(1) CURRENT REPRESENTATION CONFINED TO LIVING TRUSTS: You acknowledge that you have currently engaged us for a living trust only and no other estate planning or legal services. Any other legal services require a separate signed engagement letter setting forth the agreed to expectations, engagement and scope of representation. Absent such, you acknowledge that you have not engaged us for, nor is there currently any expectation for any other estate planning or other legal activities, such as advanced or international estate or tax planning, irrevocable trusts, life insurance trusts, charitable trusts, elder care, Medicaid planning and trusts, (family) limited partnerships, or asset protection plans, etc. You also agree that once your trust is completed (or if you cancel your appointment, or if you do not follow through or agree to proceed) that we have concluded all matters that you engaged us for.

(2) ESTATE TAXES: A living trust is designed to keep your assets and estate out of probate (to avoid probate). Probate fees and estate taxes are not the same and are not to be confused with each other. As the law stands today each U.S. person can pass $11+ Million completely estate tax free (and a U.S. Citizen surviving spouse up to $22+ Million estate tax-free). Warning: If you are NOT a legal U.S. Resident you can only pass $60,000.00 (sixty-thousand dollars) estate tax-free. A living trust cannot and will not avoid death and estate taxes if your estate exceeds the amount you are allowed to pass tax-free. If you anticipate that your estate will exceed the amount you can pass tax-free you may want to seek additional legal advice on potential “advanced estate planning” strategies.

(3) LEGAL ADVICE AT DEATH: Although a living trust can eliminate a lot of headache and paperwork at someone’s death, this should not be construed to mean nothing has to be done. Whenever anyone dies it is important that legal and tax guidance be sought shortly afterwards. It is important that certain formalities and tasks be completed so that all legalities are met, and to ensure that among other things, all available protections, abilities to disclaim, tax options, and other benefits are well known and utilized. Though we do offer advice at death, you are under no obligation to use this office.

(4) A REVOCABLE, AMENDABLE TRUST: While you are alive, you can revoke your trust, or amend (change) your trust anytime you wish. When you do so, it is important to observe certain formalities. WARNING: A note in the margin of your document, writing on your document, or striking out words does not constitute a valid amendment. While you can employ this office to accomplish an amendment, you are under no obligation to — nor do you need our permission or blessing. However, unless we prepare the amendment, we cannot become involved in judging its legal sufficiency or content — and we take no responsibility for any amendment prepared independently outside our office.

(5) CHANGING ASSETS IS NOT CHANGING (AMENDING) YOUR TRUST: Simply adding or disposing of assets in the name of your trust is not an amendment, nor is there normally a need for an amendment in such a case unless you wish to change the actual terms of the trust itself (i.e., To gift that new asset to a certain person). However, if your trust names a specific asset or account to go to someone and you sell or dispose of it, then you should amend your trust to deal with the fact that such asset no longer exists. Failure to address this can cause many problems.

(6)IMPORTANCE OF TITLING YOUR ASSETS IN YOUR TRUST: It is your responsibility to make certain that your current and future assets are titled in the name of your living trust. Proper wording is set forth on the first page of your trust. Qualified retirement plans (IRAs, Keoghs, 401Ks, 403Bs, etc.) are the one major exception and should not be titled in your trust (though, like life insurance, you can designate beneficiaries). More details are in the handout entitled “Titling Your Assets in the Name of Your Trust” — which you hereby agree to read and refer to in these regards. Please be advised that our beneficiary designation guidelines are from a trust administration and management point of view and do not necessarily coincide with optimal tax strategy (especially if any beneficiary of your trust is a non-person such as a charity). It is possible that pursuing different beneficiary designation strategies will provide more optimal long term tax advantages, which is why we advise discussing this with a professional tax advisor versed in the intricacies of qualified retirement plans. We do not advise on this.

(7) EXCEPTION — RETIREMENT PLANS NOT TO BE TITLED IN TRUST (IRAs, Keoghs, 401Ks, 403Bs, etc.): Qualified retirement plans (such as IRAs, Keoghs, 401Ks, 403Bs, etc.) are the one major exception to the above rule and should not be titled in the name of your trust.   Instead (like life insurance) you are allowed to designate beneficiaries. The “Titling Your Assets” handout sets forth guidelines for doing so, which you hereby agree to read. These are guidelines from a trust administration and management point of view and do not necessarily coincide with optimal tax strategy. There seems to be an unending number of potential tax saving options and repercussions that can occur by pursuing various beneficiary designation strategies that may give more optimal long term tax advantages than spouse or trust beneficiary designations. We cannot advise you on this. You should discuss these other available options with a professional tax advisor versed in the intricacies of qualified retirement plans.

(8) “POUR-OVER” WILL The “Pour-Over” Will that comes with your trust package is a regular Will which simply says you leave everything to your trust. It functions as an emergency backup to “pour” any assets which may exist outside of the trust at your death, into your trust. Of course, anything which goes through a Will must go through probate, so your goal is to make sure this Will is of little or no use. If you title all your assets in the trust as you are supposed to, you will achieve this goal. Also, the practicality and application of the “Pour-Over” Will depends upon the existence of your living trust. If you revoke or amend your trust you need to do a new will.

(9) Legal Advice Upon Any Change In Marital Status: Any change in marital status necessitates revisiting, updating and restating your estate plan from both a practical and legal standpoint. If you marry, remarry, separate, file for, or become divorced this can vastly affect your intentions, estate plan and trust – and will likely invalidate such. You are hereby instructed that you should seek immediate legal advice from a qualified attorney and update your estate plan upon any such change in marital status.

(10) Gifts to Care Custodians Require Certificate of Independent Review (Probate Code 21350): If you are leaving a gift or part of your estate to a caretaker / care custodian, then you are hereby advised that for such a gift to be upheld and valid, California law requires you to obtain a “Certificate of Independent Review”