Just a few months ago, the world learned the shocking news that Robin Williams passed away, leaving behind three adult children and his wife of almost three years. Many people in California are likely still in shock over the news of his death. However, less than five months after his death, his wife, Susan Schneider Williams, initiated proceedings asking the court to provide clarification on what appears to be a well-planned trust.

Williams reportedly owned two properties in California. Trusts that he established prior to his death detailed his wishes regarding these properties. His children are to have one of the properties, and Schneider Williams is to have the other — the house in which they lived — as well as the personal property within it, with some exclusions. Within the marital home, Williams’ trust stipulates that some property, including his jewelry, personal photos, clothing, awards, memorabilia and other personal property, is to go to his children.

Although it is somewhat unusual for court proceedings to be initiated so soon after a death, especially when trustees have not yet had an opportunity to inventory assets, Schneider Williams is asking that a court interpret the stipulations of the trust. Specifically, she feels that the term ‘memorabilia’ should only include items related to his career, and his watch collection should not be considered jewelry. She is additionally arguing that she should receive items that are in storage, and that the children should not receive any items from the house in which she resides, although her requests are seemingly contrary to the explicit instructions in the trust.

Careful estate planning can generally help those in California who have recently lost loved ones to deal with the emotional ramifications of their losses. In some cases, a court may still be asked to become involved, regardless of the clarity of a person’s wishes. However, in cases like Williams’, when a carefully planned trust is in place that details a person’s wishes regarding the distribution of his or her property, the length and cost of the litigation may be reduced.

Source: Forbes, “Robin Williams’ Widow Starts A Court Battle — But Why?“, Danielle and Andy Mayoras, Feb. 3, 2015

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The President of the United States recently revealed a new tax legislative proposal which could have significant implications for those concerned with planning their estates. The plan would revamp the Tax Code in a way that could increase tax liabilities for some beneficiaries in California and other states. This has caused many people to reexamine their estate planning strategies.

The President’s proposed plan would increase taxes on capital gains and dividends to 28 percent of inherited assets that have increased in value. The proposed law would block accruals and contributions to IRAs and qualified plans once account balances hit $3.4 million. Although political commentators believe that the chances of the proposed legislation will pass into actual law are slim, this could be a sign as to the direction of future legislation.

Many are beginning to look into alternative estate planning options in case this proposal or a similar one in the future is enacted. The proposed hike in income and capital gains tax would increase the current rate of 20 percent by 8 percent. However, when one adds the net investment income taxation of the proposal, the total increase in tax liabilities will be approximately 31.8 percent.

Fortunately, there are various options available for alternative estate planning strategies in the case of the proposed legislation or similar proposals becoming law in California and elsewhere. However, it will be necessary to pay attention to the latest developments in estate planning law in order to make timely decisions. Alongside an estate planning lawyer, understanding the implications of any changes in the law will be helpful before deciding on the necessity of making alterations to one’s estate plans.

Source: investmentnews.com, “Weighing a Plan B in estate planning in light of Obama’s proposed tax overhaul“, Darla Mercado, Jan. 23, 2015

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California natives may not know that filing a living will can protect their medical rights in the event that they require artificial life support to live. A living will, or advance directive, outlines an individual’s life support wishes, such as whether they want to be resuscitated or whether they would like life support to continue to keep them alive. It also prevents family members from being forced to make these important decisions on the individual’s behalf. Often, it can be extremely uncomfortable for a loved one to guess what an individual would want in a medical situation. A family member may have to decide whether to prolong that person’s life or not to let them go.

Filing a living will is beneficial because it causes a person to think about what they would want in a medical situation and make that decision before they are incapacitated. Regardless of age, a person should indicate what their end-of-life wishes are and whom they would prefer to make decisions on their behalf.

When creating the advance directive, a friend or family member can be appointed as a health care proxy who is legally entitled to express a person’s wishes. Without designating a proxy, a spouse or parent is not legally entitled to inform medical professionals about a patient’s medial preferences without a court order.

In the event of an accident causing damage that is so severe in nature that the patient requires life support, two physicians have to conclude that the patient will not recover prior to the living will coming into effect. Many people prefer to hire an attorney to draw up wills to ensure complete accuracy. This could help the individual be as thorough as possible when determining their end-of-life wishes.

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Over the years, California residents may need to revise financial decisions they made earlier in life. This might be true for estate plans as well; what sufficed at one time of life may be inappropriate in another.

Many estate planners recommend changing wills, trusts, beneficiaries, durable power of attorney and health care proxies as an individual passes from one life-changing stage to the next. Once an individual reaches the legal age of 18, his or her parents might no longer say what happens to their child in the case of sickness or their estate. Setting up new arrangements allowing parents or another chosen individual to make medical and financial decisions is important. Further, having a will assures the passage of one’s estate to designated individuals.

Engaged or cohabiting individuals face other choices. An individual may wish to designate the other partner as beneficiary or to make medical choices if the other person cannot. A financial power of attorney specifies who will make financial decisions in the event of an incapacitating illness or accident. If an individual wishes to go on record as to whether life-sustaining technology is used, this may be done with a living will.

Once married, the issues change. A spouse might not inherit the totality of one’s estate if a will does not specify this. Instead, the spouse may only inherit 50 percent of it with the remainder going to the nearest relative. Having a will prevents challenges to this in the future. Additionally, the spouse might not be named as the beneficiary on life insurance policies or retirement accounts unless this is specifically changed.

Estate planning revision is an important process for assuring that one’s desires are met as life evolves. Consulting with an attorney may help assure that such designations are routinely updated.

Source: Bankrate, “8 life stages of estate planning”, G.M. Filisko , Jan. 9, 2015

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As many California residents may know, having an estate plan provides some certainty that an estate may be divided according to a benefactor’s wishes when death occurs. Taking control over one’s estate also allows an individual to make sure family members inherit according to their needs.

When setting up an estate plan, keeping in mind what might be best for one’s beneficiaries is an important consideration. For instance, sometimes children with special needs are involved in a person’s plan, and providing properly for them means looking at the way they inherit assets from the estate. If they receive government assistance, providing them with a lump sum may mean they will lose that income. Setting up a trust designed with this in mind may allow them to keep benefits such as Medicaid. As another example, some children may not benefit from an inheritance when they are younger. Instead, one’s estate planning format may involve a trust that will disperse the funds later in life.

Furthermore, funding the trust is an important second step. If the assets are not transferred to the trust’s ownership, the device may not accomplish what the grantor intended. Choosing a trustee is another essential step. However, the choice a grantor makes originally may not be appropriate as time passes. Reevaluating the trustee or choosing a corporate trustee may be best in some circumstances. In addition, a corporate trustee may help avoid problems between family members.

Reevaluating a trust and a will on a regular basis may help ensure that it is up to date and takes into consideration the many life changes one experiences. Seeking legal advice when setting up an estate plan and planning for subsequent reevaluations may provide the guidance throughout the process. A lawyer who is familiar with estate planning techniques could help a client draft the necessary documents for creating a comprehensive plan.

Source: CNBC, “Trust bust: Steer clear of the 8 biggest estate-planning mistakes“, Barry Glassman, January 03, 2015

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California couples often make big plans for the future during the initial year of their marriage but do not think in terms of estate planning. Without realizing it, they may be costing themselves vital opportunities to secure a stable future for their incipient family and accumulating property should something happen to them individually or as a couple.

If a young spouse were to die in an accident without leaving a will, the assets belonging to that individual do not automatically transfer to the surviving spouse but will pass according to California’s intestacy laws. Other kin may be jolted too if there were assets that the spouse had promised them personally but not legally, though a will.

Newlyweds may also put durable powers of attorney in place. In the event that a spouse is incapacitated, a durable power of attorney will provide clear guidance for the type of medical care the individual wishes to receive, stripping all doubts and arguments from the situation should it ever occur. This is also an effective tool for prescribing important financial decisions on behalf of an incapacitated spouse.

Furthermore, account beneficiaries may need to be updated immediately after marriage. This applies to insurance policies, existing wills and trusts, retirement accounts, investment accounts, bank accounts and health savings accounts.

Many older couples rue the fact that they did not get started on estate planning earlier, above all when unexpected events change the course of the family’s life irreversibly and without preamble. Careful planning can go a long way toward alleviating the anxiety and devastation that often accompany these types of events. In this way, many married couples may benefit from seeking the counsel and tutelage of an estate planning lawyer.

Source: The Motley Fool, “Estate Planning for Newlyweds“, Anna Wroblewska, December 27, 2014

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Residents in California may understand the importance of a will, but many may for get to keep the documents updated. There are specific events in life that should trigger a review of their last will and testament to ensure it still reflects their final wishes. If it needs to be updated, making changes soon after a change can prevent confusion in the event of an unexpected death.

When people are added to a family, it is important to incorporate them into the will to avoid conflict when the will is read. Important events include a marriage or the birth or adoption of a child. Some people also change their will when grandchildren are born.

It may also be necessary to make appropriate changes when someone leaves the family. Divorce or the death of a spouse are life events that may necessitate changes to the estate plan. If changes are not made to certain documents after a divorce, the former spouse may be entitled to receive money or other assets.

As people get older, they accumulate assets that can be passed down to their heirs. Documenting the division of these assets can ensure that they are given to the intended recipient. A will might address which heir receives the family home and other personal assets like wedding rings or artwork. Careful estate planning may also reduce the taxes heirs will pay when they receive their inheritances.

An attorney who focuses on estate planning may help a client document their wishes in an initial will and then help them update it whenever necessary. A properly updated estate plan may eliminate family bickering and help surviving children accept their parent’s choices after their death. In addition to a last will and testament, an attorney may also recommend other estate planning documents and tools to address end-of-life healthcare and estate taxes.

Source: Kiplinger , “Good Reasons to Change Your Will“, December 21, 2014

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Some Los Angeles residents may have experience in dealing with various complications related to estate planning. Although estate planning can be one of the most important subjects for families to discuss, it is often neglected. Moreover, even in cases where families act to secure their respective estates, the process can still be derailed by various complications.

The amount of potential beneficiaries to an estate has the potential to complicate the estate planning process. For example, if a family has a number of half-siblings or stepparents, there can be some conflict caused by arguments over property. For this reason, it is generally advisable to create a list of items of value and clearly designate the recipients of those items in question. Similar arguments can also arise between direct siblings especially when the siblings have been out of contact with one another for some time.

In some cases, an estate plan can be affected by administrative details that may have gone overlooked. There have been a number of cases of estates going into probate because the owner of an estate failed to designate a beneficiary properly. Although this often happens by accident, the resulting ambiguity can cause great hardship for a person’s family and delay or inhibit their ability to inherit.

Given these and other potential pitfalls related to estate planning, someone intending to construct an estate may wish to consult with an attorney. An attorney may be able to review the particulars of one’s financial and familial situation to help them devise an estate plan that fulfills their needs. In this way, it may be possible to avoid obstacles for the estate and help ensure a smooth transition of assets in the future.

Source: Daily Finance, “Avoid These Estate Planning Nightmares”, Michele Lerner, December 13, 2014

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California law recognizes the validity of holographic wills for any residents of the state. A holographic will is a handwritten document in which the testator describes their preferred disposition of the estate after their passing. So long as the will follows the specific previsions of the law, the court will consider it to be valid. However, it may sometimes be easier to invalidate a holographic will than a regular will.

The state of California requires that a holographic will be written out entirely by hand by the person making the bequest. The inclusion of even one typed section into the document may be grounds to challenge the will, unless there were at least two people who witnessed the signing.

There is no requirement to have the holographic will notarized. If the holographic will is not dated, and another will is found that has a proper note indicating when it was signed, then the holographic will may be invalidated until the precise moment of its creation can be proven. A valid holographic will is held to be the equal of any other type of will under California law, but that does not affect questions of the capacity of the testator at the time of signing. Challenges to the will based on the mental health of the testator or the possibility of duress may still be mounted as usual.

The assistance of an attorney can be of benefit to those who wish to plan for the disposition of their estate. An attorney will likely have greater familiarity with the precise details of estate planning, and counsel may help to prevent challenges to a will or its execution. Even a holographic will may benefit from review and possible revision by an attorney.

Source: CA Code, “Probate Code Section 6110-6113“, December 07, 2014

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A conservator may be appointed by California courts if a judge determines that a person is unable to care for themselves or needs help managing their own finances. It is important to understand the differences between the various types of conservatorships so the conservator is clear about his or her duties. The probate court has the option to grant conservatorship over a person’s estate, their person or both.

Elderly people and those who have been in serious accidents are most commonly subject to general conservatorships. In these cases, a conservator makes decisions on behalf of the ward. These decisions can range from daily care, such as what to wear, what to eat and when to bathe to important medical decisions that the ward cannot make on his or her own. In most cases, the conservator knows the conservatee very well and is able to make important choices in that person’s best interest. A conservatee who also needs someone to manage their money may have one or two conservators.

Limited conservatorships are available for mentally disabled adults who are able to take care of some, but not all, of their own needs. A conservator may be appointed to collect the conservatee’s income and ensure their bills are paid or to take on housekeeping duties for them. A third option, called Lanterman-Petris-Short conservatorship, is available for people who need special care. Conservatees in LPS conservatorships may need to stay in a locked facility for mental health treatment. A conservatorship in these cases may be granted when the person needs treatment but refuses to go willingly.

Conservatorships are a legal process. An attorney who focuses on probate matters may help a family member who wants to serve as conservator for an incapacitated relative.

Source: California Courts, “Conservatorship“, November 23, 2014

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