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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Nearly everyone here in Southern California has stayed at a Marriott hotel at some point. The Marriott company is the world’s largest publicly-traded hotel chain. However, all is not well with the family behind it.

John Marriott III is alleging that his father has forced him out of the business and has taken away his trust fund and essentially disowned him. He says that these actions were taken because he divorced his wife two years ago. The Marriotts are Mormons. That’s a religion in which divorce is strongly discouraged.

John Marriott, who is 56 years old, is suing his father and uncle, who control the trust that was established by their parents, for breaching their fiduciary duty.

The family battles go back more than a decade. John, who once held a high position in the Marriott company, admits that he has had issues with alcohol and drugs. However, he says that they have never impacted his work for the family company. He claims that his father gave him Valium when he was just 12 to relieve his anxiety, saying ‘You have everything you need. Go back to bed.’”

He says that when he told his parents that he and his wife were divorcing, his father told him, “You’re leaving the family.” He claims that his father threatened to make his substance abuse issues public unless he resigned from the company.

John Marriott, who is suing his father and his uncle, says that his loss of salary and the amount of money in the trust add up to the loss of millions of dollars a year in income. He also says that he no longer has a relationship with his mother or siblings.

He told the media, “Since the divorce, my dad has tried to take away everything that I’ve earned and everything that my grandparents left for me, basically to punish me for not maintaining the image of the perfect Mormon family.”

Most family trust disputes don’t involve this amount of money. However, it’s essential to understand the terms of any trust in which you’re named a beneficiary. If that trust is cut off, an experienced California estate planning attorney can advise you of your potential legal options.

Source: Washingtonian, “Marriott’s Former Heir Apparent Sues His Father,” Marisa M. Kashino, Oct. 30, 2017

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As we grow older, there comes a time when it is wise to consider giving another person the authority to make important legal and financial decisions on our behalf. These individuals may have a variety of duties, depending on the needs of the person they serve, and may go by a number of titles denoting their specific obligations and privileges. For the sake of brevity, we’ll address legal guardianship.

When you begin considering who should serve as your guardian, it is important to understand the kind of person who is likely to serve you well. Should you allow emotional factors or pre-existing relationships to carry too much weight as you consider your options, you may choose a guardian who does not fully meet your needs, or who may use your resources unfairly.

As with any matter that affects estate planning, it is always a good idea to consult with an established estate planning attorney who maintains a reputation of fair dealing. An experienced estate planning attorney can help you identify all of your estate’s needs and address many issues before they cause lasting trouble.

What makes a good guardian?

Acting as a guardian is both a privilege and a great responsibility. As you consider who within your community may best serve your needs, it is important to assess not only a candidate’s qualifications, but also his or her character.

Guardianship exists at the intersection of personal and professional matters, and a guardian who lacks strong personal character may take advantage of the position for personal gain at your expense. Consider these questions in your search for a suitable guardian:

• Do you believe that the candidate values and practices honesty and integrity, both personally and professionally?
• Does the candidate manage personal affairs in a responsible manner in his or her own life?
• Does the candidate engage in substance abuse that may alter his or her judgement?
• Does the candidate have any sort of criminal record?

Many individuals who make a mistake and find themselves on the wrong end of the law may make excellent guardians after learning a valuable lesson. However, they may not meet the legal requirements to serve as a guardian if they have a felony conviction on their record.

Similarly, you want to consider the professional qualifications of any candidate. While many different people may successfully serve as guardian for you and your estate, the more experience a person has in financial and legal matters, the more effective that person may prove in the long run.

Don’t hesitate to seek professional guidance

As you consider your options in guardianship, you may find that an objective professional third party is useful in your search. Seeking legal guidance can help you assess your needs and opportunities and ensure that you understand the full scope of the issues at hand.

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If you are an estate administrator tasked with the probate of an estate involving a large, expensive art collection, there are certain things that must be done in order to preserve harmony among the beneficiaries.

Paintings, sculptures and other artwork can have great sentimental as well as financial value. While not negating any of the sentimental value for the beneficiaries, estate administrators must concern themselves primarily with the market value of the collection as a whole and for each individual piece as well.

Along with the goal of determining as equitably and peacefully as possible which heir receives which piece of art, estate administrators should also try to minimize the taxes that will be owed.

Estate administrators’ first tasks should be to preserve the integrity of the collection. This may entail changing the locks or hiring security to protect the assets. It may be necessary to move pieces to climate-controlled storage facilities designed to hold fine artwork as the estate wends its way through the probate process.

For tax purposes, there is an uptick in value when art changes hands after a death. Thus, it may be appropriate to require all heirs to pay their own specific share of the taxes.

In order to derive an accurate valuation of the collection, a professional art appraiser should be retained. This person can also arrange an art auction if the heirs prefer to sell their legacies.

It should be noted that art collectors during their lifetime may benefit from selling their collections to dodge the estate taxes. A Los Angeles estate planning attorney can devise a charitable unitrust that is tax exempt but allows the art collector to collect distributions of the proceeds at regular intervals. These disbursements will be taxed as income instead of being hit with 28-percent capital gains taxes. The remainder of the funds is then left to the charity chosen by the collector upon his or her death.

Source: The Wall Street Journal, “Tips for Dividing Art in a Divorce or Death,” Daniel Grant, accessed Nov. 10, 2017

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