Ukoha-Ajike Law Group-Helping Individuals with estate planning, trusts and trust administration

Estate Planning, Trusts and Administration

Upon death, we need to rest assured that our loved ones receive our property in a manner consistent with our intentions. A well formulated Estate Plan eliminates the confusion and frustration that arises at such an emotional and sensitive time.

We use various Estate Planning tools to properly identify and allocate assets to loved ones you leave behind. Thus, having a complete estate plan is a necessity. To achieve this objective, we consult with you, counsel you and draft the necessary documents that will provide for and protect the interests of your loved ones. We tailor each plan to suit your particular needs and circumstances.

Who needs this?

Do you own real property?
Do you have family, minor children, or dependent relatives?
Do you own other assets or investments?
Do you wish to transfer these assets to loved ones without problems?

A complete and well formulated Estate Plan will, in some cases, reduce or entirely eliminate the estate tax liability that usually falls on the heirs at death. We use such tools as Revocable Living Trusts which avoid the need and expense of probate and provide for the care of loved ones who are incapable of looking after their selves. We prepare Wills, Durable Powers of Attorney, Advanced Health Care Directives, and other related documents.

We also provide counsel and draft complex estate planning tools such as Irrevocable Trusts that are regularly used for planning medium or large size taxable estates. These include Irrevocable Life Insurance Trusts (ILIT), Charitable Remainder Trusts (CRT), Grantor Retained Annuity Trusts (GRAT), and other related documents.

Estate Taxes: Federal and State (California)
Estate Tax is a tax imposed on the estate of a person who dies owning a certain amount of money/assets/wealth. It is notoriously called the "Death Tax". In previous years, the tax rate has been as much as 55% of a decedent's assets over a certain sum. Currently, it stands at 46% on estates valued at over $2M. That means if a person dies and has assets over $2M, (2005/2006) any excess over that amount will be taxed at 46%.

The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) increased the amount exempt from estate tax from a person's estate upon death. This amount increases over a period of years until 2010 when goes away entirely, but comes back in 2011 if not permanently repealed. Note that when it returns in 2011 it reverts to the figure that it was before EGTRRA. Please see table to the right.

California has no estate or gift tax, except for the so-called pickup tax, which permits the state to levy an estate tax equal to the maximum federal tax credit for state death taxes that is attributable to property in California. CA Revenue and Taxation Code, §13302. The sum is offset against the federal obligation, so that the total combined federal and California estate tax will not exceed the amount that would otherwise have been paid as federal estate and gift taxes. Under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA-2001) (Pub L 107-16, 115 Stat 38), the state death tax credit is being phased out.