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Safeguard Your Future With an Estate Planning Attorney

Mon, 13 Oct 2025 20:04:27 GMT

When it comes to protecting your assets and ensuring your loved ones are provided for, there’s no substitute for a solid estate plan. Individuals and families regularly turn to a reputable estate planning attorney in Sacramento, CA, like Steve C. Benton, Attorney at Law, to design personalized plans that honor their wishes and protect their assets. Whether you’re building your wealth, entering retirement, or caring for dependents, effective estate planning offers peace of mind that your legacy will be secured according to your intent.

The Importance of Estate Planning in Sacramento, CA

Without an estate plan, state laws and probate courts may end up deciding how your assets are handled and who inherits them. Working with an estate planning attorney in Sacramento, CA, helps ensure that these critical decisions are made by you, not by the court system, potentially saving your loved ones considerable time, expense, and frustration.

For many, “ estate planning ” conjures images of extensive wealth or complicated legal maneuvering. However, comprehensive planning is not exclusive to the wealthy. It’s a practical step for anyone who owns property, manages assets, or simply wishes to provide for their family, regardless of net worth. Let’s explore key components of the estate planning process and how an estate planning attorney in Sacramento, CA, can help secure your legacy.

Assessing Your Assets and Estate Planning Goals

Before drawing up any documents, the first task in estate planning involves a clear-eyed evaluation of your assets, liabilities, and individual goals. An estate planning lawyer in Sacramento, CA, will guide you through a detailed assessment of everything you own, from homes and vehicles to financial accounts, investments, business interests, and even digital property.

This assessment isn’t just about tallying numbers. It’s a holistic review of what you’ve built, what you owe, and who you want to provide for in the future. Your attorney will also encourage you to consider emotional or sentimental priorities, such as family heirlooms or charitable giving. By examining your complete financial and personal picture, you lay the foundation for a plan that meets both your practical and personal objectives.

As you assess your circumstances, some important questions to consider include:

• Who relies on you financially?

• Are there any unique family dynamics or potential disputes?

• Do you own out-of-state or international assets?

• What are your preferred retirement or charitable-giving goals?

By providing these details to your estate planning attorney in Sacramento, CA, you enable the creation of an estate plan that truly reflects your wishes and intentions.

Wills vs. Trusts: Essential Tools for Every Estate Plan

Both wills and trusts are common instruments used by an estate planning attorney in Sacramento, CA, to secure your legacy. Understanding the distinctions between them helps you make decisions that align with your goals.

Wills

A will is a legal document that outlines your instructions regarding the distribution of your property after death. It can also name guardians for minor children and specify funeral or burial preferences. However, a will typically must go through probate, a court-supervised process that can be time-consuming and public. In California, probate can sometimes be costly and lengthy, especially for high-value estates or those with complex assets.

Trusts

Trusts provide a greater degree of privacy and control than wills. When you transfer assets into a trust, they are managed by a trustee for the benefit of your chosen beneficiaries. Trusts can help avoid probate, minimize estate taxes, preserve assets for minor children or individuals with special needs, and set specific conditions for how and when your property is distributed.

One of the main benefits of working with an estate planning attorney in Sacramento, CA, is the ability to customize will or trust provisions to address your unique situation. Your attorney can recommend the best solution, or combination of both, to help you achieve your objectives.

Naming Beneficiaries and Executors: Making the Right Choices

The selection of beneficiaries and fiduciaries (such as executors or trustees) is a crucial element of estate planning. An estate planning attorney in Sacramento, CA, assists clients in choosing individuals or institutions that are trustworthy, responsible, and willing to carry out your wishes.

Beneficiaries

Beneficiaries are those who will receive your assets after your passing. They may include family members, friends, charities, or organizations. Choose beneficiaries thoughtfully and review designations on life insurance, retirement accounts, and bank accounts regularly, as these can take precedence over your will or trust instructions in some cases.

Executors and Trustees

The executor (for a will) or trustee (for a trust) is responsible for settling your estate and distributing assets. It’s wise to choose someone who is organized and impartial and to name one or more alternates in case your primary choice cannot serve. Your estate planning attorney in Sacramento, CA, can help you evaluate candidates, explain their duties, and ensure the proper legal formalities are followed.

Planning for Taxes and Special Circumstances

Working with an estate planning lawyer in Sacramento, CA, goes far beyond the basics of dividing up property. California law, federal estate taxes, and personal circumstances can all have a profound impact on how an estate should be structured.

Tax Planning

While not everyone will owe federal estate taxes, larger estates or those with certain types of assets may benefit from advanced tax planning. An estate planning attorney in Sacramento, CA, can outline ways to reduce or defer taxes through gifting strategies, charitable contributions, or specific trust structures.

Special Circumstances

Life is rarely straightforward. If you have minor children, dependents with disabilities, blended families, or family members who may need extra protections (such as those with addiction issues), your estate plan should address these situations. A thoughtfully designed plan protects vulnerable individuals and can help prevent future conflict.

As family arrangements and financial situations evolve, periodic reviews of your estate plan with your estate planning attorney in Sacramento, CA, are essential. Keeping your plan current ensures it continues to reflect your wishes and safeguards everyone involved.

The Value of Professional Guidance in Estate Planning

Navigating estate law alone can be daunting, and even minor omissions or errors can lead to unintended consequences. A consultation with an estate planning attorney in Sacramento, CA, provides reassurance that your plan is legally sound and well-tailored.

Beyond drafting documents, attorneys offer invaluable perspectives on state and federal law, tax implications, family dynamics, and long-term administration. By developing a trusted relationship with your estate planning attorney in Sacramento, CA, you’ll have a go-to resource for updates, changes, or questions that arise throughout your lifetime.

While some may consider using a local estate planning lawyer or online form, nothing replaces the insight and guidance of a dedicated attorney like Steve C. Benton , who knows Sacramento, CA’s legal landscape and has experience with the concerns common to local residents.

Take the Next Step With Steve C. Benton, Attorney at Law

Your legacy, your loved ones, and your peace of mind deserve the attentive care of a skilled estate planning attorney in Sacramento, CA. At Steve C. Benton, Attorney at Law, you’ll receive guidance that reflects both the legal requirements and the values that matter most to you. Don’t wait for a crisis to start thinking about your plan. Secure your future and empower your family today. Call (916) 484-4465 now to schedule your consultation with an estate planning attorney in Sacramento, CA, at Steve C. Benton, Attorney at Law, and take the first step toward lasting peace of mind.

Why You Need a Trust Lawyer in Sacramento, CA

Tue, 12 Aug 2025 14:55:37 GMT

When it comes to protecting your assets and securing your legacy, working with a trust lawyer is one of the smartest decisions you can make. At Steve C. Benton Attorney at Law, located in Sacramento, CA, we understand how overwhelming estate planning can be. That’s why we dedicate our practice to helping individuals and families make informed, confident decisions about their future. A skilled trust attorney ensures your estate avoids unnecessary legal complications and delays—giving you peace of mind and the assurance that your wishes will be carried out exactly as intended.

Understanding the Role of a Trust Lawyer

A trust lawyer provides legal guidance on establishing and managing trusts—legal arrangements that hold and distribute your assets according to your instructions. Unlike a will, a trust can offer privacy, reduce or eliminate probate, and allow for greater control over how and when your assets are passed on.

At Steve C Benton Attorney at Law, we focus on educating clients so they fully understand what a trust entails. With over 30 years of experience in trust and estate planning, we make sure each trust is carefully drafted to reflect your intentions, minimize legal risks, and protect beneficiaries.

A trust attorney also advises on tax implications and how different trust types can be customized for various life circumstances, including those involving minor children, individuals with special needs, or charitable intentions.

What Is a Trust, and Why Is It Different From a Will?

While both wills and trusts are estate planning tools, they serve different purposes. A will becomes effective only after death and typically must go through probate—a court-supervised process that can be time-consuming and expensive. A trust, on the other hand, becomes active as soon as it is created and funded, and it can bypass probate entirely.

A trust lawyer helps you establish whether a revocable trust, which you can modify during your lifetime, or an irrevocable trust, which offers certain tax benefits and asset protection, is more suitable. Learn more about how living trusts work on our Living Trusts page .

By working with a trust attorney, you also ensure your plan is structured in a way that protects assets from creditors, lawsuits, or mismanagement by heirs.

Types of Trusts and Who Should Use Them

Every person’s financial and family situation is different, so there’s no one-size-fits-all approach to estate planning. A trust lawyer will help you choose the right type of trust, including:

Revocable Living Trusts : Flexible trusts that allow you to maintain control and make changes throughout your lifetime. Ideal for most individuals and couples looking to avoid probate.
Irrevocable Trusts : Typically used for asset protection and estate tax reduction. Once established, these cannot be changed easily.
Special Needs Trusts : Designed to provide for a loved one with disabilities without jeopardizing government benefits.
Charitable Trusts : Enable you to support a cause while receiving tax benefits and reducing estate taxes.
Testamentary Trusts : Created by a will and only take effect after death. Useful for controlling how minors or others receive assets.

A dedicated trust attorney will assess your situation and advise which combination of trusts best meets your goals.

Avoiding Probate and Gaining Peace of Mind

One of the biggest advantages of working with a trust lawyer is avoiding the probate process. Probate can take months or even years and often involves court fees, legal costs, and public disclosure of your estate. Trusts keep your affairs private and efficient, ensuring beneficiaries receive their inheritance without unnecessary stress or delay.

Understanding which assets are considered probate vs. non-probate is essential in estate planning. For a helpful breakdown, read this guide on probate vs. non-probate assets .

A seasoned trust attorney makes sure your trust is properly funded and integrated with the rest of your estate plan, so you don’t inadvertently send assets through probate.

How a Trust Lawyer Helps With Long-Term Strategy

An experienced trust lawyer does more than just draft documents. They become a long-term advisor, helping you adapt your estate plan as your life changes—whether you marry, have children, acquire new assets, or face health issues.

At Steve C. Benton Attorney at Law, we help Sacramento residents build lasting relationships with a trusted legal professional who understands the nuances of tax law, family dynamics, and financial planning. As your trust attorney, we guide you through updating and maintaining your trust over time to reflect your current wishes.

We also assist with more complex planning, including blended families, business succession planning, and multi-generational wealth transfer strategies.

Learn More About Our Trust and Will Services

For a detailed look at how our firm supports estate planning through both trusts and wills, visit our Trusts and Wills page . Whether you're creating a plan from scratch or updating an outdated one, a qualified trust attorney is essential to get it right.

Secure Your Legacy With a Trust Lawyer in Sacramento

Working with a trust lawyer is not just about legal documents—it’s about protecting your family’s future. At Steve C Benton Attorney at Law, our mission is to help Sacramento clients feel confident, prepared, and secure through every stage of estate planning. Let our experience as a leading trust attorney in Sacramento guide you toward a plan that reflects your values and preserves your legacy. Call us today at (916) 484-4465 or visit our contact page to schedule a consultation and start planning your peace of mind.

Estate Planning Attorney | Sacramento, CA | Steve C. Benton

Fri, 13 Jun 2025 13:48:52 GMT

What to Expect from an Estate Planning Attorney Visit in Sacramento, CA

When planning for the future, knowing what to expect from your first consultation with an estate planning attorney can make the process less overwhelming. At Steve C. Benton, Attorney at Law, located in Sacramento, CA, we understand that talking about wills, trusts, and probate can feel complex and emotional. But with over 30 years of experience, we’ve guided countless individuals and families through this vital process. In this blog, we’ll walk you through what happens during your estate planning meeting—so you can arrive confident, prepared, and ready to protect your legacy.

Why an Estate Planning Attorney Matters

An estate planning attorney plays a critical role in helping you organize your affairs and ensure your wishes are legally documented. Whether you're drafting a will, setting up a trust, or establishing healthcare directives, a skilled attorney helps you avoid common mistakes and ensures your estate plan reflects your goals.

Steve C. Benton offers personalized guidance in Sacramento, CA to simplify complex legal concepts. He'll help you make informed decisions while minimizing stress. In addition to helping with future-focused planning, an attorney like Steve also assists in probate cases, making him a valuable probate lawyer for families managing a loved one’s estate.

What to Bring to Your First Appointment

Preparation is key to making your initial consultation productive. Before your visit, gather essential documents, such as:

A list of assets and liabilities
Current wills or trusts
Deeds to property
Life insurance policies
Names and contact info for potential executors or guardians

You don’t need everything perfectly organized—but the more information you bring, the more effective your meeting will be. As an experienced estate planning attorney , Steve C. Benton can help you sort through what’s relevant and how best to structure your plan.

Understanding the Process

During your first meeting, Steve will listen to your personal and financial circumstances, including family dynamics, long-term wishes, and specific concerns. Together, you'll:

Clarify your estate planning goals.
Discuss whether you need a will, trust, or both.
Consider durable powers of attorney and healthcare directives.
Explore strategies to minimize taxes and avoid probate where possible.

Steve's approachable, straightforward style ensures that you understand each part of the process. His role isn’t just legal—he’s your partner in protecting your legacy.

Probate Considerations: What You Should Know

Many clients come in asking about probate and how to avoid it. Probate is the legal process of administering an estate after someone passes. While it’s sometimes necessary, it can be time-consuming and expensive.

An experienced probate lawyer like Steve C. Benton can help you minimize the impact of probate—or even avoid it—through careful planning. For a better understanding of which assets are subject to probate and which are not, refer to this helpful guide from SmartAsset .

By structuring your estate correctly, you can ensure your heirs receive their inheritance efficiently and with fewer legal hurdles.

Take the First Step Toward Peace of Mind

Estate planning isn’t just for the wealthy—it’s for anyone who wants to make their intentions clear and protect their family. At Steve C. Benton, Attorney at Law, in Sacramento, CA we offer experienced, compassionate support to help you navigate each step. Whether you need an estate planning attorney to create a will or a probate lawyer to assist with a loved one’s estate, we’re here to help.

Call us today at (916) 484-4465 or visit our website to schedule your consultation ; and start planning for what matters most.

Disinheriting People From Your Will: What You Need to Know

Fri, 08 Dec 2017 00:00:00 GMT

Estate planning is an important part of life for everyone. It is crucial that you have your financial house in order before you pass away so that everything is handled as per your wishes. One major thing to consider is who will receive an inheritance upon your death. When making your will, you can include those to whom you wish to leave money or property.

Estate planning is an important part of life for everyone. It is crucial that you have your financial house in order before you pass away so that everything is handled as per your wishes. One major thing to consider is who will receive an inheritance upon your death. When making your will, you can include those to whom you wish to leave money or property.
For one reason or another, you may decide that you wish to disinherit someone you have included in your will. That is your right, no matter what anyone else may think. There are several things to keep in mind when you intend to disinherit someone from your will.

Why You May Want to Disinherit Someone From Your Will

There are a number of reasons why you may want to disinherit someone from your estate. It can be a very slippery slope to do with regard to family members, but it is not unheard of. Some reasons to disinherit can be based on emotions you may have for someone. They can also be based on business decisions.
Some of the most common reasons to disinherit someone can include being estranged from a family member. You may also want to protect the rights of your children over your step kids. If you give money or assets to family members while they are alive, you may then want to disinherit them from the will so that there is still something there for other beneficiaries.
You can disinherit someone for any number of reasons, but you will have to go through the proper legal channels so that it will be carried out how you want.

What You Need to Consider When Disinheriting

There are many considerations when it comes to disinheriting people from your estate, particularly when it comes to family members. Disinheriting immediate family, in particular, will come with additional steps in order to finalize your will.
Disinheriting a spouse or your child is not as easy as making a simple change to a document. In most states, there are several requirements you must meet to fully disinherit an immediate family member.
For instance, you will need to provide a clear explanation as to why you intentionally want to leave a particular person out of your will. You will need to cite evidence that you have left assets that you did not include in your will.
If your spouse decides to waive his or her rights to an inheritance left by you, proof of an enforceable agreement to this will need to be provided. A perfect example of this would be a pre-nuptial agreement.

How You Can Most Easily Disinherit Your Spouse

Although in most states, you cannot legally disinherit your spouse without jumping through a number of legal hoops, there is one option that is fairly easy and will not cost a lot of money. This also works with other family members.
In your will, you can leave a small amount of money or property to your spouse or any other relative you intend to disinherit. When you do this, include a no-contest clause in your will. This will keep anyone from possibly challenging your estate, allowing for your specific wishes to be carried out as you want.
Disinheriting anyone from your will can be a very hard thing to deal with. It is crucial that you deal with this in a smart, legal way so that there is absolutely no confusion after your death. You may even want to let those you intend to disinherit about your decision so that they have time to adjust to the idea rather than being surprised. If you need assistance with your estate planning, please contact Steve C. Benton, Attorney at Law .

Two Types of People Who May Benefit From a Living Trust

Tue, 10 Oct 2017 00:00:00 GMT

A living trust is very different than a will. It is not for everyone, but you may want to consider it if you fit into one of these two categories.

If you are beginning to engage in estate planning, or are just looking to make adjustments to the plan that you already have in place, you may want to consider establishing a revocable living trust. This is very different than just creating a will.
Although both will eventually get the contents of your estate to your beneficiaries, a living trust offers you additional benefits while you are living. A living trust is not for everyone, but you may want to consider it if you fit into one of these two categories.

If You Want to Save Your Family Time and Money

When you die, your estate has to go through probate, a court-supervised distribution of your assets. This allows all of the assets in your estate to be legally distributed to your heirs and beneficiaries, as well as settles the outstanding debt and liabilities that may be against the estate. Unfortunately, this is not always a quick process. The length of time that it takes for your estate to get through probate depends on several factors which include:

How large your estate is
How complicated the estate is
How many heirs or beneficiaries there are
Where the estate executor or administrator lives in conjunction to the estate
What state probate is filed in
If the will is being contested

In addition to this, the court will also have to determine if the estate has any outstanding debt. If so, the court and the estate executor will have to determine which assets will be used to pay this debt. If the estate does not have enough cash to do so, assets will have to be sold before they can be distributed.
All of this takes time. Probate can range from months to years. In addition to this, going through probate can cost your heirs approximately 5% of the value of your estate. When you create a living trust, it will help your estate to avoid having to go through probate. This means that all of your assets will go to your beneficiaries in a much quicker fashion.

If You Want to Remain in Control

Unfortunately, not all of your friends or family members may agree with your decisions on what to leave to whom. These types of disagreements can lead to family challenging your will once you die, and once they do so, it will be up to the court to decide where your assets go. A living trust holds up much better in court than a will does. Although people who disagree with your decisions may still try to challenge, their chances of winning will be greatly diminished.

A living trust will also allow you to appoint a successor trustee. This is a person who will take over and make decisions for you if you are ever incapacitated due to a physical or mental disability. By being able to do this, you will be able to name the person who you feel will have your best interest in mind and not have to wait for the court to appoint conservatorship.

If you decide that you are one of the many people who would benefit from allowing the Law Offices Of Steve C. Benton to assist you in setting up a living trust, just know that you may need a pour-over will as well. This will allow you to direct anything that you have not turned over to the trust to the proper beneficiaries. You may also need to use this tool in order to name a legal guardian for any children who may still be minors at the time of your death. You will be unable to do this as a part of your living trust.

Call the Law Offices of Steve C. Benton today. We will be happy to help you with setting up your trust, as well as any other estate planning provisions that you would like to put into place.

Living Trusts in California: Frequently Asked Questions

Tue, 08 Aug 2017 00:00:00 GMT

It's important to protect your assets and loved ones from unnecessary heartaches and costs after you're gone. Read on about the benefits of living trusts.

When you hear the words "estate planning," you may assume this is only an issue you need to face if you're older, or that it is a problem reserved for the wealthy. However, no matter your age or how much money you have in the bank, it is important to protect your assets and loved ones from unnecessary heartaches, squabbles and costs after you're gone.

One of the best options for many people is a living trust. You may be familiar with the idea of a trust or will but not sure what exactly a living trust is and if it is the best option for you and your family. Here are a few frequently asked questions you might have about living trusts.

What Exactly Is A Living Trust?

When a trust is created while the individual, or grantor, is still alive. The grantor can put any assets in the trust, including the money in their bank account, their home or retirement plan, and the funds are managed by an appointed trustee.

As a grantor, you can act as your own trust and beneficiary, or the person who is entitled to retain the assets located in the trust. A joint living trust can also be established and is typically utilized by a married couple. If the grantor of the trust is also the trustee, the responsibility of acting as the trustee is transferred to another individual, such as a sibling, spouse or child, once the grantor passes away.

Are There Benefits To Living Trusts?

As you learn more about estate planning, chances are you might wonder if establishing a living trust is the best option for you or if you should simply create a will. Having a living will is often necessary, but you shouldn't assume that a living trust is superfluous.

For example, if you establish a living will, any of the assets contained within will transfer directly from the grantor to the beneficiaries. This means your beneficiaries will not need to deal with the hassle and extra expense that is associated with probate court. When you involve probate court, the assets found in a living will become part of public record.

However, a living trust should not be used as a replacement for a living will. Instead, the grantor can name the benefactors of the living trust as the beneficiaries of a living will. This will help ensure that any assets that aren't placed in the trust are transferred to the beneficiary.

Many individuals often create a living trust to avoid estate taxes. In California, you will not need to pay estate taxes on estates that are worth less than $5.4 million. However, be aware that if you live in California and have an estate that exceeds the $5.4 million, you will need to pay a hefty estate tax. This fee can be avoided if you create a living trust.

Where Do I Begin?

When you are ready to create a living trust, the best first step is to contact an attorney. Your attorney can help you understand the complexities involved in creating a living trust, including determining the ideal trustee, which assets to place into the trust and who to name as the acting trustee after you pass away.

Once the trust documents are authored, the grantor must sign them in front of a notary public. Control of the assets named in the living trust is then transferred to the trustee.

For many individuals, creating a living trust is the best way to control and protect their assets and ensure that their loved ones and protected after they pass away. If you have any further questions about living trusts, don't hesitate to contact Steve C. Benton, Attorney at Law .

Protect Your Family By Securing Your Assets - Avoiding Mistakes In Estate Planning

Fri, 23 Jun 2017 00:00:00 GMT

Facing your own mortality can be difficult, which is why it's best to work with a lawyer. Reach out to the Law Offices Of Steve C Benton today!

Facing your own mortality can be a difficult challenge for anyone. It may not be particularly pleasant to imagine the world after you've left it, but if you've spent your life working hard to build a strong financial base, it's important that it can be passed on to your loved ones with minimal restrictions and interference.

Unfortunately, there are some common traps that many people fall into when planning their estates. In some cases, those traps may not even reveal themselves until the estate is executed, by which time it's far too late to fix the problem. The best way to minimize those concerns is to take the time to learn about common traps and ways you can avoid them.

Below, you'll find a guide to common estate planning mistakes that you should keep in mind when working with your attorney. Solid estate planning will be a massive relief to your family and interests after you've passed on and will allow you to leave a legacy that you can be truly proud of.

Complex Joint Property Interests

If you're a property owner, you may want to make sure that your interests remain held by your family after your death. Many people take a great deal of pride in their real estate, and therefore may have an aversion to having it liquidated. Unfortunately, if you're a joint owner on a piece of property, those wishes may be difficult to fulfill.

It's important to have an open conversation with anyone holding a joint interest in real property with you about your aims and goals for that property. Keep in mind that a surviving partner is likely to come into full control of real estate in most situations, so you may find yourself needing to buy out the interests of a joint party in order to be sure that the property will be disposed of in the way you desire.

Accepting A High Tax Burden

Many people find themselves frustrated by the regulations governing the taxation of sizable estates, but don't take the necessary follow-up step to attempt to reduce that burden. There are entirely legal and appropriate mechanisms that can allow you to protect your interests and preserve your estate for your intended heirs without dumping a complication on them that may be difficult to handle.

The provision of gifts is one way you can address those concerns. While there are also tax rules around gifts, they tend to be less burdensome than those governing estates. Providing gifts over a number of years can also allow you to help dissipate that burden rather than being exposed to the entire thing in one tax year. This can be an appealing option for people with a stable financial situation who are anticipating leaving a sizable financial legacy to their heirs.

Attempting To Plan Alone

Whether or not they recognize the risks of doing so, many people are willing to attempt to plan their own estates in an attempt to make the process somehow easier or less complicated. Unfortunately, this often has the opposite impact and can leave your benefactors struggling to recover.

If you have a complicated financial legacy, you need to be willing to accept professional assistance with governing it. Even situations which may seem simple on the surface are likely to have wrinkles as you look closer, and a professional can smooth those wrinkles with relative ease.

At the law offices of Steve C. Benton, you can be sure that you'll receive the estate planning services you need to preserve your legacy and finances for the next generation. This will allow you to sign off on a plan with confidence and can minimize the stress you feel about the next stage of your life.

5 Essentials You Need to Understand About Estate Taxes

Mon, 10 Apr 2017 00:00:00 GMT

Proper estate planning is critical. First, however, you may want to understand a few basics about estate taxes. Here's what you need to consider.

Worried about estate taxes? Want to protect your estate from taxation after your death? Then, proper estate planning is critical. First, however, you may want to understand a few basics about estate taxes. Here's what you need to consider.

1. Estate Tax Affects Less Than One Percent of the Population

According to some estimates, the estate tax only affects between 0.14 and 0.20 percent of Americans. That's two or fewer people out of every thousand. Although the total number of affected people is small, it's still important to understand this tax, and if you think you might be affected, you need to plan accordingly.

2. The Threshold for Federal Estate Tax Is Over $5 Million

As of 2017, the threshold for federal estate tax is $5.49 million. If your estate is worth less than that amount, it won't be subject to estate tax. Note that this amount changes annually based on inflation, and of course, it's always subject to change based on various political rulings.
If your estate is worth more than the threshold, the tax doesn't apply to the entire value of the estate. Instead only the value of the estate over the threshold gets taxed. For example, if your estate is worth $6 million, only the $510,000 over the threshold gets taxed.
However, that amount is taxed at a rate of 40%. That can add up quickly, which is why it helps to plan ahead.

3. There Is a Spousal Exemption

Typically, if you die, all of your assets can pass to your spouse and avoid any estate tax. Additionally, the exemption or threshold discussed above also passes to your spouse. That amount gets added to your spouse's threshold when he or she dies.
In other words, if you die and the threshold is $5.49 million and then your spouse dies when the threshold is the same amount, the total threshold for the estate is $10.98 million. Again, only amounts over that threshold get taxed.

4. California Has No Estate or Inheritance Tax

In addition to the federal estate tax, some states levy their own estate or inheritance tax. Luckily, California does not have either of those taxes. If you have a sizeable estate in California, you only need to worry about the federal taxes.

5. You May Face inheritance Taxes If You Inherit Assets From Another State

Although you won't face these state taxes as a resident of California, they may come into play if you inherit assets from someone who lives in another state. There are fifteen states as well as the District of Columbia that levy estate taxes. As an heir, you don't really have to worry about those taxes. They are assessed on the estate before the assets are distributed. However, six states including Nebraska, Iowa, Pennsylvania, Kentucky, Maryland and New Jersey all have inheritance taxes. These taxes are applied after you inherit the funds.

The rules vary from state to state, and you typically face different rates depending on the nature of your relationship with the deceased person. For example, if you inherit assets from your mother who lives in Kentucky, you don't have to pay any tax, but if you inherit more than $1,000 from your uncle in Kentucky, you have to pay between 4 and 16 percent in tax.

It's important to understand how different state rules may affect your inheritances. It's even more important to understand these rules if you decide to move to another state.

At the Law Offices of Steve C. Benton, we help our clients with estate planning , trusts, wills and probate issues. If you have questions or concerns, we would love to help you. Contact us today.

The Importance of Estate Planning

Fri, 10 Feb 2017 00:00:00 GMT

Too many people neglect estate planning, so that when the time comes, children and family members must face the unpleasant task of determining who will get all of the things you spent your life accumulating. Many people assume that estate planning is only for the wealthy, but the truth is that even if your home isn’t expensive and you don’t have large investments, there are good reasons to consider making plans for your future.

Too many people neglect estate planning, so that when the time comes, children and family members must face the unpleasant task of determining who will get all of the things you spent your life accumulating. Many people assume that estate planning is only for the wealthy, but the truth is that even if your home isn’t expensive and you don’t have large investments, there are good reasons to consider making plans for your future.

Make Decisions Based on Your Preferences

Without a plan, the courts decide what to do with your assets. Many people assume that the surviving spouse will automatically get property and other assets, but this isn’t the case. Your spouse or children could be left without the assets that would support them after their loss. If you have young children and haven’t made an estate plan, the courts will determine who will provide care for your children. Is this a decision you feel comfortable leaving in the hands of strangers?

Protect Heirs From Too Many Taxes

Another reason you need to arrange a will is to protect your heirs from paying too many taxes. It only takes a little bit of planning to protect your heirs from taxes, such as:

Federal estate taxes
State estate taxes
State inheritance taxes

Avoid unpleasant family disagreements, keep things out of the hands of the courts, and keep taxes down with an estate plan. To speak with an estate planning lawyer , contact Steve C. Benton today.