Disinheriting a child in California is a complex process that involves understanding the law and taking the right steps to ensure that the disinheritance is successful. Disinheriting someone can be done for a variety of reasons, including if a child has financial or legal troubles, if the parent wants to leave something to charity or grandchildren, or if the child is receiving public benefits. In California, it is vital to disinherit someone in writing, acknowledging that person specifically, in order to make the intent clear. Additionally, leaving someone $1 as a way to disinherit them can create problems for the successor trustee in administering the estate.
California Law for Disinheriting a Child:
Under the California Probate Code, if you do not have a distribution plan for your estate laid out in a will or a trust, then the probate code will determine who your heirs are and how much everyone will receive. Typically, when disinheriting someone, it would be someone in your direct bloodline, such as a child, grandchildren, and so on.
Why You May Plan to Disinherit Someone:
There are a variety of reasons why you might want to disinherit someone, and not all of them are bad. The most common bad reasons are if the child has a strained relationship and is no longer in the picture. Similarly, if an inheritance may cause harm to the child such as may be the case for a child with a drug or financial problem, or if the child has outstanding child support or alimony, additionally, you may want to disinherit someone if the parent wants to leave something to charity or grandchildren, or if the child is receiving public benefits and the inheritance would disqualify them from those benefits.
If you do plan to disinherit someone, you should do so in writing and acknowledge that person specifically. Additionally, we recommend you schedule to talk with an estate planning attorney who can advise you on legal options that may be available for your specific situation.
Myths About Disinheriting:
One of the most common myths about disinheriting is that you have to leave the person something, even if it is only $1. Leaving someone $1 as a way to disinherit them can create problems for the successor trustee in administering the estate, as the person will still have the right to receive notice and an accounting of all the trust assets, even if they only receive $1.
Disinheriting a child in California is a complex process that requires understanding the law and taking the right steps to ensure the disinheritance is successful. It is essential to disinherit someone in writing, acknowledging that person specifically. In addition, there may be other tools or strategies that may apply to your situation, which an attorney will be able to advise you to ensure your estate is distributed according to your wishes.
Feel free to reach us directly at (916)-634-1204 to schedule a free consultation to talk about setting up your California estate plan.
A charitable gift in an estate plan is a powerful way to honor your values, interests, and beliefs while providing a lasting legacy for your loved ones. With careful planning and the help of a qualified attorney or financial planner, you can make a real difference in the world while also making sure your estate passes on to your heirs in the most efficient way possible.
Including charitable gifts in your estate plan can provide significant tax benefits. Donations to qualified charities are generally tax-deductible and can reduce both your estate tax liability and the amount of inheritance tax on your estate. Charitable giving can also help you support the causes that are important to you, giving you the satisfaction of knowing your legacy will continue long after you are gone.
When deciding how to incorporate charitable giving into your estate plan, there are several options you can consider.
One option is to simply leave a bequest in your will or living trust to a qualified charity. This is a simple way to make a significant contribution to a cause that matters to you without having to go through a complex estate plan.
Another option is to establish a charitable remainder trust. A charitable remainder trust is a tax-exempt trust that can provide lifetime income to you and/or your heirs, while allowing you to make a contribution to a charity of your choice.
You can also set up a charitable lead trust, which is similar to a charitable remainder trust, but the charity receives the payments first and your heirs receive the remainder. This can be a great way to provide financial support to a charity while also providing your heirs with a financial benefit.
Finally, you can designate a charity as a beneficiary of a life insurance policy or retirement account. When you name a charity as the beneficiary of a life insurance policy or retirement account, the proceeds from these accounts will go directly to the charity when you pass away, without being subject to estate or inheritance taxes.
Incorporating charitable giving into your estate plan can be a great way to make a lasting difference in the world while also ensuring that your estate is passed on to your heirs in the most efficient manner possible. With careful planning and the help of a qualified attorney or financial planner, you can make sure that your legacy will live on even after you are gone.
The frequency with which you need to update the terms of your trust will depend on your individual needs and the specific provisions of the trust. Generally speaking, you should review and update the terms of your trust every few years, or whenever there is a change in your circumstances or the law. You should also review and update your trust when a beneficiary reaches the age of majority or when a trustee is replaced. Additionally, you may need to update the terms of your trust if the value of the trust assets change significantly or if you need to make changes to the trust’s investment strategy. Finally, you should review and update the trust when tax laws change or when you need to make changes to the trust’s distributions or other provisions.
Below are several signs you may need to have your trust reviewed and updated?
1. A change in your or a beneficiary’s circumstances.
2. A change in the law.
3. A beneficiary reaching the age of majority.
4. A change in the value of trust assets.
5. A change in the trust’s investment strategy.
6. A change in tax laws.
7. A change in the trust’s distributions or other provisions.
8. A replacement of a trustee.
What is the consequence of not updating your trust regularly?
If you do not update your trust on a regular basis, it could mean that the trust does not reflect current laws and regulations, which could lead to costly and time consuming legal disputes. Additionally, an outdated trust might not reflect your current wishes, which could leave your assets at risk and lead to unintended consequences for your beneficiaries.
If you need help understanding the process of updating your trust, or if you would like to make sure that it is up to date and in compliance with the law, you should consider consulting with an experienced California estate planning lawyer. A qualified lawyer can help you understand the legal requirements and ensure that your trust is properly updated.
A hand with the keys to a new house on the background of an unfinished cottage. Building, project, moving to a new home, mortgage, rent and purchase real estate. To open the door. Copy space
Your estate plan should incorporate any assets you own as investments, such as second homes.
Estate planning for rental property owners is a bit different than for those who own their primary residence. Since rental properties are usually considered business assets, they can be subject to different taxation rules and require special consideration when creating an estate plan.
Why is Estate Planning important for Real Estate Investors Owners?
Estate planning is an important part of financial planning for real estate investors. Estate planning helps to ensure that your assets are distributed according to your wishes after you pass away. It also ensures that your heirs are not burdened with unnecessary taxes or legal fees. Additionally, estate planning can help to protect your assets in the event of a lawsuit or other legal dispute. Without an estate plan, your assets could be subject to probate, which can be a lengthy and expensive process. An estate plan can help to make sure that your assets are distributed according to your wishes, and that all of your beneficiaries are taken care of.
What are common Concerns Real Estate Owners consider as part of their estate planning
Real estate owners often have to consider a number of issues when creating an estate plan. One of the most important considerations is ensuring that the property is properly titled and that the deed is properly recorded. Additionally, real estate owners should consider whether or not they wish to keep the property in their name or transfer it to an LLC or other entity. It is also important to consider how taxes will affect the estate, and to ensure that all necessary documents and paperwork are in order. Finally, real estate owners should also consider how they wish to pass on the property to their heirs.
Here are three tips to help you plan for the future of your rental property when creating your estate plan:
1. Choose the Right Entity
The first step when creating an estate plan for rental property owners is to choose the right entity to hold the property. For instance, some rental property owners choose to hold their properties in a limited liability company (LLC). This type of entity provides liability protection for the owner and can help to separate personal assets from business assets.
2. Determine How to Pass on the Property
Once you have chosen the right entity to hold the property, it is important to determine how you want to pass on the property. This could be done through a will, a trust, or even a transfer on death deed. These are all tools that can be used to pass on rental property to your heirs.
3. Consider Tax Implications
When creating an estate plan for rental property owners, it is important to consider the tax implications of the plan. This includes any taxes or fees that may be applicable when transferring the property to your heirs. It is also important to consider whether or not the rental property will be subject to estate taxes, which can vary from state to state.
By considering these three tips, rental property owners can ensure their estate plan is properly structured to protect their investment.
Creating an estate plan can be a complicated process, especially for those with rental properties. However, taking the time to consider how your rental property should be handled can help to protect your investment and ensure that it is passed on to your heirs in the most efficient way possible.
How can an estate attorney can help when planning an estate plan with Rental Properties?
An asset protection lawyer can help real estate owners when creating an estate plan for their rental properties. An asset protection lawyercan help to ensure that the property is properly titled and that the deed is properly recorded. Additionally, an asset protection lawyer can advise on the best way to transfer the property to heirs or to other entities. Furthermore, an asset protection lawyer can help to ensure that all necessary documents and paperwork are in order and that any taxes or fees associated with the transfer of the property are taken care of. An asset protection lawyer can help to make sure that your estate plan is structured properly and that your heirs are taken care of.
Cropped shot of a grandmother getting kissed on the cheeks by her two adorable granddaughters
California laws surrounding inheritance are complex, even in situations where there is a comprehensive estate plan. Even if you do not expect it to happen, there is still a chance the heirs to your property could disagree with their inheritance after you’re gone. By speaking with an attorney experienced in California inheritance law, you can make a clear plan for how your assets will be managed and distributed, so there is no room for dispute.
At California Probate and Trust, our estate attorneys can develop a customized and effective inheritance plan that meets all your needs.
When you consult with an attorney at California Probate and Trust, we will discuss the details of your assets and how you would like them to be distributed after you’ve passed away. We will then come up with an inheritance plan to address both your assets and debts. An inheritance plan for liquid assets looks different than one you would use for assets such as property, bonds, and securities. We will evaluate the types of assets you want to give your beneficiaries and ensure they will properly inherit them.
At the same time, we will also consider the financial situations of each of your beneficiaries. This step is important because their life will change, either a little or a lot, when they receive their inheritance. We’ll consider their debts you know about and whether they have an estate plan already. Using this knowledge, we can make the necessary arrangements so they receive their inheritance in a manner that is beneficial rather than burdensome.
The team at California Probate and Trust have many years of experience in helping individuals get peace of mind about the future of their assets. The result of our work together is a smart and efficient plan that will properly distribute your beneficiaries’ inheritance under California law.
Contact Our California Team Today
Our firm helps high net worth clients with planning and protecting their wealth legally. Our firm has the knowledge you need to handle all matters involving inheritance preparation and/or estate planning under California law. Every situation is different, and our approach is completely personalized and customized to your unique situation and goals for today and the future, for you and your family.
If you need assistance or advice, please contact our professionals to discuss the details of your situation. Call (916) 634-1204 to speak with a member of our team today.
A revocable trust, also known as a living trust, is a legal document that allows an individual (known as the grantor or trustor) to transfer their assets into a trust that is managed by a trustee for the benefit of the trust’s beneficiaries. In California, homeowners have several reasons for why they should consider creating a revocable trust as part of their estate planning.
One of the main reasons for having a revocable trust is to avoid probate.
Probate is the legal process of distributing a deceased person’s assets to their beneficiaries. In California, probate can be a long and costly process that can take several months or even years to complete. By placing their assets into a revocable trust, homeowners can avoid the probate process and ensure that their assets are distributed to their beneficiaries in a timely and efficient manner.
Another reason for having a revocable trust is to maintain privacy. Probate proceedings are public, which means that anyone can access information about the deceased person’s assets and beneficiaries. By placing their assets into a revocable trust, homeowners can keep the distribution of their assets private and protect the privacy of their beneficiaries.
A revocable trust also allows homeowners to plan for the possibility of incapacity.
If the grantor becomes incapacitated, the trustee can step in and manage the trust assets on their behalf. This can be particularly important for homeowners who have a large estate or complex financial holdings, as it ensures that their assets are managed and protected even if they are unable to do so themselves.
A revocable trust also allows homeowners to protect their assets from creditors.
Once assets are transferred into a trust, they are no longer considered the property of the grantor and are thus protected from creditors. This can be particularly important for homeowners who are concerned about the possibility of lawsuits or other legal actions.
Finally, a revocable trust allows homeowners to control how their assets are distributed after their death.
The grantor can specify in the trust document how their assets should be distributed to their beneficiaries and can even include conditions or restrictions on the distribution. This allows homeowners to ensure that their assets are distributed in a manner that reflects their wishes and provides for their loved ones.
In conclusion, California homeowners have several reasons for why they should consider creating a revocable trust as part of their estate planning. A revocable trust can help avoid probate, maintain privacy, plan for incapacity, protect assets from creditors, and control how assets are distributed after death. It’s a valuable tool for anyone looking to ensure the efficient and orderly distribution of their assets and for protecting their loved ones. However, it’s important to note that a revocable trust is just one of many estate planning tools available and should be considered with your estate planning attorney in the context of an overall estate plan.
Please note: This website provides information, content, and materials that are not intended to provide legal advice, but rather serve as a general resource for information. Information on this website may not constitute the most up-to-date legal or other information. Please schedule a free consultation to talk with an estate attorney for answers to your specific legal questions and legal advice for your specific case.
Estate planning is an essential task that all individuals should undertake, regardless of their age or net worth.
It allows you to plan for the future and ensure that your assets are distributed according to your wishes. However, creating an estate plan can be a complex and confusing process, and many individuals choose to hire a lawyer to help them navigate the process. In this blog post, we will discuss the benefits of hiring a lawyer to help you create your estate plan.
Legal Expertise:
An estate planning lawyer has the knowledge and expertise to help you navigate the legal aspects of estate planning. They can advise you on the best legal documents to use, such as a will, establishing a trust, or power of attorney, and ensure that your documents are legally valid and enforceable. They can also help you understand the tax implications of your estate plan and ensure that you are taking advantage of any tax benefits that may be available to you.
Customized Solutions:
A lawyer can help you create a customized estate plan that is tailored to your specific needs and goals. They can take into account your assets, family dynamics, and future plans to create an estate plan that is right for you. They can also help you plan for any contingencies, such as incapacity or long-term care, and ensure that your assets are protected in case of any unforeseen events.
Peace of Mind:
Hiring a lawyer to help you create your estate plan can give you peace of mind knowing that your assets are protected and your loved ones are provided for. A lawyer can ensure that your estate plan is legally sound and that your assets will be distributed according to your wishes. They can also help you avoid common mistakes that can be costly and time-consuming to fix in the future.
Time-Saving:
Estate planning can be a time-consuming process, but hiring a lawyer can save you time and effort. A lawyer can handle the legal paperwork, research, and other tasks associated with estate planning, allowing you to focus on other important matters.
Cost-Effective:
While hiring a lawyer may seem like an added expense, it can actually be cost-effective in the long run. A lawyer can help you create an estate plan that is tailored to your needs and goals, which can save you money in the long run by avoiding costly mistakes and potential legal issues.
In conclusion, estate planning is an important task that all individuals should undertake. Hiring an estate lawyer to help you create your estate plan can offer many benefits, such as legal expertise, customized solutions, peace of mind, time-saving, and cost-effectiveness. An experienced lawyer can help you navigate the legal aspects of estate planning, ensure that your documents are legally valid and enforceable, and ensure that your assets are protected and your loved ones are provided for. It’s important to consider the value of hiring a lawyer when planning your estate.
Please note: This website provides information, content, and materials that are not intended to provide legal advice, but rather serve as a general resource for information. Information on this website may not constitute the most up-to-date legal or other information. Please schedule a free consultation to talk with a lawyer for answers to your specific legal questions and legal advice for your specific case.
Do you think estate planning is only for the rich? If so, you’re not alone. Many people have a misconception that estate planning is for people who own five houses, have millions of dollars in the bank, make two-million dollars per year, and fly to exotic locations worldwide on a whim.
But this is simply not the case. If you live in California and you’re over the age of 18, you owe it to yourself and the ones you love to consider and implement an estate plan.
What Is Estate Planning?
Before we delve into the five reasons why you need an estate plan, let’s first define estate planning. An estate plan is a written plan that identifies who will be in charge of your life and affairs when you cannot manage them yourself. If you’re thinking, “That’s never going to happen to me,” think again. Chances are, you’ve known people who’ve developed a chronic, debilitating illness that rendered them unable to make crucial decisions about their healthcare and assets. Sure, most of us share a goal of living the life of our dreams, growing old naturally, and then passing away in our sleep, surrounded by family and friends. It’s a lovely vision, but unfortunately, it’s not the reality for most of the population.
Instead, as we age, we tend to require more and more assistance with life’s essential functions – from personal hygiene and dressing to driving and shopping. Yes, we can always identify the rare case of an older adult that can still live alone, drive, climb a flight of stairs, cook, and even hear with no problems. More commonly, however, as we age into senior citizens, we lose some of these abilities. Whether we become hearing-impaired, lose our ability to see well, struggle to make it up and down the stairs, deal with fading memory, or generally slow down physically, it’s in our best interest to implement an estate plan. Here are 5 reasons why you need an estate plan
With An Estate Plan, You Can Avoid Being A Burden on Your Loved Ones
An estate plan defines expectations and clarifies roles, eliminating any confusion your children might have about their responsibilities in the aftermath of your passing. They will know and understand precisely how to proceed according to your wishes. On the other hand, if you fail to implement an estate plan, your family could be forced to spend everything they have to care for you, especially if you’re an aging parent. If there’s unresolved conflict, you could run the risk of kids or scam artists stealing your money.
When you create and implement a proper estate plan with the help of an attorney, your children can get on your bank accounts and house deed, pay the bills, and access your medical records when you lose the ability to handle these matters on your own. An experienced estate planning law firm will not only put the plan together, but they will also connect all assets to the estate plan and ensure that everyone involved understands their roles. For example, they will educate the people appointed to be the power-of-attorney or healthcare attorney to prepare them to fulfill these responsibilities. It creates peace of mind, knowing that you may not know what tomorrow brings, but at least you are ready for it.
Without an Estate Plan, When You Get Sick, the Government Gets Involved
A system does exist to take care of you when you cannot take care of yourself. Yes, you read that correctly. You don’t need an estate plan, a power-of-attorney, a healthcare directive, a will, or a trust. The catch? When you get sick and cannot make healthcare decisions independently, the government makes these decisions for you. Consider that for a moment: is there even one aspect of your life you would entrust to the government? We’re not talking about enlisting in the military and serving in an overseas war. We’re referring to what you eat for breakfast, where you live, the clothes you wear, the medicine you take, the doctors you consult, the family members who can visit you, the gifts you can give to your church, the charities you support, and even the bed you choose. Can you honestly say you trust a government official to make one or any of these decisions in your best interest? By creating an estate plan, you entrust your medical and healthcare decisions to those you love (and love you) — versus handing them over to the government or the court systems.
Setting up an Estate Plan Preserves Family Unity After You Die
When people get sick or die, it places an intense emotional strain on family relationships. Throw in money and jealousy, and the situation becomes even more fractured and difficult. Setting up an estate plan with clearly written, easily understood directives can help preserve the family bonds long after you pass away. You can experience peace-of-mind knowing that your children can get along and gather together for Thanksgiving and Christmas every year for years to come. In the absence of an estate plan, you risk leaving them to fight over money, real estate, whoever got to be the power-of-attorney, or who got a better Christmas present when they were five. Ultimately, these relationships will wither and die. You can prevent this from happening and preserve your children’s relationships with a well-planned, written, and implemented estate plan before you leave this earth. Perhaps the most meaningful benefit of a proper estate plan is the sustainment of family unity.
An Estate Plan Ensures the Right People Get The Right Assets at the Right Time
Even in the closest of families, some relationships are fraught with conflict. A well-devised estate plan guarantees that the right people will get the right assets at the right time – as long as it’s updated to reflect your most current desires. For example, if your daughter marries a guy you consider a “loser” and you don’t want to leave her anything, lest he inherits some of your assets through marriage, you should amend your estate plan. If you have specific requirements, for example, “I want my son to receive $100 a month,” or “I want my daughter to live in my house on the condition that she never sells it,” your attorney can help you clearly state these conditions in your estate plan. The bottom line? An estate plan formulated by an experienced attorney and updated as necessary will ensure the fulfillment of your directives.
Probate is the process of hiring a lawyer and going to court, which assumes responsibility for:
Paying all your taxes
Paying all your debts
Distributing whatever is left to your heirs
The entire process takes about a year to complete and distribute inheritances to your children. However, if your beneficiaries fight over these assets, it adds time and expenses to the process – not to mention unnecessary stress. Keep in mind that the California Probate Code mandates probate fees, not your attorney. If all of this sounds like a massive headache you’d prefer to avoid, you should meet with an estate planning attorney to prepare your estate plan, which you will need to fund and sign.
Is the thought of the government taking your stuff or controlling your estate after you die giving you nightmares or insomnia? Do you worry about becoming a burden to your family?
Download our free guide, 7 Questions Every Senior Needs to Ask Before Hiring an Attorney. Or, call our 24-hour hotline at (916) 306-0388 and leave us your name, phone number, and mailing address. We’ll send the guide to you ASAP.
Listen to California Probate and Trust, PC Dustin Talk About Estate Planning Issues
Estate planning is the process of creating a plan to protect your family and financial interests in the future. It can give you peace of mind and provide for the financial security of your loved ones. For those who are new to estate planning, there are a few key steps that can help you get started.
Why Estate Planning Should Be a Priority
Estate planning is essential for everyone, and it’s especially important for those who have loved ones that depend on them financially. Without an estate plan, you have no control over who will handle your estate and how it will be distributed when you die. This can lead to difficult decisions that may not be in the best interest of your family. An estate plan will ensure that your wishes are carried out in accordance with the law, and it will provide financial security for your loved ones.
How Estate Planning Can Give You Peace of Mind
Estate planning can give you peace of mind knowing that your loved ones will be taken care of in the future. It can provide clarity and direction in the event of your death or incapacity, ensuring that your wishes are followed. You can also plan for long-term care and medical decisions, ensuring that you’re taken care of in the event of an illness or disability.
Preparing for a Meeting with an Attorney
When you’re ready to create an estate plan, it’s important to find an experienced attorney who can help you through the process. Before you meet with your attorney, it’s important to gather all of the necessary information, including a list of all of your assets, a list of debts, and any documents that may be relevant to your estate plan. You should also make a list of questions that you want to ask your attorney, such as how they will handle the distribution of your assets, and whether they can provide guidance on long-term care or medical issues.
Questions to Ask Your Attorney
When meeting with your attorney, it’s important to ask questions about the estate plan that you’re creating. Here are a few questions to consider:
• How will my assets be distributed after my death?
• How can I protect my assets from creditors or lawsuits?
• What legal documents do I need to create an estate plan?
• Are there any tax considerations that I should be aware of?
• How can I make sure my estate plan is updated as my life changes?
Ready To Get Started
Creating an estate plan is an important step in protecting your family and financial interests in the future. At California Probate and Trust, PC, our experienced attorneys can help you create an estate plan that meets your needs and goals. We offer free consultations, so don’t hesitate to contact us today to get started.
Many grandparents who are financially stable love the idea of making gifts to their grandchildren. However, they are usually not aware of the myriad of issues that surround what they may consider to be a simple gift. If you are considering making a significant gift to a grandchild, you should consult with an estate planning attorney to guide you through the myriad of legal and tax issues that are involved in creating a living trust, also called a revocable trust or making such gifts.
Making a Lifetime Gift or a Bequest:
Before making a gift, you should consider whether you want to make the gift during your lifetime or leave the gift in your will. If you make the gift as a bequest in your will, you will not experience the joy of seeing your grandchild’s appreciation and use of the gift. However, there’s always the possibility that you will need the money to live on during your lifetime, and in reality, once a gift is made it cannot be taken back. Also, if you anticipate needing Medicaid or other government programs to pay for a nursing home or other benefits at some point in your life, any gifts you make in the prior five years can be considered as part of your assets when determining your eligibility.
What Form Gift Should Take:
You may consider making a gift outright to a grandchild. However, once such a gift is made, you give up control over how the funds can be used. If your grandchild decides to purchase a brand-new sports car or take an extravagant vacation, you will have no legal right to stop the grandchild. The grandchild’s parents could also in some cases access the money without your approval.
You could consider making a gift under the Uniform Gift to Minors Act (UGMA) or the Uniform Transfer to Minors Act (UTMA), depending on which state you live in. The accounts are easy to open, but once the grandchild reaches the age of majority, he or she will have unfettered access to the funds. You could also consider depositing money into a 529 plan, which is specifically designed for education purposes. Finally, you could consider establishing a trust with an estate planning attorney, which can be more expensive to set up, but can be customized to fit your needs. Such a trust can provide for spendthrift, divorce and creditor protection while allowing for more flexibility for expenditures such as education or purchase of a first home.
Tax Considerations in Estate Planning
Tax Consequences: If you have a large estate, giving gifts to grandchildren may be a great way to get money out of your estate in order to reduce your future estate tax liability. In 2011 and 2012, a single person can pass $5 million at death free of estate tax, and a couple can pass a combined $10 million without paying estate taxes. In addition, a person can give $13,000 in 2011 to any number of individuals without incurring any gift taxes. A grandparent with 10 grandchildren could give $130,000 per year to all grandchildren (and a married couple could give $260,000), thereby removing that property from his or her estate.
