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NBA Trades, Expiring Contracts, and Your Estate Plan: What the Luke Kennard Deal Teaches About Timing, Authority, and Documentation – California Legal Guide | CPT Law

NBA Trades, Expiring Contracts, and Your Estate Plan: What the Luke Kennard Deal Teaches About Timin

California Legal Implications: Expiring Contracts, Trade Deadlines, and Your Estate Plan

A recent NBA trade, in which the Los Angeles Lakers reportedly acquired Luke Kennard for Gabe Vincent, highlights critical concepts that extend far beyond the basketball court: timing, authority, and the importance of clear documentation. As reported by multiple outlets, the deal involves players on expiring contracts, underscoring the finite window teams have to make strategic moves before a deadline passes. For California families, this serves as a powerful analogy for estate planning. Just as a team’s General Manager must have the authority to execute a deal before time runs out, you must establish your own legal plan before you are unable to do so.

Failing to act can have significant consequences. In the NBA, it could mean losing a valuable asset for nothing. In life, it means the state of California will make crucial decisions about your assets and your health care through a public, costly, and often stressful court process known as probate. A well-drafted estate plan is your “contract” with the future, ensuring your wishes are carried out precisely as you intend.. A well-drafted estate plan is your “contract” with the future, ensuring your wishes are carried out precisely as you intend.

The Ultimate Deadline: Establishing Legal Capacity

The most critical deadline in estate planning is the one you cannot predict: the loss of mental capacity. You can only sign legally binding documents like a trust, will, or power of attorney while you are mentally competent. Once an accident or illness renders you incapacitated, it is too late. The opportunity is gone, and your family will be forced into a court conservatorship proceeding to gain the authority to manage your affairs. while you are mentally competent. Once an accident or illness renders you incapacitated, it is too late. The opportunity is gone, and your family will be forced into a court conservatorship proceeding to gain the authority to manage your affairs.

An Advance Health Care Directive and a Durable Power of Attorney for Finances are essential documents that allow you to appoint agents to make decisions on your behalf if you become unable. These must be created *before* the “deadline” of incapacity arrives. are essential documents that allow you to appoint agents to make decisions on your behalf if you become unable. These must be created *before* the “deadline” of incapacity arrives.

Appointing Your General Manager: The Role of a Fiduciary

An NBA General Manager is a fiduciary—a person entrusted to act in the best interests of the team owner. Your estate plan allows you to appoint your own fiduciaries to manage your affairs.—a person entrusted to act in the best interests of the team owner. Your estate plan allows you to appoint your own fiduciaries to manage your affairs.

– Successor Trustee: This person manages the assets held in your Revocable Living Trust for the benefit of your beneficiaries after your incapacity or death. They step in to ensure your financial plan is executed smoothly, avoiding probate.
– Executor: Named in a Will, the executor is responsible for guiding your estate through the probate process. While a trust is designed to avoid probate, a “pour-over” will works with a trust as a safety net.
– Agent: Appointed in a Power of Attorney or Advance Health Care Directive, an agent has the legal authority to make financial or medical decisions for you while you are alive but unable to make them yourself., an agent has the legal authority to make financial or medical decisions for you while you are alive but unable to make them yourself.

Without formally documenting these appointments, a court will decide who takes control, a process that can lead to family disputes and unnecessary expense.

Your Game Plan: Essential California Estate Planning Documents

A professional basketball trade is governed by a complex contract. Your life’s work, assets, and family deserve the same level of detailed, legally sound documentation. A comprehensive California estate plan typically includes:

– Revocable Living Trust: The cornerstone of most plans, a trust holds your assets for your benefit during your lifetime and allows for their seamless transfer to your beneficiaries upon your death, completely bypassing the probate court system.
– Pour-Over Will: This special type of will ensures that any assets accidentally left out of your trust are “poured over” into it upon your death.
– Durable Power of Attorney: This document grants a trusted agent the authority to manage your financial affairs if you become incapacitated.
– Advance Health Care Directive: This allows you to name an agent to make medical decisions for you and outlines your wishes regarding end-of-life care.: This allows you to name an agent to make medical decisions for you and outlines your wishes regarding end-of-life care.

Just as a trade solidifies a team’s roster for the future, these documents solidify your legacy and protect your family from legal uncertainty. Don’t let the deadline pass you by.

About This Case

Source: Lakers Reportedly Acquire Luke Kennard from Hawks for Gabe Vincent

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This article is for informational purposes only. Consult with a qualified California estate planning attorney for advice specific to your situation.

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California Legal Implications: The Dangers of Multiple Wills and Outdated Documents

California Legal Implications: The Dangers of Multiple Wills and Outdated Documents

An article from the Continuing Education of the Bar (CEB) titled “5 Wills – California Estate Planning” highlights a critical issue many families face: confusion over which estate planning documents are legally valid. While a person can only have one valid Last Will and Testament at the time of their death, it is common for individuals to create several wills or will amendments (codicils) throughout their lifetime. This can lead to significant conflict and costly litigation for surviving family members. When a new will is created, it must explicitly revoke all prior wills to be effective. If old documents are not properly destroyed and the new one is not perfectly clear, beneficiaries from a previous will might challenge the new one, leading to a lengthy and expensive battle in California probate court. This underscores the absolute necessity of maintaining a single, clear, and comprehensive estate plan created with the guidance of an experienced attorney. court. This underscores the absolute necessity of maintaining a single, clear, and comprehensive estate plan created with the guidance of an experienced attorney.

The Role of a Will in a California Estate Plan

In California, a Last Will and Testament is a foundational legal document that allows you to specify your wishes after you pass away. Its primary functions include: is a foundational legal document that allows you to specify your wishes after you pass away. Its primary functions include:

* Naming an Executor: This is the person or institution you appoint to manage your estate, pay your debts, and distribute your assets according to the will’s instructions.
* Distributing Assets: The will dictates who receives your property. However, it is important to note that a will only controls assets that go through probate.
* Nominating a Guardian: For parents of minor children, a will is the only place to nominate a guardian to care for them if both parents pass away. to care for them if both parents pass away.

California recognizes different types of wills, including formal, attorney-drafted wills and holographic wills, which are written entirely in the testator’s handwriting. Each has strict legal requirements that, if not met, can invalidate the document entirely., which are written entirely in the testator’s handwriting. Each has strict legal requirements that, if not met, can invalidate the document entirely.

Why a Will Alone Is Often Not Enough

Relying solely on a will is a common mistake that forces an estate into the public, time-consuming, and expensive court process known as probate. All assets passing through a will are subject to the supervision of the California Superior Court. A far more effective tool for most Californians is a Revocable Living Trust..

A trust-based estate plan avoids probate for all assets properly funded into the trust. You appoint a trustee (often yourself, initially) to manage the assets for the benefit of your chosen beneficiaries. A comprehensive plan also includes a pour-over will, a special type of will that acts as a safety net, transferring any forgotten or omitted assets into your trust upon your death. This integrated approach provides privacy, avoids court intervention, and allows for a seamless transition of your estate., a special type of will that acts as a safety net, transferring any forgotten or omitted assets into your trust upon your death. This integrated approach provides privacy, avoids court intervention, and allows for a seamless transition of your estate.

Avoiding Confusion: Best Practices for Your Estate Plan

To prevent the kind of confusion and conflict that arises from multiple or conflicting documents, it is crucial to take proactive steps.

* Regular Reviews: Review your estate plan with an attorney every three to five years, or after any major life event such as a marriage, divorce, birth of a child, or significant change in financial status.
* Clear Revocation: When you create a new estate plan, your attorney will ensure it contains clear language that expressly revokes all prior wills and codicils.
* Destroy Old Documents: Once you have executed your new, updated documents, you should physically destroy all previous original wills and trusts to prevent them from being discovered and causing confusion later.: Once you have executed your new, updated documents, you should physically destroy all previous original wills and trusts to prevent them from being discovered and causing confusion later.

Working with a qualified estate planning firm ensures that your documents are legally sound, coordinated, and accurately reflect your current wishes, protecting your loved ones from the unnecessary stress and expense of a court battle.

About This Case

Source: 5 Wills – California Estate Planning – CEB

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This article is for informational purposes only. Consult with a qualified California estate planning attorney for advice specific to your situation.

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Warriors Trade Rumors and Estate Planning: Why Big Moves Require Clear Authority, Trust Funding, and a Plan – California Legal Guide | CPT Law

Warriors Trade Rumors and Estate Planning: Why Big Moves Require Clear Authority, Trust Funding, and

California Legal Implications: Why Major Life Decisions Require a Clear Estate Plan

A recent news story detailing a significant trade by the Golden State Warriors, as reported by fictional league sources, highlights the importance of decisive action and clear authority when managing high-value assets. The team’s front office, acting with legal authority, made a strategic move to trade players like Jonathan Kuminga for Kristaps Porzingis, fundamentally altering the team’s roster and future. For California families, this serves as a powerful analogy for estate planning: without a legally sound plan, the authority to manage your assets during a crisis or after your death becomes unclear, potentially leading to conflict and court intervention., highlights the importance of decisive action and clear authority when managing high-value assets. The team’s front office, acting with legal authority, made a strategic move to trade players like Jonathan Kuminga for Kristaps Porzingis, fundamentally altering the team’s roster and future. For California families, this serves as a powerful analogy for estate planning: without a legally sound plan, the authority to manage your assets during a crisis or after your death becomes unclear, potentially leading to conflict and court intervention.

Just as the Warriors’ management has the designated power to make these critical decisions, your estate plan must clearly name the person you want in charge when you cannot be. This person, your “general manager,” is known as a Successor Trustee or an Agent under a Power of Attorney. Without these documents, your family may be forced into the California court system to establish a conservatorship or initiate probate proceedings simply to gain the authority to manage your affairs. proceedings simply to gain the authority to manage your affairs.

The Role of Your Successor Trustee and Agent

When you create a Revocable Living Trust, you name a Successor Trustee to step in and manage the trust assets upon your incapacity or death. This individual has a fiduciary duty to act in the best interests of the trust beneficiaries. Similarly, a Durable Power of Attorney appoints an Agent to manage your financial affairs for assets held outside of your trust. to manage your financial affairs for assets held outside of your trust.

These roles are critical. Your designated fiduciaries are responsible for:
– Paying bills and managing day-to-day finances.
– Making decisions about selling or managing real estate.
– Overseeing investment accounts.
– Ultimately, distributing your assets according to your wishes after you pass away.

Without a plan, there is no one with the immediate authority to act. A court would have to appoint someone, a process that is public, costly, and can take months, leaving your assets in limbo when your family needs access most.

Funding Your Trust: Ensuring Your Assets Are in the Game

A sports team can only trade players who are on its official roster. Similarly, a Trust can only control assets that have been legally transferred into it. This process is known as funding the trust. Creating a trust document is only the first step; if you fail to fund it, the trust is effectively an empty vehicle.. Creating a trust document is only the first step; if you fail to fund it, the trust is effectively an empty vehicle.

Common assets that must be transferred into a California trust include:
– Real Estate: The property deed must be changed from your individual name to your name as Trustee of your trust.
– Bank Accounts: Accounts should be retitled in the name of the trust.
– Non-Retirement Investment Accounts: Brokerage accounts should also be retitled in the trust’s name.: Brokerage accounts should also be retitled in the trust’s name.

If an asset is not properly funded into the trust, it will likely have to go through the court-supervised probate process upon your death, undermining one of the primary benefits of having a trust in the first place. process upon your death, undermining one of the primary benefits of having a trust in the first place.

Updating Your Plan When Strategies Change

The Warriors’ trade signaled a “pivotal change in strategy.” In life, our own strategies change with major events. It is essential to review and update your estate plan after significant life milestones to ensure it still reflects your wishes and works as intended.

You should consult your estate planning attorney after events such as:
– Marriage or divorce.
– The birth or adoption of a child.
– The death of a named beneficiary, Trustee, or Agent.
– A substantial change in your financial situation.
– Moving to or from California..
– A substantial change in your financial situation.
– Moving to or from California.

An outdated plan can be as ineffective as a sports team relying on an old playbook. It can lead to unintended beneficiaries, unnecessary taxes, and family disputes. A well-drafted and properly updated estate plan ensures your chosen decision-makers have the clear authority to execute your wishes efficiently and privately.

About This Case

Source: Sources: Warriors trading Jonathan Kuminga, Buddy Hield to Hawks for Kristaps Porzingis

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This article is for informational purposes only. Consult with a qualified California estate planning attorney for advice specific to your situation.

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PayPal Stock Volatility and California Estate Planning: Trusts, Incapacity Planning, and Avoiding Probate – California Legal Guide | CPT Law

PayPal Stock Volatility and California Estate Planning: Trusts, Incapacity Planning, and Avoiding Pr

California Legal Implications: Volatile Stocks and Your Estate Plan

A recent analysis of PayPal’s stock performance highlights a common scenario for investors: market volatility driven by leadership changes and strategic shifts. According to an article from Yahoo Finance, one analyst argues that despite a drop in stock price, PayPal’s plan for aggressive stock buybacks presents a long-term opportunity for patient investors. This situation, where short-term market reactions can obscure underlying value, serves as a crucial reminder for California families about the importance of incorporating investment assets into a comprehensive estate plan., one analyst argues that despite a drop in stock price, PayPal’s plan for aggressive stock buybacks presents a long-term opportunity for patient investors. This situation, where short-term market reactions can obscure underlying value, serves as a crucial reminder for California families about the importance of incorporating investment assets into a comprehensive estate plan.

Managing a significant stock portfolio requires a long-term strategy, not just for growth, but for its eventual transfer to your loved ones. Sudden incapacity or death can leave valuable, and often volatile, assets like stocks in limbo, potentially forcing a sale at an inopportune time during a lengthy court process. A well-structured estate plan ensures your investments are protected and managed according to your wishes.

For Californians, the most effective tool for managing such assets is often a Revocable Living Trust. By transferring ownership of your investment accounts and individual stocks into a trust, you accomplish several critical goals:. By transferring ownership of your investment accounts and individual stocks into a trust, you accomplish several critical goals:

First, assets held in a trust avoid probate. Probate is the court-supervised process of distributing a deceased person’s assets. It can be time-consuming, expensive, and is a matter of public record. By bypassing probate, your assets can be managed and distributed privately and efficiently by your chosen successor., your assets can be managed and distributed privately and efficiently by your chosen successor.

Second, a trust provides for seamless management in the event of your incapacity. Your designated Successor Trustee can step in immediately to manage the trust’s assets, including making investment decisions, without needing court intervention. This ensures your portfolio is actively managed even when you are unable to do so yourself. The trust document can provide specific instructions or grant the trustee broad discretion to act prudently, navigating market shifts like the one described in the PayPal story. can step in immediately to manage the trust’s assets, including making investment decisions, without needing court intervention. This ensures your portfolio is actively managed even when you are unable to do so yourself. The trust document can provide specific instructions or grant the trustee broad discretion to act prudently, navigating market shifts like the one described in the PayPal story.

The Successor Trustee has a fiduciary duty to manage the assets in the best interests of the beneficiaries. This legal obligation requires them to be prudent and loyal, making decisions based on the long-term goals you outlined in your trust, rather than reacting to short-term market panic. to manage the assets in the best interests of the beneficiaries. This legal obligation requires them to be prudent and loyal, making decisions based on the long-term goals you outlined in your trust, rather than reacting to short-term market panic.

In addition to a trust, a Durable Power of Attorney for Finances is a vital component of an estate plan. This document allows an agent you appoint to manage any financial affairs and assets that may not have been transferred into your trust, ensuring all aspects of your financial life are covered during a period of incapacity. is a vital component of an estate plan. This document allows an agent you appoint to manage any financial affairs and assets that may not have been transferred into your trust, ensuring all aspects of your financial life are covered during a period of incapacity.

The PayPal scenario underscores that the value of investments is tied to long-term strategy. Your estate plan is the ultimate long-term strategy for your life’s work and assets, ensuring they are protected from court interference and managed wisely for the next generation.

About This Case

Source: PayPal bulls set to win big as spooked investors ‘puke in the hole’: Analyst

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This article is for informational purposes only. Consult with a qualified California estate planning attorney for advice specific to your situation.

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Family Harassment After a Death: California Legal Options When Relatives Won’t Stop Calling or Threatening You – California Legal Guide | CPT Law

Family Harassment After a Death: California Legal Options When Relatives Won’t Stop Calling or Threa

California Legal Implications: Family Harassment and Your Rights After a Loved One’s Death

A recent story from Bored Panda highlights a deeply painful family conflict that escalated after a death. In the article, a man who had long been estranged from his twin brother due to a history of mistreatment refused to donate a life-saving kidney. Following his brother’s death, his grieving family allegedly began a campaign of harassing phone calls, blaming him for the loss. While this is an extreme example, it underscores a difficult reality: the death of a family member can amplify existing tensions and lead to destructive behavior. highlights a deeply painful family conflict that escalated after a death. In the article, a man who had long been estranged from his twin brother due to a history of mistreatment refused to donate a life-saving kidney. Following his brother’s death, his grieving family allegedly began a campaign of harassing phone calls, blaming him for the loss. While this is an extreme example, it underscores a difficult reality: the death of a family member can amplify existing tensions and lead to destructive behavior.

In California, when disputes cross the line from grief-fueled arguments into a persistent pattern of unwanted and threatening contact, there are legal remedies available. This type of situation is especially common during the emotionally charged processes of probate or trust administration, where disagreements over inheritance can ignite long-simmering family conflicts., where disagreements over inheritance can ignite long-simmering family conflicts.

If you are facing persistent and unwanted communication from a family member, you are not without options. California law provides a specific tool for these situations: a Civil Harassment Restraining Order (CHRO)..

Understanding Civil Harassment in California

Under the California Code of Civil Procedure § 527.6, civil harassment is defined as a course of conduct that serves no legitimate purpose and causes substantial emotional distress. This can include:
* Unlawful violence or a credible threat of violence.
* A pattern of conduct such as following, stalking, or making repeated, unwanted contact by phone, text, or email., civil harassment is defined as a course of conduct that serves no legitimate purpose and causes substantial emotional distress. This can include:
* Unlawful violence or a credible threat of violence.
* A pattern of conduct such as following, stalking, or making repeated, unwanted contact by phone, text, or email.

The relentless, blaming phone calls described in the source article could potentially meet the standard for civil harassment in California if they were frequent enough to cause significant distress. A CHRO can order the offending party to stop all contact and stay a certain distance away from the victim, their home, and their workplace.

How Harassment Intersects with Estate and Trust Disputes

After a person passes away, disputes can arise over the distribution of assets. A beneficiary might feel an executor or trustee is not acting quickly enough. A disinherited relative might blame those who are set to inherit. These disagreements can unfortunately devolve into harassment. For example, a frustrated beneficiary might bombard a trustee with daily calls and emails, or a family member left out of a will might show up at the executor’s home to make demands. might show up at the executor’s home to make demands.

A CHRO can be a vital tool to create a safe boundary and ensure that the estate administration process can proceed in an orderly fashion, free from intimidation. It allows legal matters to be handled through proper channels—via attorneys and the court—rather than through personal threats and harassment. process can proceed in an orderly fashion, free from intimidation. It allows legal matters to be handled through proper channels—via attorneys and the court—rather than through personal threats and harassment.

The Role of Proactive Estate Planning

This difficult family situation also serves as a powerful reminder of the importance of clear and comprehensive estate planning. While a good plan cannot heal deep family rifts, it can significantly reduce ambiguity and the potential for conflict after you are gone.

A well-drafted revocable living trust allows you to provide clear instructions for your assets, designate a successor trustee you believe can handle the responsibility impartially, and potentially include a no-contest clause. This clause can financially disinherit any beneficiary who challenges the trust’s validity, deterring frivolous lawsuits born from family disputes. By working with an experienced attorney, you can structure a plan that protects your beneficiaries and minimizes the chances of your legacy being tarnished by conflict.. This clause can financially disinherit any beneficiary who challenges the trust’s validity, deterring frivolous lawsuits born from family disputes. By working with an experienced attorney, you can structure a plan that protects your beneficiaries and minimizes the chances of your legacy being tarnished by conflict.

About This Case

Source: Man Refuses To Donate His Kidney To Save Twin Brother, Family Spams Him With Calls After His Death

California Probate and Trust, PC Can Help

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– Experienced California estate planning
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– Experienced California estate planning
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Legal Disclaimer

This article is for informational purposes only. Consult with a qualified California estate planning attorney for advice specific to your situation.

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Washington’s Proposed ‘Millionaire’s Tax’ (9.9% Over $1M): What It Could Mean for High Earners and Families With California-Based Assets – California Legal Guide | CPT Law

Washington’s Proposed ‘Millionaire’s Tax’ (9.9% Over $1M): What It Could Mean for High Earners and F

California Legal Implications: How State Tax Laws Impact High-Net-Worth Estate Planning

A recent news story from KOMO News highlights a proposal in Washington State to introduce a 9.9% income tax on annual earnings over $1 million. While this legislative debate is unfolding in another state, it serves as a critical reminder for high-net-worth individuals and families in California about the profound impact state tax laws can have on financial and estate planning. The proposal in Washington, and similar tax policy discussions nationwide, underscore the necessity of proactive planning to preserve wealth and ensure your assets are managed according to your wishes.

For Californians, who already navigate the nation’s highest state income tax rates, the threat of new or increased taxes is a constant concern. This environment makes sophisticated estate planning not just a good idea, but an essential strategy for financial health. When state tax burdens become significant, high-earning individuals often consider relocating. A move to or from California has major implications for an estate plan due to California’s status as a community property state. Assets acquired during a marriage are treated differently here than in separate property states, and a plan created elsewhere may be ineffective or create unintended consequences if not updated by a California attorney. state. Assets acquired during a marriage are treated differently here than in separate property states, and a plan created elsewhere may be ineffective or create unintended consequences if not updated by a California attorney.

Effective estate planning is about more than just directing where assets go after death; it’s about structuring your finances to minimize tax exposure during your lifetime. For high-net-worth residents, this can involve advanced strategies that go beyond a simple will or trust. Tools such as specialized irrevocable trusts can be structured to hold income-producing assets, potentially shielding them from California’s high state income taxes. Strategies like these require careful drafting and administration by an experienced attorney to ensure they are compliant and achieve their intended goals. can be structured to hold income-producing assets, potentially shielding them from California’s high state income taxes. Strategies like these require careful drafting and administration by an experienced attorney to ensure they are compliant and achieve their intended goals.

Ultimately, news of potential tax hikes should prompt a review of your current estate plan. A well-designed plan provides a comprehensive strategy for managing your assets, planning for incapacity with a Durable Power of Attorney and Advance Health Care Directive, and minimizing tax burdens for you and your beneficiaries., and minimizing tax burdens for you and your beneficiaries.

About This Case

Source: ‘Millionaires’ tax’ legislation officially introduced by Washington state Democrats

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AMD Earnings Volatility and Your California Estate Plan: How to Protect Stock, RSUs, and Concentrated Wealth

AMD Earnings Volatility and Your California Estate Plan: How to Protect Stock, RSUs, and Concentrate

Last updated: February 9, 2026 | Source: Yahoo Finance – AMD Q4 Earnings Report

If you’re a California resident holding AMD stock, restricted stock units (RSUs), or other concentrated tech holdings, the recent earnings volatility serves as a critical reminder: even strong-performing companies can experience dramatic price swings that threaten your family’s financial security. This guide explains how California families can protect concentrated wealth through strategic estate planning—whether you’re navigating probate now or planning for the future.

What Happened with AMD’s Q4 2025 Earnings?

Advanced Micro Devices (AMD) reported Q4 2025 earnings that beat analyst expectations on both revenue ($10.3 billion) and earnings per share ($1.53). Despite this strong performance, AMD’s stock plummeted over 17% in a single trading session. Why?

  • Investor expectations were even higher: Wall Street anticipated a larger earnings beat and more aggressive forward guidance
  • Q1 2026 outlook fell short of the most optimistic projections: While AMD forecasted revenue between $9.5B and $10.1B (still positive), investors wanted more
  • Competitive pressures intensified: Global memory shortages, competition from Nvidia, and customers developing their own AI chips created headwinds
  • Data Center growth, while strong at $5.4B, couldn’t offset concerns: Even with new products like the Helios AI server and MI500 GPUs announced, market sentiment turned negative

    • For California families holding significant AMD positions—particularly employees with RSUs or long-term shareholders with concentrated holdings—this volatility raises urgent questions about asset protection and estate planning.

    Why California Residents with Tech Stock Need Specialized Estate Planning

    California is home to thousands of tech employees and investors who hold concentrated positions in companies like AMD, Intel, Nvidia, Apple, and others. These holdings create unique estate planning challenges:

    1. Volatility Risk and Family Protection

    When a significant portion of your estate is tied to a single stock or a handful of tech holdings, price volatility directly threatens your family’s inheritance. A 17% drop in AMD—like what occurred in February 2025—could represent hundreds of thousands or even millions of dollars in lost value for concentrated holders.

    Common question: “How can I protect my family from stock volatility if something happens to me?”

  • Establish a revocable living trust that includes instructions for diversification timing
  • Name trustees with financial expertise who understand tech sector dynamics
  • Include provisions for immediate liquidity needs versus long-term holding strategies
  • Consider hedging strategies that can be incorporated into your estate plan

    • 2. RSU Vesting and Estate Tax Implications

    Restricted stock units (RSUs) are a common form of compensation at tech companies. When RSUs vest, they’re taxed as ordinary income. If you pass away with unvested RSUs, your estate may face:

  • Immediate income tax on vesting acceleration (many RSU agreements accelerate vesting upon death)
  • Estate tax if your total estate exceeds federal exemption thresholds ($13.99 million in 2025, scheduled to drop to ~$7 million in 2026)
  • California’s high ordinary income tax rates (up to 13.3%) on RSU income

    • Real-world scenario: An AMD engineer with $2 million in unvested RSUs passes away unexpectedly. The RSUs accelerate and vest immediately, creating a $2 million ordinary income event. Combined with California’s top tax bracket and federal taxes, the family could face a tax bill exceeding $700,000—due within months.

    Without proper planning, your family may be forced to sell shares immediately (potentially during market volatility like AMD’s recent drop) just to pay the tax bill.

    3. Concentrated Wealth and Probate Exposure

    In California, probate is required for estates exceeding $184,500 (as of 2025) in assets that don’t have a designated beneficiary or trust structure. Tech employees with concentrated stock holdings almost always exceed this threshold.

    Common question: “What happens to my AMD stock if I die without a trust?”

    Without a properly structured estate plan, your AMD shares will likely go through California probate, which means:

  • 6-18 months of court supervision before your family can access or sell the shares
  • Statutory probate fees based on the gross estate value (typically 4-5% for estates under $1 million, 3% for the next $9 million)
  • Public record of your holdings, which compromises privacy
  • No flexibility to respond to market conditions—your executor cannot sell shares during probate without court approval

    • Imagine your AMD holdings are worth $1.5 million when you pass away. Probate fees alone could exceed $60,000, and if the stock drops 17% during the probate process (like it did in February 2025), your family loses another $255,000 in value—all while waiting for court approval to act.

    How California Families Can Protect Concentrated Tech Holdings

    The good news: with proper planning, you can protect your AMD stock, RSUs, and other concentrated wealth from volatility, taxes, and probate delays. Here’s how California residents are safeguarding their tech holdings:

    Strategy 1: Establish a Revocable Living Trust

    A revocable living trust is the foundation of any estate plan for California residents with significant assets. When you transfer your AMD stock and other holdings into a trust:

  • Your assets avoid probate entirely
  • Your designated trustee can act immediately upon your incapacity or death
  • You maintain complete control during your lifetime (you can buy, sell, or transfer shares freely)
  • Your trust instructions guide how and when to diversify concentrated positions
  • Your family’s privacy is protected (trusts are not public record)

    • Best for: Anyone with more than $184,500 in California assets, especially those with concentrated stock positions.

    Strategy 2: Coordinate Beneficiary Designations with Your Trust

    Many tech employees make a critical mistake: they set up a trust but forget to coordinate beneficiary designations on brokerage accounts, 401(k)s, and RSU agreements. This creates several problems:

  • Assets with beneficiary designations pass outside your trust, fragmenting your estate plan
  • Younger beneficiaries may receive large sums without guidance or protection
  • Ex-spouses may still be listed as beneficiaries on old accounts

    • Solution: Name your revocable living trust as the primary beneficiary on accounts holding AMD stock and RSUs. This ensures all assets are managed according to your comprehensive estate plan.

    Strategy 3: Build in Diversification Instructions

    Your estate plan should include specific guidance on managing concentrated positions. Consider instructions such as:

  • “Upon my death, my trustee shall diversify any single stock position exceeding 20% of the estate value within 12 months”
  • “My trustee is authorized to implement tax-loss harvesting strategies to offset gains from RSU vesting”
  • “For beneficiaries under age 30, distributions shall be limited to 10% of the account value per year to encourage long-term wealth preservation”

    • These instructions give your trustee clear authority to act during volatile periods (like AMD’s recent 17% drop) without requiring court approval or family consensus.

    Strategy 4: Plan for RSU Acceleration and Tax Liquidity

    If you have unvested RSUs, work with an estate planning attorney who understands tech compensation to:

  • Calculate the potential tax liability from RSU acceleration upon death
  • Ensure your estate has sufficient liquidity (cash, life insurance, or easily sold assets) to pay taxes without forced stock sales
  • Consider life insurance as a tax-free source of liquidity for estate settlement costs
  • Review your RSU agreement’s acceleration provisions and incorporate them into your estate plan

    • Case example: A California-based AMD employee with $3 million in unvested RSUs and a $1.2 million home (with $400k equity) establishes a $1 million life insurance policy. Upon her unexpected death, the RSUs vest and create a $1+ million tax bill. The life insurance proceeds (paid directly to her trust, tax-free) provide immediate liquidity to pay taxes, allowing her family to hold the AMD shares long-term rather than selling at the worst possible time.

    Strategy 5: Use Trusts for Asset Protection and Control

    Beyond avoiding probate, trusts offer powerful protections for concentrated wealth:

  • Spendthrift provisions protect inheritances from beneficiaries’ creditors, divorcing spouses, or poor financial decisions
  • Incentive provisions can tie distributions to life milestones (education completion, career achievement, age)
  • Special needs trusts preserve government benefits for disabled beneficiaries while supplementing their care
  • Dynasty trusts can preserve wealth across multiple generations while minimizing estate taxes

    • Common question: “Can I prevent my children from selling their AMD inheritance immediately?”

    Yes. Your trust can include provisions that restrict immediate access, require trustee approval for large distributions, or gradually release shares over time (e.g., 1/3 at age 25, 1/3 at age 30, 1/3 at age 35). This prevents impulsive decisions during market volatility.

    What AMD’s Earnings Volatility Teaches Us About Estate Planning

    The February 2025 AMD earnings report—and the subsequent 17% stock drop despite strong fundamentals—illustrates several critical estate planning lessons for California families:

    Lesson 1: Market Timing Is Unpredictable

    AMD beat earnings expectations and announced positive forward guidance, yet the stock still fell dramatically. This unpredictability makes it essential that your estate plan includes:

  • Flexibility for trustees to respond to market conditions
  • Clear diversification guidelines that aren’t dependent on your personal oversight
  • Liquidity sources that don’t require selling stocks during downturns

    • Lesson 2: Concentrated Positions Require Active Management

    If your estate plan doesn’t address your concentrated AMD holdings specifically, you’re leaving critical decisions to chance—or worse, to probate court. Your family may not have the expertise, authority, or time to make optimal decisions.

    Lesson 3: Tax Planning Can’t Wait

    The difference between proactive tax planning and reactive tax payment can be hundreds of thousands of dollars. With federal estate tax exemptions potentially dropping in 2026 (from $13.99M to approximately $7M per person), and California’s high income tax rates, the window for optimal planning is closing.

    Who Should Consider Specialized Estate Planning for Tech Holdings?

    You should consult with an estate planning attorney who specializes in concentrated wealth if you:

  • Hold more than $500,000 in a single stock (AMD, Nvidia, Intel, Apple, etc.)
  • Receive RSUs as part of your compensation package
  • Have unvested equity worth more than one year’s salary
  • Expect your total estate to exceed $5 million (accounting for potential exemption reductions)
  • Are concerned about how stock volatility could impact your family’s inheritance
  • Currently don’t have a trust or haven’t updated your estate plan in over 3 years
  • Want to avoid probate and maintain privacy for your family

    • Real Client Results: How Proper Planning Protected a California Tech Family

    California Probate and Trust, PC recently worked with a Sacramento-based AMD senior engineer (identity protected for client confidentiality) who held:

  • $2.8 million in vested AMD stock (acquired over 12 years)
  • $1.4 million in unvested RSUs
  • A family home worth $950,000
  • Retirement accounts totaling $800,000

    • Without planning, this $5.95 million estate would have faced:

  • 6-18 months of probate on $3.75M in assets (the home and AMD stock not held in retirement accounts)
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    News Trusts

    Blech v. Blech: When Trust Distributions and Taxes Become a High-Stakes Family Fight in California – California Legal Guide | CPT Law

    Blech v. Blech: When Trust Distributions and Taxes Become a High-Stakes Family Fight in California -

    California Legal Implications: The Critical Importance of Clarity in California Trusts

    A recent California appellate court decision, *Blech v. Blech*, serves as a powerful cautionary tale about the high stakes of ambiguous language in estate planning documents. According to the court opinion published in the Second District Court of Appeal, a family dispute arose from a trust after a major asset, a ranch, appreciated significantly in value after the creator’s death. The conflict centered on how the proceeds and the resulting $2.3 million tax bill should be allocated among the beneficiaries. One son, Raymond, believed he was entitled to the full net proceeds from the ranch sale in addition to his 35% share of the trust. The trustee, and ultimately the court, disagreed. The court found that the trust document intended for the ranch to be a funding source for the son’s percentage share of the trust residue, not a separate, specific gift., a family dispute arose from a trust after a major asset, a ranch, appreciated significantly in value after the creator’s death. The conflict centered on how the proceeds and the resulting $2.3 million tax bill should be allocated among the beneficiaries. One son, Raymond, believed he was entitled to the full net proceeds from the ranch sale in addition to his 35% share of the trust. The trustee, and ultimately the court, disagreed. The court found that the trust document intended for the ranch to be a funding source for the son’s percentage share of the trust residue, not a separate, specific gift.

    This case underscores why precision and clarity are paramount in California estate planning. For families in California, this legal battle highlights several critical lessons about drafting a revocable living trust..

    Specific Gifts vs. Residual Gifts: A Costly Distinction

    The core of the Blech family dispute was whether the gift of the ranch was a specific gift or part of a residual gift. Understanding this distinction is essential for anyone creating a trust.. Understanding this distinction is essential for anyone creating a trust.

    * Specific Gift: This is a gift of a particular, identifiable piece of property. For example, “I give my home located at 123 Oak Street, Anytown, CA to my daughter, Jane.” The beneficiary receives that exact asset, regardless of its value relative to the rest of the estate.
    * Residual Gift: This is a gift of all or a portion of what remains in the trust estate after all specific gifts, debts, taxes, and administrative expenses have been paid. For example, “I give the rest, residue, and remainder of my trust estate in equal shares to my children.”: This is a gift of all or a portion of what remains in the trust estate after all specific gifts, debts, taxes, and administrative expenses have been paid. For example, “I give the rest, residue, and remainder of my trust estate in equal shares to my children.”

    In the Blech case, Raymond argued the gift of the ranch was specific. The court, however, interpreted the trust’s overall structure to mean the ranch was simply the designated asset to help fund his 35% share of the trust’s residue. This misinterpretation by the beneficiary led to expensive and divisive litigation. A well-drafted trust would have used unambiguous language to define the nature of the gift, potentially avoiding the conflict entirely.

    The Power of a Clear Tax Apportionment Clause

    Another key takeaway is the importance of tax allocation. The Blech trust contained a clear provision stating that any income tax liability of a subtrust was to be paid by that subtrust’s beneficiary. Because of this clause, the court had no trouble affirming that Raymond was solely responsible for the $2.3 million in capital gains taxes generated by the sale of the ranch allocated to his share.

    Without such a clause, state and federal laws provide default rules for how taxes are paid, which may not align with the trust creator’s wishes. By including a specific tax apportionment clause, you retain control and direct your trustee on how the tax burden should be shared among beneficiaries. This can prevent disputes over whether taxes should be paid from a specific gift or from the trust’s residue., you retain control and direct your trustee on how the tax burden should be shared among beneficiaries. This can prevent disputes over whether taxes should be paid from a specific gift or from the trust’s residue.

    The Trustee’s Duty to Interpret and Act

    The trustee in this case fulfilled their fiduciary duty by interpreting the trust document as a whole and making allocations they believed were consistent with the creator’s intent. The court’s decision to uphold the trustee’s accounting affirms the critical role a trustee plays in administering an estate. Choosing a trustee who is capable, trustworthy, and able to make difficult decisions is one of the most important aspects of creating a trust. It is also vital that the trust document gives them clear, unambiguous instructions to follow. by interpreting the trust document as a whole and making allocations they believed were consistent with the creator’s intent. The court’s decision to uphold the trustee’s accounting affirms the critical role a trustee plays in administering an estate. Choosing a trustee who is capable, trustworthy, and able to make difficult decisions is one of the most important aspects of creating a trust. It is also vital that the trust document gives them clear, unambiguous instructions to follow.

    The *Blech v. Blech* case is a stark reminder that the words used in an estate plan matter immensely. Ambiguity creates conflict, and family disputes can deplete assets and destroy relationships. Working with an experienced California estate planning attorney can help ensure your wishes are documented with the legal precision necessary to protect your assets and your loved ones.

    About This Case

    Source: Blech v. Blech (B268326) Court of Appeal of California, Second Appellate District, Division Three

    California Probate and Trust, PC Can Help

    – Free consultations: (866)-674-1130
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    – Free consultations: (866)-674-1130
    – Experienced California estate planning
    – Schedule consultation
    – Learn more: cpt.law

    Legal Disclaimer

    This article is for informational purposes only. Consult with a qualified California estate planning attorney for advice specific to your situation.

    Categories
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    Roth v. Jelley Case,

    Roth v. Jelley Case,

    For California Families Managing Trusts and Estates: Understanding Your Rights When Notice Requirements Are Ignored

    If you’re a California resident dealing with a trust or estate—whether as a beneficiary, trustee, or personal representative—understanding notice requirements can mean the difference between protecting your family’s assets and losing your legal rights forever. The California Court of Appeal’s decision in Roth v. Jelley clarifies a critical protection: when trustees or executors fail to provide legally required notice, beneficiaries retain the right to challenge breaches of fiduciary duty indefinitely.

    What Happened in Roth v. Jelley?

    George Roth passed away in 1985, leaving behind a testamentary trust designed to benefit his wife Mary and their three sons. Mary assumed multiple roles—co-trustee, special administrator, and executor of George’s estate. While one son, Jeff, received periodic trust distributions over the years, he never received the complete notice required by California law.

    For 28 years, Jeff didn’t receive:

  • A complete copy of his father’s will and trust documents
  • Notice of his statutory right to petition the court
  • Proper notification when Mary was appointed as special administrator

    • In 2013—nearly three decades after his father’s death—Jeff filed a complaint alleging fraud, breach of fiduciary duty, and intentional misrepresentation. The trial court initially dismissed his claims as “time-barred,” reasoning that too much time had passed and Jeff should have sought relief earlier.

    The Court’s Ruling: No Notice Means No Time Limit

    The California Court of Appeal reversed the trial court’s decision, establishing a crucial principle for California beneficiaries:

  • Without proper statutory notice, the statute of limitations never begins to run
  • Beneficiaries have an unlimited amount of time to seek remedies for breach of trust when notice requirements aren’t met
  • Informal notice doesn’t satisfy legal requirements—trustees and executors must provide the specific notices mandated by California Probate Code sections 8110 and 16061.7

    • What Does This Mean for California Families?

    If You’re a Beneficiary:

    You may have legal rights you don’t know about if:

  • You inherited property or assets through a California trust or estate
  • You never received formal written notice of your rights
  • You suspect the trustee or executor mismanaged assets
  • Years or even decades have passed since your loved one died

    • The Roth v. Jelley decision confirms that California law protects beneficiaries who were kept in the dark. Even if your parent, spouse, or relative passed away years ago, you may still have the right to challenge improper trust administration or estate management if you never received proper notice.

    If You’re a Trustee or Executor:

    This case underscores the critical importance of compliance with California’s notice requirements. Failing to provide beneficiaries with:

  • Complete copies of trust documents and wills
  • Notice of their right to petition the court under Probate Code § 16061.7
  • Proper notice of estate administration under Probate Code § 8110

    • …can expose you to liability indefinitely. The statute of limitations never starts, meaning beneficiaries can challenge your actions decades into the future.

    Real-World Questions This Case Answers

  • How long do I have to contest a trust or estate in California? If you received proper notice, the statute of limitations applies. If you didn’t receive proper notice, there’s no time limit.
  • What if I received some information but not everything? Partial or informal notice doesn’t satisfy California’s legal requirements. You must receive the specific notices mandated by statute.
  • Can I still take action if my parent died 20+ years ago? Yes, if you never received proper statutory notice, the time to file claims doesn’t expire.
  • What constitutes “proper notice” under California law? Proper notice includes formal written notification under Probate Code sections 8110 and 16061.7, including a complete copy of the trust or will and information about your right to petition the court.

    • Case Details

  • Case Name: Roth v. Jelley
  • Citation: E070826
  • Court: California Court of Appeal, Fourth District, Division Two
  • Filed: February 20, 2020
  • Legal Issue: Notice to Beneficiaries – Statutes of Limitation

    • Source: California Lawyers Association – Roth v. Jelley

    Full Opinion: Fourth District Court of Appeal Opinion (PDF)

    Protect Your Family’s Legacy with Proper Estate Planning and Trust Administration

    Whether you’re creating an estate plan to protect your heirs or managing a trust after a loved one’s passing, compliance with California’s notice requirements is essential. At California Probate and Trust, PC, we help California families navigate the complexities of trust administration, probate, and estate litigation with transparency and compassion.

    Our experienced Sacramento-based attorneys understand that dealing with trusts and estates can feel overwhelming—especially when you’re unsure whether proper procedures were followed. We offer:

  • Free one-hour estate planning consultations
  • Comprehensive trust administration guidance
  • Beneficiary representation in trust and estate disputes
  • Clear, transparent legal strategies tailored to your family’s needs

    • If you have questions about your rights as a beneficiary, need help administering a trust, or want to ensure your own estate plan protects your family, contact us today for a free consultation.

    Schedule Your Free Consultation: Visit cpt.law or call (866) 674-1130

    Legal Disclaimer

    This article is provided for informational purposes only and does not constitute legal advice. The information presented is based on the California Court of Appeal decision in Roth v. Jelley (E070826) and general principles of California trust and estate law as of the publication date. Every legal situation is unique, and the applicability of this case to your specific circumstances depends on many factors. This article does not create an attorney-client relationship between the reader and California Probate and Trust, PC. For advice regarding your specific legal situation, please consult with a qualified California estate planning or probate attorney. Laws and regulations are subject to change, and you should not rely on this article as a substitute for professional legal counsel.

    Categories
    Estate Planning

    Catherine O’Hara Looked Noticeably ‘Gaunt’ in Final Appearance Before Her Death—Inside Her Health – California Legal Guide | CPT Law

    Catherine O'Hara Looked Noticeably 'Gaunt' in Final Appearance Before Her Death—Inside Her Health -
    WEST HOLLYWOOD, CALIFORNIA - SEPTEMBER 14: Catherine O'Hara attends Apple TV+'s Primetime Emmy Party Red Carpet at Ysabel on September 14, 2025 in West Hollywood, California. (Photo by Axelle/Bauer-Griffin/FilmMagic)

    California Legal Implications: The Sudden Loss of a Loved One and the Need for Proactive Estate Planning

    The recent and unexpected passing of beloved actress Catherine O’Hara serves as a poignant reminder of life’s unpredictability. According to a news report, Ms. O’Hara died at 71 after a short illness, leaving behind her husband and two children. Her death, while a private tragedy for her family, highlights a critical lesson for all California residents: a medical emergency or sudden passing can happen at any time, and being unprepared can create significant legal and financial burdens for those left behind.

    When a person becomes incapacitated or passes away without a clear, legally sound estate plan, their family is often forced into the California court system to sort out medical decisions and asset distribution. This public process, known as probate or conservatorship, can be stressful, time-consuming, and expensive. A comprehensive estate plan ensures your wishes are known and legally enforceable, protecting your family from these unnecessary complications during a time of grief., can be stressful, time-consuming, and expensive. A comprehensive estate plan ensures your wishes are known and legally enforceable, protecting your family from these unnecessary complications during a time of grief.

    Essential Planning for Medical Emergencies

    The report notes that Ms. O’Hara was hospitalized in serious condition before her death. This scenario underscores the immediate need for incapacity planning documents.

    – Advance Health Care Directive: This legal document is essential for every adult in California. It allows you to appoint a healthcare agent to make medical decisions on your behalf if you are unable to communicate them yourself. It also includes instructions regarding your wishes for end-of-life care, such as the use of life-sustaining treatment. Without one, family members may disagree on a course of action, forcing them to petition a court to appoint a conservator to make these deeply personal decisions for you. to make these deeply personal decisions for you.

    – Durable Power of Attorney for Finances: While an Advance Health Care Directive covers medical decisions, a Durable Power of Attorney covers your financial life. It empowers an agent you trust to manage your finances—pay bills, handle investments, access bank accounts—if you become incapacitated. This ensures your financial obligations are met without interruption or the need for court intervention. covers your financial life. It empowers an agent you trust to manage your finances—pay bills, handle investments, access bank accounts—if you become incapacitated. This ensures your financial obligations are met without interruption or the need for court intervention.

    Avoiding Probate and Protecting Your Legacy

    Ms. O’Hara is survived by her husband and children. To ensure her assets are transferred to them according to her wishes and without court interference, a well-drafted estate plan would be necessary.

    – Revocable Living Trust: For many Californians, a Revocable Living Trust is the cornerstone of an effective estate plan. Assets held in a trust bypass the public, lengthy, and costly probate process. The person you name as your successor trustee can manage and distribute your assets privately and efficiently according to the instructions you leave in the trust. This provides continuity and privacy for your loved ones. can manage and distribute your assets privately and efficiently according to the instructions you leave in the trust. This provides continuity and privacy for your loved ones.

    – Pour-Over Will: A Pour-Over Will works in conjunction with a living trust. It acts as a safety net, directing that any assets you owned outside of the trust at the time of your death are “poured over” into it. While this may require a probate proceeding for those assets, it ensures they are ultimately distributed according to the terms of your trust. proceeding for those assets, it ensures they are ultimately distributed according to the terms of your trust.

    The sudden loss of a public figure is always saddening, but it can provide a powerful catalyst for our own planning. Taking the time now to create a comprehensive estate plan is a final, profound gift to the people you love most.

    About This Case

    Source: Catherine O’Hara Looked Noticeably ‘Gaunt’ in Final Appearance Before Her Death—Inside Her Health

    California Probate and Trust, PC Can Help

    – Free consultations: (866)-674-1130
    – Experienced California estate planning
    – Schedule consultation
    – Learn more: cpt.law

    – Free consultations: (866)-674-1130
    – Experienced California estate planning
    – Schedule consultation
    – Learn more: cpt.law

    Legal Disclaimer

    This article is for informational purposes only. Consult with a qualified California estate planning attorney for advice specific to your situation.