney; this is usually included in an Advance Healthcare Directive to name a trusted person to make medical decisions.
Springing Power of Attorney – Only goes into effect when a specific condition is met (e.g., a doctor certifies incapacity).

Why Is Power of Attorney Important?

Without a valid POA, your loved ones might have to go to court to gain conservatorship or guardianship just to manage your affairs—a time-consuming and expensive process. A well-drafted POA:

Gives you control over who handles your affairs
Prevents unnecessary delays and legal fees
Ensures continuity in financial or medical decision-making

How to Create a Valid Power of Attorney in California

To be legally valid, a California POA must be:

Signed by the principal while they are mentally competent
Notarized (for most financial POAs) or witnessed by two adults (for healthcare POAs)
Clearly state the powers granted and any limitations
Dated and preferably drafted in compliance with the California Probate Code

You can find California’s statutory POA form here (Probate Code Section 4401).

Choose the Right Agent

Selecting the right person to act on your behalf is crucial—your agent will have significant control over your financial, legal, or medical matters. To illustrate the importance:

In one case, a financial advisor was sentenced to 10 years in federal prison for stealing $2 million from elderly clients after convincing them to give her power of attorney. Read the story on ThinkAdvisor
In another example, a Missouri woman used her brother’s POA to divert over $157,000 in disability benefits while he was incarcerated. Read the DOJ press release

These stories highlight the need to:

Choose someone with integrity and responsibility
Understand that POA is a serious legal role—not just a convenience
Regularly review the arrangement and revoke powers if trust is lost

Why This Matters: The Brian Wilson Conservatorship Case

Many people assume that naming someone in a Power of Attorney is enough—but what if your agent isn’t available or passes away? The case of Brian Wilson, the Beach Boys co-founder, highlights this risk. In May 2024, Wilson—who had struggled with neurocognitive decline—ended up under a court-appointed conservatorship when no trusted successor was in place. Read more on InvestmentNews

This situation illustrates why it’s important to:

Name multiple agents or successors in your POA
Ensure agents understand and are willing to act if the need arises
Include clear instructions on how and when an agent’s authority begins

Let the Law Offices of David Knecht Help You Plan Ahead

At the Law Offices of David Knecht, we help clients understand Power of Attorney in California and we can create documents that achieve their unique needs. Whether you’re planning for the future or updating outdated documents, we can ensure your wishes are respected.

Contact us today at (707) 451-4502 to protect your future with the right legal tools in place.

Filed Under: California Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Power of Attorney, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

Smart Trust Strategies for High Net Worth Families

Estate planning isn’t a one-size-fits-all process. A recent Kiplinger article outlines smart trust strategies for high net worth families that should be considered—especially when looking to maximize asset protection and tax benefits at once. By tying together core strategies like bypass trusts, SLATs, and tailored estate vehicles, you can create a plan that supports both your family’s current needs and long-term legacy goals.

Here are key takeaways adapted for California residents.

Bypass Trusts Help Preserve the Estate Tax Exemption

A bypass trust—also called a credit shelter trust—is one of the most effective ways to use both spouses’ federal estate tax exemptions. It allows the first spouse’s exemption to pass in trust while avoiding estate tax when the second spouse dies. Even though California has no state estate tax, federal thresholds matter for high-net-worth couples. This strategy can reduce the total estate tax burden while also keeping assets protected and outside probate.

SLATs Offer Flexibility and Protection

A Spousal Lifetime Access Trust (SLAT) is a type of irrevocable trust that allows one spouse to gift assets for the other spouse’s benefit while reducing the size of the taxable estate. SLATs are useful for high-asset couples and can provide creditor protection, too. They allow some indirect benefit from gifted assets without leaving them exposed to estate taxes or lawsuits. Charles Schwab explains how SLATs work here.

Avoid the Common Mistake: Unfunded Trusts

Kiplinger emphasizes a major pitfall—setting up a trust but never funding it. In California, your home, bank accounts, and brokerage assets must actually be titled in the trust or designated through a beneficiary form. Otherwise, they may still go through probate, defeating your goal. A solid estate plan includes both the right documents and the right follow-through.

Update Your Plan as the Laws and Your Life Change

Tax thresholds and laws are always shifting. Families grow, assets change, and needs evolve. That’s why it’s critical to regularly review your estate plan—especially after major life events like marriage, divorce, the birth of a child, or retirement. Advanced strategies like bypass trusts and SLATs need periodic updates to remain effective and relevant.

Work With a Firm That Knows the Landscape

At the Law Offices of David Knecht, we help families implement the best estate planning strategies for their situation– whether that trust strategies for high net worth families or more basic estate planning tools for clients in all income categories. We’ll guide you through trust selection, drafting, and funding, ensuring every document works for your goals.

Contact us today at (707) 451-4502 to protect your legacy and gain peace of mind.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

Why Every Californian Needs an Advance Healthcare Directive

In June 2025, headlines told the heartbreaking story of a brain-dead Atlanta nurse who was kept on life support for weeks so her baby could continue developing in the womb. Read the article here. While the baby survived, the case raises difficult questions about medical autonomy, end-of-life care, and the legal limits of a person’s wishes when pregnancy is involved.

Would an Advance Healthcare Directive Have Helped Her?

Laws relating to end-of-life care varies by states. For example, in Georgia, the laws in effect at that time restricted the withdrawl of life-sustaining treatments for pregnant patients.

However, California law has different presumptions and requirements. In California, your healthcare choices—including decisions about life support—are legally binding through an Advance Healthcare Directive (AHCD). Unlike Georgia, California does not have laws that automatically override your directive due to pregnancy. This makes it all the more important to plan ahead and document your wishes clearly.

What Is an Advance Healthcare Directive (AHCD)?

An Advance Healthcare Directive is California’s legally recognized form that allows you to:

Appoint a healthcare agent – a person you trust to make medical decisions if you cannot
Express your wishes about life support, resuscitation, organ donation, and end-of-life care

It replaces outdated terms like “living will” and combines them with power of attorney authority into one unified form.

You can view the official California Advance Health Care Directive form and instructions here (CDSS Form PUB 325).

Why an AHCD Is Essential in California

Without an Advance Healthcare Directive:

Your family might disagree about your care
Hospitals may rely on default life-sustaining measures
A court could appoint someone to make decisions for you

An AHCD puts you in control of your medical future and avoids unnecessary confusion or conflict.

How to Make Your AHCD Effective

Choose the right agent – Someone who will respect and advocate for your wishes
Communicate clearly – Talk about your values and care preferences before a crisis
Share your directive – Give copies to your doctor, hospital, and trusted family
Review regularly – Update after any major life event like marriage, divorce, or illness

Get Legal Help to Do It Right

California provides free forms, but they don’t always account for your unique situation or integrate well with your larger estate plan. An attorney can help ensure:

Your directive is clear and enforceable
Your choices are legally sound and aligned with your goals
All documents—from trusts to powers of attorney—work together smoothly

Work With a Trusted California Estate Planning Team

At the Law Offices of David Knecht, we help clients prepare Advance Healthcare Directives as part of a comprehensive estate plan. Whether you’re planning ahead for peace of mind or updating an older directive, we’re here to help.

Contact us today at (707) 451-4502 to take control of your future healthcare decisions with confidence.

Filed Under: California Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Living Will, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

Estate Planning for Uncertain Times

This article summarizes insights from Kiplinger’s “Eight Ways to Financially Plan Your Way Through Challenging Times” and shows how these strategies support estate planning for uncertain times. Whether you’re concerned about market swings, upcoming changes to the tax code, or simply protecting your legacy, these tips can help you act with clarity and purpose.

The economic landscape in 2025 is anything but predictable. Tax laws are in flux, investment markets are volatile, and inflation remains a concern. The good news? With the right planning, you can turn instability into opportunity—especially when it comes to preserving and transferring wealth.

Gift depreciated assets to shrink taxable estate

One smart move during uncertain markets is to gift or donate assets that have temporarily lost value. As Kiplinger points out, this can allow appreciation to happen outside your estate and maximize use of your gift tax exemption. This article on the 2025 gift tax exclusion explains how you can give up to $19,000 per person this year without tapping your lifetime exemption. Larger gifts can also be placed into trusts for added control and protection.

Lock in today’s estate and gift tax exemption

The federal exemption is still historically high—$13.99 million per person in 2025—but it’s expected to shrink dramatically in 2026. That’s why it’s smart to act now. Forbes’ 2025 estate planning strategies emphasize the urgency of using irrevocable trusts and discounted asset transfers before the exemption drops.

Use Roth conversions and trusts while valuations are low

Market downturns present excellent opportunities to shift future growth out of your estate. Roth conversions of traditional IRAs—when account values are temporarily lower—can set your heirs up with tax-free income. Trusts like GRATs and charitable remainder trusts can also freeze low values for estate tax purposes. This guide to estate tax exemptions in 2025 highlights why acting in a low-valuation environment makes financial and estate planning sense.

Why estate planning for uncertain times requires flexibility

Unpredictable markets and tax law changes reveal just how important flexibility is in your estate plan. You may need to:

Reallocate assets or update valuations
Revisit trust provisions and gifting strategies
Protect heirs from reassessment or tax liability
Ensure your plan still meets your financial and legacy goals

In short, estate planning for uncertain times means building a structure that can pivot as needed—without triggering unintended taxes or delays.

In summary

Kiplinger’s timely financial advice—paired with strategic estate planning—can help you turn economic uncertainty into long-term security. Gifting undervalued assets, locking in high exemptions, and converting to Roth IRAs are just a few tools you can use in 2025.

The Law Offices of David Knecht can help you implement these strategies in a customized estate plan. Whether you’re planning for growth, protection, or transfer, we’re here to guide you through every twist and turn of the financial landscape. Contact us today at (707) 451-4502.

What Is a Living Trust in California and Why Do Many Californians Use One?

Estate planning can feel overwhelming, especially with so many legal tools to choose from. One of the most common and effective strategies is creating a living trust in California. This flexible legal document allows you to retain control over your assets during your lifetime and avoid probate when you pass away.

Here’s a clear explanation of what a living trust is, why it’s so popular in California, and how it might fit into your estate plan.

What Is a Living Trust?

A living trust is a legal arrangement that allows you (the “grantor” or “settlor”) to transfer ownership of your assets into a trust while you’re alive. You typically act as your own trustee during your lifetime, meaning you maintain full control over the assets. Upon your death or incapacity, a successor trustee you’ve named steps in to manage and distribute the assets according to your instructions—without court involvement.

Living trusts are often created as “revocable” trusts, meaning you can change or cancel them at any time while you’re alive and mentally competent.

Why Do Californians Choose Living Trusts?

There are several compelling reasons people often create a living trust in California:

Avoiding probate: Probate can be expensive, slow, and public. A living trust helps your estate bypass this process.
Maintaining control during incapacity: If you become incapacitated, your successor trustee can manage your affairs without court involvement.
Privacy: Wills are public; trusts remain private.
Flexibility: You can update or revoke your trust as your needs change.
Efficient transfer of property: Especially useful for real estate owners or those with property in multiple states.

AARP outlines the benefits of living trusts—especially for avoiding probate and maintaining flexibility—in this helpful article. Investopedia also explains how living trusts can streamline estate administration and avoid probate in their comprehensive overview.

What Goes Into a Living Trust?

A complete living trust package generally includes:

The trust agreement
A “pour-over” will
A schedule of assets
Assignments of personal property
Powers of attorney and health care directives

Once signed, the trust must be funded—meaning you transfer ownership of assets (like bank accounts or real estate) into the trust’s name. Without proper funding, the trust won’t accomplish its purpose, and your assets could still end up in probate.

Who Should Consider a Living Trust?

You may benefit from a living trust in California if:

You own real estate
You want to avoid probate
You have minor children or dependents
You’re in a blended family
You care about privacy
You want a smooth transition if you become incapacitated

As Investopedia explains, living trusts help reduce legal complications for heirs and allow for more streamlined management of your estate.

Planning for the Unexpected

A well-drafted trust includes not only your assets but also a plan for what happens if you can no longer serve as trustee. If no successor trustee is named, even a revocable trust can create complications. As financial expert Suze Orman explains in this MSN article, failure to plan for the successor trustee can result in delays, legal costs, and family disputes. It’s critical to ensure your trust is not only established but also equipped for long-term continuity.

Need Help Setting Up a Living Trust in California?

At the Law Offices of David Knecht, we guide individuals and families through every step of creating and funding a living trust in California. Our objective is to create an estate plan that is thorough, legally sound, and tailored to your needs.

Contact us today at (707) 451-4502 to schedule a personalized consultation and take the first step toward protecting your legacy.

Filed Under: California Estate Plan, Fairfield Attorney, Fairfield Lawyer, Living Trust , Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer