A.        AVOID PROBATE

                        1.  Probate is a method of transferring assets as provided in a will, or if a person dies without a will, of transferring assets to his or her heirs in accordance with state law.

                        2.  Assets in the decedent's name alone must be probated to transfer title.  Community and quasi-community property must be probated if it is left by will to someone other than the surviving spouse.  Assets that cannot be controlled by a person's will are not subject to probate.  Those assets include: (a) assets held in joint tenancy; (b) life insurance policy proceeds; (c) death benefits from qualified retirement trusts, Keogh plans, and IRA's; (d) assets held in living trusts; (e) proceeds of an annuity.

                        3.  If the decedent left a valid will, the will is offered on his death for probate and the court appoints an executor.  If the decedent left no will, the court appoints an administrator to serve.

                        4.  The executor or administrator must collect the assets subject to probate, give notice to creditors, pay debts and death taxes, and request court approval to transfer assets to the decedent's heirs or to the persons named in the will.

                        5.  The usual duration of probate is from nine months to two years.  The size and complexity of the probate estate determine the duration of probate.

                        6.  On final distribution and transfer of all probate assets, the court discharges the executor or administrator.

                        7.  The fees charged by executors or administrators and their attorneys are determined by reference to a schedule of fees in the California Probate Code.  That schedule is as follows:

              8.    The advantages claimed for probate proceedings include: (a) the heirs and beneficiaries are protected by the court; (b) probate cuts off the claims of creditors after the 4-month period following the issuance of Letters by the Executor or Administrator; (c) the estate is a separate taxpayer and some tax savings may result.

              9.    The disadvantages asserted against probate proceedings include: (a) it is expensive as noted above; (b) it is time-consuming and the delays are excessive; (c) court proceedings are inherently inflexible; (d) it is a public proceeding whereby any individual may review the court file and obtain access to information that many would prefer only family members and other interested beneficiaries of the estate be authorized to review.

     B.    PRIMARY ADVANTAGES OF A LIVING TRUST

              1.  Avoid delay of probate and allow for prompt distribution of assets after death.

              2.  Maximize family privacy through private passage of title without disclosure of the size of the estate or the names of beneficiaries to members of the general public.

              3.    Eliminate the cost of probate in order to minimize the costs of transferring title after death.

              4.  Avoid the need for conservatorship in the event of disability or incompetency during lifetime.

              5.  Avoid problems of joint ownership.

              6.  Obtain greater flexibility for revising estate plan without the formalities required to change a will.

              7.  Protect minor children or grandchildren from court-imposed guardianship.