Many Americans, including here in California, do not have a will or a trust. This is typically because they simply have not found the time to make one. Wills and trusts are a crucial part of estate planning. Without one in place before you die, surviving family members may have to confront some thorny problems in order to arrange for the lawful distribution of your estate.

A last will generally includes specific details concerning your intentions and how you want your assets and belongings to be distributed among your surviving heirs. Many do not think it is necessary to go into serious detail in creating a will or trust. However, the problems that have recently arisen regarding Robin Williams’ estate suggest otherwise. 

One of the best ways to be as specific as possible to ensure that the right person receives the right piece of property is to take photographs of the items and clearly indicate on the photograph who is to receive it. For example, if someone with two Persian rugs executes a will stating only that one rug will go to one daughter and the other rug will go to the other daughter, then the daughters may fight over which rug each one of them will get. By taking photos of the rugs and labeling which daughter is to get which rug, the fighting is essentially eliminated.

It’s true that this may take a little more time when preparing a will or a trust, but the extra effort will be well worth it in the long run. You will be able to rest easy knowing that you have drafted a document that will keep your family out of the courtroom and limit the arguments over who gets what. California residents will likely benefit by ensuring that wills and trusts are as detailed as possible in order to make the estate planning process easier on themselves and their loved ones. Working with an experienced estate planning attorney is an appropriate place to start.

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There are many different things which must be considered when dealing with planning an estate. Due to the many things that must be included, many people in California often forget to consider digital assets when estate planning. Facebook has recently attempted to help address this problem by making key changes to the social media site’s account policies.

Previously, Facebook was faced with issues related to the accounts of deceased users. There were limited options available provided by the social media site for dealing with this type of situation. However, the company recently added a new solution to make it easier to manage a decedent’s user account.

Facebook now allows the designation of a “legacy contact.” This is a person who would be allowed to post messages on a decedent’s timeline, as well as update profile pictures and cover photos, and respond to friend requests. One may also allow the chosen legacy contact to download archived posts and photos.

On the other hand, this person would not be allowed to log in as the decedent or view any private messages. One may also decide to tell Facebook to delete one’s account upon one’s death. Prior to this recent change, Facebook had allowed memorial accounts that could be viewed. However, a person was not allowed to access the account after the user died.

On the other hand, Facebook accounts are not the only digital assets that may need to be addressed during estate planning in California. There may be various other social media accounts and email accounts that need to be included in an estate plan. Also, one should consider relevant laws regulating social media accounts after a person is deceased. This can be challenging since it is a relatively new area of estate planning; therefore, the law may not be exactly straightforward concerning this issue.

Source: ajc.com, “Include digital assets in estate planning”, Feb. 16, 2015

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Research suggests that many Americans have taken the steps necessary to ensure that their estate planning needs are adequately met. In fact, one study asserts that as many as 71percent of individuals have not addressed the creation of wills or trusts. Many in California and elsewhere hold false assumptions concerning how their assets would be handled upon their death, and the result of such misbeliefs could be a long and difficult probate process for those who are left behind.

When asked, approximately 20 percent of respondents stated that they believed that their assets would immediately pass to their spouse or surviving family at the time of their death. This is not accurate, however, and overlooks the issue of probate. This is the legal process by which a court determines how assets should pass on when an individual dies intestate, or absent a will.

State laws vary, but in a general sense, the probate process will result in one’s spouse receiving all assets. If there is no surviving spouse, children are next in line, followed by parents, siblings, and then on to extended family members such as nieces and nephews. This may be in line with the wishes of some individuals, but it is often not the distribution of assets that may have been intended.

For example, if an individual has children and later remarries, passing away without a will in place could mean the unintentional disinheriting of one’s children. In addition, not only will the spouse inherit assets such as cash, investments and other financial instruments, all of the decedent’s personal belongings will also pass to the spouse. If there is not a good relationship between children and their stepparent, the result can be the loss of many sentimental items that could have been cherished and passed down to grandchildren.

The best way to ensure that an individual’s wishes are carried out upon his or her death is to create a will. These legally binding documents will allow the family to avoid the probate process, which is both stressful and time-consuming. Assets and belongings can be passed down to the intended recipients in the manner that one intends. Even though drafting wills and trusts may be an uncomfortable proposition for many in California, the benefits make it well worth the time and effort.

Source: nowitcounts.com, “Estate Planning Tips“, Michael Lazar, Jan. 30, 2015

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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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