Advanced Health Directive

 

In California, an Advance Health Care Directive is a legal document that allows you to appoint someone to make medical decisions for you if you're unable to do so yourself, and to express your preferences for medical treatment, including end-of-life care. It combines elements of a living will and a medical power of attorney. This document ensures your wishes are known and followed when you can't communicate them directly.

 

Testament Concierge services include:

 

•  Prepare the Health Directive document.

•  General Health directives.

•  Mental Health directives

•  Pregnancy Options (Optional)

•  Religious Observance (Optional)

•  Burial Instructions (Optional)

•  Portability (Optional) (Premium

 

 

 

Last Will and Testament

 

A last will and testament is a legal document that outlines how a person's assets and property should be distributed after their death. It also allows individuals to name guardians for their minor children and designate an executor to manage the estate and carry out their wishes. In essence, it's a way to ensure your wishes are followed regarding your possessions and loved ones after you pass away. Creates a legally binding document that guides the probate process (the legal process of administering a deceased person's estate). In California, wills are subject to probate when the estate's assets are under a certain value, or when assets are held in ways that bypass probate. Specifically, if the total value of the probate estate (excluding assets with beneficiary designations) is less than $184,500, a small estate affidavit can be used, or if the estate is less than $184,500 and doesn't include real estate worth more than $61,500, a small estate affidavit can be used to avoid formal probate. Additionally, assets with beneficiary designations (like life insurance or retirement accounts) and assets held in trusts bypass probate, regardless of the will.

Due to average property values in California most estates that include real property will not be exempt from a probate proceeding. In California, the probate process for a will typically takes nine months to 1.5 years. The cost can range from 4% to 7% of the value of the estate. Time and cost are based on the complexity of the estate, its size, and its value.

 

Testament Concierge services include:

 

• Prepare the last will and testament documents ready to be witnessed.

• Provide a set of instructions for probating of the will.

 

 

 

Revocable Living Trust

 

A revocable living trust in California allows you to manage and distribute your assets while avoiding probate. It's a legal document that holds your assets, like real estate, bank accounts, and investments, and dictates how they should be managed during your lifetime and distributed after your death. You retain control of the assets and can amend or revoke the trust at any time while you are alive and competent. The primary benefit is that assets held in the trust bypass the probate process, which can be time-consuming, costly, and public. You can amend or revoke the revocable trust at any time during your lifetime, as long as you are mentally competent. Unlike a will that is individual’s wishes, a joint trust can express the wishes of a couple.

 

Testament Concierge services include:

 

• Create the Revocable Trust per your instructions.

• Prepare the Trust Documents ready to be notarized.

• Prepare a Pour-Over Will to cover any contingencies not enumerated in the Trust, ready to be witnessed.

• Fund the trust-Quit Claim Deed for your primary real property, ready for you to file.

• Fund the trust-Instructions to communicate with your mortgage company.

• Fund the trust-Complete a Preliminary Change of Ownership form to be filed when your quit claim deed is filed.

• Complete Guardianship documents, per your instructions. (Optional)

 

 

 

Business Formation

 

The most common form of business organization is the sole proprietorship. It's the simplest structure, typically involving one individual conducting business on their own without needing to formally register as a separate legal entity. While easy to set up, the owner is personally liable for all business debts and obligations, including any liability arising from the sales of a defective product or service provided. A sole proprietor is taxed as an individual.

While more complicated to set up and administer, personal liability can be mitigated both financially and legally using one of these types of formation:

 

 

 

Limited Liability Company

 

A Limited Liability Company (LLC) is a business structure that combines the benefits of a partnership and a corporation, offering its owners (members) limited liability protection while providing flexibility in taxation and management. LLCs are distinct legal entities, separate from their owners, which means the owners' personal assets are generally shielded from business debts and lawsuits. Members are typically not personally liable for the company's debts and obligations, protecting their personal assets. LCs offer flexibility in management and taxation, allowing for various operating structures and tax elections. LLC profits are typically passed through to the members and taxed at their individual income tax rates, avoiding the double taxation of corporations. LLCs can elect to be taxed as a partnership, an S-Corporation or even a C-Corporation. LLCs are taxed at a minimum rate of $800 per annum in California by the Franchise Tax Board, the state’s tax authority. It requires, a separate tax filing which depends on the tax structure you elect. A LLC in California can be a single member LLC or a multi-member LLC.

 

Testament Concierge services include:

 

• Register the LLC with the State of California-obtain formation number.

• Complete the Operating Agreement ready for your signature.

• Prepare the Tax election form to file with the IRS.

• File for a Federal Tax ID Number (Optional)

• Prepare and file a Beneficial Ownership Information Report (BOIR)

 

 

 

Corporation

 

A corporation is a legal entity, separate from its owners (shareholders), that is authorized to act as a single person under the law. This means it can own property, enter into contracts, sue or be sued, and conduct business in its own name. Corporations offer liability protection to their owners and can raise capital through the sale of stock. A corporation has its own legal identity, distinct from its owners who generally are not personally liable for the corporation's debts and obligations. A corporation can continue to exist even if ownership changes or if key individuals leave. Corporations can raise funds by selling shares of stock to investors. Corporations, if organized as a C-Corporation, may be subject to corporate income tax, and shareholders may also be taxed on dividends they receive. If a corporation is organized as an S-Corporation the tax code allows profits and losses to be passed through to the owners' personal income, avoiding double taxation. Corporations are taxed at a minimum rate of $800 per annum in California by the Franchise Tax Board, the state’s tax authority. It requires a separate tax filing which depends on the tax structure you choose.

 

Testament Concierge services include:

 

• Register the corporation with the State of California—obtain formation number.

• Complete the Articles of Incorporation ready for your signature(s).

• Prepare the standard Corporate By-Laws, ready for your edits.

• Prepare the Tax election form to file with the IRS—Sub-chapter “S” or “C.”

• File for a Federal Tax ID Number (Optional)

 

 

 

Corporation—Delaware/California

 

Delaware is a popular state for incorporation due to its well-developed corporate law, business-friendly environment, and efficient legal system, particularly the Court of Chancery. It offers benefits like no state income tax for companies not operating within Delaware, and a streamlined process for formation and maintenance. Additionally, Delaware's corporate law is well-understood by investors, and the state provides a degree of privacy regarding company ownership. Companies incorporated in Delaware but not operating within the state are not subject to Delaware corporate income tax, and there's no state sales tax, personal property tax, or inheritance tax. Delaware law allows for a streamlined corporate structure, with one person able to hold multiple officer, director, and shareholder roles. However, it's important to note that Delaware incorporation may not be the best choice for all businesses. For example, smaller, privately held companies or those operating primarily in another state might find the additional costs and complexities of Delaware incorporation outweigh the benefits.

 

Testament Concierge services include:

 

• Register the corporation in the State of Delaware—obtain formation number.

• Register the corporation in California as a foreign entity.

• Complete the Articles of Incorporation ready for your signature(s).

• Prepare the standard Corporate By-Laws, ready for your edits.

• Prepare the Tax election form to file with the IRS—Subchapter “S” or “C.”

• File for a Federal Tax ID Number (Optional)