the following is an excerption from an interview with michael i. Burstein, esq. Of burstein law firm that occurred over lunch on october 7, 2009 in hermosa beach, ca:
tony: thank you for having lunch with me today. So how long has it been now that you have been practicing law in ca?
michael: in december, i will have been an attorney in california for 22 years. I have been focused on estate planning, estate administration, and probate since 1992.
tony: we have noticed a growing number of persons using family trusts to take title on their homes. What are the advantages of doing this? Are there any downsides to doing this?
michael: one of the main reasons that customers do a living trust (or a family trust) is because it fends off probate. Notwithstanding, a trust fends off probate only for those summations that have been re-titled in the name of the trust. Failure to re-title an asset, exceptionally a piece of real estate, in the name of the trust, may cause that asset to be subject to probate.
therefore, many residences, as well as other types of real estate, are owned by living trusts. Other means of keeping title include fixed liability companies (llcs), family fixed partnerships (flps), joint tenancy, community property, as well as in an individual’s name.
tony: what does one require to do to develop a family trust?
michael: most living trusts (or family trusts) are done with an attorney. While it is true that it is not legally required to have an attorney prepare a trust, have worked with over 3,000 families, i may tell you that there are questions that i ask my customers that they have not thought with regards to previous to my asking them the question.
there is a much more outstanding opportunity of litigation on trusts when the trust has been formulated by the individual themselves or with the assistance of software. It brings to mind the old saying “penny wise, pound silly. “
tony: are family trusts the main element of estate planning or are there further and added conceptions that you would commend?
michael: living trusts are the foundation for nearly every estate plan. Contingent upon the size and composition of the estate, further and added estate planning may be necessary. Hence, there are ilits (irrevocable life insurance trusts), flps, llcs, grats (grantor held annuity trusts), crts (charitable remainder trusts), and a whole host of other estate planning options.
tony: thank you for this. Is there anything else that you would like to add?
michael: estate planning is a highly rewarding area of the law. It provides me with the opportunity to make a divergence in many people’s lives. I see this daily because we do many estate administration and probate work. It is at that point that we see whether the deceased was capable to do estate planning that is of the most benefit to his/her children, loved ones, heirs, and beneficiaries.
tony: that is swell and thank you again for taking the time to have lunch with me.
michael: my happiness and thank you.
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