Redlands California Estate Planning Blog

According to probate papers filed in California on May 20, Carrie Fisher's estate is worth about $6.8 million. The documents, which were filed in the Los Angeles Superior Court, state that the administrator of the estate has performed all of the duties required of him and all costs associated with administering the estate have been paid. Under the terms of Fisher's last will and testament, the assets will be added to the Carrie Fisher Living Trust.

The trust's beneficiary is Fisher's 26-year-old daughter, and its trustee also acted as the estate's administrator. According to court documents, the trustee can use his discretion to determine how assets will be distributed, which will take place after federal and state inheritance taxes have been paid. The trust was established about three weeks after the 60-year-old actress passed away in December 2016. In addition to investment and bank accounts, the estate includes memorabilia and collectibles, an automobile, and publicity rights associated with Fisher's acting career.

Setting up a trust can allow individuals with special needs in California to retain government benefits while also receiving assets from family members. Those who have assets of more than $2,000 may not be allowed to participate in programs such as Medicaid. However, money or other items inside of a trust are owned by the trust as opposed to the beneficiary.

Trusts may be funded by a parent or money received in a lawsuit. It can also be funded by insurance payouts or by funds that were inherited when a parent or grandparent passed away. Ideally, the trust will start with at least $100,000. This amount can make it easier to cover costs related to setting up and maintaining the trust. While a friend or family member may act as a trustee for free, banks or other financial institutions will generally charge a fee to handle this task.

The legal issues involved in administering an estate generally include making a list of the deceased individual's assets, paying their outstanding debts and then distributing any remaining assets to heirs or beneficiaries. During the probate process, the court appoints an individual to take care of these tasks. If the deceased individual had a last will and testament, this person is known as an executor. If the estate owner dies intestate, the court appoints an administrator.

Probate is usually a fairly straightforward process, but matters become more complex when a will is contested or there is no will and heirs become embroiled in disputes. Probate may also take longer when there is not enough money in the estate to pay all of the deceased person's creditors. This is known as an insolvent estate. In these situations, the executor or administrator will ask the court to determine which creditors get paid. In California, probate is simplified and going to court is not usually necessary when estates are worth $150,000 or less.

California readers may have heard that director John Singleton died of a stroke in Los Angeles on April 28. Apparently, he had an outdated will, which means there could be conflict over his estimated $35 million estate.

Singleton, who earned an Academy Award nomination for directing "Boyz n the Hood" in 1991, had seven children. However, when he drafted his will in 1993, he only had one son, and he never updated his estate plan to include his other six children when they were born. That means that his entire estate will go to his first-born son. In early May, the will was filed by his mother in a California probate court. Court records show she listed his assets at approximately $3.8 million, but his estate is believed to be worth at least an additional $31 million.