No one likes to think about their own mortality or that of their loved ones. However, many an estate has languished in probate for much longer than necessary because adult children of aging parents were not clear on their parents’ wishes.

Having an uncomfortable conversation now can save everyone a lot of unneeded stress, which could undoubtedly be compounded by grief. In fact, you may find that your parents are relieved you chose to broach the subject.

What you need to talk about

As we approach the end of our lives, unique expenses and financial situations tend to crop up. It’s best if your family already has a plan that was agreed upon while your parents were healthy and sound of mind. If you have one or more siblings, you need to establish who will be responsible for what duties and how – or if – those duties will be financially compensated by the estate.

Eldercare is one issue that is often neglected. Do your parents want to move to an assisted living facility when they are no longer able to care for themselves, or will the responsibility fall on the children? Statistically, the burden tends to fall unequally on one sibling, so if the family has hammered out expectations ahead of time, it can save a lot of resentment and strife down the road.

Other things your family needs to decide upon sooner rather than later include:

• Who will help the parents manage investments and retirement income?
• Who will oversee finances if the parents become incapacitated?
• Who will serve as executor or administrator of the estate?
• Who will have power of attorney?
• Who will make healthcare decisions?
• Where are important financial documents kept, and who will have access to them?

Preparing for estate administration

Estate administration can be a complex and emotionally charged task, but with some preparation and legal assistance, the estate can be settled in a fair and timely manner. An estate planning attorney can meet with your family and help you determine what type of estate plan is appropriate.

A legal professional can help you understand documents including wills, trusts, deeds, healthcare directives and more. They may even suggest plans for eventualities you hadn’t even thought of, such as pet guardianship.

Although it is often painful to think of life after your parents have passed on, adequate preparation can prevent hard feelings, family feuds and litigation. If you have aging parents, plan a time for your family to meet and discuss these issues with an estate lawyer as soon as possible.

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Generally, when people think about estate planning and administration, it’s in relation to how a person’s property, money and other assets are divided up and bequeathed to heirs and other beneficiaries. However, what happens to a person’s debts when they die? That generally depends on the type of debt, what state the person lived in and whether or not there is a surviving spouse.

Usually, a person’s debts are paid from his or her estate during the probate process. Some assets, however, do not have to be tapped to pay outstanding debts because they don’t go through probate. These generally include any type of account or insurance policy that has beneficiaries. Retirement and brokerage accounts are two examples.

California is a community property state. That means that if a person is married at the time of death, any debts acquired after marriage are the responsibility of the surviving spouse. That’s true even if the debt was only in the deceased person’s name.

If you are doing your estate planning, it’s important to discuss any outstanding debts with your attorney, particularly if you don’t believe you’ll have the assets in your estate to cover them.

If you are a surviving spouse or family member administering an estate, you should discuss the handling of any outstanding debts with an estate planning attorney. Unfortunately, some unscrupulous collectors go after surviving family members to try to get money that they may not be legally entitled to collect. Every state’s laws are different, so it’s essential to seek guidance from an experienced California estate planning attorney.

Source: Forbes, “What Happens To Your Debt After You Die?,” Steven Richmond, Next Avenue, accessed July 15, 2016

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You’ve spent a good chunk of time and probably no small amount of money executing a detailed estate plan. Then you move to another state. Will you have to do the whole thing over again?

Likely, you won’t. As long as it was a valid will under the laws of the state in which it was executed, it will probably be valid in your new home state — with some caveats.

Estate planning and property laws vary among states. Therefore, it’s essential to consult with an estate planning attorney as soon as possible once you’ve settled in to confirm that the will remains valid and to determine whether any changes need to be made to ensure that it conforms with the laws of your state.

For example, while few people have handwritten wills these days, it’s important to know that these aren’t valid in all states. They are recognized here in California. However, they must meet certain requirements. A California estate planning attorney can provide guidance regarding any changes that may be required if you’re moving here.

Whether you’re moving in or out of California and if you’re married, remember that California is a community property state, but many states aren’t. Marital assets are considered differently in community property states than in those that aren’t. This isn’t just something to concern yourself with if you get a divorce. It can also be relevant to your estate planning documents.

Another area of estate planning law where states vary is who can be the executor. Some states have restrictions on non-relative executors living in other states. If you’re moving far away from family members or others whom you’ve chosen to be your executor, power of attorney or health care proxy, ensure that it’s still feasible for them to handle those responsibilities. If you’ve moved to Los Angeles from Maine and your family is back there, ensure that they’re able and willing to handle the necessary duties if needed.

The best thing to do is find an experienced estate planning attorney in your new state, even if you’re maintaining your current residence as well. Your estate planning attorney may be able to recommend someone. Your new attorney can thoroughly review your documents to ensure that they comply with the law and are still the best choices under your new home state’s laws for documenting your wishes.

Source: New Jersey 101.5, “Is that will still valid if you move?,” Karin Price Mueller, NJMoneyHelp.com, June 17, 2016

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The estate of a Pacific Palisades man who died last summer without a will is making news. However, it’s not because family members are battling with each other over his money (some $250,000 in cash alone) or other assets.

The story has garnered media attention because the family has announced that it plans to destroy millions of dollars in firearms and ammunition that he had accumulated. The stockpile included over 1,500 guns and 6.5 tons of ammunition, all purchased legally.

However, according to an attorney for the family, they want no part of them. He says, “They want these instruments of death to be destroyed. They don’t want [them] out on the street.” He says that they made the decision to destroy the stockpile rather than sell them and potentially make millions of dollars because “[t]hey don’t want them to contribute to the carnage. Especially in light of San Bernardino and Orlando, as ordinary citizens they feel like a stand should be taken.”

The attorney said that the family hopes to send a message to elected leaders at a time when gun control is being hotly debated in Congress, and proposed gun safety measures have been voted down.

The inheritance is still being litigated. Since there was no will, his closest relatives would be the heirs to his estate.

Although the 60-year-old man’s death last July was determined to have been from natural causes, the circumstances around it, just like those surrounding his life, were strange. His decomposing body was found in his SUV in a Bristol Farms parking lot in Santa Monica. He had reportedly told neighbors as well as a woman identified as his fiance that he had worked for the CIA or other government agencies.

While this is certainly an unusual case and an unusual person, it actually does hold a lesson for everyone. If you have particular wishes for how your assets should be used, distributed or donated after your death, it’s important to specify that in your will. Your estate plan provides you the ability to ensure that your intentions, plans and wishes are carried out when you’re no longer around.

Source: ABC News, “Family Plans to Destroy Stockpile of Inherited Guns and Ammo Worth Millions, Lawyer Says,” Catherine Thorbecke, June 22, 2016

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Any person who has administered an estate knows that, even in this digital age, the amount of paperwork can be overwhelming. Once the estate is settled, it can be tempting to shred all of the documents that have been taking up room in your filing cabinets, drawers or wherever you’ve stashed them. Not so fast.

Even if an estate has been settled, the Internal Revenue Service may have questions or issues years later. Generally, as long as all of the appropriate tax returns for the deceased person were filed correctly, the IRS isn’t going to audit the estate after seven years have passed. However, you should still keep the tax returns. You may be able to shred the supporting documentation. It’s always a good idea to scan it first so that you have a copy if you need it. A California estate planning attorney can advise you on that.

Another issue that may warrant hanging onto documents is the potential for contests to the will. In California, only certain people, generally those who would reasonably have been considered potential heirs or beneficiaries, can contest a will. They must be a valid reason for doing so, such as a later will or belief that there was undue influence or fraud involved in drafting or changing the will. There are statutes of limitations for will contests. Therefore, again, it’s best to consult an attorney who’s knowledgeable about California estate planning law.

If you were working with a knowledgeable estate planning attorney when you were administering the estate, distributing assets, paying creditors and handling taxes, the chances of anything coming back to haunt you years later are lower than if the estate wasn’t properly settled. However, you should always consult with an attorney before destroying any documents related to the estate.

Source: Los Angeles Times, “How long should you keep paperwork about an estate?,” Liz Weston, June 19, 2016

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Most Californians have some familiarity with the Medi-Cal program. It’s basically our state’s version of Medicaid, and it helps cover low-income Californians’ medical care.

What many people may not realize is that if a loved one who was enrolled in Medi-Cal passes away, the state (specifically the Department of Health Care Services) may try to seek payment from the person’s estate for the premiums paid to the person’s health plan from the time they reached 55 — even if the enrollee never sought medical treatment. It’s called the Estate Recovery Program. If there’s not enough money in the estate to pay this bill, heirs may be asked to sign a “voluntary lien” on their home until they can come up with the money due.

The number of Medi-Cal enrollees increased significantly with the Affordable Care Act and the state’s Covered California program. It rose from about 3.5 million to over 12 million.

There are some exceptions in which DHCS won’t attempt to collect money. It won’t attempt to collect if the deceased person is survived by a spouse, a child under 21 or any child who has a disability or is blind.

There’s not a lot of recourse available if you’re hit with a bill by DCHS for a loved one’s Medi-Cal premiums. However, you should receive an itemized list of benefits that were paid, so it’s important to review that to make sure that it is accurate and that no exempt benefits, such as those for in-home support services, were included.

The state (and all states) are required to recoup some medical costs paid under the federal Medicaid program from beneficiaries’ estates. However, those are mostly benefits paid for nursing home care.

One California state senator has introduced a bill that would limit the amount of money that the DHCS could seek to recover. Similar legislation has been vetoed in the past by Gov. Jerry Brown. However, the current bill (SB 33) is before the legislature in the 2016 session.

If you have an elderly or ill loved one who is enrolled in Medi-Cal and/or is receiving Medicaid benefits for which recovery may be sought, it might be beneficial to consult a California estate planning attorney. He or she can provide guidance to help you determine how much of a recovery claim you may be hit with and how to deal with it.

Source: Center for Health Reporting, “More Californians face Medi-Cal death fee,” Emily Bazar, accessed June 17, 2016

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Some people are fortunate to stay physically and mentally sharp as a tack until their very last days, but many people just aren’t that lucky. As they get older, they may become more forgetful, disorganized, and physically weak. All the details that go into managing their every day lives may start to get overwhelming, and it can be up to their adult children to step in and help — whether the parent has asked for that help or not.

Introducing the idea to your own parents

For most people the idea that their parents – the people that helped them learn to care for themselves and their families – will need them to take control of personal health and financial accounts is not easy to think about. It’s hard for the parents too, to relinquish control to their own child.

If possible, don’t wait to talk about the idea of helping parents with finances and health care decisions until it is too late, and they are unable to participate in the discussion.

One way to keep topics such as finance on the table is to discuss some of your own plans.

Another is to jump in when there are related stories in the news.

Talking in a more generalized manner first, keeps many people from feeling defensive. Make as many plans together as possible with your parents’ full consent and understanding. Obtaining a power of attorney is less complex than being forced into court to win guardianship.

Determining what you will need to know

If you do take over financial and/or health care decisions for your parents, there are many details about their lives you’ll need to have at your disposal, such as:

• Where they hold their bank and other financial accounts
• Any plans they have made for their final resting place
• The location of safety deposit boxes
• Their sources of income and expenses
• Information on insurance policies
• Account numbers and passwords
• Any previous wills, trusts, or general estate planning that has already been done

Making decisions

Once you have information at your disposal, it is possible that you may discover some unwise decisions your parents have made. They might be building excess debt or may not have been living within their means. There may be accounts or services that need to be discontinued or started up.

You’ll also need to keep an eye out for people who my try to take advantage of your parents. Make sure creditors and solicitors know that you are overseeing your parent’s accounts.

Even when your parents’ finances have been simple, it isn’t unusual for adult children to uncover surprises. A qualified estate planning attorney can help you sort through the details or assist in obtaining a conservatorship so that taking over is as positive an experience as possible.

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If you’re approaching retirement age, chances are, you’re taking steps to secure your financial future and your legacy. Although not everyone enjoys making end-of-life plans, creating a will is an important part of protecting the assets you’ve worked a lifetime to earn

It is not always an easy task either. You may be struggling with the decision of the fairest way to leave your wealth to your children. Do you give them an outright distribution? Should each child receive the same amount?

You may have two sons, one that struggles and one that has a steady career. You may decide to leave a little more to the first son, because you know you don’t have to worry about the second. But will your kids understand your intent?

You may wonder whether you can ensure that your will is respected after you’re gone, and concerned that someone may contest the will.

What is a contested will?

A will contest occurs when an heir – or someone who believes he or she should have been an heir – files a formal objection regarding the contents of a will. This party, the contester, may argue that the will is invalid for some reason.

The most common contest claim is that the testator, the person who made the will, was not in his or her right mind at the time. The contester may claim that the testator was mentally incapacitated or that the testator wrote the will under duress or undue influence from another party.

For example, a brother who has been disinherited may claim that his sister pressured their mother to write the brother out of the will by threatening to put the mother in a nursing home if she didn’t comply.

Less common reasons for a contested will include claims of fraud, forgery, ambiguity or technical error. The validity of the entire will or individual sections may be contested.

Can you prevent a will contest?

Unfortunately, there is no sure-fire way to guarantee that no one will contest your will. However, there are actions you can take now that can minimize the likelihood of a contested will in the future.

One of these is talking to your heirs about your wishes and being upfront with them about what they will or will not inherit and why. Tell them in advance who will be the executor of the estate, and allow them to air any grievances then and there.

Explaining your rationale for your decisions can prevent discord from simmering under the surface, and your kids may surprise you with agreeable suggestions for division. Although it may be awkward, a frank conversation now can save the whole family a lot of heartache in the future.

Another method for preventing a contested will is a no-contest, or in terrorem clause, an addendum stating that if an heir contests the will, he or she forfeits his inheritance. However, these clauses are not bulletproof either.

How can an attorney help?

Estate and probate law are complex subjects. From providing for business takeover to preventing disclaimers, creating a will can bring up numerous topics you may not have encountered before. Ensuring that your will and entire state plan is executed property is an essential piece for limiting the exposure to a contest.

An experienced estate planning law firm can help you navigate property laws, draft legally binding documents, and prepare for a variety of eventualities you may not have considered.

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Elderly people, particularly those who are physically and/or mentally compromised, can be vulnerable to many types of abuse, including financial abuse. Sadly, this type of abuse often is perpetrated by family members, caregivers and others close to the person. Sometimes it comes at the hands of strangers who know that elderly people are more likely to fall for scams or give up confidential information over the phone or online.

Financial abuse can take many forms. If you have an elderly parent or loved one whom you believe could become a victim, it’s important to keep an eye on his or her financial situation. If you don’t have power of attorney or other legal control over their finances, you can still ask some important questions or do some research yourself. It’s important to know:

— Who is managing their daily expenses?– Are their bills being paid?– Is anyone else on their accounts?– Has anyone asked them for access to their accounts, passwords or for a loan?– Have they expressed concern about running out of money or about a financial decision?– Has anyone asked to be added to their will or to have power of attorney, either for financial or health care decisions?

This last question is extremely important. Too often, people are tricked into changing their will or granting power of attorney to someone who doesn’t have their best interests at heart. That’s why it’s important to be familiar with your loved one’s estate plan. As people age, it’s increasingly important to have a complete estate plan, including a will, a financial power of attorney, an advance health care directive and possibly a trust.

Just as you likely know your loved ones’ health care providers and caregivers, you should know who their legal and financial professionals are. If you are their power of attorney, this is particularly crucial. You can help protect your loved ones by getting to know their estate planning attorney and any financial advisors. They can help you work to ensure that your loved ones don’t become victims of financial abuse.

Source: Fidelity, “Prevent financial elder abuse,” accessed June 06, 2016

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When many Californians create their estate plan, their attorney will recommend setting up a revocable living trust. There are a number of advantages to having this document, both for you, while you’re still alive and well, and for your heirs and beneficiaries after you’re gone.

First, it’s important to understand what a trust is. It involves a grantor who gives property and other assets to a trustee to manage for beneficiary. One person can assume all of these roles. That’s what happens with a revocable living trust.

If you’re setting up one of these trusts, you are the initial beneficiary because the property is still yours, but will name subsequent beneficiaries who will receive the property in the trust when you die. Those beneficiaries will be able to avoid probate. Many people use this type of trust so that their family won’t have to deal with that often arduous and costly process required for any estate over $150,000.

You can also name an alternate trustee. That way, if you (the initial trustee) become incapacitated, your alternate trustee is authorized to manage it, but according to the instructions you’ve provided.

When you die, your named co-trustee or successor trustee (who may or may not be the same person you name as your alternate trustee) is in charge of distributing the assets as you’ve designated to heirs and beneficiaries. By having a revocable living trust in place, you’ve made the process much easier for that trustee than it would be otherwise.

Those who set up revocable living trusts continue to maintain control over the assets in the trust while they’re alive, and they can change the terms at any time. That’s why it’s “revocable.” However, the trust details how they want those assets to be distributed or handled after they die.

Many people place all of their assets, including their home, other property, bank accounts, retirement and investment accounts in their trust. When you do that, you’ll need to retitle any asset with your name on it, such as the deed to your home and your accounts, to the trust name. Your attorney will advise you on how to do that correctly.

While this all may sound overwhelming and complicated, an experienced California estate planning attorney will walk you through it. He or she can also be there to assist those whom you’ve chosen to carry out your wishes after you’re gone.

Source: FindLaw, “Revocable Living Trusts in California,” accessed June 03, 2016

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