Estate Planning Attorneys in Sacramento, CA

Legal Guidance For Estate Planning Throughout Sacramento County

Planning for the future is essential to ensure your wishes are honored and your loved ones are protected. At Cava & Faulkner, we’re experienced in creating estate plans tailored to your unique needs. Whether you’re considering a revocable living trust, establishing powers of attorney, or navigating the complexities of probate law, we provide expert guidance every step of the way.

Our commitment is to help you preserve your legacy and achieve peace of mind, knowing that your estate is in capable hands. Protect your family and your wishes today with a helpful estate planning lawyer in Sacramento.

Schedule a free consultation to get started and discuss your estate planning needs.

Sacramento, California Estate Planning Services 

Some of the ways we can help you with your estate plan include:

 

Sacramento Wills Attorney

Trusted Wills Attorney for Personalized Estate Planning Solutions

Most Californians recognize the importance of having a will. Even so, many individuals mistakenly believe that if they die without a will, their assets will automatically be distributed to their closest relatives. 

Unfortunately, this is not always the case, and if you pass away without having critical estate planning documents, your beneficiaries could be left waiting to receive vital financial resources.

The most effective strategy is to hire an experienced Sacramento wills lawyer to assist you with creating a comprehensive estate plan that protects your loved ones. Contact Cava & Faulkner, Attorneys at Law, today to schedule a free, no-obligation consultation to learn more about how we can help.

Who Inherits Your Assets If You Die Without a Will in California?

If you die without a will in California, the state’s intestate succession laws determine how your assets are distributed. Intestate succession laws prioritize your spouse or registered domestic partner, followed by immediate family members.

The decedent’s half of the community property is automatically transferred to the surviving spouse or domestic partner. If you have children, any separate property is divided according to the state’s intestate succession laws. For example, under the law, if you have one child, your child and spouse or domestic partner will split all separate property equally.

If you are unmarried and intestate, the law first looks to children, who inherit equally. If there are no children, the laws follow a hierarchy that includes parents, siblings, grandparents, and nieces or nephews. If no relatives are located, the estate will revert to the state.

Does Having a Will Help My Family Avoid Probate After I Die?

Although having a will is essential to name your executor and appoint guardians for your minor children, it does not help your family avoid probate. Instead, in California, a will serves as a roadmap for the court and is just one of several estate-planning documents needed to protect your family’s future.

Due to the complexities associated with the state’s probate law, having a lawyer assist you with estate planning is essential to helping your beneficiaries keep as much of their financial resources as possible.

For example, an estate planning document that can help your family and beneficiaries avoid probate is a living trust. Assets placed in a living trust are no longer considered your property and are exempt from probate.

Other methods commonly used to avoid probate include:

• Joint tenancy or community property with right of survivorship.
• Transfer on death (TOD) deeds for real property.
• Payable-on-death (POD) beneficiary designations for financial accounts.

Why is it Essential that I name a Guardian for My Minor Children in My Will?

If you have young children, naming a guardian who will care for them should you pass away is essential. A common misconception among many Californians is that their immediate family members, such as grandparents or siblings, will automatically be granted custody. If you pass away without a will in California, the court appoints a guardian for your children.

The lack of a will and nominated guardian often results in prolonged and costly custody disputes. Until the matter is resolved, the child could be placed in temporary foster care. The court will decide custody based on what it believes is in the child’s best interests, which may not be the decision you would have made.

To ensure the court has clear direction regarding the care of your minor children if you are unable to provide it, the most dependable method is to create a will that names a guardian.

What is a Pour-Over Will?

A pour-over will acts as a safety net and “pours” any assets into a revocable living trust that were omitted when the trust was created. This type of will ensures that any assets acquired after the trust’s creation are not subject to the state’s intestacy law.

Any assets included in the pour-over will be transferred to the trustee, who will then distribute them according to the instructions in the trust document. A pour-over will should not be considered a substitute for creating and funding a trust.

Small Estates

If the total value of any property that was not included in the will is under the state’s $184,500 in 2026, your beneficiaries can use a small estate affidavit to transfer the new assets into the trust without having to go through the full probate process.

Large Estates

Although some estate assets can bypass some aspects of probate with the help of a pour-over will, others must still undergo the entire process. For example, if you do not include your home, which is worth at least $500,000, in a living trust, it must go through probate before it can be “poured” into the trust. 

Why is it Best to hire a Lawyer to Help Me Write a Will?

As in the case of any legal matter, it is best to hire a lawyer to help you write a will. The last thing you want is for your will to be subject to legal scrutiny because it was not signed or witnessed correctly. Having legal assistance ensures that your will is legally binding and compliant with all California laws.

Other essential legal services that a lawyer can provide when helping you draft a will include:

• Minimize probate costs.
• Determine if you need other estate planning documents, such as a trust for minor children or those with special needs.
• Creating a customized plan that helps to reduce estate taxes for large estates.
• Assist you with navigating the complexities involved with family dynamics to help avoid potential conflicts.
• Provide legal advice and guidance for when your will should be updated, modified, or revoked due to significant life events such as marriage, divorce, or the birth of children or grandchildren.

Contact Cava & Faulkner, Attorneys at Law, today to Protect Your Assets and Secure Your Legacy

Cava & Faulkner, Attorneys at Law, is a law firm committed to helping clients prepare and plan for the future. When you come to us for assistance, we take the time to listen to your concerns and work diligently to create high-quality legal documents that align with your goals.

Our legal professionals realize that planning for your death can be emotionally challenging. Even so, writing a will can help your loved ones confidently face the future knowing that you have properly planned for what lies ahead.

If you are ready to get started on your estate plan or have other legal concerns, our knowledgeable wills attorneys are available to answer questions. Contact our Sacramento, CA area law offices today at (916) 831-7565 to schedule a free consultation.

Sacramento Trusts Attorney

Dedicated Trusts Attorney Helping Sacramento Clients Plan with Confidence

Whether you have started to accumulate assets or are concerned about protecting your property and other financial resources as you grow older, creating a trust is always a viable option. Creating a trust offers you, your family, and other beneficiaries peace of mind knowing that your assets are secured.

No matter what stage of life you are in, a customized trust can offer significant asset protection to help avoid probate, provide resources for special needs or minor children, or help you leave a lasting legacy through charitable giving.

The most effective way to establish trust is to seek legal guidance from a qualified trust attorney who can determine which options align with your goals. If you have questions about establishing a trust or are ready to get started, contact our Sacramento law firm today to schedule a free consultation with one of our estate attorneys.

How Can a Trust Help My Loved Ones Avoid Probate in California?

One of the most common concerns among many Californians is how to avoid the state’s expensive probate process. One of the most important advantages of comprehensive estate planning is that creating a trust provides greater control over your assets and how they are managed and distributed.

A common choice among many Sacramento residents is a living trust. When you place assets in a living trust, they are no longer considered your property. Instead, these assets now belong to the trust and are exempt from probate.

After you pass away, your successor trustee has the legal authority to begin managing and distributing your assets after the 120-day window to contest a trust has expired. Unlike a will, which takes time and is a matter of public record, beneficiaries can receive their assets more quickly, with an added layer of privacy, as trust terms remain confidential.

A trust can cover a wide range of assets, including bank accounts, real estate, and other financial resources.

How Do Revocable vs. Irrevocable Trusts Compare in Estate Planning?

If you are considering creating a trust, you may be unsure whether a revocable or irrevocable trust is right for your needs. Understanding the differences between the two is key to achieving your personal and financial objectives.

Revocable Trusts

As the name suggests, a revocable or living trust can be modified or revoked at your discretion, provided that you are of sound mind. Although a revocable trust helps your beneficiaries avoid probate, they do not protect your assets from lawsuits, creditors, or Medi-Cal estate recovery. Because you can change or terminate trust at any time, the assets are still considered to be your property and not protected from claims.

Irrevocable Trusts

Unlike living trusts, an irrevocable trust cannot be changed or terminated. Once your assets are titled into the name of the trust, they cannot be removed, except in specific, limited situations as outlined in California law. Once the transfer of ownership is completed, any property placed in the trust is shielded from claims. An irrevocable trust is an ideal solution for several situations. It is particularly beneficial for individuals aiming to minimize estate taxes or bypass the probate process. Additionally, families seeking to establish financial resources for members with special needs will find this type of trust valuable.

What is a Successor Trustee, and How Do I Choose One?

In California, a successor trustee is the individual or financial institution that you designate to assume the management of the trust when you die or become incapacitated. A successor trustee can also take over if you have been acting as the trustee but wish to resign. Some of the skills that you should evaluate to determine if an individual should act as your successor trustee include:

Fiduciary Skills

Because a successor is responsible for managing assets, paying debts, and distributing assets, you want to choose someone willing to take on fiduciary duties. Whoever you choose must have excellent organizational skills and the ability to manage intricate investments or property.

Objectivity

Whoever you choose must be able to act with neutrality when overseeing trust administration. Depending on family dynamics becomes especially important as they work to navigate complex relationships, especially when making challenging decisions.

Clear and Effective Communication Skills

Part of a successor trustee’s duties is to keep beneficiaries well-informed about the status of the trust, including providing notices and regular updates.

Consider Hiring a Professional Fiduciary

If you have a complex estate that includes special needs planning or caring for minors or fear that family conflicts may arise after your death, it is probably best to hire a professional fiduciary. A professional fiduciary has the legal skills and experience to navigate challenging situations.

When selecting a trustee, consider their willingness to accept the responsibilities of a fiduciary. It is also wise to choose an alternative or backup trustee in case your first choice is unable to serve.

How Can Creating a Trust Support Effective Business Succession Planning?

If you are an entrepreneur, creating a trust should be an essential part of your business succession plan. Creating a trust establishes a legal framework that ensures business continuity. A trust can also help your beneficiaries avoid the time and expense of probate proceedings and provide essential tax benefits.

Once business ownership is transferred to a trust, your trustee can assume responsibility for managing your organization’s assets when you retire, become incapacitated, or pass away. One of the most significant advantages of placing your business ownership in a trust is that the trustee can step in and manage your business affairs seamlessly.

Due to the complexities involved in California business transactions, placing your hard-earned assets in an irrevocable trust also protects them from divorce, lawsuits, and creditors.

A Grantor Retained Annuity Trust (GRAT) can help to minimize the burden of estate and gift taxes that your beneficiaries could be forced to pay otherwise. Just as with other trusts that hold your personal assets, placing your business in a trust can give your heirs and beneficiaries enhanced privacy protection.

How Does a Trust Protect Minor Children?

If you have minor children or those with special needs, establishing a trust is one of the most effective ways to protect their interests. California law prohibits minors from owning significant assets outright. If you were to pass away, your child could be subject to court-ordered guardianship after a lengthy probate process.

Placing assets in a trust is a strategic way to safeguard your children’s assets. When you establish a trust, you can stipulate how and when the trust funds are distributed. For example, you can specify whether you want your child’s inheritance to be distributed in stages, such as when they turn 25 or older, rather than at 18. Delayed distributions allow your child to mature and be capable of making wise financial decisions. Your appointed trustee should be a trusted adult who can manage the trust assets and protect your child from mismanagement or squandering of their resources.

As with other trusts, assets held by a trust can be protected against creditor claims, lawsuits, or divorce actions if structured correctly.

How Can I Prevent Trust Litigation and Ensure it Holds Up Against Legal Challenges?

Suppose you have created a trust for your business interests or personal needs. The last thing you want is for your beneficiaries to have to deal with trust and estate litigation issues. Trust litigation, as with any legal matter, can be expensive and delay your beneficiaries from receiving critical assets, possibly leading to a financial crisis.

With the help of an experienced Sacramento trusts attorney, you can protect your beneficiaries and help them avoid unnecessary litigation issues.

These essential steps include:

• Demonstrate Mental Capacity: In California, one legal ground for contesting a trust is the allegation that the grantor lacked the capacity to understand the gravity of their decisions. One of the easiest ways to refute incompetency claims is to obtain a letter from a medical professional that attests to your mental capacity.
• Prevent Undue Influence: To prevent claims that you were the victim of undue influence, do not allow your caregivers or beneficiaries to try to draft a trust document or isolate you from others. These actions often raise concerns and could result in delays in distributing trust assets while the matter is resolved.
• Include a No-Contest Clause: California probate law allows grantors to include a “no-contest” clause in their trust document. A no-contest clause dictates that if a beneficiary challenges the trust without probable cause, they may be disinherited.

Having a qualified trusts lawyer is essential when creating a trust, as they can offer guidance and legal advice tailored to your specific needs. Your lawyer can create a trust document that fulfills your objectives and can withstand legal scrutiny, reducing the likelihood of technical challenges.

Some Californians also choose to leave a specific family member a small initial gift outside of the trust, hoping that it will deter them from pursuing further legal action.

Why Should I Hire an Attorney to Help Me Fund a Trust?

You have decided to create a trust but are unsure how to fund it. The most practical solution is to hire a qualified trusts attorney who will assist you with your legal needs.

A Sacramento trusts attorney understands the legal nuances involved with funding a trust and ensuring that assets are properly retitled. Failing to properly retitle assets can result in probate, causing significant and costly delays for family members. Your attorney can also suggest the best method for protecting your assets if you are worried about creditor claims or meeting eligibility requirements for long-term care.

Your attorney can handle the legal issue associated with re-titling assets, including those tied to deeds, out-of-state property, bank accounts, and investments. Having a knowledgeable attorney assist you is essential for navigating the state’s intricate laws regarding trust taxation or business interests.

Even more importantly, your attorney will create customized trusts that align with your personal goals. For example, if you have a special needs family member, your attorney can create an SNT that adheres to all state and federal requirements and does not jeopardize their ability to access government benefits.

Contact our Experienced Sacramento Trusts Attorney Today to Protect Your Estate and Secure Your Future

Creating a trust is just one of many estate planning tools that Californians can use to protect their assets for themselves and future generations. No matter what type of trust you wish to create, it is always best to seek qualified legal representation.

Because every family situation is unique, you need an attorney who will work closely with you through the whole process of creating, funding, and managing a trust. Cava & Faulkner, Attorneys at Law, offer quality legal services designed to help you and your family confidently face the future.

Our knowledgeable team can create concise legal documents to help avoid costly and time-consuming trust and estate litigation. When you come to us for help, we take the time to determine your personal and financial goals and create a tailored plan to achieve them.

If you have questions about how creating a trust can benefit you or are ready to get started, contact our Sacramento, CA law firm today at (916) 831-7565 to schedule a consultation.

 

Incapacity Planning

Incapacity planning is an important part of estate planning. If you become incapacitated and can’t make decisions for yourself, it’s important to have a plan in place to ensure that your wishes are respected. A power of attorney allows someone you trust to make decisions on your behalf, while a living will spells out your wishes for medical care in the event you can’t speak for yourself.

If you don’t have a plan in place, your loved ones may have to petition the court to appoint a guardian or conservator to make decisions for you. This can be a costly and time-consuming process, and it may not be what you would have wanted. By taking the time to create an incapacity plan, you can avoid these problems and ensure that your wishes are carried out.

Sacramento Power of Attorney Lawyer

Experienced Power of Attorney Lawyer for Comprehensive Estate Planning

Whether you are a young person just starting in life or a mature adult, you can most likely benefit from having a power of attorney (POA) document. Once you turn 18, you are considered an adult, and your parents lose all legal authority over you regarding your financial affairs or medical decisions. If you are an older adult, you have most likely become aware of situations that could arise and affect your ability to manage your personal affairs.

A Power of Attorney document is important at any stage of life because it prevents your loved ones from having to seek court-ordered guardianship or conservatorship if you become incapacitated.

Contact our Sacramento-area law office today to schedule a free consultation and learn more about a power of attorney and how we can help.

Why Is a Power of Attorney Essential for Managing Financial and Medical Decisions?

A power of attorney (POA) is an essential legal document that appoints your designated agent to manage your financial affairs and medical decisions should you become incapacitated. Having someone you trust whose decisions will align with your values is a better option than the court appointing a stranger to manage affairs if you become incapacitated.

Durable Power of Attorney (DPOA)

If you become incapacitated, a durable power of attorney (DPOA) allows your agent to seamlessly manage your financial affairs, including paying bills, managing assets, filing taxes, and handling real estate transactions without the need to go to court. It is considered “durable” because it remains valid even if you become incapacitated and can go into effect immediately or upon a specified event, such as cognitive decline.

Advance Health Care Directive

In California, an Advance Health Care Directive grants your agent the authority to make healthcare decisions regarding medical treatment and end-of-life care when you are unable to do so for yourself. Putting an advance directive in place allows your agent to quickly make health care decisions, avoiding unnecessary delays or court hearings.

When Does a Power of Attorney End?

Under California law, a power of attorney (POA) can be terminated for several reasons. One of the most common is the principal’s death, which immediately terminates the POA.

Other common scenarios that terminate a power of attorney include:

• Revocation: If the principal is mentally competent, they have the right to revoke the POA at their discretion. A POA can be revoked by creating a new document or destroying the previous one.
• Agent Incapacity: If the agent becomes incapacitated and is no longer able to fulfill their role, the grantor may terminate the POA.
• Specific Event or End Date: The POA may be dependent on a particular responsibility or task, such as selling real estate, or have a specified ending date upon which the agent’s authority is terminated.
• Divorce: If your spouse is named as your POA, their authority is automatically revoked upon divorce or annulment.

What are the Agent’s Responsibilities?

A frequent question many Californians ask concerns the designated agent’s responsibilities and what they cannot do legally. When the agent accepts their role, they acknowledge that they will be responsible for making and executing many critical decisions regarding the principal’s well-being.

California law provides that a power of attorney agent is a fiduciary, legally obligated to act in the principal’s best interests and to avoid conflicts of interest or personal enrichment.

Common responsibilities include:

• Management of Financial Affairs: Responsibilities include making financial decisions, paying bills, and managing accounts, property, and investments.
• Record Keeping: Maintaining accurate and thorough records of all financial transactions.
• Asset Protection: Safeguarding the principal’s estate plan and obtaining benefits like Medi-Cal.
• Personal Care: Responsibilities include arranging and overseeing medical care, housing, and other necessary tasks.

Limitations on an Agent’s Authority

The state also imposes strict limitations on what an agent may not do, including creating, changing, or revoking a will, or making decisions after the principal’s death. The agent is also prohibited from transferring property or money to themselves for personal benefit, unless authorized by the agent. Other prohibited actions include acting outside of the scope of their authority or transferring their duties to someone else.

Contact our Sacramento Power of Attorney Lawyers today to Begin Planning for What Lies Ahead

Cava & Faulkner, Attorneys at Law, is a Sacramento-area law firm committed to helping you plan for the future. Our primary goal is to guide clients through the intricacies involved with creating a power of attorney document that will withstand legal scrutiny.

Our experienced estate planning attorneys recognize that every client has unique needs. We are dedicated to providing you with quality legal services so you can rest easy knowing your affairs are in order.

Contact our law offices today at (916) 831-7565 to schedule a free consultation.

 

Sacramento Advanced Healthcare Directives

Trusted Advance Healthcare Directive Lawyer for Medical Decision and End-of-Life Planning

No matter what stage of life you are in, you must have an advance directive that can express your wishes should you become incapacitated. An advance directive authorizes your chosen agent to make healthcare decisions for you and helps prevent costly legal disputes and delays in treatment.

If you have questions about creating advance health care directives, contact Cava & Faulkner, Attorneys at Law, today. Schedule a free initial consultation to learn more about our legal services.

Why Do You Need an Advance Health Care Directive for Future Care Planning?

An Advance Health Care Directive (AHCD) is a legally binding document that allows your designated agent (your healthcare proxy) to make medical decisions should you become incapacitated. Having an advance directive is vital, no matter your age, as it helps prevent family conflicts by keeping your loved ones from second-guessing what type of medical care you would have wanted.

An AHCD ensures that your doctor, medical team, and family members are aware of your medical preferences and the type of treatment that you wish to receive. For example, it can give specific instructions regarding life-sustaining treatment, pain management, or organ donation.

Why is it Best to hire a Lawyer to Help Me Create an Advance Directive?

As with any legal document, it is always best to consult a qualified lawyer when creating an advance directive to ensure it complies with California law.

Your lawyer will work with you to ensure that your advance health care directive is tailored to your specific circumstances and wishes regarding medical interventions and life support. Proper planning can help prevent confusion regarding who should act as your health care proxy and the medical treatment you wish to receive.

Your lawyer can also provide guidance on choosing a trusted person who will act as your health care agent and support your wishes even if they do not necessarily agree.

Who Can I Appoint as My Health Care Agent?

California law allows you to appoint any competent adult 18 and older to act as your health care agent. Whoever you choose should be someone you can trust to make challenging medical decisions and handle family conflicts if the need arises.

Your agent can begin to serve immediately or when you are determined to be incapacitated, as outlined in your advance directive.

There are, however, restrictions as to who can act as your health care agent. Under the law, your agent cannot be an operator of the medical facility that is currently providing for your care, unless they are related to you.

You should also consider alternates who can assume the health care agent’s duties if they are unable to fulfill their obligations.

Contact Cava & Faulkner, Attorneys at Law, today to Secure Your Wishes and Future

While an advance health care directive ensures your medical wishes are followed if you cannot speak for yourself, it is just one of several key estate planning documents needed for the future. Cava & Faulkner, Attorneys at Law, is committed to helping you prepare for what lies ahead, so you can confidently face the future.

Contact our Sacramento-area law firm today at (916) 831-7565 to schedule a free consultation.

 

Trust Administration

When someone creates a trust, they appoint someone to be in charge of administering it – this is known as the trustee. The trustee’s job is to ensure that the trust is run according to the terms set out by the creator (grantor) and to make decisions about how the assets in the trust are used.

In some cases, the trustee may also be responsible for distributing the assets among the beneficiaries of the trust. This can be a complex process, especially if there are many beneficiaries involved. The trustee must ensure that all of the relevant laws and regulations are followed, and must also take into account any wishes that the creator of the trust may have had.

If you are appointed as trustee, it is important to remember that you have a duty to act in the best interests of the beneficiaries of the trust. This may require making difficult decisions, but it is important to remember that you are not acting for your own benefit – you are acting on behalf of others.

HIPAA Lawyer

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) is a federal law that sets rules for the handling of personal health information. The law applies to all healthcare providers, health plans, and healthcare clearinghouses. Under HIPAA, healthcare providers must take steps to protect the privacy of patients’ personal health information. This includes taking reasonable measures to protect information from unauthorized access, use, or disclosure.

Healthcare providers must also provide patients with a written Privacy Notice describing how their personal health information will be used and protected. Patients have the right to review their medical records and request changes to any information they believe is inaccurate or incomplete. If you are concerned about how your personal health information is being protected and how it fits into your estate plan, you should speak to a HIPAA lawyer. A HIPAA lawyer can help you understand your rights under HIPAA and can advise you on what steps to take going forward.

Sacramento Asset Protection Attorney

Asset Protection Attorneys Focused on Your Long-Term Financial Security

No matter what stage of life you are in, it is wise to focus on how you can protect your hard-earned assets. For example, if you have a young family, you probably want to feel secure that your financial resources can benefit them should something happen to you. If you are an older adult, you may be worried about the cost of long-term care and how it can affect your wealth.

Regardless of your unique circumstances, consulting an asset protection attorney is the most reliable way to protect yourself and your family, regardless of what may come your way. If you have questions or concerns about asset protection strategies, contact our law office today to schedule a free consultation to learn more.

What are Common Asset Protection Strategies?

In California, several asset protection strategies are available, depending on your financial objectives. Some of the most common strategies include:

• Irrevocable Trusts: Assets are no longer considered your property but now belong to the trust, keeping them out of reach of lawsuits, creditor claims, and, in some instances, Medi-Cal estate recovery if planned correctly.
• Limited Liability Companies (LLCs) and Corporations: Legal entities that separate your personal assets from business holdings.
• California Homestead Exemption: Protects a significant portion of your primary residence’s equity from creditors and lawsuits.
• Family Limited Partnerships: Transfers ownership of property from individual family members to a partnership and limits creditors to only being able to receive distributions from the debtor partner, rather than seizing their assets.

Does a California Revocable Living Trust Protect My Assets?

Although a revocable trust provides many legal protections, such as avoiding probate, it does not shield your assets from creditors or lawsuits. Unlike a living trust that can be amended or revoked at your discretion, once assets are placed in an irrevocable trust, they are no longer considered your property.

An irrevocable trust is a common estate planning method that many Californians use to protect their legacy and assets for future generations. If you are concerned about the cost of long-term care and qualifying for Medi-Cal benefits, the best option is a Medi-Cal Asset Protection Trust (MAPT). Even so, California has a strict 30-month look-back period to determine eligibility.

When Should I Consult With an Attorney About Creating an Asset Protection Plan?

Many Californians make the crucial mistake of waiting until a crisis occurs before they consider asset protection strategies. The truth is that you should consult an attorney immediately, before you may need long-term care or legal threats from creditors or lawsuits arise.

Some of the other most common scenarios that facilitate a need to discuss an asset protection plan include:

• You work in a profession prone to lawsuits.
• You plan on expanding your business.
• You have acquired significant assets or high-value property.

If you plan to get married or are already married, a prenuptial or postnuptial agreement is also a trust-based asset protection strategy.

Take the Next Step in Safeguarding Your Assets with Our Skilled Asset Protection Lawyers

No matter your personal situation, if you are concerned about protecting the wealth you have worked so hard to build, the best solution is to consult a qualified attorney. Cava & Faulkner, Attorneys at Law, is a Sacramento, CA area law firm dedicated to helping clients by creating custom-tailored plans that align with their financial goals.

Our estate planning attorneys have extensive experience helping our clients protect themselves from outside risks. We take a proactive approach to helping you plan for the future, so you can feel confident that you are fully protected. 

If you have questions about the asset protection process or are ready to get started, contact our law firm today at (916) 831-7565 to schedule a free consultation.

Estate Tax Planning

Estate tax planning is an important part of financial planning for any individual. The estate tax is a tax on the value of a person’s estate after they die. This tax can be quite costly, so it’s important to plan ahead to minimize the amount of taxes that are owed. There are a few things that you can do to help reduce the amount of estate tax that you will owe. One of the most important is to make sure that your estate is as small as possible. You can do this by minimizing the value of your assets and by taking advantage of tax-advantaged accounts like IRAs and 401(k)s.

You can also give away assets during your lifetime in order to reduce the size of your estate. This is known as gifting and there are limits to how much you can gift each year without paying taxes. However, if you give away assets before you die, those assets will not be subject to estate tax. Finally, you can also use trusts to help reduce your estate tax liability. Trusts are a legal arrangement where property is transferred to a trustee who manages it for the benefit of someone else. We can help you with cutting-edge strategies to minimize the estate tax impact on your estate.

Sacramento Special Needs Planning

Protect Your Loved One’s Future with Special Needs Planning

If you have a disabled loved one, you probably worry about their future and wonder what you can do to protect them. One of the primary concerns for most families is how they can provide for those they care about without jeopardizing essential government benefits such as SSI or Medi-Cal.

One of the most reliable methods is to create a special needs trust, which can provide essential financial resources to the disabled person while preserving eligibility for benefits. Whether you are planning for a minor child or an adult, creating a special needs trust is an effective and reliable way to achieve your objectives.

Contact our law firm today and ask to schedule a free consultation with one of our Sacramento special needs trust attorneys to determine your legal options.

Will My Child Lose Their SSI Benefits if They Inherit Money?

Although your child could lose their government benefits if they receive a direct inheritance, utilizing customized estate planning strategies can preserve their eligibility.

Individuals who receive Supplemental Security Income (SSI) benefits are limited to the amount of assets they can have. For example, if your child receives SSI, they can have up to $2,000 in assets. If they receive a direct inheritance, it can be considered unearned income for that month, reducing their SSI benefits to zero. If the funds remain in their account into the next month, they will be considered a countable resource, effectively causing a suspension of benefits.

What is the Difference Between a First-Party and a Third-Party SNT?

If you are concerned about how a disabled loved one can access financial resources without jeopardizing their eligibility for benefits, a trust may be the right solution. A common question many clients ask is the difference between first- and third-party special needs trusts.

First-Party Special Needs Trust

A first-party SNT is funded with the beneficiary’s own assets, often derived from a lawsuit settlement or other forms of compensation. A trustee must manage the trust, which can be used to pay for expenses not covered by public benefits. Medi-Cal can recover any remaining funds in the trust to repay benefits it has paid on the beneficiary’s behalf.

Third-Party Special Needs Trust

A third-party special needs trust is funded with assets belonging to someone other than the beneficiary, such as a parent or grandparent. Unlike first-party SNTs, any funds that remain in the trust after the beneficiary passes away are not subject to recovery.

Pooled Trusts

Aside from first and third-party SNTs, pooled trusts are another viable option for those with disabilities. A pooled trust can be established for a disabled individual of any age, not just those under 65, as is the case for other SNTS. In a pooled trust, each disabled person has their own account, but funds are “pooled” together for investment purposes to fund the account. Pooled accounts must also be created and managed by a non-profit association.

What Can a Special Needs Trust Actually Pay for Without Triggering a Penalty?

The purpose of an SNT is to assist the beneficiary in paying for expenses not covered by their government benefits. To avoid eligibility issues, trust funds cannot be used to pay for basic support needs such as food or housing.

Instead, funds can be used to pay for:

• Education
• Transportation
• Travel
• Special equipment
• Medical and dental expenses not covered by benefits

Due to the legal complexities involved in creating a trust and ensuring the beneficiary retains access to their benefits, it is best to consult a knowledgeable attorney who can explain your options.

Should I Choose a Family Member or a Professional Fiduciary?

If you are considering creating a special needs trust, you may be unsure whether you or another family member should serve as the trustee or hire a professional fiduciary. One of the most common issues families run into is “burnout” from handling the duties involved in overseeing the trust. Although every family’s circumstances are different, one preferred option is to allow a professional fiduciary to handle tax filings and accounting matters. In contrast, a family member serves as a “care manager” or “trust protector” who oversees the beneficiary’s well-being.

Speak with a Special Needs Planning Attorney From Cava & Faulkner, Attorneys at Law, to Protect Your Loved One’s Future

Cava & Faulkner, Attorneys at Law, is proud to serve clients in the greater Sacramento area. Our trust attorneys have extensive experience helping families provide for those they care about by creating custom-tailored special needs trusts. These plans offer greater financial security while preserving eligibility for essential benefits.

Contact our Elk Grove, CA law firm today at (916) 831-7565 to schedule a free initial consultation.

Why Choose Our Knowledgeable Estate Planning Attorneys?

Choosing our Sacramento estate planning attorneys ensures that your estate, assets, and loved ones are protected with comprehensive, personalized guidance. Our law firm assists clients with every aspect of California estate planning, including trust administration, living trusts, and the preparation of wills. We help safeguard your loved one’s final wishes while providing advice on asset protection, tax planning, and navigating probate court when necessary.

It’s important to have a skilled estate planning lawyer in Sacramento to ensure your unique wishes and needs are met. With a focus on changing circumstances and family dynamics, our experienced team creates strategies that adapt to your needs and provide peace of mind for the future. 

Speak With A Compassionate Sacramento Estate Planning Lawyer To Get Started

It’s important to consult with an experienced estate planning lawyer to make sure that your loved one’s specific needs are taken into account. With the right planning in place, you can rest assured knowing that they will be taken care of in the event of your death or incapacitation.

To get the estate planning services you need, contact us today at 916-685-1225.