Many California legal documents, like some trusts, cover asset transfer wishes for individuals in robust health. Other estate planning documents, like wills, have no effect until a person dies. However, neither of these documents will do much good if you become incapacitated and unable to manage your finances and health care decisions.

Well-rounded Los Angeles estate plans take incapacity into consideration. If you bypass the subject, however, your doctor might order a treatment that you don’t want, or your adult child might have to submit a costly, avoidable probate petition to become your legal guardian.

A health care power of attorney, health proxy or advanced directive designates someone else to make your medical choices in these types of situations. This can be supplemented by a medical information release form and a living will, which consists of the instructions you want health care providers to follow when you are in a terminal state. The documents can be as simple or detailed as you choose.

A durable power of attorney, separate from a health proxy, is a document that transfers the management of your finances to another person or party. In most cases, the transition occurs before incapacity, usually at the time the document is executed.

Estate planning attorneys can provide all these resources to cover incapacity, although some standardized forms are widely available. Keep in mind a lawyer also can explain the documents’ contents, answer your questions about incapacity, certify validity according to updated laws and customize documents to your specifications.

Legal and health professionals recommend preliminary discussions about end-of-life intentions with the parties your choices will most affect – doctors, financial institutions and your family. The more they know, the better they will be able to fulfill your needs at a critical time. Advance directives keep incapacity from catching you off guard.

Source: nasdaq.com, “4 Key End-of-Life Documents to Get in Order” No author given, Dec. 03, 2013

Posted in Estate Planning | No Comments »

California residents are likely familiar with several high profile legal battles in recent years involving the termination of life-sustaining treatment for terminally ill individuals. This kind of conflict can place families under a great deal of stress, and it may often be prevented if the individual concerned has drafted a living will. This document outlines what form of treatment an individual will receive if they become incapacitated, and it outlines the circumstances when treatment should be discontinued.

The forms of treatment usually mentioned in living wills include the intravenous provision of nutrients and the use of medical equipment such as ventilators or heart-lung machines. The document provides medical professionals specific instructions about when this type of treatment is appropriate, and it names an individual who is authorized to communicate these wishes. A living will is a document that should be considered carefully as it often contains provisions that may conflict with deeply held religious or ethical beliefs.

Lawmakers in California have addressed the issue of living wills with the California Natural Death Act. The law outlines the requirements a living will must satisfy to be considered valid, and it states that the provisions of such a document may be implemented only when two physicians have certified in writing that the individual concerned has a terminal condition. The act also states that physicians who are unwilling to follow the directives of a living will must take all reasonable steps to transfer care of the individual to another physician.

These matters are difficult for many people to contemplate, but even the most robust individuals could find themselves incapacitated after an automobile crash or other accident. An attorney with experience in this area may offer advice about how a comprehensive estate plan, including a living will or health care directive, could lead to improved peace of mind and avoid potentially bitter family conflicts.Source: Findlaw, California Living Wills Laws

Source: American Bar Association, “Living Wills, Health Care Proxies, & Advance Health Care Directives“, November 30, 2014

Posted in Estate Planning | No Comments »

The holiday season is one of the few times each year that entire families make a concerted effort to be in the same place at the same time. Even members of small families have incompatible schedules that make scheduling otherwise difficult. A California parent who wants to convey their estate wishes may have no better opportunity to talk face-to-face with heirs than the holidays.

No one is suggesting that the ideal time to discuss your estate planning goals is during a holiday feast or while children are unwrapping gifts. There are in-between moments during family holiday gatherings ? perhaps during a lull in celebrations ? that invite conversation about finances.

Adult children often skirt around the subject of inheritance for fear siblings or parents will view them as greedy. Parents can feel uncomfortable about acknowledging and discussing advanced age. Death is no one’s favorite subject and open money discussions are not far behind.

Just because families are reluctant to bring up these topics, it doesn’t mean that individuals haven’t thought about them. Adult children wonder whether mom and dad have wills and about expectations parents have regarding health care in old age. Parents usually realize that heirs need to know what to do if incapacity occurs, but expressing it can be hard.

Estate plans include legal documents that outline everything you want to happen with your assets. Attorneys know that family members left in the dark about your desires can be disappointed, shocked and even litigious after your death.

Families take a lot of time and effort to have a shared holiday season. The peace and contentment you enjoy together can be shattered in the future by a family dispute over an estate.

The last things you want to bequeath to heirs are hard feelings. Open a discussion. Let adult children in on your estate plans. That way no one is unclear about what you want and expect.

Source: kitsapsun.com, “Pass the turkey, then start the money talk” Claudia Buck, Nov. 25, 2013

Posted in Estate Planning | No Comments »

The holiday season gives Los Angeles families the opportunity to get together. That can be something that can be hard to coordinate any other time of the year. There are only a few occasions outside of holidays that draw families to one place. Among the most common are births, marriages and deaths.

Careful preparations are often made in advance of these events. The exception is frequently death, not due to its often-sudden nature but because many people don’t want to think about it. Ignoring death has no effect on its course, but dismissing the necessity of an estate plan can have a tremendous backlash for heirs.

Many individuals agree that wills are important, but many more just haven’t gotten around to executing one. Just 41 percent of baby boomers have wills. That’s disconcerting since the youngest of the bunch, born in 1964, will turn 50 next year. More than 70 percent of people below age 34 have no wills.

Wills are wishes made legal. Until you formalize asset distribution plans, wishes are all they are. Dying without a will evaporates those desires. A probate judge and California estate laws will determine who gets your wealth. Since wills also establish guardianship for minors, not having one also allows a court to decide who gets your children.

The lack of a will also places your estate assets on hold indefinitely. Heirs may wait until probate works out the depth and worth of an estate and the bills and taxes owed. What’s left goes to heirs the court chooses. Some assets can circumvent the probate process. Assets placed in trusts and accounts with beneficiaries, like pension plans and insurance, can be distributed quickly and directly.

As you enjoy the company of family members during the holidays, think about what you’d like to share with them in the future. With the creation of an estate plan, you smooth the way for inheritances for the people you love.

Source: thetimes-tribune.com, “Do You Need Estate Planning?” Herman Krug, Nov. 17, 2013

Posted in Estate Planning | No Comments »

Many people are hale and hearty throughout their whole lives, but many more suffer health problems as they age that make it difficult to continue to perform tasks that were once easy. It’s not uncommon for older Southern California residents to get to a point where they cannot or do not want to handle finances effectively.

Incapacity is possible due to illness or accident at any age. Anyone can be placed in a position where financial and medical decisions are impossible to make. Powers of attorney – written estate planning documents – allow individuals to select fiduciaries or legal representatives to make decisions for them. The relationships are bound by trust that the chosen party will act solely on the individual’s behalf rather than for personal gain.

Trust cannot be emphasized too strongly in matters that involve the financial security of an elderly person. Research from the National Committee for the Prevention of Elder Abuse and a major insurer found that U.S. seniors were bilked out of nearly $3 billion in 2010.

Elderly people, especially ones who live alone, are easy financial crime targets. How many stories have you read about fly-by-night contractors taking seniors’ money for home repairs and never doing the job? Unfortunately, some people that an older person trusts blindly – friends or relatives – may also take advantage of easy financial access.

Estate plans discourage elder abuse. Decisions about fiduciary responsibilities and asset distribution can be made when an individual is mentally and physically sound. Estate planning documents seamlessly cover financial management matters during incapacity and after death.

Elderly financial abuse is widespread. A financial planners’ survey conducted last year found that 56 percent of older clients had been deceived or unfairly treated in money matters. Additionally, only about five percent ever reported the abuse.

An estate plan helps close the window on opportunities to rob you and your heirs of wealth.

Source: sacbee.com, “How to prevent elderly financial abuse on another’s behalf” Claudia Buck, Nov. 11, 2013

Posted in Trustees Executors & Fiduciaries | No Comments »

An adult lifetime is spent carefully gathering, managing and protecting assets. If you’re like many Los Angeles residents with considerable wealth, some or a great deal of those assets will outlive you to benefit the ones you love. Many affluent Californians supplement estate planning documents with trusts, to ensure that heirs and beneficiaries preserve assets wisely and receive the maximum benefits.

Wills and trusts essentially serve the same purpose but in different ways. Among other pluses, trusts give you the power to control the management and distribution of assets during incapacity and beyond death. Trusts help shelter assets from creditors and probate, while decreasing or erasing the estate’s – and consequently your heirs’ — tax burden. You control how and when assets are shared with chosen beneficiaries.

Revocable living trusts are active from the moment you create them, unlike wills, which become effective only upon death. Assets are transferred from you to the trust. You or someone you designate manages them. You can add or remove assets or dissolve the trust any time before incapacity or death.

Trusts are available that can accomplish specific goals, like dynasty trusts that extend estate tax savings over generations, credit-shelter trusts, charitable trusts or complex foreign grantor trusts. The trust you require depends on your financial vision of the future and how you would like to maintain it.

Multiple estate planning strategies are often employed to help wealthy individuals achieve their purpose. Estate liquidity is available through life insurance. Proceeds can be used to pay taxes, especially useful for estates containing substantial real estate or business investments.

Affluence does impact the depth of an estate plan, but that doesn’t mean that all plans for well-to-do individuals need to be elaborate to be effective. An estate planning attorney can help you achieve the results you have in mind, but you’re the one who has to set the financial course.

Source: forbes.com, “What Is Estate Planning?” Russ Alan Prince, Nov. 04, 2013

Posted in Estate Planning | No Comments »

Drafting an estate plan can be as much about what you do want as it is about what you don’t want. Maybe it has taken you several years to get to the point of meeting with an estate administration and planning adviser. Many Los Angeles residents want the distribution of assets issues finalized so they can get back to living instead of talking about dying.

Not so fast.

Beneficiaries are not a static bunch. The relationships beneficiaries have with you undergo sometimes sudden, but always constant, change. Children grow, marry and become parents. Spouses – yours and those of your heirs – fall in and out of love.

Think about your retirement account, the one you opened 20 years ago when you were married to a different spouse and had two, instead of four, children. At the time, you did what most people do; you chose your spouse as beneficiary. The spouse is now a long-time ex, but, without no beneficiary update, your old married partner stands to collect your pension.

Retirement plans often provide a default beneficiary, when none is named. Pension proceeds could end up in probate as part of your taxable estate. By naming a beneficiary, the asset can pass directly to a loved one and bypass the court and tax collectors.

You cover a lot of bases by naming contingent and secondary beneficiaries. For most people, a spouse is designated as the primary recipient of a retirement fund. Where will the money go if your spouse dies before you do?

Estate planning attorney advise revisiting an estate plan from time to time, but especially after any major shift in your life or a beneficiary’s – divorce, marriage, birth or death.

You’ve worked hard to put together a plan to share your assets. Don’t create problems by failing to make your beneficiary desires clear and reflective of the personal relationships you have today.

Source: news.ellwoodcity.org, “Six Costly Beneficiary Mistakes to Avoid” Robert A. Powell, Oct. 27, 2013

Posted in Estate Administration | No Comments »

A large inheritance received during a time of grief would seem like a great comfort. Without proper thought and consideration, though, that windfall can create more problems than solutions.

If the assets from a generous California will or trust have been passed to you, it’s likely that you have never more wealth at one time in your life. The gift that was supposed to make your future easier is now an enormous responsibility. How do you proceed?

Grief and finances are not compatible. Asset decisions can wait until enough time has passed for you to feel fully competent to deal with the inheritance. Until that day comes, place new money in a safe, not-so-easily-accessible place, like a money market account rather than a tempting checking account.

Professional help can be abundantly useful following an inheritance. Estates planning attorneys and financial advisers have knowledge and skills that can supplement what you already know. Strategies can be designed to preserve the new wealth while meeting your personal goals.

The impact of taxes upon the inheritance and individual assets must be weighed. Figure out what, if any, tax implications exist at federal and state levels. Some states – not California – have inheritance taxes. If your assets originated in one of those states, you may be liable for an unexpected tax payment.

Consult with an expert about paying off your debt. You may be surprised to learn that hanging on to some of it, like a mortgage, may work in your financial favor.

Relatives and friends you never knew you had, investment firms and charities will be attracted to your new financial state. Add them to your plans, if you choose, but make the plan first.

An inheritance can be simultaneously thrilling and daunting. Estate planning lawyers suggest making no rash moves. Wealth brings comfort, but accepting and managing it comes with a learning curve.

Source: redding.com, “Lewis Chamberlain: Coping with an inheritance” Lewis Chamberlain, Oct. 19, 2013

Posted in Estate Planning | No Comments »

Dying debt free in Los Angeles may be a goal, but it’s often not a reality. In many states, leftover debt following a person’s death is an estate’s problem, not a direct concern for heirs. In California, community property laws sometimes force surviving spouses to pay a deceased spouse’s bills.

Certain debt ownership circumstances affect heirs, in and out of California. The death of a joint debt holder or co-signer shifts liability to the surviving debtor. Some loan agreements and estate plans acknowledge the hardship a surviving joint debtor faces. An executor or estate administration representative can tell you whether a decedent’s estate provides debt coverage for these bills.

Community property laws may not require an heir to pay all the debt left behind by a deceased relative. Creditors probably will attempt collection anyway, even when debt is not your responsibility. An estate planning attorney or estate administrator will identify which debt does and does not belong to an estate.

One of the many duties a California executor performs is letting creditors and affected businesses know a person has died. The Social Security Administration and credit reporting agencies are on the list. The agencies will ensure credit is no longer issued, which discourages identity thieves.

While spouses may be responsible, authorized users of a decedent’s credit card are not liable for debt. You shared the use of credit but carry no burden for it. Don’t invite fraud charges by continuing to use the card after the decedent’s death.

Curb the urge to divide assets before the estate settlement. Estate assets and debts must be balanced before beneficiaries are eligible for inheritances. When debts are higher than estate assets, there may be nothing to divide.

Community property laws affecting the responsibility for estate debt are complicated. It’s advisable for heirs to contact financial and legal professionals before taking any action, however well-meaning, affecting an estate.

Source: moneytalksnews.com, “Debt After Death: 10 Things You Need to Know” Trisha Sherven, Oct. 07, 2013

Posted in Estate Administration | No Comments »

Los Angeles residents may overlook the valuable, invisible assets they own known as intellectual property. For estate administration purposes, website domains and blogs, images, art or music you share through social media sites are assets that belong to you and, if you so designate, your heirs.

Tupac Shakur died violently in 1996, in the prime of his hip-hop career. “All Eyez on Me,” released the same year, was the first of three albums Tupac agreed to make for now-defunct Death Row Records.

Afeni Shakur was appointed estate administrator after her son’s death. The following year, Death Row Records and Afeni agreed to a settlement that gave the estate rights to Tupac’s original recordings.

Afeni accepted a deal that Death Row would pay the estate for an album of previous-unreleased Tupac recordings at the end of ten years. Royalties from all albums were included in the contract.

Death Row Records entered a deal with a record distributor in 2003 that included Tupac’s recordings. The distributor, now called Entertainment One, was forbidden to assign distribution rights for Tupac’s music without the Shakur estate’s permission.

Estate administration duties grew complex when Death Row went bankrupt in 2006. As a result, the estate received $100,000 that led to a 2007 album of never-before released Tupac music. Death Row’s sale to WIDEAwake Death Row Entertainment included the initial Tupac contract and subsequent estate and distribution agreements.

The unresolved $1.1 million lawsuit brought by Afeni against Death Row Acquisition LLC and Entertainment One stated Death Row had no right to sell intellectual property it did not own. The complaint alleges Tupac’s estate never got the royalties or unreleased master recordings it was promised, now in the possession of Entertainment One.

California estate plans increasingly require consideration of intangible assets. The time and effort invested now in safeguarding intellectual property can help heirs and estate mangers avoid future costly litigation.

Source: courthousenews.com, “Tupac’s Mom Sues for Royalties & Masters” Matt Reynolds, Sep. 26, 2013

Posted in Estate Administration | No Comments »