It isn’t uncommon for a parent to name one of their children or another responsible party as the executor of their estate. In cases such as these, this individual is the representative of their assets and heirs.

Under some circumstances, this role could be considerably complex and encompass many years depending on what’s involved with the estate. If you’ve been named, don’t worry, executors receive a commission or “stipend” from the estate as payment for the work they complete.

What is the role of the executor?

While the executor is often a family member or close family friend, there are some instances in which it might be a financial institution. If an individual needs assistance, a financial institution may also serve as a co-executor. The executor basically serves four roles.

• Finds assets and collects them, and, until beneficiaries receive them, they’re responsible for them.
• Administers expenses from estate, including decedent’s debts and funeral expenses.
• Handles the payment of the decedent’s final tax payments.
• Ensures final assets are distributed accordingly as outlined in the will.

What are the responsibilities of the executor?

When a decision is necessary in accordance with the will by the executor, it is referred to as an election. These provisions include making impartial decisions regarding how each beneficiary could become directly financially impacted. Often, an investment advisor is called in to contribute to the making of these decisions. Immediately after being appointed as executor, the individual is appointed throughout the probate process. At that point, they can represent the estate in a third party manner to liquidate assets and handle financial affairs.

Have you been appointed as an executor?

The Probate House L.C. provides assistance to individuals who have been named as an executor and can offer advice as needed. If you’ve been appointed as an executor and have questions about probate, the distribution of assets, acting as a third party representative, or any of the other roles and responsibilities served by an executor, calling on the services of an attorney is essential.

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When you think about estate planning, it is common to think about planning for funerals and distributing wealth; including homes and investment accounts. This mode of thinking may lead people to believe that estate planning is only for the well-of, middle aged and elderly.

However, estate planning can be beneficial for young people as well; especially those in their 20’s and 30’s. This post will highlight a number of reasons why. 

Lifestyle patterns – Millenials (those in their 20’s and 30’s) commonly live active lifestyles, including riding motorcycles, traveling to exotic locations and participating in extreme activities. These increase all come with a certain level of risk. So having an estate plan can provide some peace of mind to deal with the unthinkable.

Children – Additionally, an estate plan can include plans for how (and who) children shall be cared for in the event you can no longer do so. As such, a guardianship plan should be in place. Another reason for young people to have an estate plan.

Pets – For many people, pets are like family, so including plans for how to take care of one’s pets is a good reason to have an estate plan.

Decision-making power – While young people may not think that they have enough assets for an estate plan, they may not realize that what they do have will be distributed according to intestate statutes instead of their own wishes. An estate plan will help them retain such decision-making power.

If you have more questions about how young people can benefit from an estate plan, an experienced attorney can help. 

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Many people make assumptions about family, particularly their parents. They assume that their parents should take care of them in childhood, that they will step in and help their parents a bit during their golden years if needed, and when their parents are gone they will take care of them once again — by leaving their estate.

Some people refer to this as “birthright,” but this idea is a suggestion at best, especially if others are involved. The truth is that no one has a real birthright. It will be the estate plan or intestacy laws (in the absence of a will) that will dictate whether or not anyone has a right to the property of a decedent.

Community and separate property

When someone dies, it will be in one of two situations. They will be married or unmarried. In California, the inheritance hierarchy moves a bit differently depending on marital status. Being married puts one more major player into the inheritance, and property is further divided into the categories of community property or separate property. Community property are things that belong to the marriage. This means they were obtained and held by the couple together after they were married and living in the state of California. This could be joint accounts, a house, retirement plans, etc.

Separate property are things that each person owns independently of the other. It consists of belongings that person had before the marriage or inheritances that were left to a person individually. For example, an heirloom necklace might be handed down to a specific person that is indicated in a will or a trust as part of an estate plan.

How intestacy laws work in California

Not everyone takes the time to draft a will or trust, because they believe it will be sufficient to let their estate be divided among their closest relatives, whether there is a will or not. While that is true to some extent, that division isn’t necessarily delivered in the proportions that are expected, and they don’t always fall in line with what is preferred.

If a person dies without a will or estate plan, the state if California steps in and decides how property should be divided, guided by the laws of intestacy which define priority relationships within a family to determine who gets what. A person’s actual relationships might reflect something much different.

Married decedents

If a married person dies in California without a will or trust, any property that was considered community property reverts to the surviving spouse. Separate property is divided according to the laws of intestacy.

If the person had one surviving child, or their deceased child had children, half of the estate goes to that person and the other half goes to the spouse. If there were two or more kids the spouse gets one third of the estate, and the remaining is divided among the children.

If there are no surviving children in the picture, the decedents parents are next in line for that half of the estate, and the other half goes to the spouse. If their parents are deceased; the decedents siblings are next in line, followed by nephews and nieces. If relatives do not claim their inheritance, it will go to that state of California.

Unmarried decedents

If a person dies unmarried, the role of spouse is taken out of the equation, but this still leaves no absolute guarantees for their children or other relatives. The “inheritance hierarchy” looks like this;

Divided equally among the decedent’s children. If one of their children is deceased, their children get their portion of the estate.

• Inherited by surviving parents
• Divided equally among siblings
• Inherited by grandparents
• Divided among aunts and uncles that are the children of grandparents
• Divided among aunts and uncles children (cousins)
• Divided among more distant cousins, or whoever can be considered next of kin
• If no relatives make a claim, the estate goes to the state of California.

A matter of value

When it comes to actual money, determining value is fairly straight forward. When you’re considering belongings that mean something different to different people, determining what something is worth becomes more complex and more personal. If the state divides belongings, everything is stripped to it’s dollar value and this can take away from what it really is worth. Also, when the state is making these determinations, it can also take a good deal of time — something else most families value.

By making provisions in an estate plan for exactly where your assets should go, you leave the control to people you trust. You can decide whether you want to give to charitable causes, rather than relatives or the state. You can judge who can best benefit from an inheritance, or help someone reconnect with a memory by leaving them a special gift.

The biggest caveat of all

While this is a good outline for a basic estate (and even this seems very confusing), a nearly unlimited number of circumstances can quickly complicate the matter.

One wrinkle involves property with more than one owner (jointly owned property). Another involves property that is quasi-community. Yet another involves will contests, when one or more heirs contests the validity of a will, specific distributions or even the intent of the decedent. Undue influence can play a role. Even a probate judge’s discretion in some situations can throw a wrench into the mix.

The truth is, you should consult a probate attorney whether you were named as the executor in a will or are a family member of a decedent who thinks they might have a claim. 

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In a number of our posts, we have talked about inheriting property. Indeed, most of them have been in the context of celebrities leaving large sums of money and properties to their heirs, but that doesn’t mean that properties are not left to regular, everyday people.  In fact, it is estimated that thousands of homes will be willed or left to children or loved ones in the next decade.

Because of this, it is important to know what perils await the unsuspecting inheritor of a property. This post will highlight a few of them. 

Property damage – It is not uncommon for people to inherit older homes; many of which have not been updated or renovated. As such, making sure the property is free from structural defects and other maladies (such as mold) is important. It may be a costly, time consuming process, but it will likely be necessary should you want to sell or rent the property.

Unpaid property taxes – Additionally, the home you are given may have tax problems along with it. Specifically, the annual property taxes may not be up to date. And as the person who inherits the home, you may be saddled with the responsibility of paying them. Before the county tax assessor brings suit to collect taxes in full, it is prudent to establish a repayment plan.

Other interested parties – While you may be certain that the home was willed to you, there may be other parties who disagree and may challenge the will (or certain provisions of it, that suggest you are the new owner of the property.

If you have additional questions about inheriting a property, an experienced estate planning attorney can help.

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For many of us, our pets are beloved members of our family. However, too often they are not considered when people are developing their estate plans. People just assume that a family member will take them when they die, or that they will outlive their pets.

Unfortunately, however, companion animals often end up in shelters because family members can’t or won’t take care of an them after the owner has died. Sometimes an owner unexpectedly dies or becomes incapacitated, and there is simply no place for the animal to go other than a shelter.

At The Probate House L.C., we know that no one wants that for their pets, and it doesn’t have to be that way. Under California law, people can create a trust to provide for the care of their pets for the remainder of their lives.

We can help you set up a pet trust. That trust will not only designate who will take your animals if you become incapacitated or die. It will provide that designated caretaker with funds to help pay for housing, food and medical care for your pets.

There are various ways that you can do this via a will or living trust. You can be as specific or general in the instructions as you choose. Our attorneys will work with you on the verbiage to help ensure that your wishes for your pets are followed.

Our Torrance pet trust attorneys will help you set up a pet trust as part of your estate plan to provide for the four-legged members of your family. Call us or contact us online to schedule an appointment to begin your estate planning.

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It is arguably tragic when an elderly person passes away without having the opportunity to enjoy their golden years by retiring. We use the term “arguably” because we understand that some people don’t want to retire, and their passion may be killed if they are unable to do what they love for as long as they can.

For others, retirement is not an option because they have a great deal of debt that they must deal with. They may be too proud to consider bankruptcy and do not want to burden other loved ones with their financial troubles. 

However, the question (and in some circumstances) the problem of debt does not go away when a person passes away. In fact, it is not unheard of for creditors to come after the deceased’s estate for payment on their outstanding debts.

This is not specifically because creditors may be greedy or heartless (even though some may be), but they know that an insurance policy or annuity may be out there that can satisfy an outstanding debt. This is where an experienced and knowledge estate planning attorney can be helpful.

A skilled lawyer can help in deciphering whether claims are legitimate. As we alluded to earlier, it is not surprising that some creditors will come out of the woodworks once a person passes. After all, they want the least resistance possible between them and collecting money.

If you are an executor and are experiencing creditors’ actions against your loved one’s estate, an experienced estate law attorney can help.

The preceding is not legal advice.

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It can be especially difficult to witness a loved one age and develop serious, devastating health disorders that affect his or her mental capacity. Although most people in California understand how important estate plans are, not everyone has the legal protections in place to avoid being taken advantage of. When dementia or other illnesses leave an elderly family member exposed and vulnerable, it is often up to loved ones to establish necessary conservatorships to keep that individual safe.

Health care powers of attorney and living wills are common features of solid estate plans, but there are some individuals who fail to include these documents or who skip creating an estate plan altogether. The lack of an advanced health care directive might be due in part to the common myth that estate plans only address what happens after a person passes away. However, without any of these important documents, elderly disabled individuals are often in vulnerable situations where they can easily be taken advantage of.

Conservatorships are an effective way to prevent unnecessary elder abuse. This course of action is often reserved for those who have lost a certain amount of mental capability to care for themselves. When necessary, becoming a conservator for a loved one can be the best decision when that person’s mental, physical and emotional health are at stake.

We understand the overwhelming emotional experience that can accompany becoming a conservator, which is one of the reasons we remain committed to our clients throughout the entire process. From first petitioning the court to the final appointment, we guide our California clients towards the most successful end possible. For more information regarding conservatorships and how they might be beneficial, please visit our website.

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Probate might be an understandably important aspect of estate law, but it is not a necessarily fun process to go through. However, not every California estate will have to pass through probate, and the reasons why can vary. Residents who want to avoid having their estate probated can take certain preventive measures before their death.

If an asset is owned by more than one individual, such as in the case of a married couple, then there is no need for it to go through probate. Instead, the ownership of a jointly-owned asset will automatically default to the other surviving individual. While marriage is one way of creating community property, joint tenacy — the joint ownership of a property — can be established with another individual. This can be helpful for widowed or unmarried individuals.

For those not interested in creating a joint asset, pay-on-death accounts are another solid option for keeping certain assets out of probate. Once an account, vehicle title or other asset has been converted to pay-on-death, a beneficiary must be named. Upon the owner’s death, the money or asset in the account will be transferred directly to the beneficiary without the need for probate.

The size of an estate is also a factor for probate. Barring extenuating circumstances, California estates valued at less than $150,000 are exempt from the process. While all of these techniques can be helpful for avoiding unnecessary probate, there are instances where it can be helpful and necessary. Before making any decisions about whether to try to circumvent the process after death, estate holders should first take careful inventory of their assets and personal wishes.

Source: nerdwallet.com, “5 Smart Estate-Planning Steps to Avoid Probate“, James E. Salter, Feb. 10, 2016

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The validity of a will is a popular point of contention during difficult probate battles. While most people in California likely do not anticipate their will being challenged, it can happen when a family member feels spurned or when someone might have a legitimate reason to be suspicious. However, simply because a will’s validity can be challenged does not mean that the probate process related to it will be a breeze.

An out-of-state battle over a will lasted for about seven years before a judge recently rendered a verdict on the matter. Two siblings — a sister and brother — butted heads when their father’s will was submitted in 2009. The sister believed that her brother had wrongly influenced their father as he struggled with dementia in his remaining years.

Due to stipulations in the will, the brother was apparently able to take out loans through a tobacco company that his father had owned and run. These loans were used to pay the brother’s mortgage on both his main home as well as his vacation house and to shell out tuition for his children to attend private school. The brother denied the claim that he had fraudulently influenced his father’s will, and he believed that his sister simply had a self-inflated idea of how much she should receive from her father’s estate. He pointed to the fact that he and his father operated the tobacco company together, and his sister apparently had no active involvement. The final ruling by the probate judge resulted in an order for the brother to repay approximately $2 million to his father’s estate.

When it comes to a loved one’s estate, discovering that possible fraudulent behavior wrongly influenced its terms can be devastating. However, since many people in California tend to fear the probate process, objections are not always raised. While it can take time and dedication to petition the validity of a will, sometimes it is the only course of action to ensure one receives his or her rightful inheritance.

Source: Enfield, CT. Patch, “Former Enfield State Rep Loses Probate Battle With Sister“, Tim Jensen, Feb. 4, 2016

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Family life is evolving; indeed, it appears to have been rapidly changing for quite some time. From divorced and remarried families — also referred to as blended families — to cohabitating couples, the face of California families is perhaps very different than what it was generations ago. So-called non-traditional families are more likely to end up in probate, where a person’s estate is not entirely in clear hands.

According to California state law, when a person passes away without any type of will, the closest living relative will receive that person’s estate. While this seems quite sensible at first glance, it can prove troublesome for some. Cohabitating couples — those who purposely choose to shirk marriage while still committing to one another — are especially vulnerable to this law.

For instance, consider a childless cohabitating couple where neither party has any type of estate plan or clear plan for what should occur in the event of one’s death. If one party unexpectedly dies, his or her estate would revert to the next closest blood-relative, not a long-term partner. This could be a parent, sibling or, in some instances, even an aunt or cousin. Some families might be earnest to respect a deceased loved one’s relationship by bringing the surviving partner into the process, but others find themselves locked into battles in probate court.

No matter why a couple chooses to remain unmarried, it is still necessary to employ strategic legal protections. Typically, an estate in California that is not outlined by a will must pass through probate court, where a person’s last wishes might not be respected. Furthermore, the lack of clear directions can pit family members and long-time partners against one another as they battle to take control of an estate.

Source: gcdailyworld.com, “Non-Traditional Households Require Special Planning“, Jan. 25, 2016

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