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Your Estate—Is an Estate Plan Important?

Creating a valid estate plan is vital if you would like to direct how your estate is managed after your death. Without it, there are legal and emotional hurdles that your loved ones will have to overcome to benefit from the legacy you leave behind. For your will to be valid in California, it must be signed by you in the presence of two disinterested witnesses, meaning they are not named beneficiaries in the will, while you are of sound mind.

What is an Estate Plan?

An estate plan is an organized series of documents dictating the actions and steps needed to fulfill your last wishes. These include necessary medical directives so you can pass with dignity and legal instructions that explain what should happen with your belongings. Estate plans are tailored to the person they are written for and often include the following items:

• Will: A legal document that defines how your assets and property are distributed after your death. It allows you to appoint an executor to execute your will and designate guardians for any minor children.
• Trust(s): A legal arrangement that allows assets to be held for your intended beneficiaries and to pass to them without going through the public court system at the time of your death. Some trusts also offer tax benefits.
• Power of attorney: A document that grants another the legal authority to act on your behalf if you become incapacitated or unable. This trusted person, called an agent, will be able to handle legal or financial affairs for you.
• Advanced healthcare directives: This legal document specifies your medical preferences and appoints a healthcare agent to make decisions for you if you can no longer communicate your wishes while still living. This type of directive can also outline medical treatments you do or do not want, such as life support or resuscitation.

Together, these documents provide a comprehensive plan for addressing all financial, legal, and medical concerns in alignment with your wishes. Without a customized estate plan, you and your heirs face significant risk.

Probate Court: The Risks and Challenges

The Probate Court is presided over by a single judge whose duty is to review the validity of a will and approve its execution. The California Probate Code covers the rules and processes for administering and overseeing the distribution of a deceased person’s estate, resolving any disputes, and ensuring compliance with the law. Avoiding probate by preparing estate planning documents well in advance can make transferring your legacy to your beneficiaries easier—and faster. The probate process has some drawbacks:

• Expensive: Attorney fees are subject to California Probate Code §10810 to be calculated as a percentage of the gross estate value (regardless of liabilities). Due to the court process, you could lose between $25,000 and $50,000 on an estate worth a million dollars.
• Time-consuming: Probate can take 12 to 18 months or longer to complete, depending on the complexity of the state.
• Public: Probate court proceedings are on public record. Your assets, debts, beneficiary names, and other information about your estate can be seen by others, which can lead to a host of problems.
• Limited control: As the court will oversee all proceedings, family members may feel unable to take proactive actions on your behalf. If you pass without a will, this will be even more difficult.

Understanding the Probate Process

By consulting with Cava & Faulkner’s estate planning attorneys to prepare your last will and testament, including any trusts you would like to form, you have a much better chance of avoiding the long, drawn-out process of probate court. If you die without a will, your assets will be distributed per Probate Code §§ 6400–6414.

• Married: Community property will be inherited by the surviving spouse. Assets independently owned by you will be divided between your spouse and children.
• Unmarried or divorced, with children: Each child will inherit an equal portion of your assets. If a child predeceases you, their portion will be split between their children (your grandchildren).
• Unmarried without children: Your assets will go to your parents. They will be divided among your siblings if your parents are no longer living. They will go to your nieces, nephews, or extended family if your siblings are no longer living.
• No surviving relatives: If you have no identifiable living family, your estate will become the legal property of the State of California.

It should be noted that stepchildren and unmarried partners are likely to receive nothing without a legal will.

Your Healthcare Mandates Will Be Unknown

If you do not prepare an advanced healthcare directive or power of attorney, family members may be forced to get approval from a judge before making medical decisions for you. This can add to an already stressful time for the ones you love. Planning ahead will clearly state your end-of-life preferences, giving everyone peace of mind that they are following your wishes.

You May Face Tax Consequences

The state of California does not charge an estate tax. According to the IRS, estates valued at over $13 million are subject to federal estate taxes. If your wishes are preserved in legal instruments that protect your assets from the public system, such as through a trust, you can avoid or reduce the amount of your estate lost to taxes and maximize the amount you leave to loved ones.

Minor Children Could Be Left Without a Guardian

If you have minor children, their care and upbringing are of utmost importance. You know how you intend to raise them; in the event of your passing, you want to ensure they are cared for according to your wishes by someone you can trust. When you do not leave clear directions in your estate plan, minor children could be left without the guardian you would choose. The court will have to assign a guardian for you. The court may choose a family member or a legal guardian you are unfamiliar with.

Secure Your Future with Cava & Faulkner

You deserve a sense of security and peace of mind with a comprehensive estate plan prepared by our estate planning lawyers at Cava & Faulkner. Documenting your final wishes puts your future securely in your hands and ensures they will be followed after you pass away. Contact our firm for a free consultation at 916-831-7565.

At Cava & Faulkner, we believe estate planning is about so much more than your assets or avoiding taxes, which are relevant considerations. The process is about leaving a legacy for your loved ones.

How Can Estate Planning Provide Long-Term Care for My Disabled Child in California?

If you have a disabled child or loved one, you may be wondering how to provide for their care after you are gone. If they are currently using government assistance programs, you will have to make arrangements that do not affect their ability to receive this care.

One of the ways that you can provide long-term care for a disabled child is through a Special Needs Trust (SNT), as covered in California Probate Code Sections 3600-3613.

Understanding What a Special Needs Trust Is

A Special Needs Trust, or an “SNT,” is a trust created to hold assets for a person with disabilities. An SNT makes it possible to provide additional care without affecting the beneficiary’s eligibility for government assistance, which uses income or net worth as criteria for enrollment. This is possible because the SNT is directed by a “trustee,” not the beneficiary. Government assistance programs such as Medicaid and Supplemental Security Income (SSI) will legally overlook such a trust as an asset because the disabled person does not legally own it. An SNT may provide additional help to care for the beneficiary beyond what government assistance can provide. It may be used for the following purposes:

• Education
• Recreation
• Counseling
• Medical attention beyond government coverage

Items covered under government assistance, like food and shelter, should not be part of an SNFs specified purpose to ensure the beneficiary stays eligible for social security support.

How Special Needs Trusts Work

Understanding a few key terms can make it easier to understand how an SNT functions.

Grantor: The individual who funds the trust with assets.
Trustee: The person assigned to manage the trust according to its formative documents. This could be a family member, a friend, a hired professional, or a non-profit organization.
Beneficiary: The disabled child or loved one for whom the trust was created. All payments out of the SNT should expressly benefit the beneficiary.

How is a Special Needs Trust Funded?

If you are writing your will, it is a suitable time to consider funding an SNT for your disabled loved one. There is more than one way to fund this type of trust. Others in the family may want to participate in funding the trust. The assets placed in an SNT can come from a variety of sources, including:

• Contributions from family and friends
• Life insurance policy proceeds
• Lawsuit settlements from personal injury claims
• Donated stocks and bonds
• Real estate

What Are the Different Types of Special Needs Trusts?

There are three main types of SNTs, each with unique benefits. Speaking with one of our experienced estate planning attorneys at Cava & Faulkner can help you choose the trust configuration that best suits your needs.

First-Party Special Needs Trusts

A first-party SNT is used when an individual with disabilities has their own assets, such as a settlement from a personal injury lawsuit or an expected inheritance. By directing these funds to a first-party SNT, the beneficiary can still benefit from them without endangering their eligibility for Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), or Medicaid.

One of the caveats of a first-party SNT is that once the beneficiary has passed, any remaining funds are used to reimburse the government assistance programs for the care provided during their life.

Third-Party Special Needs Trusts

A third-party SNT is most appropriate for parents or guardians seeking to leave money or assets to a disabled loved one in their will. This type of trust allows someone other than the beneficiary to provide the funding. It can be used while the grantor is still living or after their passing to help manage supplemental costs for the beneficiary.

An additional benefit of a third-party trust is that the remaining funds in the account after the beneficiary has passed away are not subject to government control. Government assistance programs will not be entitled to be reimbursed by the trust, so the remaining money can be passed to another relative or loved one. There are also no limitations on the trust size or beneficiary age.

Pooled Special Needs Trusts

A non-profit organization manages a pooled trust. This type of trust could be a good option for those with a moderate endowment to give or who do not have a suitable person to manage their trust. The non-profit organization oversees the combined resources of many beneficiaries in one “pooled” account, with each beneficiary having a separate sub-account. This type of organization can have the added benefit of maximizing the dividends for the beneficiary and often comes with a greater support network provided by the non-profit.

Both first-party and third-party-funded SNTs can use a pooled trust approach. Even when pooled, first-party SNTs are required to pay back government assistance per federal law 42 U.S.C. § 1396p(d)(4)(C).

How Can I Set Up an SNT?

The best first step to set up an SNT is to consult with one of the estate planning attorneys at Cava & Faulkner. This way, a professional can help walk you through the remaining steps.

Choose a Trust Type

Review the available SNTs that can be used in your unique situation. Consider if the funding will be a first-party or third-party source of funding and if it is better for the trust to be cared for by a trustee or placed under the control of a non-profit organization, as is done with a pooled trust.

Decide on a Trustee

Deciding on a trustee is an important step. Make sure to choose a reliable and trustworthy person who will keep the best interests of the beneficiary as a primary goal. Professional trustees are available if you cannot find a friend or family member who can or is willing to fill this role. This could have the added benefit of engaging a person who is more familiar with the relevant law and can be impartial while executing the trust’s primary purpose.

Provide a Funding Source

Funding is the key component to the value of a trust. Whether you will be only placing cash or a mix of stocks, bonds, and real estate, make sure you take the time to list all the assets you want included and have a clear picture of how these will be transferred.

Create the Trust Documents

With the help of an estate planning attorney, create the necessary legal documents to bring the trust into being. The document should include the purpose of the trust and instructions for the beneficiary’s care and support that will guide the trustee in their execution of the trust’s intention. California law does not require that your trust documents be notarized, but many people opt to have them legally witnessed in this way as a preventative measure against fraud.

Regularly Review and Update

California law changes with every calendar year. Life can also change, making it necessary to redirect resources, switch trustees, or modify a trust’s configuration. Be sure your trust stays sound by having it reviewed by a legal professional every three to five years.

Leave a Legacy of Care with Cava & Faulkner

At Cava & Faulkner, we are dedicated to helping you navigate the legal complexities of providing for your loved ones. As experienced special needs trust lawyers, we understand the unique concerns of parents of children with disabilities. We are here to guide you through creating an estate plan that puts your child’s future first with the care and financial security they need. Call us today at 916-831-7565 for an absolutely FREE consultation. Let us help you help the ones you love with carefully crafted estate planning.

What Mistakes Should I Avoid When Writing My California Will?

A will is an essential legal document that clearly states who you want to receive the benefits of your property and assets after you pass. California law is precise regarding the legal requirements needed to produce a valid last will and testament, so it is vital to avoid mistakes. Such errors can cause confusion and lengthy legal disputes and may result in your final wishes not being carried out as you intended. The team at Cava & Faulkner, an estate planning law firm in Elk Grove, has compiled these common mistakes so you know what to avoid.

Failing to Have the Will Properly Signed and Witnessed

A valid will must meet specific signing requirements under California Probate Code § 6110:

• It must be in writing.
• The testator (the one testifying this is their will) must sign it.
• If the testator cannot do so, another may sign in their name, but this must be done in the presence of the testator and at their direction.
• If the testator cannot care for themselves or their finances, a court-appointed conservator may sign for them.
• The will should be witnessed by two disinterested persons present when the testator signs the will.

Without the signatures of the testator and the two witnesses, the will can be rendered invalid.

A Note on Disinterested Witnesses

A “disinterested witness” is a witness who does not stand to gain anything from the will. If there is a “devise” (clause or statement) in the will bequeathing assets or property to a witness, this creates a “presumption that the witness procured the devise by duress, menace, fraud, or undue influence” under California law. If you want someone to receive the assets you intend for them in your will, be sure they do not also act as a witness. This mistake could inadvertently cause them to face a legal battle to prove their right to inheritance or even invalidate all clauses of the will relating to them.

Forgetting to Update Your Will

Like life, a will is a dynamic legal instrument that changes as you do. You don’t like considering end-of-life arrangements; no one does. Force yourself to pull out your will and related documents every three to five years to ensure they are still relevant. Any time you have a major life change, it is a signal to review and update your estate plan, including the following:

• Marriage
• Divorce
• Birth of a child or grandchild
• Death of a loved one
• Significant gain or loss of assets

In some cases, California law will cover some of these changes for you; for example, your divorced spouse is automatically disinherited from your will under California Probate Code § 6122. But even if a former spouse is cut out, you leave the rest up to the court to decide if you do not specify your wishes in an updated will.

Failing to Give a Copy of Your Will to the Executor

This is a simple error that can lead to big problems. According to a recent study, 52% of adult children do not know where their parents keep their estate planning documents. Some (58%) don’t know what the will and other documents say. If you have created estate planning documents, ensure those near and dear to you know where to find them when they need to.

Failing to Get Legal Guidance

Many “Do-It-Yourself” solutions are online for writing a will or completing estate planning documents. The up-front convenience can be deceiving. If you read the fine print, you will find your quick-and-easy source is not a law firm, and its “services are not substitutes for an attorney’s advice.” Another example of the fine print: “The information here is provided for educational purposes only and is not intended to provide and should not be construed as providing legal or tax advice.”

At Cava & Faulkner, we are professional estate planning attorneys qualified to answer your questions and help you avoid the common mistakes that others make. You won’t have to worry about whether your documents will be considered valid in court, giving you greater peace of mind and security.

Overlooking Your Digital Assets

In the modern age, digital assets can make up a significant portion of a person’s net worth. Make sure these intangible assets and obligations are listed, including the following:

• Online accounts (e.g., banking, tax, and financial services)
• Cryptocurrency
• Intellectual property
• Digital investments
• Monthly subscriptions

You can assign a “digital executor” to manage, close, or liquidate your online accounts and assets. Consider creating a secure central location where you keep all your passwords so they can easily be located by the digital executor you name for this task.

Not Having a Will at All

One of the biggest mistakes anyone can make in estate planning is doing nothing. People often mistakenly believe they don’t need a will because they are young or don’t yet control lots of property, but this is very far from the case. All adults, regardless of their social or economic status, should have a will to ensure their assets are distributed according to their wishes when they pass away. A will can name the guardian you choose for your children should you pass away unexpectedly. It can also make it easier for your loved ones, allowing them to be confident they are carrying out your wishes as you intended.

Take Control of Your Legacy with Cava & Faulkner

Mistakes in your will can have unexpected and potentially harmful effects. Luckily, the biggest mistakes are easily avoided. The professional team of estate planning lawyers at Cava & Faulkner can help you avoid potential hazards and provide you with final documents that are complete, effective, and legally sound. Call us at 916-831-7565 to schedule a free consultation to discuss your will and estate planning documents today.

The Importance of Funding Your California Revocable Trust Correctly

Creating a revocable trust can reduce costs and stress for your loved ones, allowing the assets in the trust to avoid probate. If done correctly, it allows for the smooth transfer of assets to your chosen beneficiaries. In California, if you fail to fund a trust correctly, you could leave part or all of your estate open to probate and legal disputes, undermining the reason the trust was formed in the first place.

What Is a Revocable Trust?

Trust: A legal tool where one individual (the “trustor”) gives another person (the “trustee”) the responsibility to manage assets for the benefit of others (the “beneficiaries”).

Revocable Trust: Also called a revocable living trust, a revocable trust is active as an entity to hold assets or property while the grantor is still alive. It is configured so the grantor can revoke or change the specifications of the trust at any time during their life. The trust’s assets are automatically transferred to the beneficiary when the grantor passes away.

What Does It Mean When a Revocable Trust is Funded?

A revocable trust is funded by transferring assets from your name, the grantor, to the name of the trust. You are essentially placing those assets into the trust’s care. Even if you maintain your status as trustee of the trust where you are in control of their management, you no longer own those assets as an individual. This process is called retitling assets and can cover such valuables as:

• Bank accounts
• Investments
• Life insurance
• Retirement accounts
• Business interests
• Real estate

How Should I Name My Revocable Trust?

Considering that any assets you wish to place in a trust will be retitled to the trust, the trust’s name does require some thought. Legally, you can name a trust anything, but a few basics help to establish a logical name that is easy to remember and will be practical when transferring assets.

• Include your name or a portion of it
• Include what type of trust it is
• Include the date of signing

Some examples of practical trust names are as follows:

• Joseph and Nancy Wilman Revocable Trust dated 2/15/2025
• Samson Family Living Trust dated 5/10/1990
• John and Sally Smith Revocable Living Trust 2035

How Do I Retitle Property to My Revocable Trust?

While each asset may be different, the key action is to take the document that states the asset’s owner and have this legally changed to the name of the trust, with your name as the trustee. For example, if John Smith created the Smith Family Living Trust 2025 and appointed himself trustee, a new or revised property deed would be signed: “John Smith, Trustee of Smith Family Living Trust 2025.”

What Are Some Common Mistakes to Avoid When Funding a Revocable Trust?

• Not funding the trust at all. Some people new to estate planning or who used a DIY approach may not realize they must place their assets in the trust for it to function. Without retitling your assets to the trust, it is just an empty shell that will not protect your assets when needed.
• Funding the trust only partially. By failing to make a comprehensive list of all assets and systematically transferring their titles to the trust, you may have left too many assets outside the trust, subject to probate. The portion of your estate not covered by the trust will still have to go through the public court probate process. Instead of being distributed as you intended, it could be given away based on your next-of-kin, as covered in California Probate Code §§ 6400 – 6414.
• Using an incorrect trust name on documents. A simple error such as incorrectly spelling the trust name can lead to legal difficulties when defining what property and assets fall under the trust’s protection.
• Altering the trust name and failing to update asset documents to match. A revocable trust can be changed anytime while the grantor is still living. If you decide to change the trust name, just be wary; you must change the name on the ownership documents for everything the trust owns. Failure to do so could leave assets “owned” by a non-existent entity.
• Failing to update the trust. If your trust was fully and correctly funded when it was formed, it may not stay that way forever. If you buy new property, invest, or sell assets, your trust documents should be updated to reflect this.
• Failing to add a “pour-over” clause in your will. A “pour-over” clause in a will can specify that any assets that didn’t make it into your trust before your demise should be “poured over” into your trust upon your death. This way, even if the trust assets haven’t been updated as recently as you would like, they are still covered by the trust.

Can I Fund My Living Trust with Personal Property?

Yes. Personal items like jewelry, art, and household goods can be placed in your trust. This is done by including a “Schedule of Assets” that lists the personal effects you want to transfer to the trust’s ownership. Each listing should describe the item in detail to avoid confusion. Rather than “jewelry,” one line item should have a full description, such as: “14k gold chain with rose-shaped pendant of rubies and emeralds.”

If I Don’t Fund My Trust Correctly, What Will Happen?

Failing to fund a living trust correctly opens the door to distributing your assets against your wishes. You will also force your family members to go through the long and expensive public processes of the California Probate Court. Probate can take from 12 to 18 months or longer. If there are any questions about the distribution of assets, it could lead to disputes between family members. There are less expensive options to handle disagreements, such as Alternative Dispute Resolution—but your trust can avoid family disagreements, which are even more stressful when grieving.

Protect Your Assets and Your Future with Cava & Faulkner

Don’t let legal loopholes cause the bricks of your estate planning fortress to collapse. At Cava & Faulkner, our experienced and knowledgeable estate planning attorneys are meticulous about details and provide a client-centered approach. Your concerns and questions will be addressed, and we’ll handle the challenging aspects, so you don’t have to. Give yourself peace of mind. Call us at 916-831-7565 for your initial consultation today. It’s free.

Estate Planning for Single Parents: Ensuring Future Care for Minor Children

Life can be unpredictable. Maybe you never planned to be a single parent, but here you are. Your children’s welfare is one of your top priorities. No matter what happens to you, you want to ensure they will be safe, and their needs cared for. Estate planning is an essential tool to create a roadmap for others to follow in the case of your untimely demise or unexpected incapacitation. In California, estate planning documents allow you to assign trusted individuals as guardians for your children and determine who will handle their financial affairs.

As A Single Parent, What Are the Key Estate Planning Documents I Need?

As a single parent in California, there are a series of documents that make up a complete estate plan. By ensuring that each document is completed, you will be able to ensure the care of your minor children in the event of your passing.

• Will: A will is a legal document that defines how your assets and property will be divided after your death. A will names an executor, the person or entity responsible for carrying out your wishes. It includes beneficiaries, such as your children, who will receive your assets. A will also contains guardianship provisions that direct who will care for your minor children.
• Revocable living trust: A trust is a legal instrument that places your assets in a self-contained entity. This prevents your assets from going through California’s lengthy and expensive public process called probate. Probate is the action of legally proving a will to be valid. A trust provides privacy and allows assets to transfer smoothly to the designated beneficiaries.
• A durable power of attorney: This is a legal directive that allows another to control your financial or legal affairs in the case of your inability to do so. For example, if you were to become incapacitated during a car accident.
• Advance healthcare directive: an advanced healthcare directive designates a trusted person to make healthcare decisions for you and outlines your medical treatment preferences should you be unable to direct your care yourself.

How Do I Choose a Guardian for My Minor Children?

The most important thing about choosing a guardian for your minor children is choosing someone you trust. You need this person to follow your written wishes and to be who you reasonably believe will raise your children as you want them to be raised. Here are some steps that will help you in choosing a guardian for your children:

• Make a list: Think about it and then list individuals you could trust to raise and care for your children in your absence. This could be your parents, a sibling, or, if they still have joint custody, the children’s other parent. You will want to have more than one option if one person is unable or unwilling to fill the position. In making your decision, consider each person’s:
  • Values
  • Parenting style
  • Emotional stability
  • Financial responsibility
  • Relationship with your children
  • Physical location
• Speak to your options: Discuss guardianship with the people you have named. Explain that while nothing is expected to happen, you would like to confirm their willingness to step into a guardianship role if an unexpected tragedy occurs.
• Write them into your will: Once you have two or three people willing to be guardians, put their full names and relationships to you in the will. List your primary choice, followed by your secondary choices, in case a chosen guardian cannot serve.
• Consider a standalone guardianship document: In addition to a will, you can also use a California estate planning lawyer to draft a Declaration of Guardianship or Nomination of Guardianship.

How Can a Declaration of Guardianship Protect My Children?

The California Family Code § 3020 states, “the health, safety, and welfare of children shall be the court’s primary concern” when determining who will have custody or guardianship of a child. Still, it is difficult and risky to leave decisions regarding your children up to the state. A Declaration of Guardianship is a supplementary document to your will that can be added to your estate planning package. A will is only active when the will creator has passed away; a declaration functions in case of death, incapacity, or permanent disability and can be used in case a will is not immediately accessible. A Declaration of Guardianship should include:

• The names of your chosen guardian(s)
• Your reasons for electing them
• The names of your children to be cared for
• Your signature
• The signature and stamp of a notary public

How Can Trust Provide for My Minor Children in My Absence?

Trusts may be formed to provide for your minor children under California Probate Code Section 15200. A trust is a legal entity created to hold assets that will be used for the benefit of another, in this case, your minor children. As the trustor, you will create and fund the trust with your assets. You will assign a trustee who will manage the trust after your passing and ensure the needs of your children, who are named beneficiaries, will be funded. Because a trust is structured according to your wishes, you can dictate where the money is spent and how much. For example, you could specify that the child receives a portion of their inheritance at 21 and the rest at 30.

It is all a matter of preference. The court system will automatically provide minors with their entire inheritance to use as they please at 18. A trust ensures financial responsibility by a mature trustee and can continue to exist to ensure the funds are used for their intended purpose, such as education, healthcare, or housing.

Do I Need a Lawyer to Complete My Estate Planning Documents?

Hiring a professional California estate planning lawyer to handle your estate planning needs is highly recommended. It is possible to use free online services, but in these cases, you “get what you pay for.” The documents created are not guaranteed to hold up in court, and the fine print on such websites indicates these services shouldn’t be used without the advice of a lawyer. Having a lawyer can make the difference between a smooth transition of your assets for your grieving family when you pass and making it a complicated legal obstacle course to decide who gets what in court. Cava & Faulkner can help you:

• Identify your assets and liabilities.
• Execute legally binding estate planning documents.
• Craft your plan to minimize taxes and avoid probate.
• Update your plan as your family’s needs evolve.

Cava & Faulkner Can Help You Protect Your Children

You don’t have to feel overwhelmed. As professional estate planning attorneys, our team at Cava & Faulkner can take the weight off your shoulders. We will simplify the process, turning your concerns into security and peace of mind so that, no matter the circumstances, your loved ones will be cared for. We offer comprehensive estate planning, including trust creation and guardianship documents. Contact us today to schedule a free personal consultation at 916-831-7565.

Can You Establish a Trust for Your Pet?

Pets are like family members, and it is recommended that you consider what will happen to them when you’re no longer around to take care of them. Incorporating a trust for them in your estate plan is an effective way to put your mind at ease.

You’ll have peace knowing that the pet’s needs will be taken care of if you become incapacitated or after your demise.

Estate planning lawyers in California explain that a trust is a legal document that holds money and assets for the beneficiaries. It’s a viable option for preparing for your pet’s care because you can’t leave cash, property, or life insurance money directly to an animal. Consult skilled legal experts for legal insights on how pet trusts work and how to set up one.

How Can I Establish a Pet Trust?

Establishing a trust entails designating a grantor, trustee, and beneficiaries. As the trust’s creator, you’re the grantor who will fund it and provide instructions on its management and execution. Experienced Elk Grove trust attorneys can help you draft the document and guide you in the correct trust terms to make it enforceable.

• Appoint a caretaker and trustee: Choose a caretaker who will take over the care of your pet. Look for someone who loves your pet and is willing to take on the responsibility. It’s also advisable to choose a financially responsible trustee to oversee the financial aspects of the trust.
• Provide detailed care instructions: Specify your wishes regarding the pet’s diet, exercise, medical needs, and social interactions.
• Fund the trust: Ensure you fund the trust sufficiently to cover the pet’s expected living expenses and medical costs. The amount varies depending on the type of pet and can be significant if your pet is a thoroughbred horse.
• Specify the distribution of the remaining funds: You must also decide what will happen to the funds after your pet’s death. They can be donated to a charity, allocated to another fund, or returned to the estate.

You can appoint yourself person as the trustee of the pet trust and hold the role throughout your lifetime. Since the trust’s purpose is to care for your pet after your demise, ensure you appoint a successor trustee who will implement the instructions in the trust and make payments to the people taking care of your pet.

Your pet is the trust’s beneficiary, but you need someone to act on its behalf to implement the instructions and ensure the funds are used for their intended purpose.

Types of Pet Trusts

You have three primary options for planning for your pet’s care after your demise through a trust. Trust lawyers in Elk Grove can help you evaluate the one that best serves your wishes concerning your pet from among the following:

• Traditional trust: It allows you to appoint a caregiver, name a trustee, and give instructions for the pet’s care. You can fund the trust with life insurance and name the trustee as the beneficiary. A portion of the life insurance policy can go to the pet trust and the remainder to other beneficiaries, such as your children.
• Statutory pet trust: You can provide simple instructions in your Will, indicating how much money you have set aside in the trust for your pet’s care. The probate court
• will designate someone to manage the trust. The downside of this type of trust is that you can’t leave detailed instructions for the pet’s care.
• Pet protection agreement: A pet protection agreement is a do-it-yourself trust you can create with the help of skilled estate planning lawyers in Elk Grove. It enables you to spell out specific instructions for your pet’s care. You and the pet guardian must sign it to make it legally binding.

What are Some Factors to Consider When Using Life Insurance for Your Pet Trust?

If you choose to use life insurance to fund your pet trust, let your trust lawyers in Elk Grove help you decide the type of policy that makes the most sense based on your age and your pet’s age:

• Term life insurance: You can specify the number of years your term insurance will cover you for, such as 10, 20, or 30. If you’re likely to outlive your pet and want coverage if you die prematurely, consider a term life policy.
• Permanent life insurance: If your pet is likely to outlive you, consider obtaining a permanent life insurance policy that covers your entire life span. However, the option is more expensive than term insurance.

What Are the Benefits of Establishing a Pet Trust?

A pet trust is a legally binding entity and many pet owners prefer it over other planning strategies because it has the following potential benefits:

• You can appoint a trustee and name a caretaker to be responsible for your pet’s care
• You can give detailed instructions to your pet caregiver, including food, toys, medical care, emergency treatment, regular check-ups, end-of-life care, and sleeping arrangements
• A pet trust is legally enforceable
• You can design your pet trust to meet your pet’s individual needs
• It becomes effective upon your demise or when you can no longer care for the pet. The pet’s caregiver doesn’t need to wait for probate to get funding
• A pet trust can be hard to challenge during probate
• You can update the trust over time depending on your pet’s changing needs

A Skilled Trust Lawyer Providing Legal Counsel on Pet Trusts

Establishing a pet trust can be an effective way to plan for the care of your pet after your demise. You can create different types of pet trusts depending on your pet’s needs and preferences. Skilled trust lawyers in Elk Grove can help you evaluate your options.

Cava & Faulkner hosts dedicated trust lawyers who can help you with your estate planning needs. We can guide you in creating a comprehensive estate plan that incorporates your property, children, and pets. Our team can provide legal counsel if you have concerns about establishing a pet trust. Call us at 916-813-7565 to schedule a FREE case assessment.