Category: Estate Planning

Transfer of property is a complex legal matter, especially if there’s no will that shows what the deceased person wanted. In this case, the state’s law comes in, and the matter goes into the probate courts. 

The probate courts are the courts that deal with the matter of estate. Then, the court distributes the property to the relatives such as the wife, children, parents, siblings, and so forth, as per California’s intestate succession law. 

Below in this article, we’ll explain the legal process of property transfer after death without a will in North California. This will help you understand the complete legal process and what you should do afterward. 

What Will Happen If A Person Dies Without A Will In North California?

A will is a legal document that individuals who have assets created to nominate who will inherit their property after their death. If there’s no will, the distribution of assets will be according to the law of the state of California. 

For example, the court will consider all legal beneficiaries like spouses, children, parents, siblings, etc. However, there will be a priority order for the beneficiaries whom the court will prefer for the assets. The list of priority orders can be read below:

1. Spouse
2. Children
3. Grandchildren
4. Parents
5. Siblings
6. Nieces and Nephews
7. Grandparents
8. Aunts and Uncles
9. Cousins

If the deceased person has an immediate family, like a wife and children, the property will go to them. In case of no wife and children, the property will go to parents; if there are no parents or siblings, it will go to uncles/aunts or cousins.

It’s important to note that if the deceased person has community property, it will only go to the surviving spouse. The parents, siblings, and other distant relatives can only get the assets from separate property.

Difference Between Community Vs. Separate Property

The difference between community and separate property is the community property is acquired during marriage. Separate property means the assets acquired before marriage and owned by only one spouse. 

For instance, if someone passes away, leaving a spouse and parents, the assets are split this way: all community property goes entirely to the surviving spouse. While separate property would go 50% to the parents and the other 50% to the surviving spouse.

What Happens To The Non-Probate Assets? 

There are many assets that don’t go into the probate court, such as retirement accounts, life insurance policies, joint tenancy assets, POD accounts, etc. This is because these assets already have named beneficiaries, and they go to them. Here’s an example: 

Money from retirement accounts or life insurance policies goes straight to the people the deceased person named as beneficiaries. Bank accounts labeled “payable on death” also smoothly go to the people named when the account holder dies.

How Do You Go Through Probate In California Without A Will?

The first thing to initiate the probate process in California is to file the probate case in court. Remember, it should be done within 30 days of the death. To file this petition, you need a death certificate and also have to pay the court case filing fee. 

Since there’s no will present, the court will appoint someone as the estate administrator. The administrator will notify all beneficiaries, collect asset information, value the assets, gather details of debts, bills, and taxes, and will assist the court in distributing the assets.

What’s A Spouse Property Petition In California?

Spouse property petition is for the surviving spouse, who is also named as a beneficiary for specific assets. If you’re a spouse and named as a beneficiary, it’s best to file this claim as with it; you don’t have to go through the probate. 

However, there’s one important point to consider: it’s only for the assets that come under the community property or when the spouse is named as a legal beneficiary. If these conditions aren’t met, the assets will go through the probate process. 

In the probate process, the court will consider all beneficiaries and will distribute the estate as per the priority order from immediate family to distant relatives. The immediate family will be the first priority, but if there’s no one, then the assets go to distant relatives.

Final Words

Transfer of property without a will in North California is quite complicated. In case of no will, the case goes into the probate court, and the judge decides who’ll inherit the property of the deceased person as per California’s intestate succession law. 

The distribution of the property will be decided carefully. The court will consider which property comes under the community and separate property. For community property, the spouse will be considered the priority, while for separate property, all beneficiaries will be considered as priority. 

To go through the difficult process of probate smoothly, you can hire the probate lawyers of our law firm. We have experienced lawyers who’ll guide you through the complexities of probate and ensure a fair and lawful distribution of assets.

If you’re not medically fit and think that you won’t be able to make decisions in the future, it’s best to use the right of Power of Attorney. In the absence of the Power of Attorney, the court appoints a Guardianship. 

The issue with Guardianship is that a guardian will have much more power and can use them to their benefit. This is not possible with the Power of Attorney, as it allows you to choose a person and give them limited rights under specific conditions. 

In this article, we’ll shed light on how the Power of Attorney prevents abuse of Guardianship. We’ll explain what Guardianship abuse is, what can happen, and how you can save yourself from it. So, let’s get into the details!

What’s Guardianship Abuse? 

Guardianship abuse, in simple terms, is the abuse of Guardianship rights. When a person who has an estate becomes ill and cannot make decisions, the court appoints someone as a Guardian to make decisions on their behalf. 

The issue with Guardians is they have a lot of powers. They can determine whom the ward (the person who’s ill) can meet, live with, or even use the estate management rights for their benefit. One example of such an incident is the case of Douglas Hulse.

He was admitted to the hospital at the age of 80, and the court appointed a Guardian for him. The guardian had the power to make basic decisions about Douglas Hulse’s life, such as where he could live or spend money. 

Instead of taking care of him and making the best decisions, the guardian started selling his property, such as the house and other belongings. This isn’t just one case; but there are numerous similar cases. This is why the Power of Attorney makes much more sense.

How Will The Power of Attorney Protect Your Rights From Guardianship Abuse? 

Now comes the point: What’s Power of Attorney, and how can it protect your rights and estate from guardianship abuse? Power of attorney means the power to appoint someone as an attorney or agent to make decisions related to health, finance, or estate.

What makes Power of Attorney different is it doesn’t provide all rights to the agent, like Guardianship. For instance, you can make a financial POA, general POA, healthcare POA, limited POA, and so forth. 

The benefit of Power of Attorney types is that the person to whom you’ll give Power of Attorney can only make decisions as per the authority you’ve provided. Someone who has medical POA can’t make decisions about what will happen to your assets.

The best part about Power of Attorney is you can decide to whom you want to give this power, not the court. Just make sure that the person you’re appointing as Power of Attorney meets the requirements of California law.

Power of Attorney Requirement In California Law

• Age Requirement: Both the property owner and the chosen individual for power of attorney must be 18 years or older.
• Mental Health: The property owner must be in good mental health for the power of attorney to be considered valid. If they cannot comprehend the situation, it may not be considered valid.
• Signature: The property owner must sign the power of attorney documents in the presence of a notary for them to be legally binding.
• Witnesses: Two adult witnesses are required to sign the papers in the presence of a notary to validate the power of attorney.

The 6 Types of Power of Attorney 

Here are the six main types of Power of Attorney. By reading this, you’ll be able to know what the appropriate type of Power of Attorney is based on the specific needs and circumstances of your medical condition. 

1. General POA

The first main type is the general POA. This type of Power of Attorney gives broad authority to the attorney or agent to make decisions on your behalf for finance or business-related issues. This will be terminated if you die or become incapacitated. 

2. Medical POA

Medical Power of Attorney, as its names suggest, is for the situation when you’re not medically fit and unable to make a decision. In this situation, the person to whom you have given medical Power of Attorney will make all decisions related to health care. 

3. Limited POA

Limited Power of Attorney gives limited rights. For instance, you can authorize someone to make decisions solely related to real estate matters (not all assets). You can even add a time frame that the agent will only make decisions for a specific time. 

4. Durable POA

The durable Power of Attorney means it will remain effective even if you become incapacitated. The person who has durable POA rights will continue to make decisions just like they were making when you were fit medically. 

5. Springing POA

Springing Power of Attorney is a type of POA that can be used in specific conditions. For example, you can give the right to make financial decisions and healthcare decisions to someone in the case if you become incapacitated. 

6. Financial POA 

Financial POA solely focuses on financial matters. It allows appointed individuals to manage the property owner’s financial affairs, including banking, investments, property transactions, and so forth. 

Final Words

There’s no doubt that Power of Attorney prevents guardianship abuse. You can decide who will make decisions on your behalf, not the court, and what authority they’ll have. It allows you to give the appointed person limited power, which isn’t possible with Guardianship.

Just make sure you’re selecting the right type of Power of Attorney. If you want someone to make only financial decisions, choose financial POA; for healthcare decisions, select medical POA. Choosing the wrong option can create a lot of issues in the future.

If you don’t know the laws of California about creating Power of Attorney, you can contact our law firm, CPT (California Probate & Trust), for this purpose. Our experienced lawyers will guide you about the process of creating power of attorney.

If you’re a probate administrator appointed by the court and want to know, does the administrator of an estate get paid in Northern California? This is the right blog that answers all your relevant questions regarding this topic. 

A probate administrator is a person whom the court appoints after the death of someone. It’s only in the case that someone dies without nominating a person, whether it’s from family or friends as an executive. 

One of the biggest misconceptions people have is that the administrator of the estate doesn’t get paid, which isn’t true. Today, we’ll explain how much the administrator of an estate gets paid as per Northern California law and for which duties. 

Administrator Fee As Per California State Law

When the court appoints an administrator for the estate matter, the fee will be paid according to the law. As per California probate code section 10800 administrators get paid as per the total value of the estate. Here’s the overview of the percentage: 

• 4% on the first $100,000.
• 3% on the next $100,000.
• 2% on the next $800,000.
• 1% on the next $9,000,000.
• 0.5% on the next $15,000,000. 
• For amounts over $25,000,000, the court determines a reasonable fee.

Suppose the total value of the estate is $500,000. According to the California Probate Code Section 10800, the administrator fee would be calculated as follows: 

• 4% on the first $100,000: $100,000 x 4% = $4,000
• 3% on the next $100,000: $100,000 x 3% = $3,000
• 2% on the next $300,000: $300,000 x 2% = $6,000

Adding these amounts together, the total administrator fee for an estate valued at $500,000 would be $13,000.

How To Become An Estate Administrator In Northern California?

An executor is nominated by the deceased person in a will. While an administrator is appointed by the court in case no one is nominated for the executor role. The person who wants to become an administrator has to file an application in the probate court. 

Once the application has been received, the court hearings will begin. In the court proceedings, the judge evaluates the administrator’s application to determine whether the person can fulfill the duties and responsibilities of administering the estate.

The judge considers factors such as the applicant’s relationship to the deceased, financial responsibility, and ability to manage the estate impartially. If the court approves the application, the appointed individual receives the legal authority of the administrator. 

What Are The Duties of An Estate Administrator In Northern California?

Now, let’s come to the duties of an estate adminisxtrator in Northern California. The duties are almost similar to the executioner because the purpose is the same. Below, you’ll find details about the primary duties of a probate administrator. 

1. Notify Beneficiaries

The first and main role of a probate administrator is to notify all beneficiaries or every heir of the deceased person. It’s important to note this task should be completed within 60 days of filing a probate case in the court. 

2. Property Valuation

The second primary role is to identify and evaluate the assets to find out the property’s real value so it can be distributed fairly. You can get help from experts who know the market value of the deceased person’s property. 

3. Fulfilling Probate Responsibilities

The third duty of an estate administrator is fulfilling probate responsibilities. It includes following court hearings, filing necessary documents, and communicating with heirs to make sure every beneficiary receives their fair share of the property. 

4. Settling Credit, Debt, and Taxes

The next-in-line duty is finding out details about the creditors and debtors and settling the issue using estate funds. You also have to settle tax dues for the deceased person as per the law of California’s state. 

Administrator Fee In Northern California For The Year 2024: Final Thoughts 

Yes, the administrator of an estate gets paid in Northern California as per the law. The administrators handling larger estates will receive substantial compensation compared to those overseeing smaller ones. 

In return for this compensation, the administrator fulfills various duties. These duties include managing the entire probate process and ensuring every heir receives the rightful share in the property as per the deceased person’s wishes or by law (in the absence of a will). 

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.

Get Help From Our California estate lawyers

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.

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 lawyer can 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.