Docs In A Row LLC

Planificacion de Patrimonio
Paquete Informativo
Espero que estos materiales resulten de utilidad para usted mientras se prepara para su primera
reunin conmigo. Tenga la seguridad de que muy pocas personas comienzan la primera reunin
con cada lnea del cuestionario completo. La mayora de la gente tiene un montn de preguntas, a
medida que repasan este material, y eso es algo bueno: la planificacin del patrimonio es
importante y la mayora de las personas nunca lo han hecho antes. El objetivo de nuestro primer
encuentro es discutir todas sus preocupaciones y simplemente para iniciar el proceso. Hay
tiempo para llenar los espacios en blanco a medida que avanzamos. Espero con inters la reunin
con usted.
Raquel King, Ttee
Este paquete consiste de cuatro secciones:

Basic Estate Planning Tools and

Decisions A Brief Introduction to
Wills
A Brief Introduction to Trusts
Choosing the Right Approach for
You

Understanding Your Estate Plan

Components of a Comprehensive Estate Plan
Understanding Living Trusts (to be read if you are creating a living trust)
Understanding Wills (to be read only if you are not creating a living
trust)

About Estate Planning at FamilyWise Estate

Planning The Steps to Establishing Your
Estate Plan About My Fees
About Me

The
Questionnaire

404-859-8632

www.DiarEstatePlanning.com
Raquel King 2014

DIAR Planificacion de Patrimonio

Basic Estate Planning Tools and Decisions

A Brief Introduction to Wills

Describes how the wills I draft meet the three most basic estate planning goals of families with
young children.

A Brief Introduction to Trusts

Describes how living trusts allow an estate to avoid probate and why this may be advantageous
in your situation.

Choosing the Right Approach for You

By completing this worksheet, you will have a better idea of what probate would cost your heirs.

DIAR Planificacion de Patrimonio

A Brief Introduction to Wills

Comprehensive wills accomplish at least three fundamental estate planning objectives for
parents of young children. A well-constructed will:
Appoints guardians for minor children.
Parents need a will to ensure that their children would be cared for by the person they believe
would raise their children in a rich and nurturing environment. If both parents die without a will,
the childs fate is turned over to the courts which have neither the knowledge nor the interest to
do a terrific job of appointing guardians for orphans.
Protects the estate from unnecessary taxes.
A well-drafted will allows parents to pass up to $10 million to their children without incurring
estate taxes and will create structures to reduce taxes on estates with assets of more than $10
million.
Preserves capital and provides income for the children.
Wills for families with young children will establish a trust that allows a trustee to manage
property left behind, defray the costs of raising the children, provide for their education, and
ultimately distribute the assets to the children in a responsible way.
The wills I create effectively address these issues. Tax savings and asset management for
children can be accomplished easily through a will. Most importantly, a will is the document
you use to appoint a guardian. All in all, wills provide a sensible vehicle for ensuring that the
costs of estate administration and the needs of minor children are balanced against the initial cost
of the plan.
Wills have other advantages and disadvantages. Their primary advantage is that there is a court
looking over the shoulder of your estate administrator, which safeguards against executor
malfeasance. Wills also have a prescribed period for creditor claims. Once that time is past and
the court issues its order, the claims of creditors are wiped out. Finally, because spouses do not
face onerous probate proceedings, wills effectively pass property to the surviving spouse at a
minimal cost.
Their primary disadvantage, though, is that wills do not prevent a probate proceeding at the
death of the second spouse. While the surviving spouse may avoid probate fees, assets
passed to children will not. Any estate over $100,000 is subject to full-blown probate
proceedings. Probate is time consuming and expensive. In most metropolitan areas in
California, it takes a relatively uncomplicated estate 6 to 18 months to move through the
probate process. All of this delay creates additional expense. California probate proceedings
typically consume between 3% and 5% or more of the gross value of the probate estate.

DIAR Planificacion de Patrimonio

In addition, probate proceedings present a series of hoops that the executor must jump through.
The executor is required to file various documents with the court, attend court hearings, and
provide the court with appraisals and accountings. People often establish a living trust just to
make sure that their executor is not put through this procedural obstacle course. Also, if your
children want or need funds tied up in your estate during that time, the executor must make a
special request of the court. With a living trust, the assets are transferred in a very short time
period (usually within a couple of months), and there is complete and immediate access to assets
in the interim.
Overall, wills can accomplish specific goals and are effective estate planning tools in certain
circumstances. They are essential in nominating guardians to care for your children upon your
death. Because they dont allow your estate to avoid probate at the death of the second spouse,
however, they are not the best overall solution for many clients.

DIAR Planificacion de Patrimonio

A Brief Introduction to Trusts

Comprehensive living trusts accomplish at least three fundamental estate planning objectives for
parents of young children. A well-constructed living trust will:
Protect the estate from unnecessary taxes.
A living trust allows parents to pass up to $10 million to their children free of estate taxes while
retaining some control over the ultimate distribution of the assets, and it can create structures to
reduce taxes on estates with assets of more than $10 million.
Preserve capital and provide income for the children.
A living trust for families with young children will establish a trust that allows a trustee to
manage property left behind, defray the costs of raising the children, provide for their education,
and ultimately distribute the assets to the children in a responsible way.
Avoid probate costs.
A living trust allows parents to pass their estate directly in trust to their children, thus avoiding
the expense and delay of probate.
The living trusts I create effectively address these issues. (The final critical issue
guardianshipis addressed in a simple will that I prepare together with the trust.) While tax
savings and asset management for children can be easily accomplished with a will, a will is
subject to probate. In most situations, the safest and most effective way to avoid probate in
California is to establish a living trust. Probate is time consuming and expensive. In most
metropolitan areas of California it takes a relatively uncomplicated estate 6 to 18 months to
move through the probate gauntlet, and this delay creates additional expense. California probate
proceedings typically consume 3% to 5% or more of the gross value of the probate estate (which
includes the fair market value of your home, not just your equity in it). A living trust can be
settled in a matter of months, usually at a fraction of the cost.
The mechanics of a living trust during the lifetime of the people who establish the trust (the
settlors) are straightforward. Property is transferred into the trust which then holds the
property. Since the settlors are the trustees, the settlors are free to invest, spend, or move the
assets into and out of the trust at will. As beneficiaries, they are able to use the trust principal or
income for themselves as they choose. Finally, during their lifetimes, the settlors can alter, add
to, or even revoke their living trust at any time for any reason.
In addition to the advantage of avoiding probate, living trusts provide some additional benefits.
Because there are no public filings in probate court, the finances of the estate are not made public
and family members are less likely to be subject to solicitations. Living trusts also allow a
trusted family member, friend or advisor to manage trust property if the settlors are incapacitated.
In addition, if a trust holds out-of-state property, there will be no need to open another probate
proceeding in the state where the property is located. Finally, a living trust is usually more
difficult to contest than a will.

FamilyWise Estate Planning

Living trusts have three drawbacks, though: they are more expensive to establish, they must be
funded, and the property schedules attached to the trust must be kept up-to-date. None of these
issues should dissuade a person from creating a living trust if establishing a trust otherwise
makes sense.
Living trusts do cost more to set up initially than a will, but the savings you pass on to your heirs
make that a good investment. Funding the trust requires obtaining paperwork from your
financial institution and transferring title of those assets to the trust. It is not difficult, but it can
be a little time-consuming initially, depending on your situation. I will teach you how to do it
and will help you if you run into problems. If you would like more help with the process, I can
take on this job entirely at my hourly rate. I recommend, though, that you transfer at least a few
of the assets yourself, so that you can do it in the future.
In comparison, keeping the trust up-to-date is a snap. I prepare what are known as funded
trusts, which means that the trust holds property during your lifetime. The trust includes a
schedule that describes the assets in the trust. I will create this schedule and then teach you how
to update it, so that you dont have to run to an attorney every time you change your trust
holdings. It is a simple matter, and the only real trick is making sure that you review the trust
periodically to make sure the schedule is up-to-date.
All in all, living trusts make a good deal of sense in situations where people have substantial
assets that would otherwise pass through probate.

FamilyWise Estate Planning

FamilyWise Estate Planning

Choosing the Right Approach for You

Worksheet: What Is the Cost of Probate?
After completing this worksheet, you will have a better idea of what probate would cost your
heirs and whether its advantageous to have a living trust in your situation. The costs of probate
fees usually include lawyers fees, executor fees, appraisal fees, accountants fees, court costs
and other incidental costs and fees. Probate fees will not be a factor if one spouse dies without
significant amounts of separate property. They also will not affect estates valued under $100,000.
Both of those situations qualify for summary probate proceedings which move very quickly and
are relatively inexpensive. However, estates with a gross value of over $100,000 will be
subjected to full-blown probate proceedings at the death of the remaining spouse. Probate
proceedings typically cost 3% to 5% of the gross value of the probate estate. When married
people pass on, it is reasonable to calculate a 5% cost to their joint estate. Thus, the cost of
probate can be estimated as 5% of the gross value of your estate passing through probate.
What
Property
Passes
through
Probate?
Real estate (valued at fair market value), cash and savings, bank and brokerage accounts,
personal
property,
valuables.
What Does Not Pass through
Probate?
Life insurance and retirement accounts (these have designated beneficiaries).
What Would Our Probate Fees Be if Something Happened to Both of
Us?
For a rough estimate, work through the following calculation.
Probate Estate
Home and Other Real Estate (fair market value):
Cash & Savings
Stocks, Bonds, & Brokerage Accounts (non-retirement):
Personal Property:
Other Valuable Property:
TOTAL:
Probate Fees = Total x .05:

$
$
$
$
$
$
$

Should You Get a Living Trust?

The incremental cost of having me prepare a living trust portfolio of documents (which
includes a living trust, pour-over wills, and other estate planning documents) instead of a will
portfolio of documents (which includes wills and other estate planning documents) is $1300 (i.e.,
$2600 - $1300). In making the decision as to whether to get a living trust portfolio, you should
consider whether spending the additional funds makes sense in light of the possible probate fees

FamilyWise Estate Planning

your estate would pay if something were to happen to both of you.

FamilyWise Estate Planning

Understanding Your Estate Plan

Components of a Comprehensive Estate Plan
This short section gives you an overview of the portfolio of documents that should be in a
comprehensive estate plan.

Understanding Living Trusts (for clients who will be creating a living

trust)
An estate plan based on a living trust, when properly drafted, creates tax-savings trusts designed
to shelter some assets from estate taxes and also contains the provisions which will govern the
disposition of your estate. This section helps to explain the concepts underlying the structure of
typical living trusts that I prepare.

Understanding Wills (for clients who will not be creating a living

trust)
An estate plan based on wills should address estate taxes and the ultimate disposition of your
estate. This section helps to explain the concepts underlying the structure of typical wills that I
prepare.

FamilyWise Estate Planning

FamilyWise Estate Planning

Components of a Comprehensive Estate Plan

Most parents of young children have three basic estate planning goals. While every situation is
unique, I find that most people want an estate plan to:
Appoint guardians to care for minor children,
Create a plan to manage assets left behind for children, and
Preserve wealth by reducing or eliminating taxes and transfer costs.
The following tools are used to accomplish these goals, and some others
besides.
Wills
Wills are the simplest estate planning tools. They are extremely flexible and provide for the
appointment of guardians, creation of tax-savings trusts, and creation of asset-management trusts
for children. They do not substantially reduce the costs of wealth transfer (i.e., probate).
Living
Trusts
Living trusts are legal entities that hold property during a persons life and provide for a
distribution plan after death. All assets in the living trust avoid probate and its associated
expense and delay. Living trusts are coordinated with pour-over wills to appoint guardians and
tie-up loose ends.
Powers
of
Attorney
Powers of attorney allow someone to make decisions and take actions on your behalf if you are
incapacitated. There are two key documents for estate planning
purposes:
Durable Power of Attorney for Property Management allows someone to manage your
financial affairs for assets outside of the trust if you become incapacitated.
Advance Health Care Directive Allows someone to make medical decisions on your behalf if
you are unable to give informed consent. In addition to naming your agent for health care, this
document instructs physicians as to your desires for end-of-life care.
Life
Insurance
Trust
Life insurance trusts are used in larger estates (over $10 million) to provide liquidity and offset
tax liability through the use of life insurance proceeds. Proceeds from a policies held in a
properly structured life insurance trust avoid estate taxes.
Other
Tools
Sophisticated estate planning involves numerous devices designed to reduce or shift tax liability.
If your estate is large, please ask me about other
devices.

FamilyWise Estate Planning

Understanding Living Trusts

(Read this if I am preparing a living trust for you.)
The operation of living trusts can be confusing and somewhat technical. However, since your
living trust will be the cornerstone of your estate plan, you should understand how it works and
what it will accomplish for you. The living trusts I create are designed to accomplish four
objectives: (1) avoid probate, (2) create tax savings, (3) provide control over the ultimate
distribution of assets, and, (4) create a property management plan for young children.
1. Terminology
To understand the trust, it is important to understand the relevant terminology. A trust is an
independent legal entity that is established by one or more settlors (thats you). The basic
purpose of a trust is to hold property and ensure that it is administered as the settlors direct. A
living trust is a common name for what lawyers call a revocable inter-vivos trust. Living trusts
allow the settlors to make changes to their trust during their lifetimes. The property that the trust
holds is called principal and funds generated by the principal are called income.
The trustee administers the trust. The trustee may be a person, a group of people, or a
corporation (or any combination of these). The settlors of the trust may also serve as its trustee,
and, typically, you will begin as the trustees of your trust. The trust document and various
statutes establish the powers and duties of the trustee. The trustees fundamental duty is to act in
the best interests of the beneficiaries in managing the trust as the settlors direct in the trust
documents.
Beneficiaries receive the benefits of the trust. Beneficiaries can be individuals or corporations
(usually charities) and may receive trust income or principal or both. Settlors may be the trusts
beneficiaries. Thus a settlor may, and typically does, establish a trust, serve as its trustee, and
also be its beneficiary.
2. How Your Living Trust Works
Your trust documents will actually establish a series of trusts. The first trust is in effect while
both of you are alive. You, as settlors, will place property into the trust. During your lifetimes,
you will both act as co-trustees and will be able to change the trust at will. Property can be
added to the trust or taken out of the trust, and the trust income and principal can be used for
any purpose. You retain complete control over the trust and its contents during your lifetimes.
a. Tax
Savings b.
The Tax Relief Act of 2010, which became law in December 2010, eliminates the need for a taxsavings trust in many cases. The new law,
temporary and only applies to
however, is
deaths
occurring in 2011 and 2012. As a result, most people will still need to incorporate a
tax-savings trust into their estate plan. There also may be non-tax reasons to use
this type of trust, especially if you would like to control how assets are used if only
one of you die. Here is how it works.

FamilyWise Estate Planning

If one of you dies, the living trust typically splits into two trusts. The first trust (called the
Survivors Trust) consists of the survivors portion of the community property, and any portion
of the remaining trust property that is not put into the second trust. The Survivors Trust
continues to be a living trust. The surviving settlor has the right to change the terms of the
Survivors Trust and has free access to all principal and income.
1

The second trust created at the death of the first settlor is called the Credit Shelter Trust. The
Credit Shelter Trust is designed to preserve the first spouse to dies ability to pass assets at death
tax-free, regardless of when the second spouse dies. Under the Federal tax law, for deaths
occurring in 2011 and 2012, a person is entitled to leave property with a total net worth of $5
million without incurring estate taxes. (This amount will change in the future but the trust is
structured to function over time regardless of these changes.) This money may be given by gift,
will, or trust. For example, if John gives away $500,000 to his only child during his lifetime and
then dies leaving that child an additional $4.5 million, there would be no estate tax. However, if
he gave the gift and then died leaving his child $5 million, his estate would owe tax on the
$500,000 above the $5 million
limit.
If John gives his $5 million to his wife, Mary, without a Credit Shelter Trust, and Mary dies after
2012, his tax credit could be lost. Lets assume that Mary also has assets with a net worth of $5
million. If John dies and leaves his $5 million to Mary, no tax would be due at his death. (This
is true both because of the fact that his estate falls within the limitation, but also because of the
marital deduction which allows a spouse to pass virtually unlimited wealth to his or her spouse
without being taxed.) If Mary died during 2011 or 2012, then no estate tax would be owed on
her or Johns assets due to provisions in the temporary Tax Relief Act of 2010. However, if
Mary were to die after 2012 (without diminishing the total assets), she would have a total estate
of $10 million. Since Mary can only leave $5 million free of estate taxes, Marys heirs would
pay tax on the excess $5 million (i.e., the money John left to her). This will result in a tax
liability of $1.75 million. (The Federal estate tax rate is 35%.) Johns estate will have thus
forfeited its tax credit and his heirs will have lost almost two million dollars to the federal coffers.
If John and Mary set up a living trust, some or all of Johns $5 million would be placed in the
Credit Shelter Trust. (The precise amount would be fixed after Johns death in consultation with
Marys accountant and attorney and the election would be made in the Federal estate tax returns
filed after Johns death.) If Mary died, her $5 million would pass free of estate tax (using her tax
credit) and the Credit Shelter Trust assets would also pass without paying taxes (using Johns
credit). As a result, the entire $10 million would not be taxed and both settlors would preserve
their tax credit. Because the credit covers a maximum of $5 million person, using only a living
trust will not work to minimize taxes for estates with a net value greater than $10 million.
Estates of more than $10 million may require additional planning.

If the surviving spouse is not a United States citizen, your living trust will contain a QDOT Trust. If you
would like more information about QDOT Trusts, please contact me.

FamilyWise Estate Planning

During the lifetime of the surviving spouse, the trustee of the Credit Shelter Trust has full
authority to use the assets of the trust for the benefit of the surviving spouse. (Since the trustee
and the beneficiary are usually the surviving spouse, this means that the surviving spouse has
control over the Credit Shelter Trust assets.) Trust income must be paid to the surviving spouse
and the principal of the trust may be withdrawn for health, education, support and maintenance.
Preserving the tax credit is a strong incentive not to spend this money, and it should not be spent
on gifts or items clearly outside the surviving spouses normal lifestyle. However, these funds
are available to the surviving spouse when needed. The Credit Shelter Trust is an irrevocable
trust and its terms cannot be altered. For example, if the Credit Shelter Trust names certain
beneficiaries who will receive distributions after the death of the second spouse, the list cannot
be changed after the trust becomes irrevocable.
b. Childrens Trust
At the death of the second spouse, the property in both the Survivors Trust and the Credit
Shelter Trust will be distributed. If the property is to be distributed to the couples minor
children, the funds will be held in a childrens trust for their benefit. The trust will last until the
children reach the ages specified in the trust document. Until that time, the funds may be used
for the childrens health, education, support and maintenance. This trust can provide for such
things as living expenses, college expenses, payment to cover costs to the guardians, and so on.
Your children will not get lump sums of money until the ages you specify. Ultimately, the trust
principal can be distributed in one distribution or in stages (for example, 20% of each childs
share could be distributed outright when he or she reaches age 23, 50% of the remainder at age
28, and the final distribution at age 32). Provisions in this section can be extremely flexible.
The diagram on the next page puts in graphic form what has been discussed above and
2
represents the mechanics of a typical Living Trust.

I will also prepare a pour-over will for both spouses. This will accomplishes two primary objectives: it
appoints guardians for minor children and it ensures that any property which is not in the trust will be
transferred to the trust after death.

FamilyWise Estate Planning

Living Trust
Property of Spouse A

Property of Spouse B
Death of Spouse A

Credit Shelter
Trust Holds
up to $5M of
Spouse As
property

Survivo
rs
Trust

Holds the
Remaining
Assets
Death of Spouse B

Childrens Trust
Distributions (Illustrative)
20% at age 23
50% at age 28
Remainder at age 32

This is a lot to assimilate, but it is useful to understand how the trust actually
works. I will be happy to discuss this with you in greater detail at any time.

FamilyWise Estate Planning

FamilyWise Estate Planning

Understanding Wills
(Read this if I am preparing only willsnot a trustfor you)
Wills can be somewhat complex, but with a little effort, the concepts underlying your estate plan
can be readily understood. The wills I prepare are designed to accomplish three basic financial
objectives: (1) create tax savings, (2) provide over the ultimate distribution of assets, and
(3) create a property management plan for young
children.
1. Terminology
To understand testamentary trusts (which are trusts created only after someone dies), it is
important to understand the relevant terminology. A trust is an independent legal entity that is
established by one or more settlors. The basic purpose of a trust is to hold property and ensure
that it is administered as the settlors direct. The property that the trust holds is called principal,
and funds generated by the principal are called income.
The trustee administers the trust. The trustee may be a person, a group of people, or a
corporation (or any combination of these). The trust document and various statutes establish the
powers and duties of the trustee. The trustees fundamental duty is to act in the best interests of
the beneficiaries in managing the trust as the settlor directs in the trust documents.
Beneficiaries receive the benefits of the trust. Beneficiaries can be individuals or corporations
(usually charities), and may receive trust income or principal or both.
2. How
Testamentary
Works

Trusts

Your will actually serves to establish a series of trusts. The first trust is established at the time of
the first spouses death.
a. Tax Savings
This section explains how wills typically work, although there may be differences based on your
circumstances.
When one of you dies, all of your property will be left to the surviving spouse. The surviving
1
spouse then has nine months to decide whether to establish a Credit Shelter Trust using some
portion of the property inherited from the deceased spouse. The Credit Shelter Trust will allow
the property it contains ultimately to pass to your children (or other heirs) free of estate taxes that
1

If the surviving spouse is not a United States Citizen, the Credit Shelter Trust does not come
in to play. Instead your will would provide for the creation of a QDOT Trust. If you would like
more information about QDOT Trusts, please contact me.

FamilyWise Estate Planning

would otherwise be owed. Deciding whether or not to establish the trust is a decision for the
surviving spouse, to be made with the help of professional advisors, and it will be based on the
existing estate tax credit and the size of the survivors estate.
The Credit Shelter Trust is designed to preserve the first spouse to dies ability to pass assets at
death tax-free, regardless of when the second spouse dies. Under the Federal tax law, for deaths
occurring in 2011 and 2012, a person is entitled to leave property with a total net worth of $5
million without incurring estate taxes. (This amount will change in the future but the trust is
structured to function over time regardless of these changes.) This money may be given by gift,
will, or trust. For example, if John gives away $500,000 to his only child during his lifetime and
then dies leaving that child an additional $4.5 million, there would be no estate tax. However, if
he gave the gift and then died leaving his child $5 million, his estate would owe tax on the
$500,000 above the $5 million
limit.
If John gives his $5 million to his wife, Mary, without a Credit Shelter Trust, and Mary dies after
2012, his tax credit could be lost. Lets assume that Mary also has assets with a net worth of $5
million. If John dies and leaves his $5 million to Mary, no tax would be due at his death. (This
is true both because of the fact that his estate falls within the limitation, but also because of the
marital deduction which allows a spouse to pass virtually unlimited wealth to his or her spouse
without being taxed.) If Mary died during 2011 or 2012, then no estate tax would be owed on
her or Johns assets due to provisions in the temporary Tax Relief Act of 2010. However, if
Mary were to die after 2012 (without diminishing the total assets), she would have a total estate
of $10 million. Since Mary can only leave $5 million free of estate taxes, Marys heirs would
pay tax on the excess $5 million (i.e., the money John left to her). This will result in a tax
liability of $1.75 million. (The Federal estate tax rate is 35%.) Johns estate will have thus
forfeited its tax credit and his heirs will have lost almost two million dollars to the federal coffers.
If John and Mary set up a living trust, some or all of Johns $5 million would be placed in the
Credit Shelter Trust. (The precise amount would be fixed after Johns death in consultation with
Marys accountant and attorney and the election would be made in the Federal estate tax returns
filed after Johns death.) If Mary died, her $5 million would pass free of estate tax (using her tax
credit) and the Credit Shelter Trust assets would also pass without paying taxes (using Johns
credit). As a result, the entire $10 million would not be taxed and both settlors would preserve
their tax credit. Because the credit covers a maximum of $5 million person, using only a living
trust will not work to minimize taxes for estates with a net value greater than $10 million.
Estates of more than $10 million may require additional planning.
During the lifetime of the surviving spouse, the trustee of the Credit Shelter Trust has full
authority to use the assets of the trust for the benefit of the surviving spouse. (Since the trustee
and the beneficiary are usually the surviving spouse, this means that the surviving spouse has
control over the Credit Shelter Trust assets.) Trust income must be paid to the surviving spouse
and the principal of the trust may be withdrawn for health, education, support and maintenance.
Preserving the tax credit is a strong incentive not to spend this money, and it should not be spent
on gifts or items clearly outside the surviving spouses normal lifestyle. However, these funds
are available to the surviving spouse when needed. The Credit Shelter Trust is an irrevocable

FamilyWise Estate Planning

trust and its terms cannot be altered. For example, if the Credit Shelter Trust names certain
beneficiaries who will receive distributions after the death of the second spouse, the list cannot
be changed after the trust becomes irrevocable.
b. Childrens Trust
At the death of the second spouse, his or her property (after going through probate) and the
Credit Shelter Trust property will be distributed. If the children are old enough to receive the
distributions directly, the assets can simply be distributed after the close of probate. If the
property is to be distributed to the couples minor children, the funds will be held in trust for
their benefit. The trust will last until the children reach the ages specified in the trust provisions.
Until that time, the funds may be used for the childrens health, education, support and
maintenance. This trust can provide for such things as living expenses, college expenses,
payment to cover costs to the guardians, and so on. Your children will not get lump sums of
money until the ages you specify. Ultimately, the trust principal can be distributed in one
distribution or in stages (for example, 20% of each childs share could be distributed outright
when he or she reaches age 23, 50% of the remainder at age 28, and the final distribution at age
32). Provisions in this section can be extremely flexible.
3. Probate.
Typically, at the death of the first spouse, there is a summary probate proceeding to pass assets
to the surviving spouse. Assets which name beneficiaries pass outside of probate (for example,
life insurance and retirement plans). Assets which are in joint tenancy also pass outside of
probate. Upon the death of the surviving spouse, there would be a full-blown probate proceeding
for those assets that did not have beneficiary designations. Upon the conclusion of this
proceeding, the assets would be distributed to the heirs (either directly to them or in trust).
The diagram on the next page puts in graphic form what has been discussed above and
represents the mechanics of a typical will plan for a couple, including the mechanics of
testamentary trusts.

FamilyWise Estate Planning

Spouse As Will
Summary
Probate
Possible for
some assets

Credit Shelter
Trust Holds the

Amounts above
$5M are added to
the Survivors
assets

Survivors Assets

first $5M of Spouse

As assets

Spouse Bs Will
Full Probate
For almost all assets

Childrens Trust
Distributions
(Illustrative)
20% at age 23
50% at age 28
Remainder at age 32

FamilyWise Estate Planning

About Estate Planning at FamilyWise:

The Process and Fees
Creating your estate plan is actually a relatively painless process. This section will let you know
what to expect as you create your estate plan.

The Steps to Establishing Your Estate Plan

Step 1: Your Preparation (or Yikes! Homework)
Schedule an appointment with me. I will meet with you in your home or office at
a mutually agreeable time.

Before our first appointment, review this packet carefully.

Read the enclosed materials.
Make a tentative decision as to whether you will be preparing a living trust.
We will talk about this further when we meet, but it will help you in your
preparation to have a sense of the overall approach we will be taking.
Fill out the Questionnaire as much as you
can. Gather and copy necessary documents.

Step 2: Our Meeting (this is often the best part!)

During our appointment, we will talk generally about your goals and any special
circumstances or concerns that you have. I will go over the mechanics of the living trust and
answer any lingering questions. I will then review your Questionnaire and will gather some
additional information. The meeting typically takes about one-and-a-half to two hours. (I
have found that it is best to have someone to watch your toddlers during this meeting so that
you can fully focus on the task at hand.) At the end of the meeting I will ask you to sign the
Legal Services Agreement and the Disclosure and to pay one-half of the base fee.
Step 3: Document Preparation (now its my turn to do homework.)
I will prepare all the appropriate documents depending on whether you need a Living Trust
Portfolio or a Will Portfolio. In the case of a living trust portfolio, these documents will
include a living trust, pour-over wills, durable powers of attorney for property management,
advance health care directives, and other ancillary documents. In the case of a will portfolio,
these documents will include the wills, durable powers of attorney for property management,
advance health care directives, and other ancillary documents.

FamilyWse Estae Planig

Step 4: Document Review (a bit more homework for you.)

When I am finished with your documents, I will mail a draft of them to you for your review
prior to signing. You can make changes at this time.
Step 5: Final Meeting (this one completes the process!)
We will schedule the final meeting when we first meet. At this final meeting, you will sign
your final documents and, if you are creating a living trust, we will work together on the
paperwork transferring your assets into the trust. After our meeting you will mail these
forms into the appropriate entities. I will handle the transfer of real estate into the trust. If
finding someone to watch your children is difficult, they are welcome to attend this meeting.
There are some technical issues we will be discussing, but we can cope with interruptions
and still remain focused.

About My Fees
My clients receive an entire estate planning portfolio of documents for a fixed fee, unless there
are additional issues that must be addressed. Please note that the fees quoted below may be
revised upward if you ask me to undertake substantial additional work (such as preparing
additional trusts or subtrusts, substantially redrafting the documents you receive based on
stylistic or aesthetic preferences, or reviewing documents created by other estate planners). My
hourly fee for such additional services is $250/hour. Any additional fees will be discussed at our
first meeting, before you sign your fee agreement. It is unusual for me to augment the fixed
feeI only do so when your legal issues will require significant extra time on my part. I
understand that you want to know what youre getting into before you begin.
Living Trust Portfolio. The living trust portfolio includes your trust and several supporting
documents (pour-over wills, durable powers of attorney for property management, advance
health care directives, a schedule of trust assets, beneficiary designation forms and other
ancillary documents). Living trusts for married couples with young children typically include a
tax-savings trust and a trust for children. The fee for preparing a living trust portfolio of
documents is $2800 for a married couple, and $2200 for a single person. I collect one half of the
base fee at our first meeting and the balance when the draft documents are delivered.
The fixed fee above includes the transfer of one piece of California real property into the trust. I
will transfer additional California real property for $250 per property. I will not transfer out-ofstate property for you, but I will help you coordinate this process with a third-party provider of
such services at my hourly rate of $250/hour, or you can handle this yourself by following my
instructions.
Funding Your Trust. I will help you transfer your assets into the trust after you have obtained
the required paperwork from your financial institutions for our final meeting.

FamilyWse Estae Planig

Will Portfolio. When I draft your wills, I will also prepare durable powers of attorney for
property management, advance health care directives, and other, ancillary documents. The fee
for preparing a Will Portfolio is $1400 for a married couple and $1100 for a single person. This
fee is for stand-alone wills only, if you choose to do a Living Trust Portfolio, the cost of the wills
is included in that fee.
Pro Bono Policy. If you cannot afford the fee for a will, I will prepare a simple will for you on a
sliding scale. It is my policy not to turn away any parent of a minor child because of an inability
to pay.
Payment Options. I am more than happy to work within your budget. You may pay in
installments that are comfortable for you and interest free. If you would like to avail yourself of
this option, just ask prior to our first meeting. I charge a $100 cancellation fee for appointments
cancelled with less than 24 hours notice.

About Me
I graduated from Boalt Hall School of Law at the University of California, Berkeley, where I
won the Moot Court Writing Award and the Prosser Award, and served as Article Editor on the
Berkeley Technology Law Journal. I have a B.A. in English from the University of California,
Irvine, where I graduated cum laude, junior Phi Beta Kappa. I am also the mother of two young
children. After practicing transactional law in the Information Technology Group of Cooley
Godward, LLP, in Silicon Valley, I opened my estate planning practice in order to practice law
in a way that would directly benefit families (including my own).

FamilyWse Estae Planig

CLIENT QUESTIONNAIRE

Filling
out
Questionnaire

the

You should fill in all names in this questionnaire, including your own, as you want those
names to appear in your documents (even if the person will not be specifically mentioned).
You may use full legal names or middle initials.
You can always change the decisions you make now by amending your documents later. For
now, you want to make the best choices you can given your current life situation.
This is a generic questionnaire so if questions do not apply, simply write in
N/A.

I understand that my estate plan will be based on the information provided herein. I further
understand that my responses to the questionnaire are protected by the attorney-client privilege.
With these understandings, I affirm that the information provided herein is full, complete and
accurate to the best of my present knowledge.
Dated:

Signed:

Dated:

Signed:

FamilyWse Estae Planig

CLIENT QUESTIONNAIRE

PART I: FAMILY
Client 1:
Client 2:
Address:
Ci
ty:
Phone Nos.

, CA
Home:

Fax:

Client 1 Cell:
Client 2 Cell:

E-

mail:
Client 1 Email:
Client 2 Email:

Client 1 Employer:

Phone No.

Client 2 Employer:
Phone No.

C
h
i
l
d
r
e
n
:
Name:
Name:
Name:

Birthdate:
Birthdate:
Birthdate:

FamilyWse Estae Planig

Client
Client 2s Family:

1s

Family:

Father:
Mother:
Siblings:

If you are not married, check this box:

FamilyWse Estae Planig

Are you and your spouse U.S. citizens?

Yes

No

Do you have a premarital agreement?

Yes

No

Do either you or your spouse have a prior marriage?

Yes

No

Do you have children from a prior marriage?

Yes

No

Do you have any deceased children?

Yes

No

Do you have stock options?

Yes

No

Do you have a current will or trust?

Yes

No

Do you have interests in partnerships?

Yes

No

Do you currently receive income from a trust?

Yes

No

Are you involved in litigation?

Yes

No

Do you expect to inherit in the next six months?

Yes

No

Do you own any copyrights, patents or trademarks?

Yes

No

Do you own your own business?

Yes

No

PART II: BACKGROUND QUESTIONS

PART III: OVERARCHING PERSPECTIVES

On a scale of 1 to 10 how important are the following objectives.
Client 1
Client 2

Naming guardians for

minor children
Reducing estate taxes
Providing flexibility for my surviving spouse
Protecting assets for my children if my spouse
remarries, even if it means reducing my spouses control
of some funds.

PART IV: GUARDIANS, TRUSTEES, EXECUTORS AND ADVISORS

Guardians:
Whom do you want to nominate to care for your minor children? This is the person with
whom your children would live.
Primary:
Name:
Address:

Relationship:
Phone:
Age:

Secondary:
Name:
Address:

Relationship:
Phone:
Age:

Tertia
ry:
Name:
Address:

Relationship:
Phone:
Age:

Trust
ee:
Who should manage the assets for your children as they are growing
up? (You may name
the same person as both guardian and trustee if you choose to do so.
You may also name co- trustees and you may name a corporate trustee.)
Primary:
Name:
Address:

Relationship:
Phone:
Age:

Secondary:
Name:
Address:

Relationship:
Phone:

Tertia
ry:
Name:
Address:

Age:
Relationship:
Phone:
Age:

Executor/Personal
Representative:
Who should handle the probate process? (I will assume that you have chosen each other as
your primary choices and so you need only fill in secondary and tertiary choices). You may
name any individual to this position.
Secondary:
Name:

Relationship:

Address:

Phone:

Tertiary:
Name:

Relationship:

Address:

Phone:

Current Financial Advisors:

Accountant:

Name:

Phone:

Company:
Life Insurance:

Name:

Phone:

Company:
Investment Adv. Name:

Phone:

Company:

If you would like the names of advisors, please let me know. I do

not benefit in any way from referrals, but I like to see a team of people
in place to support my clients.

PART
V:
DISTRIBUTIONS
Guardian
Gift:

GIFTS

and

Would you like to make a gift to the guardians or provide them with a stipend? This is
money that they will use for their own needs, not the money that they will use to take care of
your children. Ideally, the expenses directly related to raising your child would be paid for
by the trust.
Gift to Guardian:
Stipend for Guardian:

/month

Final
Distribution:
If something happened to both you and your children, who should receive your
assets?

Specific Gifts:
Do you want to make gifts of personal property?
Charities:
Do you have specific charities to which you would like to contribute? (In making your list
please provide the complete name of the organization and the city and state where it is
headquartered.)
Pets:
Who should care for your pets? (People will often choose the guardian of minor children if
their children are old enough to be attached to the pets.)
Name:

Phone:

Address:
Funeral Arrangements:
Client 1:

Burial

Cremation

Special Instructions:
Client 2:

Burial
Special Instructions:

Cremation

PART
VI-A:
DECISIONS

MEDICAL

and

FINANCIAL

If you were incapacitated and needed someone to make medical and financial decisions for
you, who would that person be? I assume you are each others first choice, so you need only
make secondary and tertiary choices.
Client
1s
Healthcare

Agent

for

Name:
Address:

Phone:

Backup Agent: Name/Address/Phone:

Client 1s Agent for Finance
Name:

Phone:

Address:
Backup Agent: Name/Address/Phone:

Client 2s Agent for Healthcare

Name:
Address:

Phone:

Backup Agent: Name/Address/Phone:

Client 2s Agent for Finance
Name:
Address:
Backup Agent: Name/Address/Phone:

Phone:

PART
VI-B:
DECISIONS

END-OF-LIFE

California law allows competent adults the right to refuse medical treatment. Please choose
the option below that best states your desires for end-of-life care. If neither does, you can
attach a statement of your own to the document. The actual language used in the documents
will be more comprehensive than that presented below (this language just gives you the idea
behind each choice). You will have the opportunity to review the actual language, and
amend it if youd like, prior to signing.

Choice Not To Prolong Life:

If I am suffering from a terminal condition from which death is
expected in a matter of months, or if I am suffering from an
irreversible condition that renders me unable to make decisions
for myself, and life-support treatments are needed to keep me
alive, I request that all treatments other than those needed to
keep me comfortable be discontinued or withheld and my
physicians allow me to die as gently as possible.
Choice To Prolong Life:
I want my life prolonged as long as possible within the limits of
generally accepted health care standards.

Client 1
Client 2

Client 1
Client 2

If neither of those choices quite captures your wishes with respect to end-of-life care,
California law permits you to make your wishes known. Let me know if youd like more
information on end-of-life choices and suggested language.

PART VII: QUICK BALANCE SHEET & TRUST DISTRIBUTIONS

These numbers can be approximations to within $10,000
Assets

Liabilities
Real Estate:

Mortgage: $

Cash & Savings:

Other Debt: $

Securities Personally
Held:

Securities Held in
Brokerage Accounts: $
Options:

Retirement Assets:

Annuities:

Life Insurance:

Business:

Subtotal

Subtotal: $
Net:

TRUS
T
DIST
RIBU
TION
:
The money left to your children will be placed in trust, and managed for
them by the trustees that you name. The trustee will use that money
for their health, education, and welfare. As they get older, this money
will be distributed to them outright, to be used as they wish. You can
direct these distributions. A common way to do this is to distribute
the assets in three lump sums at ages you choose, but there is a lot
of flexibility available in these terms. I suggest you think first about
how old you were when you were able to manage money
responsibly, and then work backwards from there.
%
at

%
at

Balan
ce at

(33% at 28, for example)

(50% at 32, for example)
(100% at 36, for example)

PART VIII: DOCUMENTS

Please provide copies of the following documents or provide me with the requested
information:
oo
o Account Statements (including checking and savings, brokerage, mutual funds,
custodial accounts, money market funds, retirement plans, certificates of deposit and
treasury bills), or:
Institution
Account Type:
Account
#
Institution
Account Type:
Account
#
Institution
Account Type:
Account
#
Institution
Account Type:
Account
#
Institution
Account Type:
Account
#
Institution
Account Type:
Account #
o Stock certificates you hold.
o Information about vested options (including, where possible, the grant dates, numbers
of shares, basis for each grant and current price).
o Documents related to loans you have made to others (not money you have borrowed).
o Face pages for life insurance and annuities (including policy numbers and death
benefit amounts), or:
Policy Provider
Policy
Number
Policy Provider
Policy
Number
Policy Provider
Policy
Number
Policy Provider
Policy Number
o Copies of any existing estate plan documents (including wills and trusts, if any).
o Small business documents.
Corporations: Articles of Incorporation, stock certificates.
Partnerships: Partnership agreements, list of partnership assets.
Sole Proprietorships: List of assets, account statements.
o Martial property agreements, if any (premarital agreements, post-marital agreements
and/or marital separation agreements).
o Final judgment from divorce proceedings (if applicable).
o Documents reflecting ownership of patent, copyright or trademark, if any.

Legal Matters
Legal Services Agreement
This document sets out the terms of our engagement. Please read it carefully before
our first meeting.
Disclosure
There are always potential conflicts of interest when a lawyer represents more than
one person. This document discloses those issues.

LEGAL SERVICES AGREEMENT

(Client Original)
This is the written fee agreement (Agreement) that California law requires attorneys to
have with their clients. FamilyWise Estate Planning (FamilyWise) will provide legal
services to
(Client) on the terms set forth below.
1.

Conditions. This Agreement will not take effect, and FamilyWise will have no
obligation to provide legal services, until Client returns a signed copy of this
Agreement and pays the initial deposit called for under Paragraph 5. However, if
FamilyWise does elect to render services to Client prior to that time, the terms of this
Agreement will apply to all such services.

2.

Legal Services to be Provided. Client hires FamilyWise to provide legal services in

connection with estate planning, specifically drafting the following documents:
Living Trust Portfolio for Married Couple: Two-settlor Living Trust; Schedule of
Trust Assets; Pour-over Wills (2); Certification of Trust: Durable Power of Attorney
for Property Management (2); Advance Health Care Directive (2); HIPAA Release
Forms (2); Trust Transfer Deed for Primary Residence in California.
Living Trust Portfolio for Single Person: One-settlor Living Trust; Schedule of
Trust Assets; Pour-over Will; Certification of Trust; Durable Power of Attorney for
Property Management; Advance Health Care Directive; HIPAA Release Forms;
Trust Transfer Deed for Primary Residence in California.
Will Portfolio for Married Couple: Wills (2); Durable Power of Attorney for
Property Management (2); Advance Health Care Directive(2): HIPAA Release Forms
(2);
Will Portfolio for Single Person: Will; Durable Power of Attorney for Property
Management; Advance Health Care Directive: HIPAA Release Forms;
Other Documents, as specified:

FamilyWise will provide those legal services reasonably required to represent Client.
FamilyWise will take reasonable steps to keep Client informed of progress and to
respond to Clients inquiries. Client may request FamilyWise to represent the
interests of Client in different or additional matters, although FamilyWise will be

under no obligation to accept such additional engagements. If FamilyWise, in its

discretion, elects to undertake any additional engagements, FamilyWise may confirm
such new assignment(s) in writing, including a description of the work to be
performed and any special provisions that might apply with respect to that particular
engagement, including any additional deposit(s) that might be required. Except as
amended by such special provisions, all additional engagements will be subject to the
general provisions of this Agreement.
3.

Legal Services Specifically Excluded. Legal services that are excluded under this
Agreement specifically include, but are not limited to, the following: any asset
transfers not specifically set forth in Paragraph 2, including preparing and recording
out-of-state property deeds, consultations after the completion of the estate planning
documents listed in Paragraph 2 of this Agreement, review of documents in addition
to those listed in Paragraph 2, independent inquiry, legal research, correspondence,
and any activity related to litigation. If Client wishes FamilyWise to provide any
legal services excluded under this Agreement, a separate written agreement between
FamilyWise and Client will be required. Provided the payment required by
Paragraphs 5 have been offered and accepted for the period during which Client
requests that FamilyWise undertake the legal services, FamilyWise will enter into
such an agreement for legal services on the same terms and conditions as are
then being included in its hourly-fee legal services agreements with other estate
planning clients.

4.

Clients Duties. Client agrees to be truthful with FamilyWise, to cooperate, to keep

FamilyWise informed of any information or developments which may come to
Clients attention, to abide by this agreement, to pay FamilyWises bills on time and
to keep FamilyWise advised of Clients address, telephone number and whereabouts.
Client will assist FamilyWise in providing information and documents necessary for
the representation in the described matter.

5.

Legal Fees and Billing Practices. Client will pay to FamilyWise the fixed sum of
$
for attorney fees for the legal services to be provided under this Agreement,
payable as follows: payable upon execution of the Agreement and payable upon
delivery of the draft documents. The payments are nonrefundable. Additional
California property will be transferred into the trust for a fee of $250 each. If Client
fails to complete the legal work provided under this Agreement within 12 months of
the date of this Agreement, FamilyWise may close Clients file and terminate its
engagement with Client. Client shall have the right to re-engage FamilyWise after
such 12-month period at FamilyWises then-current rates.

6.

Legal Fees and Billing Practices for Excluded Services. To the extent any additional
work is authorized by Client outside the scope of services set forth in Paragraph 2,
Client agrees to pay by the hour at FamilyWises prevailing rates for all time spent on
Clients matter by FamilyWise at the current hourly rate of $250/hour.
These rates are subject to change. If Client declines to pay any increased rates, after

receiving notice of a fee change, FamilyWise will have the right to withdraw as
attorney for Client. Time is charged in minimum units of one tenth (.10) of an hour.
7.

Conclusion of Representation. Client may discharge FamilyWise at any time.

FamilyWise may withdraw with Clients consent or for good cause. Good cause
includes Clients breach of this Agreement, refusal to cooperate or to follow
FamilyWises advice on a material matter or any fact or circumstance that would
render FamilyWises continuing representation unlawful or unethical. If Client
discharges FamilyWise, FamilyWise is entitled to retain all legal fees. If FamilyWise
withdraws from representation, FamilyWise is only entitled to retain legal fees equal
to the amount that would have been due to FamilyWise if such fees were incurred on
an hourly basis at FamilyWises regular hourly rates. After services conclude,
FamilyWise will, upon Clients request, deliver a copy of Clients file, and all client
property in FamilyWises possession, whether or not Client has paid for all services.

8.

Disclaimer of Guarantee and Estimates. Nothing in this Agreement and nothing in

FamilyWises statements to Client will be construed as a promise or guarantee about
the outcome of the matter. Due to many factors inherent in legal representation, the
outcome of any matter is unpredictable and FamilyWise makes no such promises or
guarantees. FamilyWises comments about the outcome of the matter are expressions
of opinion only.

9.

Electronic Communications. You have authorized FamilyWise to communicate with

you via email and other electronic means such as by fax. You will be responsible for
keeping such
communications confidential. You also acknowledge that
communication by electronic means is subject to interception by others, just as is mail
and other forms of communication. By authorizing us to communicate with you via
electronic means, you are assuming any risks associated therewith. We strive to
maintain a secure electronic communication system with updated virus protection
software.

10.

Entire Agreement. This Agreement contains the entire Agreement of the parties. No
other agreement, statement or promise made on or before the Effective Date of this
Agreement will be binding on the parties.

11.

Severability in Event of Partial Invalidity. If any provision of this Agreement is held

in whole or in part to be unenforceable for any reason, the remainder of that provision
and of the entire Agreement will be severable and remain in effect.

12.

Modification by Subsequent Agreement. This Agreement may be modified by

subsequent Agreement of the parties only by an instrument in writing signed by both
of them or an oral agreement only to the extent that the parties carry it out.

13.

Effective Date. This Agreement will govern all legal services performed by
FamilyWise on behalf of Client commencing with the date FamilyWise first
performed services. The date at the beginning of this Agreement is for reference only.

Even if this Agreement does not take effect, Client will be obligated to pay
FamilyWise the reasonable value of any services FamilyWise may have performed
for Client.
Circular 230 Notice. Pursuant to requirements set forth in U.S. Treasury Regulation Circular
230, Section 10.35, you are informed that this written advice is not intended or written to be
used and cannot be used for the purpose of avoiding tax penalties that may be imposed under
the Internal Revenue Code. Furthermore, additional tax issues may exist that could affect the
tax treatment of the transaction and this correspondence does not consider or provide a
conclusion with respect to any additional issues.
THE PARTIES HAVE READ AND UNDERSTOOD THE FOREGOING TERMS AND
AGREE TO THEM AS OF THE DATE FAMILYWISE FIRST PROVIDED SERVICES.
IF MORE THAN ONE CLIENT SIGNS BELOW, EACH AGREES TO BE LIABLE,
JOINTLY AND SEVERALLY, FOR ALL OBLIGATIONS UNDER THIS AGREEMENT.
THE CLIENT SHALL RECEIVE A FULLY EXECUTED DUPLICATE OF THIS
AGREEMENT.
DATED:
(Signature)
Name:
Address:
Telephone:

DATED:
(Signature)
Name:
Address:
Telephone:
DATED:

FAMILYWISE ESTATE
PLANNING
By:
Kimberley Spears, Esq.

LEGAL SERVICES AGREEMENT

(Attorney Original)
This is the written fee agreement (Agreement) that California law requires attorneys to
have with their clients. FamilyWise Estate Planning (FamilyWise) will provide legal
services to
(Client) on the terms set forth below.
1. Conditions. This Agreement will not take effect, and FamilyWise will have no
obligation to provide legal services, until Client returns a signed copy of this
Agreement and pays the initial deposit called for under Paragraph 5. However, if
FamilyWise does elect to render services to Client prior to that time, the terms of this
Agreement will apply to all such services.
2.

Legal Services to be Provided. Client hires FamilyWise to provide legal services in

connection with estate planning, specifically drafting the following documents:
Living Trust Portfolio for Married Couple: Two-settlor Living Trust; Schedule of
Trust Assets; Pour-over Wills (2); Certification of Trust: Durable Power of Attorney
for Property Management (2); Advance Health Care Directive (2); HIPAA Release
Forms (2); Trust Transfer Deed for Primary Residence in California.
Living Trust Portfolio for Single Person: One-settlor Living Trust; Schedule of
Trust Assets; Pour-over Will; Certification of Trust; Durable Power of Attorney for
Property Management; Advance Health Care Directive; HIPAA Release Forms;
Trust Transfer Deed for Primary Residence in California.
Will Portfolio for Married Couple: Wills (2); Durable Power of Attorney for
Property Management (2); Advance Health Care Directive(2): HIPAA Release Forms
(2);
Will Portfolio for Single Person: Will; Durable Power of Attorney for Property
Management; Advance Health Care Directive: HIPAA Release Forms;
Other Documents, as specified:

FamilyWise will provide those legal services reasonably required to represent Client.
FamilyWise will take reasonable steps to keep Client informed of progress and to
respond to Clients inquiries. Client may request FamilyWise to represent the
interests of Client in different or additional matters, although FamilyWise will be

under no obligation to accept such additional engagements. If FamilyWise, in its

discretion, elects to undertake any additional engagements, FamilyWise may confirm
such new assignment(s) in writing, including a description of the work to be
performed and any special provisions that might apply with respect to that particular
engagement, including any additional deposit(s) that might be required. Except as
amended by such special provisions, all additional engagements will be subject to the
general provisions of this Agreement.
3. Legal Services Specifically Excluded. Legal services that are excluded under this
Agreement specifically include, but are not limited to, the following: any asset
transfers not specifically set forth in Paragraph 2, including preparing and recording
out-of-state property deeds, consultations after the completion of the estate planning
documents listed in Paragraph 2 of this Agreement, review of documents in addition
to those listed in Paragraph 2, independent inquiry, legal research, correspondence,
and any activity related to litigation. If Client wishes FamilyWise to provide any
legal services excluded under this Agreement, a separate written agreement between
FamilyWise and Client will be required. Provided the payment required by
Paragraphs 5 have been offered and accepted for the period during which Client
requests that FamilyWise undertake the legal services, FamilyWise will enter into
such an agreement for legal services on the same terms and conditions as are then
being included in its hourly-fee legal services agreements with other estate planning
clients.
4. Clients Duties. Client agrees to be truthful with FamilyWise, to cooperate, to keep
FamilyWise informed of any information or developments which may come to
Clients attention, to abide by this agreement, to pay FamilyWises bills on time and
to keep FamilyWise advised of Clients address, telephone number and whereabouts.
Client will assist FamilyWise in providing information and documents necessary for
the representation in the described matter.
5. Legal Fees and Billing Practices. Client will pay to FamilyWise the fixed sum of
$
for attorney fees for the legal services to be provided under this Agreement,
payable as follows: payable upon execution of the Agreement and payable upon
delivery of the draft documents. The payments are nonrefundable. Additional
California property will be transferred into the trust for a fee of $250 each. If Client
fails to complete the legal work provided under this Agreement within 12 months of
the date of this Agreement, FamilyWise may close Clients file and terminate its
engagement with Client. Client shall have the right to re-engage FamilyWise after
such 12-month period at FamilyWises then-current rates.
6. Legal Fees and Billing Practices for Excluded Services. To the extent any additional
work is authorized by Client outside the scope of services set forth in Paragraph 2,
Client agrees to pay by the hour at FamilyWises prevailing rates for all time spent on
Clients matter by FamilyWise at the current hourly rate of $250/hour.
These rates are subject to change. If Client declines to pay any increased rates, after

receiving notice of a fee change, FamilyWise will have the right to withdraw as
attorney for Client. Time is charged in minimum units of one tenth (.10) of an hour.
7. Conclusion of Representation. Client may discharge FamilyWise at any time.
FamilyWise may withdraw with Clients consent or for good cause. Good cause
includes Clients breach of this Agreement, refusal to cooperate or to follow
FamilyWises advice on a material matter or any fact or circumstance that would
render FamilyWises continuing representation unlawful or unethical. If Client
discharges FamilyWise, FamilyWise is entitled to retain all legal fees. If FamilyWise
withdraws from representation, FamilyWise is only entitled to retain legal fees equal
to the amount that would have been due to FamilyWise if such fees were incurred on
an hourly basis at FamilyWises regular hourly rates. After services conclude,
FamilyWise will, upon Clients request, deliver a copy of Clients file, and all client
property in FamilyWises possession, whether or not Client has paid for all services.
8. Disclaimer of Guarantee and Estimates. Nothing in this Agreement and nothing in
FamilyWises statements to Client will be construed as a promise or guarantee about
the outcome of the matter. Due to many factors inherent in legal representation, the
outcome of any matter is unpredictable and FamilyWise makes no such promises or
guarantees. FamilyWises comments about the outcome of the matter are expressions
of opinion only.
9. Electronic Communications. You have authorized FamilyWise to communicate with
you via email and other electronic means such as by fax. You will be responsible for
keeping such communications confidential. You also acknowledge that
communication by electronic means is subject to interception by others, just as is mail
and other forms of communication. By authorizing us to communicate with you via
electronic means, you are assuming any risks associated therewith. We strive to
maintain a secure electronic communication system with updated virus protection
software.
10. Entire Agreement. This Agreement contains the entire Agreement of the parties. No
other agreement, statement or promise made on or before the Effective Date of this
Agreement will be binding on the parties.
11. Severability in Event of Partial Invalidity. If any provision of this Agreement is held
in whole or in part to be unenforceable for any reason, the remainder of that provision
and of the entire Agreement will be severable and remain in effect.
12. Modification by Subsequent Agreement. This Agreement may be modified by
subsequent Agreement of the parties only by an instrument in writing signed by both
of them or an oral agreement only to the extent that the parties carry it out.
13. Effective Date. This Agreement will govern all legal services performed by
FamilyWise on behalf of Client commencing with the date FamilyWise first
performed services. The date at the beginning of this Agreement is for reference only.

Even if this Agreement does not take effect, Client will be obligated to pay
FamilyWise the reasonable value of any services FamilyWise may have performed
for Client.
Circular 230 Notice. Pursuant to requirements set forth in U.S. Treasury Regulation Circular
230, Section 10.35, you are informed that this written advice is not intended or written to be
used and cannot be used for the purpose of avoiding tax penalties that may be imposed under
the Internal Revenue Code. Furthermore, additional tax issues may exist that could affect the
tax treatment of the transaction and this correspondence does not consider or provide a
conclusion with respect to any additional issues.
THE PARTIES HAVE READ AND UNDERSTOOD THE FOREGOING TERMS AND
AGREE TO THEM AS OF THE DATE FAMILYWISE FIRST PROVIDED SERVICES.
IF MORE THAN ONE CLIENT SIGNS BELOW, EACH AGREES TO BE LIABLE,
JOINTLY AND SEVERALLY, FOR ALL OBLIGATIONS UNDER THIS AGREEMENT.
THE CLIENT SHALL RECEIVE A FULLY EXECUTED DUPLICATE OF THIS
AGREEMENT.
DATED:
(Signature)
Name:
Address:
Telephone:

DATED:
(Signature)
Name:
Address:
Telephone:

DATED:

FAMILYWISE ESTATE
PLANNING
By:
Kimberley
Spears, Esq.

DISCLOSURE
Potential Conflict of Interest: It is possible that you may not agree with each other
regarding every detail of your estate plans. For example, you may have differing views as to
how you want to dispose of your property, or who you should appoint as guardians. Minor
disagreements between couples are normal and ordinarily will not affect my ability to
represent each of you fully and fairly, provided we can come to resolution of the issue and
complete the plan.
Actual Conflict of Interest. While it is rare, couples will occasionally have serious
disagreements. If that type of disagreement were to arise, it could create a conflict of interest
that would make it impossible for me to represent both of you in a manner consistent with
my ethical and professional obligations. If such a disagreement did arise, I would find it
necessary to withdraw from representing either of you in connection with this matter.
Consultation with Independent Attorney. Of course, if either of you feel for any reason
that you need the advice of another attorney regarding any aspect of the services I am
providing to you, you should obtain your own attorney to provide advice and counsel in this
matter, and to assure yourself that my representation of one of you is not adversely
influenced by my representation of the other.
Confidentiality. Anything that either of you says to me is protected by attorney-client
privilege and will be held in strictest confidence with respect to the rest of the world.
However, anything one of you communicates to me must be communicated to the other. For
example, if one of you told me something during the course of the representation and asked
me to keep it from the other, I would be duty bound NOT to honor that request. Likewise, in
any future legal proceeding between the two of you, our communications during the course
of representation could be used by the other.
Obviously, we have no reason to believe now that any of these problems will arise in our
work together. In fact, these types of situations are very rare. Nevertheless, the Rules of
Professional Responsibility governing the conduct of lawyers rightfully require that I explain
the potential issues that could arise if I represent both of you at the same time. The same
Rules require that I obtain your express written consent to this joint representation. I
therefore ask that you sign this disclosure and give it to me when we meet. If you have any
additional questions about these disclosures, please let me know.
We have read this disclosure, understand the matters discussed in it and agree to have
Kimberley Spears jointly represent us, hereby waiving potential conflicts of interest in the
preparation of our estate documents.
Dated:
/

Dated:

DISCLOSURE
Potential Conflict of Interest: It is possible that you may not agree with each other
regarding every detail of your estate plans. For example, you may have differing views as to
how you want to dispose of your property, or who you should appoint as guardians. Minor
disagreements between couples are normal and ordinarily will not affect my ability to
represent each of you fully and fairly, provided we can come to resolution of the issue and
complete the plan.
Actual Conflict of Interest. While it is rare, couples will occasionally have serious
disagreements. If that type of disagreement were to arise, it could create a conflict of interest
that would make it impossible for me to represent both of you in a manner consistent with
my ethical and professional obligations. If such a disagreement did arise, I would find it
necessary to withdraw from representing either of you in connection with this matter.
Consultation with Independent Attorney. Of course, if either of you feel for any reason
that you need the advice of another attorney regarding any aspect of the services I am
providing to you, you should obtain your own attorney to provide advice and counsel in this
matter, and to assure yourself that my representation of one of you is not adversely
influenced by my representation of the other.
Confidentiality. Anything that either of you says to me is protected by attorney-client
privilege and will be held in strictest confidence with respect to the rest of the world.
However, anything one of you communicates to me must be communicated to the other. For
example, if one of you told me something during the course of the representation and asked
me to keep it from the other, I would be duty bound NOT to honor that request. Likewise, in
any future legal proceeding between the two of you, our communications during the course
of representation could be used by the other.
Obviously, we have no reason to believe now that any of these problems will arise in our
work together. In fact, these types of situations are very rare. Nevertheless, the Rules of
Professional Responsibility governing the conduct of lawyers rightfully require that I explain
the potential issues that could arise if I represent both of you at the same time. The same
Rules require that I obtain your express written consent to this joint representation. I
therefore ask that you sign this disclosure and give it to me when we meet. If you have any
additional questions about these disclosures, please let me know.
We have read this disclosure, understand the matters discussed in it and agree to have
Kimberley Spears jointly represent us, hereby waiving potential conflicts of interest in the
preparation of our estate documents.
Dated:
/

Dated: