West Hollywood Estate Planning Attorneys

Legally Reviewed By Lars Kushner | Beverly Hills Estate Planning Lawyer

The Hidden Dangers of DIY Fill-in-the-Blank Forms for Estate Planning

Many people try to save money by downloading generic templates from the internet. Unfortunately, these forms are incredibly generic and are not tailored to the individual. Additionally, online forms frequently fail to account for California’s strict requirements for valid estate planning documents. If you misunderstand one of the rules or fail to follow every relevant part of the Probate Code, those documents are often thrown out of court.

Some of the most common issues West Hollywood estate planning attorneys see include:

Improper witnessing. When someone signs a will in California, they must be witnessed by two competent adult witnesses who do not receive anything from the will. The witnesses must also sign the will themselves.
Misunderstanding community property law. California is one of only a few states that have community property. “Community property” means that all assets, debts, income, etc., gained during the marriage by either party are presumed to be owned equally by both spouses. This often means that people leave gifts in their will that they have no legal right to give.
Unfunded trusts. In order for a trust to work, you have to properly fund it. This means setting up its own banking and brokerage accounts and transferring assets into its name. DIY forms cannot do this for you. If a trust is not properly funded, then the trust cannot serve its intended purpose.

Advanced Strategies for Protecting Your Wealth

Once the basics are in place, we look at ways to protect your wealth from heavy taxation and external threats. Individuals in West Hollywood need proactive strategies to shield their hard-earned money.

Using Irrevocable Trusts

Moving assets into an irrevocable trust removes them from your taxable estate completely. Unlike a revocable trust, you give up some control over the assets, but you gain massive tax and creditor protections in return.

Irrevocable Life Insurance Trusts. These specialized vehicles hold your life insurance policy. Because you do not personally own the policy anymore, the death benefit pays out to your family without being subjected to federal estate taxes.
Grantor Retained Annuity Trusts. This structure allows you to transfer assets that are expected to grow rapidly in value to your beneficiaries. You retain an income stream for a set number of years, and the future appreciation passes to your kids without paying massive gift taxes on that growth.

Business Succession Planning

Our local area is home to thriving creative agencies, entertainment boutiques, design firms, and independent restaurants. If you own a business, you need a realistic plan for what happens if you step down, become disabled, or pass away unexpectedly. West Hollywood estate planning attorneys can structure buy-sell agreements that dictate exactly how your shares will be handled. This prevents your business partners from suddenly being forced to work with your spouse or children. It also guarantees your family gets a fair and immediate cash payout for your share of the company instead of holding worthless and illiquid stock.

Gift Tax Strategies

You do not have to wait until you pass away to start helping your family. Giving away parts of your wealth while you are alive shrinks your taxable estate over time. The IRS sets an annual gift tax exclusion amount that lets you give away thousands of dollars to as many individuals as you want without reporting it or paying penalties. We guide clients on how to use these gifts strategically to fund education accounts, pay for grandchildren’s medical expenses directly, or help adult children place down payments on local real estate.

Frequently Asked Questions About Estate Planning in Hollywood

How often should I update my estate plan?

West Hollywood estate planning attorneys recommend reviewing your estate plan every three to five years at a minimum. However, if there is a birth, death, marriage, divorce, significant investment, or the acquisition or sale of real estate, you should review your estate plan as soon as possible.

The primary reason to update your estate plan is that probate courts tend to interpret your will very literally. After all, the court cannot call you as a witness to determine what you really meant if something needs to be cleared up. For example, if you left a gift to your child’s spouse and then they divorced while you were still alive, the court might still give the gift to the ex-spouse. This is true even if the divorce was acrimonious and your child had remarried.

What is the difference between a Trustee and an Executor?

The roles of a trustee and an executor are similar, but they work in two different areas.

A trustee manages the assets that you place into a trust.
An executor is in charge of administering your will during the probate process.

It’s sort of like how a boat captain and an airline pilot are both in charge of steering their respective vehicles, but they operate different vessels.

How does estate planning help with my digital life?

Unlike years ago, many people today hold significant digital assets. Examples of common digital assets include:

Intellectual property
Digital portfolios
Social media accounts
Cryptocurrencies
Stablecoins
Cloud storage (e.g., Google Drive)

California law allows you to name a person who has the legal authority to access your digital accounts. Without formal authorization, tech companies often lock the account down permanently. If that happens, the assets may be effectively gone for good.