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(1) CURRENT REPRESENTATION CONFINED TO LIVING TRUSTS: You acknowledge that you have currently engaged us ONLY for a living trust 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, 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, 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, we concluded all matters that you engaged us for.

(2) ESTATE TAXES: Probate fees and estate taxes should not be confused with each other. Though a living trust can avoid probate, it cannot avoid death and estate taxes, if your estate exceeds the amount you are allowed to pass tax-free. Currently, each U.S. resident can pass $11+ Million estate tax free (and a U.S. Citizen surviving spouse can pass up to $22+ Million estate tax-free). However, if lawmakers fail to make these new increased exemptions permanent by 2025, the exemptions will fall back to pre-2018 levels ($5+ Million for individuals and $10+ Million for married). Warning: If you are NOT a legal U.S. Resident, you can only pass $60,000 (sixty-thousand dollars) estate 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 great deal of expense and hassle at death, this does not mean nothing has to be done. Shortly after anyone dies, it is vitally important to seek legal guidance to ensure meeting necessary legalities, and to help preserve and utilize available protections, abilities to disclaim, tax options, and other benefits. We do offer legal guidance at death, but you are under no obligation to use us.

(4) A REVOCABLE, AMENDABLE TRUST: While alive, you can revoke your trust or amend (change) your trust anytime, but, please be warned, you must observe the necessary formalities (writing on your document or striking out words do not constitute a valid amendment). Since almost all self-prepared amendments we have seen are invalid or ambiguous, we strongly advise using a competent attorney. We do offer these services, but you are under no obligation to use us.

(5) 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 and annuities, 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 strategies, 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.

(6) CHANGING ASSETS IS NOT CHANGING (AMENDING) YOUR TRUST:  Acquiring or disposing of assets titled in the name of your trust is not considered an amendment to your trust, nor does it normally require an amendment, 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 after your death and you sell or dispose of it, you should amend your trust to deal with the fact that such asset no longer exists.  Failure to address this can cause many problems.

(7) Gifts to Care Custodians Require Certificate of Independent Review: Just in case you are leaving a gift, or part of your estate, to a caretaker / care custodian / or any person that could be argued is functioning in a caretaking role, then you must obtain a “Certificate of Independent Review” [pursuant to Probate Code 21351(b)] from a lawyer outside of this office or you risk the gift being invalidated. This law is designed to help protect dependent adults from fraud, duress, or undue influence from caretakers.

(8) TITLE ISSUES: 1) We are not a title company. While it is safe to say the title service we use, and efforts we make to determine current title to real property, are usually accurate, it should not be construed in any way as full title research and an absolute guarantee as to accuracy of title or property descriptions. For that, you should consult a real estate attorney. 2) Anyone else named on a deed is considered a legal owner. If that is not the intent (or their percentage needs clarifying), we advise you to “clear this up” using the services of a qualified real estate attorney and tax professional, as this process, done correctly, is complex. 3) Though we’ve never seen this become an issue, we must officially advise you to check that your title insurance coverage extends to your trust. Most post-1998 title insurance policies do and, if not, many title insurers will add a trust endorsement for free or a nominal fee.

(9) TRUST ORIGINALS & COPIES:Our practice is to scan and maintain electronic copies of your documents but at no time does our office maintain the originals of any of your current or future documents, trusts, correspondences, applications and submitted forms (from you or anyone else).  All document originals, as well as copies for in-office appointments, are given, or returned, to you. We strongly advise taking steps to safe-keep your documents. If necessary, we can usually reproduce your trust and other documents from our electronic copies, however, as agreed to below agree below in paragraph (11), there is a charge associated with this service.

(10) PRUDENCE DICTATES PERIODIC REVIEWS OF YOUR ESTATE PLAN: Time often erodes and “detunes” any estate plan. Like most experienced professionals, we advise a review of your trust every three years. However, the pace of events, and/or changes in circumstances, can accelerate or decelerate this need. Yet, since we cannot track each client’s life or predict future law changes, we advise following this three-year (or sooner, if there is a major change in circumstances) review rule-of-thumb. You are also advised to immediately seek the advice of, and update your estate plan with, a qualified attorney upon any change in marital status.

(11) CHARGES FOR ANY FUTURE SERVICES: Though it is rare, from time to time, both pre and post death, we are asked or required to respond to, or spend time on, requests and services that include, but are not limited to, such matters as 1) trust administration, 2) communicating with and/or providing you, other attorneys, or your representatives with information or copies of your file and/or documents, 3) depositions, subpoenas, and interrogatories, 4) court appearances and testifying, and 5) other matters that consume significant time. As a law firm, our time is our only “stock in trade” and, thus, it is only reasonable that we be compensated when we are required to or asked to provide our time. As such, you hereby authorize and agree to allow us to charge you, your representative, and/or your estate at our then applicable customary attorney hourly rate (applicable hourly rate varies based on senior or junior attorney time spent on matter) for time spent on any such requests and services including, but not limited to, any of those listed above.

(12) AGREEMENT TO KEEP YOUR CONTACT INFORMATION CURRENT: We may need to contact you about something important. Thus, you hereby agree 1) to hold us harmless for any consequences that may arise, due to our inability to contact you, as a result of any failure by you, or your representatives, to update your information and 2) any letters sent to the last address provided to us shall constitute diligent and reasonable effort to contact you or your representatives.