The youngest members of the baby boom generation are celebrating the last year of their 40s. First-born boomers entered retirement age two years ago; they turn 67 this year. The massive generation adds to the 65 and older population at the rate of 10,000 people per day, providing estate planning attorneys with a vast potential client list.

The truth is most people in Los Angeles and across the U.S. do not have complete estate plans. Estimates say that fewer than half the nation’s adults even have a will. Boomers advancing steadily into old age may or may not continue this disturbing trend.

Baby boomers are different than the people born before them. The tens of millions of post-World War II babies born in the U.S became the country’s largest generation. The boomers now consist of parents and grandparents with beneficiaries ready to inherit significant wealth.

Advances in health care, personal fitness and technology have made it possible for boomers to live longer than their predecessors. Elderly boomers of either gender are expected to live well into their 80s. A pressing need exists for estate planning documents to cover advanced age care, incapacity and asset protection and distribution.

Despite anticipated longevity, the 65 and older crowd has a greater chance to develop incapacitating conditions than younger individuals. Estate planning tools like revocable living trusts and powers of attorney allow trusted parties to take over medical and financial decisions for individuals robbed of the power to make them.

Well-rounded estate plans consist of wills, trusts and other instruments that provide lucid directions for estate fiduciaries and courts. Lawyers help individuals protect assets from unnecessary taxation and litigation.

Estate plans are not once-and-done documents. Legal experts recommend reviews at least every five years and sooner when life-changing events occur like an out-of-state move, the loss or birth of a relative, marriage or divorce or changes in health.

Source:  wealthmanagement.com, “The Golden Age of Estate Planning” Richard A. Behrendt, Jun. 07, 2013

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The word “executor” sounds like a title that could enhance a resume. In fact, a person who can handle the responsibilities of a California executor is probably well qualified for many jobs. Estate administrators known as fiduciaries have immense responsibility to a decedent, beneficiaries and probate court.

The executor of a simple estate may have little to do compared to a fiduciary who is accountable for complex assets and liabilities. Copious financial and legal knowledge or advice, time and effort are required when estates are elaborate.

Civil laws oversee the duties of executors. An executor is charged with carrying out a decedent’s wishes while treating beneficiaries fairly. Estate administration errors constitute a breach of duty that is subject to investigation and legal action.

What do executors do? The first task involves tallying assets, a job that is made easier or harder depending on instructions – or lack of them — within a decedent’s estate plan. Estate settlement also involves meeting court deadlines and resolving debts, filing taxes and distribution of property.

Executors may be involved in the settlement of a complex estate for several months, even years. The work can include pay, although family members who assume a fiduciary position often forego the fee.

Becoming an executor is a privilege that also demands a financial skill set. Fiduciaries in over their heads frequently depend on the advice of estate planning professionals.

When is it a good idea to turn down an executor request? The answer varies according to personal tolerance and an estate’s complexity. Consider whether you are capable of or willing to delve deeply into a decedent’s real estate holdings, business assets or family disputes.

Estate planning attorneys know that some executors are completely competent when it comes to crunching numbers and meeting legal deadlines. Regrettably, some fiduciaries fall short when it comes to finding diplomatic and court-approved solutions for unhappy heirs and beneficiaries.

Source:  golackawanna.com, “Serving as executor is no easy task” Pamela Yip, Jun. 02, 2013

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Family power struggles at the time of a loved one’s death are not so common that they disrupt the settlement of every estate, but conflicts happen. Legal issues among Los Angeles heirs and beneficiaries often occur when no estate plan exists or a critical legal document is indistinct.

Estate administration complexities deepen when a wealthy or famous person dies intestate — without a will. Information that the decedent may have hoped to keep private is noticed by the public. Asset division becomes a probate judge’s job.

Rap artist Heavy D, born Dwight Myers, died in 2011. Media reports and family member statements were unclear about whether the 44-year-old passed away with a valid will. The rapper’s estate remains in probate.

According to the late performer’s mother, Heavy D’s teenage daughter will be the sole recipient of his property including royalties from the rapper’s work. A recent report hinted the artist’s brother was challenging the claim.

Floyd Myers submitted a probate petition in Los Angeles. The siblings’ mother said the filing did not signify an internal battle. Floyd and Heavy D apparently shared ownership of a condominium, which the surviving brother now wants to sell. The legal paperwork follows statutes that require court notification.

Heavy D’s family said probate was overseeing the estate. The late rapper’s 13-year-old daughter would be in line to inherit her father’s worldly wealth even without the existence of a will, according to state succession statues.

The family said it supported the idea of making Floyd Myers the estate representative. It appears Heavy D’s estate plan — if a plan was ever created — designated no such person for the position.

Not all jointly owned property must pass through probate when one owner dies. Whether a probate court gets involved depends on how asset ownership was originally structured. Duties of a surviving property owner can be explained by an estate planning attorney.

Source:  allhiphop.com, “Heavy D’s Mom Addresses Reports Of Fight Over His Estate” Yohance Kyles, May. 22, 2013

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The content of an estate plan is a compilation of wishes and how to make them come true. Los Angeles estate planning attorneys act as translators and communicators so individual desires are carried forward legally, properly and completely.

The inventory calculations that precede drafting estate planning documents include a valuation of assets and feelings. Most people want family members to be the recipients of their worldly wealth. “Family” has both personal and sometimes conflicting legal definitions.

Estate and tax laws are clear about relationships with traditional ties – spouses, children, parents and siblings. Inheritance rules are not so forgiving for personal bonds that fall outside these limited categories.

Married partners receive automatic legal benefits including rights to inherit that are unavailable to unmarried partners. Probate courts view spouses as default heirs even when decedents leave behind no estate plan. The privilege is not granted to cohabiting partners.

Wills and trusts give individuals the opportunity to choose an unconventional asset recipient. To be effective, document alterations must also take place outside an estate plan. Unmarried partners must be designated as beneficiaries to insurance proceeds, bank accounts and retirement and investment plans.

Complete estate plans also contain legal directives in the event of an individual’s incapacity during life. Restrictive laws frequently exclude unmarried partners from participating in critical decisions for a loved one who cannot decide for himself. Even funeral and burial arrangements are the exclusive domain of legal family members.

Estate planning documents exist that help empower unmarried partners to take primary legal roles they otherwise would be prohibited from performing. Powers of attorney grant designees the rights to manage finances and make difficult medical choices for an incapacitated non-spouse.

California residents who receive professional legal advice can ensure that nontraditional partners are lawfully included in an estate plan. With the proper documents in place, the unique, personal definitions of family and beneficiaries are honored in legal proceedings.

Source:  nwitimes.com, “ESTATE PLANNING: Do non-married couples need to plan?” Christopher W. Yugo, May. 18, 2013

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It could be difficult to find one person in California to disagree that ex-child star Amanda Bynes has been acting strangely. Trouble with Los Angeles police led to the young woman’s arrest last year on DUI and hit-and-run charges. Bynes has since fled the city for New York, where her unusual behavior continues to attract attention.

Observers might wonder why the former star’s relatives, manager or friends haven’t stepped in to help Bynes. After all, singer and former child star Britney Spears was placed under a conservatorship by a probate court. Why not Bynes?

Until a court recently granted 27-year-old Bynes access to her $8 million net worth, the ex-star’s wealth had been managed by her parents. A court might rule that Bynes is incapable of caring for herself and her finances as a judge once did about Britney Spears. The difference between the two former child stars is that Spears exhibited dangerous behavior while Bynes’ actions, at least so far, have been only bizarre.

Like Spears, Bynes shaved her head. Bynes also posted questionable tweets, videos and images online. Legal experts say the “retired” actress could have mental health problems.

None of these behaviors appears normal but, at the same time, the activities do not qualify Bynes for conservatorship. A probate court would consider conservatorship if it could be proven that Bynes was a danger to herself or someone else.

Spears was a mother of two at the time her conservatorship was approved. Bynes has no spouse or dependents. She has not reached the point where her parents could take legal action. Should Bynes ever become dangerous, concerned individuals could intervene.

Experts point out that Amanda Bynes’ off-the-wall conduct may get undue attention because of her one-time star status. Everyday people with the same strange symptoms might just be labeled peculiar, which does not meet standards for conservatorship in a California probate court.

Source:  foxnews.com, “Why Amanda Bynes is not eligible for conservatorship, while Britney Spears is” Hollie McKay, May. 01, 2013

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The short answer is “Yes,” although the emotional response is usually “Why would you do that?” Los Angeles attorneys know that no two estate plans or plan creators are exactly alike. Individual personalities, family disputes and relationship dynamics color the content of wills, trusts and other estate documents.

Legitimate reasons exist for a parent to disinherit a child. A common belief is that children cannot be excluded from a parent’s estate. That is often, but not always, the case when a person dies without a will in place. The intention to disinherit a child must be included in a decedent’s estate plan.

Intestate succession laws in California are designed to give probate judges guidance when deciding how estate assets are divided. The laws are enforced when an individual dies without a will or with an invalid will. Spouses and domestic partners are first in line to inherit property followed by children and parents.

Legal connections and bloodlines define children with inheritance rights. A natural or adopted child has property rights that stepchildren or foster children do not.

Keep in mind intestacy statutes apply when no outline of asset distribution exists. An individual with an indisputable will may disinherit a child.

No law requires a parent to pass property to a child. Simply dropping a name from a will opens the door for a court to conclude that the decedent made a mistake. A will should state exact intentions including whether an heir will or will not receive property.

Child disinheritance may stem from a strained or estranged relationship, but sometimes a parent feels one child requires resources that another child does not. A child’s medical needs, employment or relationship status and overall financial situation affect this decision.

Estate planning lawyers realize most parents want children to share in their estate wealth. Parents who make alternate choices must create transparent estate plans that cannot be misinterpreted.

Source:  hometownlife.com, “Clearing up confusion regarding children/stepchildren” Rick Bloom, May. 05, 2013

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One of the primary duties of an estate planning attorney is to translate a person’s wishes into legal language that casts no doubts in court. Heirs, beneficiaries and probate judges cannot quiz a decedent. Estate choices a person makes while alive must be absolutely clear to avoid misinterpretation.

Most California estate plans are not created with the intention to shock heirs and beneficiaries. Disappointment among relatives frequently leads to costly, time-intensive probate litigation. Outdated and poorly-constructed estate plans inadvertently cause family rifts that may never heal.

An elderly Los Angeles widow recently learned the Highland Park home she and her husband once shared was up for probate auction. The 78-year-old stroke victim said she was unaware of any problem with her late husband’s estate until the day the auction sign appeared in the front yard.

The couple was not married but shared the 780-foot cottage for 27 years. The state maintains a registry for domestic partnerships but does not acknowledge common law marriages, even when couples do.

The widow said her husband signed a will before his 2011 death that left the cottage to her. She assumed the mortgage had been satisfied. The county claims back taxes are owed and lists the woman as a renter, not a homeowner.

County officials notified the woman there was a probate problem. The widow’s health concerns apparently caused her to miss a deadline to dispute the issue. The woman also claims she checked with the tax assessor’s office to make sure property taxes were up to date.

The county will auction the house as planned. The buyer must attend a confirmation hearing within 60 days of the sale. The hearing will give the elderly woman a final opportunity to state her case. An estate planning attorney would be invaluable to help prove the validity of the late husband’s will in the widow’s quest to save her home.

Source:  articles.latimes.com, “Woman, 78, could lose home in probate confusion” Bob Pool, Apr. 26, 2013

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Periodic reviews of California estate plans are necessary to keep legal documents in line with personal, family and financial changes. Anticipated events, like marriage or childbirth, and unfortunate occurrences, like divorce or family death, can have instant effects on estate planning documents.

Drafting estate planning documents takes extensive thought and planning. It makes no sense to throw out all that effort by failing to update wills and associated estate documents.

While making a legal appointment to go over the plan you’ve already created, add virtual assets to the discussion list. This is a relatively new concern among estate planners who feel current laws do not thoroughly cover post-mortem digital property rights.

Some people manage online estate assets by simply leaving behind usernames and passwords to an executor, trustee or family member. For security and legal reasons, financial, social media and other websites often block access to accounts of deceased users.

Google has come up with an idea for users of the company’s multiple online services. A customer-directed feature called “Inactive Account Manager” forwards account data to another source or deletes the account following a set period of inactivity.

Company officials said Google users choose how long an account could be idle before the feature is activated. So a YouTube or Google+ account won’t be altered by mistake, customers would receive warning emails that a “timeout” deadline was approaching.

Users also decide where the data is forwarded, whether that person is a named estate beneficiary or someone else.

The feature and others like it would have come in handy a few years ago for the family of a soldier killed in Iraq. Loved ones were forced to go to court over access to the Marine’s Yahoo email account. Yahoo denied the family access due to privacy rules in the company’s terms of service.

An attorney will provide solutions for smooth passage of digital rights to heirs.

Source: google.com, “Google adds ‘digital estate planning’ to its services,” April 11, 2013

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Los Angeles attorneys will answer “no” to this question, but there are good reasons. The focus of estate planning seems to have narrowed to tax avoidance, which legal experts admit is a vital part of any estate plan. Many individuals forget that complete plans go well beyond keeping assets from the IRS.

The American Taxpayer Relief Act of 2012 was an anxiety reliever for many Californians. The law continued generous estate tax and gift exemptions. The $5.25 million individual threshold for tax-free gift giving or asset transfers eliminated tax worries for many wealthy people.

A portability feature also allows a decedent to pass an unused gift or tax exemption onto a surviving spouse. With most of the tax bases covered, are estate plans still worth the investment?

Yes, and here’s why. Did you create your wealth so someone else could decide how it will be divided?

Without a will, probate takes the reins of asset distribution because a decedent’s preferences are not clarified. Laws of descent and distribution are applied. The court dictates who gets what and how much.

What if the judge decides a family member will receive your property, but the relative is unprepared to handle it? An estate plan can include a trust to direct the flow and management of assets under a trustee.

Death is not the starting point for most estate plans. Many people become incapacitated before they die. A durable power of attorney allows an individual to hand pick a money manager to take his place during life in the event of incapacity. An advanced health care directive similarly allows individuals to make medical decisions before age, accident or illness intervenes.

Estate tax and gift benefits are tremendous, but they aren’t everything necessary to an estate plan. Estate planning suddenly regains importance when people realize strangers could be making decisions about the assets they’ve worked so hard to accumulate.

Source: clarionledger.com, “Advice: Estate planning still has its place,” Tyler Ball, April 6, 2013

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The subject of gay marriage drew a negative reaction from most U.S. residents in polls taken a decade ago. At the time, Pew Research Center reported a 58 percent opposition to same-sex marriage. A new survey shows a remarkable change in society. The gay marriage approval rate shot up to 49 percent.

The U.S. Supreme Court recently heard arguments on two cases, one of them concerning California’s Proposition 8 law which limits legal marriage to a male-female union. The justices’ rulings in June could impact pensions, taxes, real estate ownership, insurances, health care, wills and estate administration for gay couples.

The acceptance or recognition of same-gender marriage remains the option of states. Nine states permit gay marriages. Others have legalized civil unions or have laws that recognize existing same-sex marriages. Many states still forbid and refuse to acknowledge gay marriage.

The dissolution of the Defense of Marriage Act would usher in wide changes in federal laws with implications for estate planners, heirs and beneficiaries. DOMA, like the California statute, restricts marriage to an opposite-gender state.

Under DOMA, gay spouses cannot take advantage of estate tax deductions or other legal and federal benefits. A Supreme Court ruling that declares DOMA unconstitutional would give same-sex spouses the same inheritance rights as heterosexual spouses. Right now, many gay couples use insurance or some other financial backup plan to make up for lost heir and beneficiary assets.

Many estate planning observers who heard the Supreme Court debate on gay rights believe DOMA’s chances for survival are short-lived. Some analysts also believe the Proposition 8 case will result in a compromise ruling that throws the issue back to state voters.

Some tax professionals are advising married gay couples to request filing extensions and prepare amendments for past, single-status tax returns. Estate planning attorneys are cautiously waiting for potential changes that would have extensive impact on clients and the ones they love.

Source: investmentnews.com, “Gay marriage would shake up benefits game,” Liz Skinner, March 31, 2013

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