Economics

The Perils of Probate

Published

10 years ago

February 22, 2016

By Tanya Dennis

Money matters. Home, possessions, bank savings and investments dictate the quality of life, and many people live with an intent to leave a legacy to loved ones.

Unfortunately, poor planning can decimate an estate. Some individuals leave a will, believing that their children or spouse will be taken care of.

Instead, children or the spouse face many months or years in probate court, watching estate assets dwindle away to pay attorney fees and court appointed examiners.

Too many families walk away with nothing after going through probate.

The reason may be poor planning. Another reason is that for decades, if not centuries, lawmakers in California have favored court and banking interests.

A will is not sufficient.

To avoid poor planning the next step after a will is to execute a revocable living trust. A will without a trust attached will be “probated” by the state to assure that the will is legal.

This leads to thousands of dollars in probate cost. For example, the average cost of probating a will for a $500,000 estate is approximately $23,000 in attorney and court fees, money that should go to the trustee’s beneficiaries.

The beauty of a revocable living trust is its flexibility and the protection it provides to the person who is the trustee of the trust and the person’s beneficiaries.

When a revocable living trust is executed, all transference of wealth to the trust occurs to the person now designated as the trustee. Although assets have been relinquished to the trust, the trustee as beneficial owner can sell, manage or give away assets and have the option at any point to change terms of the trust, change beneficiaries or even revoke the trust.

Once the trustee die, the revocable living trust becomes irrevocable, meaning what has been written is now etched in stone and cannot be changed.

Unfortunately, having a will and revocable living trust does not protect the trustee’s estate one hundred percent from probate court. Heirs will lose protection from probate court if the will or trust is contested, meaning that a family member fails to honor the wishes of the deceased and challenges the validity of the will or trust.

The majority of the time the will and trust are upheld in court, but meanwhile thousands of dollars or more are lost to the court. To avoid this from happening, it is imperative that family members sit down together and final wishes clarified.

This is the time to settle any dispute.

It is also helpful that family members have a copy of the will and trust, so that each item in the will and trust is discussed.

To discourage family members determined to contest the trust, insert a clause that anyone contesting the will and trust will receive one dollar for their efforts and lose any other benefits previously written in the will and trust.

An ounce of prevention can head off problems. When executing a will and revocable living trust, it is imperative that wishes of the deceased are honored and loved ones effectively avoid probate court.

A will and revocable living trust protects loved ones when they are most vulnerable.

Next week: Probate Court Drains Assets

Oakland Post

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Activism

At the event, 16 entities signed the EIP pledge, vowing to take steps to increase public contracting opportunities in their spheres for small and historically underutilized businesses. The pledge signees included Hub International, the Port of San Francisco, the San Francisco Public Utilities Commission, California High-Speed Rail Authority, the Port of Oakland, Robert Graham of Webcor Builders, Holder Construction, the Weitz Company, Sky Blue Builders, Hornblower, Swinerton, Luster National, Talson Solutions, Center for Community Wealth Building, and the Construction Contractors Alliance.

Published

1 week ago

June 24, 2026

Oakland Post

Toks Omishakin, secretary of the California State Transportation Agency, was one of the speakers at the event. Photo by Shellee Fisher Photography and Design.

By Calvin Naito, Special to The Post

On June 4, a national nonprofit named the Equity in Infrastructure Project (EIP) – which aims to increase public construction contracting opportunities for small and historically underutilized businesses – held a day-long event in downtown San Francisco to rally supporters and build momentum to its cause.

It was attended by more than 100 individuals from public agencies, private firms, and other organizations committed to increasing contracting opportunities with governmental agencies, thereby creating more competition and lowering public costs.

The EIP event was held the Hyatt Regency San Francisco in conjunction with BuildIT, which aims to increase contracting opportunities for LGBT-owned businesses.

At the event, 16 entities signed the EIP pledge, vowing to take steps to increase public contracting opportunities in their spheres for small and historically underutilized businesses.

The pledge signees included Hub International, the Port of San Francisco, the San Francisco Public Utilities Commission, California High-Speed Rail Authority, the Port of Oakland, Robert Graham of Webcor Builders, Holder Construction, the Weitz Company, Sky Blue Builders, Hornblower, Swinerton, Luster National, Talson Solutions, Center for Community Wealth Building, and the Construction Contractors Alliance.

Following the workshop, BuildIT hosted a VIP evening reception honoring EIP, whose principals – Phil Washington, John Procari, and Rick Jacobs – accepted the award.

The event also set in motion the coalition’s efforts to implement recommendations from EIP’s “Procurement for Prosperity: A Playbook.”

The Playbook is a practical guide for public agency leaders and procurement and contracting practitioners to grow the capacity of small and first-time contractors, strengthen competition, and deliver better value for taxpayers.

Toks Omishakin, Secretary of the California State Transportation Agency (CalSTA), a long-time EIP supporter, also told attendees, “This is about commitment. This has been a life’s work. This is a tailwind moment.”

The event’s presenting sponsor was Hub International, one of the largest insurance brokerages in the nation, which was joined by partners Travelers Insurance and the State Compensation Insurance Fund.

After the pledge-signing ceremony, attendees participated in a workshop in which they examined the policies, practices, and programs needed to meet EIP goals, learned from practitioners, and identified next steps toward utilizing the Playbook.

Ingrid Meriwether, formerly of Merriwether & Williams Insurance Services (MWIS) and current president of Hub International’s Aligned Risk Management, MWIS, described the hard-fought lessons she and her MWIS team have learned over the last three decades administering contractor development programs (CDPs) for the City and County of San Francisco, Alameda County, City of Los Angeles, LA Metro, and other municipalities.

The CDPs help small and local construction firms win public infrastructure contracts with these government agencies. The program provides bonding assistance, contract financing, technical support, training, and other services to underrepresented businesses funded by public agencies who seek greater contracting participation with these firms.

Merriwether said programs like these “break down systemic barriers, create greater fairness, and save taxpayers money by enabling more competition. The contractor development programs have, cumulatively, over two decades, helped contractors access over $1 billion in bonding, supporting over $380 million in awarded contracts, and maintaining a loss ratio 250 times lower than the industry average – while saving participating municipalities more than $27 million in contracting costs as a result of enabling more competition.”

Rick Jacobs, EIP co-founder and co-chair urged attendees make plans to meet again in the near future “to continue building on this work, share progress on organizational commitments, and discuss how we can collectively advance the goals of the EIP pledge.”

For more information on the EIP and to access a copy of the Playbook, go online to https://equityininfrastructure.org/

Calvin Naito is communications manager for Equity in Infrastructure Project.