An Estate Plan Is a Tax Plan and a Family Plan

Most people come to estate planning thinking about documents: the will, the trust, the power of attorney. Those documents matter. But the real purpose of a thoughtful estate plan is not paperwork. It is making sure that what you have worked a lifetime to build goes where you intend it to go, in the manner you intend, with as little lost to taxes, court costs, and legal delays as possible.

At Brown and Brown, estate planning is inseparable from tax planning. Michael R. Brown is a licensed attorney, a Certified Public Accountant, and a California State Bar Certified Tax Specialist. When he reviews your estate, he evaluates the income tax, estate tax, gift tax, and property tax implications of every strategy. That integrated perspective shapes estate plans that are not just legally sound but financially efficient.

Brown and Brown, A Law Corporation, has been helping South Orange County families protect their legacies since 1987. Whether you are creating your first estate plan, updating one that has not been reviewed in years, or working through a complex situation involving a family business, significant assets, or a blended family, we bring nearly four decades of experience to that conversation.

Estate Planning Services

Revocable Living Trusts A revocable living trust is the foundation of most well-structured California estate plans. Unlike a will, a properly funded living trust allows your assets to pass to your beneficiaries without going through probate.  This avoids the long delays, high costs, and public exposure that always come with probate proceedings. The trust can be amended or revoked during your lifetime as your circumstances change. We draft trusts that are clear, properly coordinated with your asset titles, and designed to minimize both administrative burden and tax exposure for your heirs.
Wills A will is an essential document even for clients who also have a trust. It directs the disposition of assets that may not be held in the trust, designates guardians for minor children, and names an executor to manage the estate process. We draft wills that work in coordination with your overall estate plan rather than in isolation.
Durable Power of Attorney A durable power of attorney designates someone you trust to manage your financial and legal affairs if you become incapacitated. Without one, your family may face a costly and time-consuming court process to obtain the authority to act on your behalf. We draft durable powers of attorney that give your agent the authority they need while protecting against potential abuse.
Advance Healthcare Directive An advance healthcare directive documents your medical wishes and designates someone to make healthcare decisions on your behalf when you cannot. This document spares your family from making agonizing decisions without knowing what your wishes are concerning your own health care.
Irrevocable Life Insurance Trusts (ILITs) For clients with significant life insurance policies, an Irrevocable Life Insurance Trust can remove the policy proceeds from your taxable estate, potentially saving substantial estate tax while ensuring the proceeds reach your beneficiaries efficiently. We structure ILITs in coordination with your overall estate and tax planning.
Charitable Trusts and Giving Strategies Charitable giving can accomplish meaningful philanthropic goals while producing significant income tax and estate tax benefits. Charitable remainder trusts, charitable lead trusts, and donor-advised fund strategies each serve different objectives. We evaluate which approach best serves your charitable intent and your financial goals.
Family Limited Partnerships and LLCs For clients with significant assets real estate, investment portfolios, business interests family limited partnerships and limited liability companies can provide meaningful valuation discounts for gift and estate tax purposes, as well as asset protection benefits. We structure these entities carefully and in compliance with current IRS guidance.
Family Gifting Strategies The annual gift tax exclusion, the lifetime exemption, and specialized strategies such as 529 plan funding and direct payment of tuition and medical expenses can transfer significant wealth to the next generation without gift or estate tax. We incorporate systematic gifting strategies into estate plans where they make sense.
Probate Administration When a loved one passes away without a trust, or with assets that were not properly transferred into the trust during their lifetime, probate may be required. We guide executors and administrators through the California probate process, handling the filings, creditor notices, asset inventories, and court appearances required to bring the estate to a close.
Trust Administration When a trust becomes irrevocable at the death of the settlor, the successor trustee takes on significant legal and financial responsibilities. We advise successor trustees on their duties, help them navigate the administrative steps required by California law, and assist in the distribution of trust assets in accordance with the trust terms.

Estate Planning and the Tax Dimension

California families with significant assets face a layered set of tax considerations that a standard estate plan may not fully address.

Federal Estate Tax. The federal estate tax exemption is high enough that most families will not need to pay estate taxes.  However, that does not mean that you do not need an estate plan! Planning strategies that make sense at today’s exemption levels may need revision if the exemption decreases. We build plans that account for the possibility of future tax law changes.

Capital Gains and the Step-Up in Basis. How assets are transferred at death outright, through a trust, or by gift during lifetime affects whether heirs receive a stepped-up cost basis, which can eliminate decades of embedded capital gains. This analysis is one of the areas where having an attorney who is also a CPA produces materially different advice.

California Property Tax — Proposition 19. California’s Proposition 19, effective February 2021, significantly changed the rules for parent-child transfers of real property. The family home exclusion is now limited, and transfers of other real property no longer qualify for reassessment exclusion. For South Orange County families with significant real estate, the property tax consequences of estate planning decisions now require careful attention.

Trust Income Taxation. Irrevocable trusts are subject to their own income tax rules, including compressed tax brackets that can push trust income into the highest federal rate at relatively low income levels. Proper trust drafting and administration can mitigate these effects.

Frequently Asked Questions

About Estate Planning

Since

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1987

Schedule a Free Estate Planning Consultation

Whether you need your first estate plan, a review of a plan you already have, or guidance on a complex situation involving taxes, real estate, or a family business, we offer a free initial consultation to discuss your situation and explain your options.

Brown and Brown, A Law Corporation
23041 Mill Creek Drive, Laguna Hills, CA 92653
(949) 389-2209
jesse@browntaxlaw.com
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