When Californians begin the process of estate planning with their attorney, they’re often dealing with documents and terms with which they are only vaguely, if at all, familiar. However, it’s essential to understand what these various documents are and the distinct purposes that they serve. Two common ones are a will and a trust.

The purpose of the will is to detail who will receive your assets after you die and whom you are naming to be the executor. The executor is tasked with making sure that the terms of the will are carried out as you have designated.

Trusts, on the other hand, are contracts that detail how assets will be transferred to beneficiaries you have named. The person who creates the trust is the settlor. The person in charge of managing and disbursing the assets in the trust is the trustee.

Many Californians have a will as well as a trust. It all depends on how much money and other assets you have and how you wish those assets to be disbursed before and/or after you die.

There are multiple types of trusts that can be used to set aside money for children and other dependents. You can place your assets into a living trust that will then make things easier for your executors and heirs after you’ve passed away.

Every person’s situation is unique. That’s why it’s essential to sit down with an experienced California estate planning attorney to determine what documents will best help you accomplish your goals for your assets and the people and/or organizations you want to benefit from them.

Source: Lake County News, “Estate Planning: The differences between a trust and a will,” Dennis Fordham, Aug. 05, 2017

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Determining when it is time for a loved one to move into a nursing home is a tough process. Many people try to put this off as long as they can, but doing so can cause some hardships on the caregivers.

Making decisions like this will sometimes take a team effort. Your loved one’s medical care team might assist with this process since they can help you to understand what your loved one truly needs.

Increasingly needing more care

There might come a point when you realize that your loved one is needing a lot more help and care than what they formerly required. This is one sign that you need to consider a skilled nursing facility or an assisted living facility.

Some elderly people might try to stay at home by hiring caregivers, but this isn’t always ideal. Ultimately, you have to think about what is best for your loved one.

Aggressive or violent tendencies

Aggression and violent tendencies can occur as people age, especially when dementia is a factor. This behavior often requires skilled care. Trying to make things work out with keeping the person at home once these behaviors have started could end up making the people who care for them feel resentful.

Safety concerns

Keeping your loved ones safe is a primary concern as they age. This can be difficult to do. As dementia sets in, the person might wander. This could be very dangerous because the person can leave home without people knowing. Once they leave, they might not be able to get back home safely. In these cases, you might need to consider a memory care unit that can keep your loved one safe.

Conservatorship

If your loved one isn’t able to make decisions for himself or herself, you might need to explore the possibility of a conservatorship. A conservatorship means that the court will appoint a conservator to handle the person’s affairs. This can be a person or an organization, depending on what is necessary.

Make sure that you think carefully when you are handling these types of affairs for your loved one. This is a time that requires careful balance because you don’t want the adult to feel like a disenfranchised and powerless child. Instead, work on finding the best balance you possibly can.

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Estate plans are something that your loved ones might have in place to make it easy to handle their estate when they pass away. It is possible that some family members might fight against these estate plans, but they must have a good reason to do so.

At Conver & Grebe LLP, we understand that you are probably ready to just have the whole ordeal behind you. Whether you are the person who is contesting the estate plan or fighting back against it, we can help you assert your side of the case. This is a very difficult time for everyone, so being able to think about things with a clear head might be helpful.

There are several reasons why a person might opt to contest a will. One is that they have reason to think that the person was coerced into making the estate plan in a certain manner. Being coerced into certain decisions can invalidate a will.

We understand that you need to find out how you can handle this situation. The answer isn’t easy. You are likely facing family members whom you love, which makes the situation even more difficult. Unfortunately, there isn’t a way to make this any easier. However, we can help you determine what your legal options are for resolving the situation.

Ultimately, the most important thing in these situations is to ensure that your loved one’s wishes are being followed. When there are questions about the estate plan, this goal is something that might be difficult to attain. We can work with you to determine your options.

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Most of our readers remember the actor Philip Seymour Hoffman. Even if you don’t recognize his name, you likely saw him in one of the many movies he did, including “Hunger Games,” “Doubt,” “Charlie Wilson’s War” and “Capote.” Hoffman died in 2014 of a fatal mixture of drugs. The Oscar-winning actor was found with a syringe still in his arm.

Hoffman had done some planning for his $35 million estate. He reportedly had a certified public accountant draft his will. In it, he left all of his money to his girlfriend to care for the couple’s three children. He did not want to put his children’s money in trusts because he didn’t want them to be “trust fund kids.” However, his will did stipulate that he wanted them to have access to the arts and other cultural opportunities available in major metropolitan cities.

As one California estate planning attorney notes, however, he could have saved his loved ones a considerable amount of money and potential conflicts had he done things differently. Most people don’t have multimillion estates when they die. However, there are lessons to be learned from Hoffman’s estate planning.

If Hoffman and his girlfriend had married, according to the attorney, he would have saved her about $12 million in estate taxes. Of course, marriage isn’t for everyone. However, he could have provided for her with a personal asset trust. That would have helped protect her from potential lawsuits and claims by others against his estate as well as estate taxes paid by her survivors when she dies.

He could also have provided the same protection for his children via trusts. If you don’t want your children to inherit considerable wealth before they’re mature enough to handle it, you can designate how much will be given to them at specific ages, going well into adulthood.

No matter what size your estate is, why give a portion of it to the government via estate taxes, income taxes and probate costs if you don’t have to? It’s important to sit down with an experienced California estate planning attorney to discuss your wishes for your spouse, children and other loved ones as well as the legacy that you want to leave. He or she can work with you to draft an estate plan that will help you do that.

Source: Kiplinger, “Philip Seymour Hoffman’s $12 Million Estate Planning Mistake,” John M.Goralka, accessed July 26, 2017

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Americans are staying single for longer — often through their 20s and into their 30s. Often single people don’t have any kind of estate plan in place, particularly if they have no children and don’t yet own a home or have significant assets.

However, even if you opt not to yet draw up a will, there are a couple of estate planning documents that you should have in place to protect you, ensure that your wishes are respected and save your loved ones considerable stress, time and money should you become incapacitated and unable to speak for yourself. That can happen in a blink of an eye in a car crash or due to some other injury.

Many young people, to the extent that they even contemplate this possibility, assume that their parents will be able to take care of their financial obligations and make health care decisions for them. However, they can’t do this for adult children unless they’ve been granted legal permission, which is either given by their child in advance or they go to court to get it.

One estate planning expert recommends getting a health care proxy and durable power of attorney to give the person(s) you designate the authority to handle these two important areas.

Often, young people choose to designate one or both parents or perhaps an older sibling as their POAs. Some prefer to name their significant other. Just remember that if you and that person break up, you’ll likely want to change that.

An experienced California estate planning attorney can discuss your individual situation with you and help you determine what documents you should have in place and what other steps you should take to best to ensure that your wishes are carried out.

Source: Morningstar, “Estate-Planning for Singles,” Christine Benz, accessed July 19, 2017

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Most California residents want to spare their heirs the difficulty, time and costs associated with probate proceedings. There are a lot of different strategies one can employ to eliminate the need for probate. One way involves the elimination of probate for specific assets, and it involves the use of joint property.

Let’s say you own a classic Mustang convertible and you’d like your grandson to receive the vehicle after you’re gone. However, you don’t want your grandson to wait through probate proceedings to get access to your car. By giving your grandson joint ownership of the vehicle, when you die, the car will automatically be his, and it won’t have to go through probate.

How joint property works to avoid probate

You can establish any piece of property as jointly-owned between you and another person with the “right of survivorship.” In California, there are two primary ways to establish joint tenancy or joint ownership that offer the right of survivorship:

Joint tenancy with the right of survivorship: This is the most common form of joint ownership — for non-married people — in which two people have equal ownership of a property, and in the event that one of them dies, the living partner automatically receives full ownership.

Community property: Another way to establish joint property rights is to get married. In California, since it’s a community property state, getting married means that when you die, all of your marital property will go to your spouse. It is therefore important to draft a will if you wish for specific assets to go to specific people other than your spouse. In the case of those special assets, you might want to create a joint tenancy with the right of survivorship, but first it will be important to gain agreement from your spouse to remove those items from the marital estate.

Consider every contingency when creating your probate avoidance plan

California residents can do more than establish specific property as joint property to avoid probate for their heirs. For example, special trust accounts can be devised to protect more assets from probate. The more you know about probate avoidance strategies, the better you’ll be able to select which strategies are most appropriate for your and your family’s needs.

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If you’re remarrying and haven’t yet created an estate plan, now is the time to do so. It can prevent issues among your children, new spouse and previous spouse if you pass away or become incapacitated to the point where you’re no longer able to speak for yourself.

If you already have an estate plan, good for you! Now you need to look it over with your estate planning attorney to make any necessary changes to reflect your new circumstances and prevent the problems noted above.

We all want to assume that our family members will handle things fairly and be generous to one another after we’re gone. However, that’s not always the case. Following are a few things that you should consider, although there are likely more, depending on your individual situation.

One common source of conflict in blended families after a parent dies is the kids’ inheritances. Too often, because they combine assets with a second spouse, parents unintentionally disinherit their children. The widow or widower gets all of the jointly-owned assets and may or may not choose to share them with their stepchildren.

By putting assets that you intend your children to have in trust accounts, you can ensure that they will receive them. If both spouses have kids, they should each take that step.

Spelling out what happens to the family home if you die is also important. If you want to ensure that your new spouse can keep the home if you die, you can put it in a trust and designate that.

If you owe alimony and/or child support to your former spouse, or you just want to make sure that your ex gets a certain amount of your estate when you die, you should discuss with your estate planning attorney how best to do that. It’s generally a good idea to keep some of your assets separate from your new spouse’s so that you can designate what happens to them when you’re no longer around.

While estate planning isn’t something that most people enjoy including in their wedding preparations, it can prevent headaches, legal battles and added expenses for your loved ones later on. Sit down with your California estate planning attorney before you tie the knot again.

Source: Forbes, “Second Marriage And Estate Planning: 5 Things You May Not Have Considered,” Mark Eghrari, accessed July 11, 2017

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Dissatisfied family members have attempted to challenge wills ever since their creation as a tool to make one’s end of life wishes known and pass on property to heirs. It is, in many ways, a fixture of the process for many families.

These days, however, the notion “I deserve this particular piece of property, it’s my birthright!” carries far less weight than do the terms of the will and the federal and state-level laws that govern estate planning and will execution.

Does this mean that you cannot challenge a will? No, you may still have grounds to challenge a will, but those grounds are much more narrow than many people seem to think they are. Furthermore, depending on the construction of the will itself, challenging a will may mean choosing between an inheritance you don’t prefer and no inheritance at all.

Understanding standing

Standing is a tricky concept, made more so by the fact that it can change subtly or significantly from district to district. In broad strokes, a person who has standing may challenge a will, whereas a person who does not have standing cannot. The difficulty here often lies in determining whether or not you actually have standing according to the specific laws governing our region of California. To fully explore these specific laws and examine the strength of your potential challenge, it is wise to consult an attorney with years of experience practicing in and around Torrance.

In broad strokes, you probably have standing if the will you wish to contest names you, or if you would have inherited something if the decedent had not had a will at all. This generally implies direct heirs or named beneficiaries, but some other exceptions exist.

In many cases, creditors or parties who hold some claim against the decedent’s estate may also challenge a will.

However, if you are, for instance, a lifelong friend of the decedent, or if you are the cousin of the decedent, you probably do not have grounds to challenge the will.

Know what you stand to lose

When considering a challenge to a will, it is crucial to learn whether or not the will contains any “no contest” clauses. No contest clauses create a barrier of risk to anyone who might challenge a will by creating as-written-or-nothing terms on an inheritance.

If you choose to challenge a will that contains “no contest” language, you may not receive anything if your challenge fails. While many states waiver on enforcing no contest clauses, California generally does honor them, so you must do all the necessary homework to determine the strength of your challenge before moving forward. The most recent no contest legislation primarily aimed to weed out frivolous challenges by frustrated heirs.

If you still wish to proceed, build a strong team

While challenging a will is not as easy in California as it is elsewhere, it is still possible in some circumstances. To determine whether or not yours are those circumstances, there is no substitute for consulting with an experienced professional who intricately understands contesting legal agreements in Torrance.

Your team can help you prepare a strong case for the challenge and ensure that you abide by numerous regulations and deadlines throughout the process.

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Many of our readers recall the bitter dispute between Casey Kasem’s wife and his adult children in the year prior to his death. The former American Top 40 host was suffering from Lewy body dementia, among other medical conditions.

Kasem’s three oldest children from his first marriage were battling with his wife Jean over their father’s care. In 2013, the Kasem children went to court to seek more access to their father and decision-making ability over his health care.

In May 2014, they were granted the right to move him from the Santa Monica nursing home where he’d been living up to Washington State. A judge also ruled that, as outlined in Kasem’s 2007 health directive, his daughter Kerri could have more say in his care. A later directive, drawn up in 2011, had given that power to his wife of more than three decades. The following month, the legendary 82-year-old host passed away.

The family’s legal battles continued. The following year, the same children who had fought to care for their father as well as their uncle sued Jean Kasem. Although the Los Angeles district attorney’s office hadn’t found enough evidence to charge Mrs. Kasem with neglect or elder abuse, the Kasems claimed that her neglect had hastened his death. That case is still pending.

Last month, Jean Kasem filed a lawsuit against the three Kasem siblings and others for wrongful death, fraud and negligence. She accuses them of perpetrating a “homicidal guardianship scam” related to Kasem’s treatment after they moved him. She also claims that the elder Kasem children wouldn’t allow her or their daughter to be with him at the end.

Kerri Kasem responded to the allegations that they let their father die, saying, “Everything we did was court-ordered….we tried everything we could to save him.” She also says they asked both Jean and her daughter to join them at their father’s bedside. She asserts that Jean has filed the suit “only to get the media going again.”

Jean Kasem is seeking compensation for medical and burial expenses, lost income, her husband’s pain and suffering and other costs and damages.

While this is certainly one of the more public family battles we’ve seen recently over a loved one who can no longer speak for himself, they happen all too often. It’s essential to have an experienced California estate planning attorney on your side.

Source: Los Angeles Times, “Casey Kasem’s widow files wrongful-death lawsuit against his three eldest children,” Christie D’Zurilla, June 22, 2017

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Even people who don’t have a will or estate plan can designate a beneficiary on their bank accounts. This is known in the banking world as a payable on death (POD) account. It prevents the account from going into probate and allows the beneficiary to have access to the funds simply by presenting the death certificate of the account holder.

If you’re the beneficiary of a POD account, it’s essential to understand what the tax and other financial ramifications are to you before you do anything with the money. It’s wise to consult an estate planning attorney to help prevent any negative unintended consequences. These may include:

– Paying an inheritance and/or federal or state estate taxes. – Determining how much you have to report on your income taxes vs. how much per the deceased person’s estate.

Generally, the beneficiary of a POD reports the value of the account on the date of death.

Another issue that beneficiaries of POD accounts may need to deal with include any of the deceased person’s outstanding debt or bills and paying them out of the POD account they have inherited. This often depends on whether the beneficiary was a co-signer or guarantor on any of the outstanding debt.

The best advice for anyone who inherits a POD account is to consult with the deceased person’s estate planning attorney if he or she had one. If not, it’s best to seek experienced legal guidance in California or whatever state the deceased person lived in. It may also be wise to seek guidance from a tax professional to help minimize any penalties and maximize the funds you inherited, which is likely the intent of the person who left the account to you.

Source: The Balance, “What Happens to a Payable on Death Account When the Owner Dies?,” Julie Garber, accessed June 15, 2017

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