Developing an estate plan is essential to making sure that your wishes are carried out after your death regarding inheritances and donations to charity. It’s also important for detailing your wishes should you become too incapacitated to speak for yourself.

However, most people have life changes after their estate plan is drafted that require some changes. If you have any of these changes, it’s essential to speak with your California estate planning attorney to determine what updates need to be made to your estate plan.

— Having children: In addition to including your new child in your will or developing a trust for him or her, you should designate a legal guardian who will care for your child if you and your spouse both die or become incapacitated.

— Getting divorced: If your spouse was a beneficiary, executor, trustee and/or power of attorney, you’ll likely want to make changes to your estate plan. The same may be true if your spouse’s relatives are listed in your estate plan. It’s a good idea to discuss this with your family law attorney while you’re going through the divorce process so that you don’t violate any terms of the divorce agreement.

— Getting remarried: Too often, people don’t realize how remarriage will impact their children’s inheritances. Their kids end up getting nothing, while their new spouse gets everything. If you want to ensure that your children inherit what you wish them to, talk with your estate planning attorney about how to do this.

— Change in assets: If you have a significant change in your net worth, whether through income or inheritance, you may want to change the amount designated to beneficiaries if it was a specific amount or if the percentage designated for them is now larger than you think they can handle. You may also choose to spread your increased wealth among more beneficiaries.

— Illness or death: If one of your executors or powers of attorney dies or is no longer able to carry out the designated responsibilities, you’ll want to designate someone else unless you already have secondary people designated.

If you’re unsure whether changes in your life warrant a change to your estate plan, your attorney can advise you. If you have a well-drafted plan, you’ve probably provided for such changes already. Even if you haven’t, changes to an estate plan are generally relatively easy to make.

Source: Forbes, “6 Reasons To Revise Your Estate Plan As Soon As Possible,” Mark Eghrari, Jan. 02, 2017

Posted in Trust Administration | No Comments »

Often, when people do their estate planning, they include their grandchildren only as alternative beneficiaries. That means that they receive an inheritance only if their parent (the grandparent’s child) dies before the grandparent. Even if someone dies without a will and has no living children, grandchildren will receive the assets that would have gone to those children.

Some Californians choose to include provisions in their will to designate inheritances specifically for their grandchildren. They may want to provide for their education. That can also be accomplished by setting up a College Education Savings Plan (commonly known as a 529 Plan).

Some people trust their grandchildren to spend the money more wisely than their parents would. They may also be concerned that their grandchildren’s parents won’t have anything to leave them.

Regardless of the reason for making your grandchildren primary beneficiaries, doing so requires skilled planning and knowledge of California’s estate laws to ensure that your intentions are codified accurately.

When leaving money or other assets to a minor, there are special procedures that need to be followed. Many people open a Child Uniform Transfer to Minors Act account. The assets in a CUTMA account can be used only for the minor’s benefit. The minor is the owner of the account, but the account is managed by a designated custodian. When the minor reaches 18 or another designated age, the custodian is required to close the account and give the funds to the owner.

When grandparents want to leave a sizable amount of money or property to a minor, it’s generally best to set up a trust. Unlike with a CUTMA account, a separate trust is not necessary for each child. In addition, the assets don’t have to be given to the child when he or she reaches a particular age. Grandparents can designate when and how much of the money will be distributed. They can make changes if they feel as their grandchildren get older that they aren’t yet ready for the responsibility of handling the assets in the trust.

Your California estate planning attorney can provide more detailed information about your options for bequeathing money and/or other assets to your grandchildren and discuss the pros and cons of each option based on your unique situation.

Source: Lake County News, “Estate Planning: Gifts and inheritance for grandchildren require planning,” Dennis Fordham, Jan. 07, 2017

Posted in Estate Planning | No Comments »

A recent blog touched on the topic of getting a parent to accept that he or she can no longer live alone and requires the care assisted living can provide. This entry will delve deeper into the topic while detailing how adult children can get an accurate – yet informal -assessment and evaluation of their parent’s cognitive state.

Those who see their parent frequently in the familiar environment of the parent’s long-time home environment may miss early signs of cognitive impairment. Remember that it is relatively easy for someone to function normally at least for a short while when there are no distractions or unfamiliar territories to navigate. It’s the adult children who see their parents only infrequently (due to distance, work schedules or whatever reasons) that can be alarmed by the obvious physical and mental deterioration between visits.

Beware of parents’ compensating behaviors

In the early phases of the disease, while it can be incredibly frightening for them to confront, most dementia patients are aware that they are losing mental ground. Because this is so alarming to them, they may go to great lengths to conceal these slippages from others, including spouses, who may also be grappling with the same frightening symptoms.

Approximately 10 percent of those age 60 and over have a degree of significant memory loss. Most of us of all ages have moments where we simply blank out and can’t remember what we did with the car keys or the TV remote. That’s not dementia. If all of a sudden we can’t remember what happened to our car or forget the name for the screen with pictures of the people on it, that would be a good indicator of a memory problem linked to dementia.

Pay attention to the way your parents go about their daily tasks. If your mom baked a loaf of banana bread from scratch without a recipe every week for the past 50 years but now suddenly must revert to a recipe, or worse, can’t manage to bake it at all anymore, she could be suffering from the early symptoms of Alzheimer’s disease.

Watch out for a decline in hygiene, housekeeping and pet care

Maybe your father retired from the Navy and always kept the house in shipshape order, wore clean clothes and close-cropped hair. But on this visit, the house is unkempt, his clothes are unwashed and for the first time in your lifetime, you’ve seen his hair longer than his ears. He might smell a little musty, too, from neglecting to take a daily bath or shower.

If the beloved family dog suddenly is growing thin from not being fed regularly, and the water bowl is dry when you visit, these are additional signs that Mom or Dad just can no longer get it together to maintain themselves and their pet.

Other worrisome indicators

Offer to take your father out for a shave and a haircut to his favorite barber. Maybe he is simply unable to get around as well as before and neglected his appearance because of that. But watch as he interacts with the man who has jovially “lowered his ears” for the past three decades. Does your dad appear to know the man and interact appropriately with him or does he mumble his answers and avoid eye contact with his former friend? That could be a sign that he no longer has any idea who the barber is or why he is even there.

Repetition of stories is part of many older folks’ method of communicatio n, but if they repeat themselves only minutes after saying something or become hopelessly lost at following a conversation, dementia may have set in.

What to do when there are red flags waving

This is the hardest part of all. Whatever response you have should come from a place of love. It may be time to get mom or dad conserved through the California courts, but perhaps a heart-to-heart talk could achieve the same results. Should you need to initiate conservatorship proceedings, first develop a plan with an attorney who is experienced in handling such matters.

Posted in Trustees Executors & Fiduciaries | No Comments »

Virtually every adult, no matter how young and healthy, should have a will and possibly other estate planning documents. An estate plan, even a simple one, can save loved ones time, stress and money if something happens to you.

An estate plan lets you designate how you want your assets distributed. They may not appear valuable to you, but you never know what kind of emotional value they may have to family or friends. You can also designate whom you want to handle your estate and to make decisions for you if you’re unable to do so for yourself. With an estate plan, you can designate under what circumstances you want to be kept alive — saving loved ones that burden and conflicts that can rip families apart.

If all of that isn’t enough to convince you to have an estate plan, the birth of a child should. Many Californians don’t consider drafting a will or other estate planning documents until they have a child.

One of the most important considerations for new parents is who will take guardianship of their child if both of them should die. This may not be an easy decision, and people’s feelings may get hurt. However, it’s one that needs to be made. Of course, it’s essential to make sure that whomever you choose is willing and able to take on that responsibility.

Often, the people chosen to be guardians are also the ones chosen to manage the money you leave for them. However, that doesn’t have to be the case. You can designate one couple or individual to care for your child and another one to manage his or her money. Of course, it’s important that those people get along and will work in tandem to do what’s best for the child.

Developing an estate plan, particularly when there are guardianship issues for children involved, can involve some difficult conversations — not just between the couple, but with family and close friends. Experienced California estate planning attorneys can help guide you through these.

Source: NerdWallet, “Congrats on Your New Baby! Now It’s Time for an Estate Plan,” Brian McCann, Dec. 22, 2016

Posted in Estate Planning | No Comments »

Every day in California and around the country, people die without a will. Some of these deaths are through accidents and therefore unexpected. Others involve older people who never got around to putting an estate plan in place because they didn’t want to contemplate death or just didn’t think that they had enough assets to worry about.

However, regardless of the value of a person’s assets, there are state laws under the California Probate Code that must be followed when a person dies without a will. This is known as dying “intestate.” Therefore, surviving family members will have to deal with these intestacy laws in probate court.

Here are a few important things to know:

— When people die intestate in California, the assets are divided among the spouse, children, grandchildren and other descendants, parents and siblings.

— If the person had no living parents, children or siblings, but was married, the spouse gets the entire probate estate.

— If the person who died had descendants but no living spouse, those descendants get the entire estate.

— If the person had a spouse and children, the spouse gets half of the estate and a third of the decedent’s separate property. The children will get a portion of the separate property as well.

If there is a surviving spouse and parents and/or siblings but no descendants, those other family members will get a share of the separate property.

— If there are no descendants, parents, siblings or spouse, other family members will divide up the estate.

Of course, in some cases, family members don’t actually inherit anything because the decedent’s debts were greater than his or her assets. Further, the costs of dealing with an estate in probate need to be paid. Therefore, those will cut into any assets left by a decedent.

People who don’t have a lot of assets don’t generally need an elaborate estate plan. A simple will can help ensure that what assets they have are distributed as they choose. Further, it can save loved ones time and money during at a difficult time in their lives. If a family member died without a will, an experienced California estate planning attorney can provide valuable advice for handling the probate estate and dealing with probate court.

Source: The Balance, “Dying Without a Will in California,” Julie Garber, accessed Dec. 29, 2016

Posted in Probate | No Comments »

California seniors move into assisted living communities for a variety of reasons. Sometimes they just want to be free of responsibilities like home maintenance, cooking and cleaning. Many newly widowed people feel isolated and want the socialization that these communities provide. Some people need a little help with activities of daily life (ADL) like bathing and dressing as they get older.

Whatever brings you to this move, don’t forget that it will likely require an update to your will and other estate planning documents — particularly if you’re selling your home. If you’re purchasing a home in a senior community, make sure that the new home is included in your estate plan.

Are you selling or giving away other property as you move and downsize? It’s important to remove those items from your estate plan.

If you’re moving to another state, whether into or out of California, you’ll need to update your will and all of your estate planning documents to ensure that they conform with state laws. Estate planning laws vary significantly among states, and many California laws are considerably different than those in other states.

This is a good time to do a thorough review of your estate plan and make sure that everything is current — including things like your address, emergency contact information, advanced health care directive and the fiduciaries you’ve chosen. Are you still comfortable with your executor, trustees and those to whom you’ve given power of attorney (POA)? If you’re moving some distance, you want to make sure that the people you’ve chosen are within a reasonable geographical range or at least willing and able to travel if they have to.

Any move is a significant life event that warrants a review of your estate plan. With experienced legal guidance, you can help ensure that all of the necessary changes are made and that it reflects your current wishes.

Posted in Estate Planning | No Comments »

You’re growing worried about your parent. Alzheimer’s has set in, and memory issues have turned into safety issues. Maybe a stove was accidentally left on. Maybe your parent got lost outside of the house and couldn’t get home. You think it’s time for mom or dad to go into an assisted living center, just for the sake of safety.

You may have all of the good intentions in the world, but what if your parent doesn’t want to go?

You can suggest that it’s time to live in a home, you can point out the reasons why, but you can’t force your parent’s hand. If you bring him or her to an assisted living center, and your parent decides to leave, the staff often can’t do anything about it.

Focus on the end goal

One option you may have is to seek to become your parent’s legal guardian. If you’re given this power, you can then make the best decisions for your parent, which could include forcing him or her to move out of the family home and into an assisted living facility. This is tough. It’s emotional. You may feel terrible about it. But you can do what must be done to keep your parent healthy and safe. Focus on that end goal.

It is hard to get this power, though. Typically, judges allow people to have individual rights and freedoms for as long as possible. They don’t want to encourage on this too soon. If your parent doesn’t want to move and is lucid enough to show the judge he or she can make rational decisions, your request may be denied.

Sometimes, elderly people sign away these rights voluntarily. You may be given a power of attorney to make decisions for your parent if he or she can’t do so. You can get the rights to make medical decisions, financial decisions, and legal decisions. Many parents do this as part of their estate planning, knowing both that it may be necessary and that it’s best to do it in advance.

Knowing your options

When this really becomes a tough situation, though, is when your parent has not planned ahead and you think you need to force his or her hand for one’s own good. It is possible, but it’s far harder to do. This is why it’s so important to know about the legal options you have, when to build a case, and how to build it. A lack of rational decision-making ability must be demonstrated.

No child wants to be in this position, but it’s sometimes imperative to help those who, due to the unfortunate impact of aging, can no longer help themselves. If you’re looking at the future and wondering how to make the best possible decisions for your parent, make sure you know how the legal process works. As tough as it is to talk about, the key is to do what you know is right and to provide the help your parent needs when it is so desperately needed.

Posted in Trustees Executors & Fiduciaries | No Comments »

Approximately half of all Americans have no estate plan — not even a will. Many people understandably don’t want to contemplate their own demise. Others assume that their family will sort things out once they’re gone. Some think that they don’t have enough assets to make it worthwhile.

However, by not having an estate plan, your family will have likely have to spend time and money dealing with probate during an already difficult period. Conflicts often break out over who gets what — even relatively small assets.

If you’re married to someone who doesn’t want to discuss a will, there are a number of considerations to bring up that should change his or her mind. It’s helpful first to make a list of all of your assets. Many people have more than they realize, particularly if they own a home.

If you have young children, it’s essential to designate guardians for them. This will involve a conversation with whatever family members or friends you choose to ensure that they’re able and willing to take on that responsibility.

Whether your kids are still young or grown, you should consider when and how they will receive their inheritance. Getting a substantial amount of money all at once can lead to disaster for some people. You may want to designate that they receive a certain amount every year or that it be used only for specific purposes, like higher education.

There are many reasons why you may not want to give your children an equal share of your assets. Perhaps one is more prosperous than the other. Maybe one has participated in your caregiving more than the other. It’s important to determine how your assets will be bequeathed and discuss this with them so that they understand your thinking.

Determining who your trustees and powers of attorney will be is an essential part of estate planning. Most spouses designate each other. However, what if something happens to both of you? Designate secondary choices and make sure that those people are able and willing to do it.

Finally, drafting a will is a good time to talk about end-of-life care. You can make your wishes known so that the burden of these decisions doesn’t fall on your loved ones. An experienced California estate planning attorney can help guide you through the entire estate planning process so that you have the necessary documents in place.

Source: TIME Magazine, “Half of Americans Don’t Have a Will. Here’s How to Fix That for Your Family,” Kerri Anne Renzulli, Nov. 30, 2016

Posted in Trustees Executors & Fiduciaries | No Comments »

If there’s anything that people dread discussing over family holiday get-togethers more than politics, it’s financial issues. However, the holiday season brings family members together who rarely if ever see each other during the rest of the year. Therefore, it is practical time to discuss serious matters like estate plans.

The conversation can flow naturally when multiple generations of family are together. For many older people, this is a chance to gift cherished heirlooms to family members while they’re still alive. Why not let someone enjoy what you’re not using and avoid family infighting when you’re gone?

The holidays are also an optimal time for a more formal discussion with adult kids about your estate plan. This includes not just what assets you plan to leave, but the legacy you’d like to see your family carry on. As one certified financial planner says, “It can be a discussion about the oldest generation’s wishes and desires for the future.”

Estate planning also includes end-of-life wishes. These should be included in your estate planning documents so that you don’t have children and other family members in conflict over when it’s time to let you go.

In addition to detailing your wishes in your estate planning documents, it’s best to discuss them with your kids while they’re all together. It’s also easier on everyone to have these discussions while you’re healthy rather than waiting until you’re facing a serious and perhaps terminal illness.

If you’re leaving money to your grandchildren in the form of a 529 college savings plan or a trust, this is a good time to discuss the importance of money with them. Many grandchildren have no idea how hard the generations that came before them worked to accumulate the money that they take for granted.

If you need some advice on how best to broach these delicate subjects with your family, your California estate planning attorney can help.

Source: US News & World Report, “Financial Conversations You Should Have During the Holidays,” Susannah Snider, accessed Dec. 13, 2016

Posted in Estate Planning | No Comments »

At this very moment, there are hundreds, even thousands, of individuals throughout California who have been handed the awesome responsibility of administering a substantial estate. For each, there are many ways that even the most well-intentioned executor or administrator can allow things to fall through the cracks.

The truth is, properly administering an estate is a matter of managing details. There may be numerous assets that require an accounting, and there is not much room for guesswork when you’re trying to get it right.

So, you’ve been handed the great responsibility of handling an estate, either for a loved one who has passed away or become incapacitated. What are you going to do?

Get the right help sooner than later

The headline here could just as easily have been “Get proper help before you need it,” but the fact of the matter is that if you’ve been given this responsibility, then that time has already come.

California probate and estate planning laws are not a simple matter, but they can be effectively navigated, provided you have the right tools.

Regardless whether the estate you have been tasked with handling is valued in the millions, or if it simply exceeds the probate threshold of $150,000, you need to be prepared to determine the value of many kinds of assets with to-the-penny accuracy.

Effective estate accounting means chasing down where each and every dollar has been placed and why it has been put there. Often, there may be discrepancies between a decedent’s wishes as they are stated in a will and the actual assets that are held in an estate.

Without precise valuation and accounting, and clear-minded handling, this can lead to messy conflicts among beneficiaries.

These are only some of the reasons why it is wise to consider enlisting the assistance of experienced estate and probate legal council who can help you take control of the entire scope of your particular situation.

A well-handled estate means a better outcome for all parties

If you are feeling overwhelmed by the size of the job, or maybe you are just realizing how big of a job it truly is, don’t worry – this is a normal and healthy response to a large responsibility. It is also good to remember that you have been chosen for this role because the person who appointed you believed that you are the best person to handle it with excellence.

Proper assistance can help you confidently steer even the most complicated of estates to a successful resolution, while advising you on how to navigate any legal, accounting, or interpersonal conflicts that may arise in the process.

Posted in Estate Administration | No Comments »