Sacramento Estate Planning Attorney

Regardless of your income, estate planning provides peace of mind by ensuring your wishes are known and that your loved ones are protected no matter what uncertainty the future holds. The Goralka Law Firm provides personalized estate planning services for clients facing a wide range of circumstances—including parents of young children, blended families, small business owners, and even home owners. 

There are almost 200,000 attorneys in the state of California, and fewer than 100 of those attorneys are State Bar Specialists in Estate Planning, Trusts and Probate and State Bar Specialists in Taxation.  John Goralka is one of the few attorneys with both critical specializations.  He passed the California CPA examination and is a former income tax auditor and hearing officer.  Mr. Goralka is recognized as a top attorney in the United States by US News and World Reports and by Best Lawyers. He holds an AV rating from Martindale which is the premiere rating organization for attorneys.  The AV rating is the highest possible rating for legal experience and for legal ethics.  

The Goralka Law Firm represents many successful families for over 25 years, including parents, children and grandchildren. We also provide Trust Administration and can assist the family in the event of a death or illness.

Estate Planning Success Stories

  • Clients holding income-producing real estate valued at approximately $12 million received a step-up in income tax basis upon the death of their mother. During their mother's lifetime, the real property was transferred to an Upstream Basis Trust. This trust is designed to provide a basis step-up by including the property in the mother's estate for estate tax purposes. A basis step-up means that the properties can now be sold with virtually no capital gains tax. For properties that are not sold, the depreciable basis is increased to the fair market value as of the date of death, resulting in higher depreciation deductions and an increased return on investment. The clients were actively involved in managing these properties. This allows them to retire from property management activities without incurring high tax costs upon the sale of the properties. This is a transformational change for these clients, as they can now improve their daily enjoyment of life. Previously, they did not see a way to retire without facing significant tax costs, which could have been one-third or more of the property value in California and federal income tax on the sale proceeds.

  • We obtained a $2,750,000 estate tax refund upon filing an amended or supplemental estate tax return ( IRS Form 706) that was sustained after an IRS audit. The original estate tax return was prepared by an experienced estate planning firm that represented the family for many years. The Goralka Law Firm was able to identify other reporting methods and additional deductions that provided the family a $2,750,000 estate tax savings, a transformational result.

  • For a client with an $88 million estate holding substantial income producing real property, we were able to provide a plan to transfer real property worth over $50 million out of his estate for estate tax purposes. In addition, only 3% of the value of the real estate was reassessed for property tax purposes, and the client receives approximately 84% of the net income from the property for life. The client retained control over the $50 million in property interests through control of the business entity and the Trust holding the property interests. The property tax on the properties was not reassessed upon the client’s death as would otherwise be required.  This provided a higher return on investment for these income producing properties.

Basic Estate Planning Documents

In its simplest form, an estate plan should include the following documents:

  • Will. Your will outlines the distribution of your assets, including items with primarily sentimental value, and chooses someone to serve as the executor of your estate. If you are a parent with minor children, it also lets you name a guardian who can care for them in the event of your death.
  • Durable financial power of attorney. If you become ill or injured, this document gives a person the authority to manage your finances. This includes making deposits, paying bills, filing taxes, and managing investments.
  • California advance directive. This document combines the living will and durable power of attorney for healthcare. It gives a person the ability to make medical decisions on your behalf and specifies what type of care you wish to receive in an emergency situation.

Using Trusts to Support Estate Planning Goals

A trust is a type of fiduciary arrangement that holds assets on behalf of a beneficiary or beneficiaries. A trust does not take the place of a will, but it can be used to accomplish specific estate planning goals.

Some of the different types of trusts that may be recommended for your estate plan include:

  • Revocable living trust. A revocable trust allows you to avoid probate and its related fees, delays, and lack of personal privacy. A trust is useful for those who are self-employed because it can help the business continue to operate in the event of their death or incapacity.
  • Beneficiary Controlled Trust. A Beneficiary Controlled Trust can provide the beneficiary the ability to enjoy, control, and manage the inheritance with greater protection from lawsuits, divorce, creditor claims, and estate tax
  • IRA inheritance trust. A standalone trust for IRA assets lets the IRA owner and their family enjoy maximum "stretch out" to reduce taxes while providing important asset protection benefits at the same time. It is particularly useful for beneficiaries who are minors, have special medical needs, have developmental disabilities, have troubled marriages, or have high-risk professions where liability is a concern.
  • Asset protection trust. When used with limited liability entities such as corporations, limited partnerships, or limited liability companies, asset protection trusts provide greater protection for your personal assets, so they aren't jeopardized by business debts.
  • Life insurance trust. Transferring a life insurance policy into an irrevocable trust means that the insurance proceeds are no longer included in the gross estate. The proceeds can then pass to beneficiaries with no estate tax.
  • Qualified personal residence trust. This trust can transfer your residence (and future appreciation) to your children to obtain a reduction in potential estate tax. In this type of trust, the owner of the residence can remain on the property for a predetermined period of time with "retained interest" in the house before the interest remaining is transferred to the stated beneficiaries as "remainder interest."
  • Medi-Cal protection trust. Medi-Cal is California's version of Medicaid and is typically used to pay for nursing home costs. An irrevocable Medi-Cal protection trust can be used to protect the family home from a Medi-Cal recovery lien.

In addtion to these, there are potentially many other types of trusts that can help protect what and who is imporant to you. 

Laureate Planning

The Goralka Law Firm provides specialized planning for high-net-worth clients. Our team will work with you to create a master wealth plan that maps out in detail potential lifetime planning vehicles to help you leave a lasting legacy for future generations while reducing applicable gift and estate taxes. Laureate planning services are recommended for clients with a net worth of $10 million or more. This planning will have increased importance if the proposed changes to the income and estate tax system are enacted.

Get Started Today

The earlier you begin the estate planning process, the more options you'll have for protecting your assets, reducing tax liability, and leaving a meaningful legacy for your loved ones. Contact us today to discuss how we can assist with your estate planning needs.