The Swedes have a word –“dostadning” — that literally means “death cleaning.” This unpleasant term refers to something that many people do as they get older and downsize to a smaller home or assisted living facility. It’s getting rid of things you don’t use, need or have room for. There’s even a book called The Gentle Art of Swedish Death Cleaning.

If you’ve gotten to the age where you’re simplifying and decluttering your life, don’t forget to do the same with your finances. Just as getting rid of old clothes and furniture makes things easier for your loved ones after you’re gone, so does consolidating your financial “clutter” like accounts and credit cards.

It’s also a good idea to place your accounts in as few institutions as possible. This paring down and consolidation of accounts, like the decluttering of your belongings, will help your loved ones handle your estate after you’re gone.

You can further simplify your finances by setting up automatic payments for everything from utilities to newspapers to homeowners’ association dues. This simplifies the payment process and helps protect people who become more forgetful with age — as most of us do. Automatic payments can also be helpful if you are incapacitated, whether for a short or long period.

It’s also essential to make sure that you have designated one or more trusted family people in your estate plan to have powers of attorney over your finances and health care decisions if you are unable to do so. By having a health care directive in place as well, you can codify your wishes for things like what type of life-prolonging measures you wish to have taken.

While decluttering your home, gather the documents that your estate administrator and others may need when you die or if you become incapacitated. Keep them in one place, and let the appropriate people know where they are. These include:

Also create “in case of emergency” files that your trusted person or heirs will need. These might include:

• Estate plan documents
• Military records
• Insurance policies
• Birth and other certificates
• Driver’s license, Social Security card and other identification
• List of your accounts, loans and credit cards
• Property title documents
• Emergency contact information (including your attorney’s name and phone)

If you need help determining how best to go about your financial “dostadning,” your California estate planning attorney can provide valuable guidance.

Source: USA Today, “Estate planning: How to ‘death clean’ your finances,” Liz Weston, NerdWallet.com, Dec. 21, 2017

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There may come a time when a loved one, such as a parent, is no longer able to care for him- or herself. As disappointing as this may be, you need to do the right thing by helping this person make sound decisions regarding their future.

You may come to find that moving your loved one into an assisted living facility is the best thing you can do. Here are some of the signs that point toward this happening:

• Accidents, such as falls around the home, that are becoming more frequent as the months go by
• A slow recovery after an illness or injury
• A health condition that continues to get worse
• Difficulties managing day-to-day activities, such as cooking and bathing
• Noticeable weight gain, meaning that your loved one may not be eating enough and/or caring for him- or herself in the appropriate manner
• Changes in appearance (for the worse)
• Signs of withdrawal, such as no longer wanting to spend any time with friends or family
• Spending too many consecutive days at home, all without any desire to leave

These are not the only signs that your loved one may need to move to an assisted living facility. However, these are a few of the signs that often come to the forefront early on.

Even though you may struggle with your role in helping this person transition into an assisted living home, you don’t want to ignore the situation and hope for the best.

In addition to talking things over with your loved one, don’t hesitate to involve your family doctor. This person can provide additional information, including an inside look at the health benefits of moving to an assisted living facility.

You want what’s best for your loved one, and that may mean talking about the benefits of moving him or her to assisted living. Once you know how to approach the subject and what the move entails, you’ll feel more comfortable moving forward.

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For many of us, our companion animals are an integral part of the family. However, too many of them end up in animal shelters after their guardians become unable to care for them or pass away because those guardians didn’t plan for their future.

Sometimes, people assume that family members will care for their animals when they’re no longer around. However, one bite by a frightened dog or clawing by a cat who doesn’t enjoy his new home may put an end to that.

Increasingly, Californians are including their companion animals in their estate plans via what’s commonly called a pet trust. Your attorney may refer to it differently. However, the purpose is to designate a caregiver for your animals, provide money for their care and leave instructions for the type of care you expect them to have.

These instructions can be as general or detailed as you choose. Most people just want to be assured that their animals will be in a safe, loving home where they’ll have a good quality of life and that they’re cared for if they become sick. Others may want to specify the type of food they get or the number of walks they go on each day.

You can also name your executor or someone else to monitor the animals’ care by the designated caregiver after you’re no longer around. That executor will probably be the one to provide the funds you’ve stipulated to your animal caregiver, either in a lump sum or periodically.

It should be stipulated that the funds in the trust are to be used solely for the care of your animals. You may want to designate a remainder beneficiary for whatever funds have gone unused after the last animal has passed away, or you may choose to let your caregiver keep the remaining funds.

Of course, as with any trustee, it’s essential to make sure that the person you designate as your animal caregiver is able and willing to take on the responsibility, and that you update the trust if it becomes necessary to designate someone else.

While these trusts aren’t legally recognized in all states, here in California, they have been for nearly a decade. Therefore, many California estate planning attorneys can provide guidance in drafting the language for your pet trust based on your wishes for your animals’ care.

Source: The American Society for the Prevention of Cruelty to Animals, “Pet Trust Primer,” accessed Dec. 27, 2017

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Someone close to you is working on his or her estate plan and has asked you to be the executor. You’re honored and a little frightened. What does it involve? Do you want to take on the responsibility? Do you have the time, temperament and skills necessary?

People often choose the closest family member or friend they have as their executor without considering what the job entails and whether that person is the best person to do it. That’s why before you say yes, it’s essential to understand what being an executor requires, and to do some honest self-evaluation.

Organization is a key attribute of a good executor. You’ll be dealing with legal, financial, property and family issues. It’s essential to keep track of all of your communications. Depending on how thorough the person was in his or her estate planning, you may be searching for assets or finding debts and other unexpected matters that you have to deal with.

An ability to deal calmly with highly-emotional matters and personalities is also key. Some people choose not to discuss their estate with potential heirs and beneficiaries, leaving the executor to be the bearer of bad news to those who didn’t receive what they expected (or anything at all). Even if those conflicts don’t erupt, you’ll have a very big job at a time when emotions will be running high. You’ll need to focus on what the deceased wanted.

Do you have the time to deal with this? Being an executor can be extremely time-consuming and labor-intensive. If you have a full-time job, you may not have the time to do the job properly. Further, if you don’t live nearby, you’ll have to commute some distance to handle legal matters, get the assets, such as the house, ready for sale and ensure that the decedent’s belongings go where they’re supposed to. It’s not unreasonable to ask for some sort of compensation from the estate for your time and work, particularly if you’re not a beneficiary.

If you are considering accepting the position, ensure that the estate plan is thorough and regularly updated. This can help make your job considerably easier. You may want to ask your relative or friend for a copy of the estate plan and to join in on a meeting with his or her California estate planning attorney before you give your final answer.

Source: AARP, “Things to Know About Being an Executor of Estate,” Carole Fleck, Dec. 12, 2017

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Many people put off creating a last will or estate plan as long as they can, often until they approach retirement or start worrying about who will care for their children. Unfortunately, many people every year pass away without having any instructions regarding how their possessions and estate should be handled in the event of their death.

For family members, loved ones and others close to the deceased, realizing that there was no last will can be quite frustrating. In the state of California, those who die intestate (without a will) risk possessions and other assets getting distributed in a manner that doesn’t reflect their wishes. Their loves ones, especially intimate partners not bound legally by marriage, could end up in a very precarious situation.

California law mandates how assets are handled without a will

The law in California gives due consideration to standard marital relationships. If your spouse dies without leaving a last will, you will certainly receive some of the assets from the estate. How much of it, however, will depend on if your spouse has surviving parents, siblings or children. If the spouse is the sole survivor, he or she will receive the entire estate.

If there are children, the spouse inherits any community property shared with the deceased, as well as a half or a third of the spouse’s separate property, with the remainder going to the children. In cases where a deceased spouse had siblings but no surviving parents or descendants, the surviving spouse will split the separate property with the siblings.

In cases where there is no spouse, parents, siblings or children, assets would pass to nieces and nephews first. Barring that, the estate would pass to grandparents, aunts or uncles and then great aunts and uncles, or even the children, parents or siblings of a spouse who passed on previously. In a situation with no legal family members, the entire estate becomes the property of the state of California.

Probate court is very likely in your future

If you had a close relationship with someone who died suddenly without a will, chances are good that you will end up in probate court. In fact, you may have to fight to receive anything at all if you weren’t married. Even in situations of prolonged cohabitation and intermingled finances, extended family could claim all the assets of the deceased, even the home you shared.

While you certainly don’t want to damage the memory of your loved one by becoming contentious over his or her assets, you need to consider what your loved one would have wanted. If you discover someone you love has died without a will, you should look closely at the situation and prepare yourself for the potential of probate court if the estate has a value of $150,000 or more.

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If you’re in your 20s, you’re likely paying off student loan debt, perhaps trying to save up for a better car or even a home and navigating your first job out of college. Likely, the last thing you’re thinking about is estate planning. However, you should be.

Estate planning isn’t just for people who have boats, beach houses and millions of dollars in assets to bequeath to their loved ones. Estate planning documents let you give people authority to handle decisions about your health care and to take care of your financial obligations like bills and loan payments if you become sick or injured and are in a condition that prohibits you from doing so.

Having the right health care documents is particularly important. You can give your health care proxy instructions for making important medical decisions, such as under what conditions you want to remain on life support. That’s not fun to ponder, but would you rather have your family squabbling over your bedside?

Besides designating one or more people to handle medical and financial issues if you can’t, with a simple estate plan, you also designate where your assets go. You probably figure that your parents will just get your meager bank accounts. However, without a will in place, they may have to go through probate to do that at a time when they’ll no doubt be grieving. Further, the probate process could cost more than the assets you have.

You may not think you have much, but don’t you want to be the one to decide where it goes? Do you want your siblings fighting over things that may not have great monetary value, but carry significant sentimental value?

If you have a 401(k) through your employer and/or other types of investment accounts, leaving them to your designated beneficiaries in your will isn’t enough. You need to make sure that you’ve also designated those beneficiaries with the financial entities that hold the accounts.

An estate plan for a young person without significant assets doesn’t have to be an expensive proposition. It generally only requires a few documents. While it may be tempting to use one of the many do-it-yourself online options, it’s essential to do it right, or you’ve simply wasted your time. An experienced California estate planning attorney can provide valuable guidance to help make things easier for your loved ones should the unexpected happen.

Source: U.S. News and World Report, “Why You Should Start Estate Planning in Your 20s,” Maryalene LaPonsie, accessed Dec. 15, 2017

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When you and your attorney are crafting your estate plan, you’re obviously focused on where you want your assets to go after you die — to family members, non-profit organizations and other beneficiaries. You also need to make important decisions about how to help your heirs avoid probate and what executors to choose for various aspects of your estate.

However, even people who take great care in their estate planning often forget to ask themselves one very important question: What kind of legacy do I want to pass on to my loved ones?

A legacy isn’t defined just by what organizations you leave money to. It includes your values, beliefs and what you’ve learned over the years. These non-financial assets may mean more to your family than any property or money you leave them.

Some people remain close to their children and grandchildren and discuss these things regularly. However, too many people end up thousands of miles away from their offspring and grow apart over the years. Many people know even less about their grandparents beyond the people they remember only as senior citizens and a few photos of them in their youth.

Leaving a written legacy document for your children and future generations doesn’t have to involve penning a memoir. It can be as simple as a letter that talks about what you learned from your parents and other mentors that shaped your life and beliefs and what values you hope your heirs will carry on.

Studies have shown that young people who know about their heritage have greater self-esteem, better coping skills and more empathy. Why have celebrities flocked to shows like “Finding Your Roots” and “Who Do You Think You Are?” No matter how successful you are, there’s a need to know where you came from.

Beyond a written or spoken document, people often leave artwork that’s been significant to them, books they’ve found inspiring and record albums they’ve treasured. It’s one thing to simply bequeath those to your heirs. It’s another to explain why they were important in your life and why you hope future generations will have an appreciation for them.

If you’re not sure where to start on the legacy portion of your estate, there are plenty of resources online. Your California family law attorney can likely provide some guidance as well.

Source: Kiplinger, “Does Your Estate Plan Have a Gaping Hole?,” Laura A. Roser, accessed Dec. 06, 2017

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Imagine you suffer from a catastrophic health event. Maybe you have a stroke or you get into a car accident that leaves you unconscious and incapacitated. Your sister — who is the closest person to you — arrives at the hospital and asks the doctor about your condition and the doctor refuses to give her the information.

In refusing to disclose information, the doctor cites the Health Insurance Portability and Accountability Act. He says to your sister, “I’m sorry. There’s nothing I can do. You need to go to the court and get the proper authority before I can share your brother’s medical information with you.”

Your relatives can access your medical information with a HIPAA release

HIPAA, or the Health Insurance Portability and Accountability Act, safeguards the privacy of medical information pertaining to patients. Much like the principal of attorney-client privilege, in which a lawyer can’t share your personal details with other people without your permission, HIPAA prevents doctors from sharing your medical data with others. While privacy is always good, HIPAA can present challenges in the event of an emergency.

Different hospitals treat HIPAA privacy differently. In some cases, hospitals and doctors are very strict and — even if your named health care power of attorney tries to gain access to your medical information — the medical provider won’t share your medical records. This is why everyone should incorporate a HIPAA release into their estate planning. Your HIPAA release will designate a specific person to be your “HIPAA representative” with whom medical providers may share your vital information.

The HIPAA release permits doctors to discuss your medical situation with the person you specify. Often, your HIPAA representative will be the same person you name as the attorney in fact in your health care power of attorney documentation.

Consider signing up for a health care document security service

Health care document security services, like Docubank, are companies that safeguard all of your health care documents. The service costs under $50 per year and you’ll receive a card that you can keep inside your wallet. This card will provide an ID number and phone number that medical providers can reach in order to receive (1) your complete medical records and (2) the person you’ve designated in your HIPAA release and power of attorney documentation to make decisions regarding your medical care.

There’s no reason for things to be more difficult than they already are in the event that you become incapacitated. With the right kind of estate planning steps, you can make things easier on your loved ones.

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One of the main reasons individuals elect to set up a living trust is to ensure that their assets can be passed on to their loved ones per their wishes without having to go through probate.

Setting up one can also serve as an easier way for an individual to manage his or her assets if he or she becomes incapacitated. It also can ensure that the beneficiaries of the trust maintain a certain decorum long after you’re gone in order to continue receiving payouts from it.

Taking time to meet with an attorney to set up a living trust is only one preliminary step in the living trust creation process.

The second, and perhaps most important step, is referred to as “funding a trust”. It involves taking the assets you’ve decided to place into the trust and actually transferring ownership of them over to it.

If you plan to transfer real estate to the living trust, then you’ll need to go through the process of having the property titled in the trust’s name instead of your own.

The same logic applies if you have financial instruments like either brokerage, banking or retirement accounts that you wish to turn over to the trust fund. With bank accounts, you’ll need to set up a new account in the trust’s name to house the funds. If you have investment accounts, then you’ll have to change your beneficiaries listed to reflect the trust as your new designee.

Without taking time to follow both steps listed above, your trust is likely to carry very little weight in the eyes of the courts.

If you’re considering setting up a living trust and want to make sure that it is done so correctly, then a Los Angeles probate and estate administration attorney can provide guidance along the way.

Source: Pasadena/San Gabriel Valley Journal, “Myths Concerning the Revocable Living Trust,” Marlene S. Cooper, Nov. 08, 2017

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Many people who are old and/or sick rely on non-family caregivers in the later years of their lives. Not surprisingly, they often want to remember these people in their will.

However, if other family members weren’t aware of what a special bond their loved one had with a caregiver and weren’t kept up-to-date on the provisions of that loved one’s will, they might reasonably believe that the beneficiary exerted undue influence to get the will changed. They might even suspect that their family member’s signature was forged or coerced.

Sometimes, caretakers of people with cognitive impairment are guilty of coercion or fraud to get a large inheritance. That’s addressed in the California Probate Code under Section 21380. It presumes that inheritances left to people in those positions are the result of undue influence or fraud. The code also extends those presumptions to others — including romantic partners and people living with the deceased near the end of his or her life.

If the will is contested, those people who had the opportunity to exert undue influence on a person or take advantage of his or her mental or physical vulnerabilities to extract an inheritance that wasn’t intended have the burden of proof that they didn’t do so. If they can’t, they may have to pay some of the fees associated with the will contest.

When a loved one’s will or other estate plan documents are amended in the later years of their lives to include people to whom they are close (maybe closer than they are with their family), it can be understood that family members are suspicious. That’s particularly true if they were expecting what was bequeathed to someone else.

That’s why it’s essential to notify family members and other beneficiaries of changes to your estate plan that impact them. This can help avoid a nasty and costly probate battle.

If you have a loved one whom you believe could be taken advantage of, talk to that person’s estate planning attorney or seek guidance from another California estate planning attorney.

Source: Wealth Management, “Gifts to Caregivers,” Michael J. Fedalen, accessed Nov. 24, 2017

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