Estate planning is a critical necessity when someone is diagnosed with a terminal illness: It is vital that the proverbial “house” be put in order. Timing quickly becomes a concern. At a certain stage in a terminal illness, it may become difficult to ascertain desires, or identify the information required, to carry out effective estate planning. In addition, mental competency,…
Aunt Minnie may appear to be a little flighty and forgetful, but does that mean she is incapable of creating and legally executing (signing) a will? The answer is complicated. The preparation of an estate plan, which may include a will, trust, and/or other documents, involves many steps. Assets and liabilities must be identified and decisions need to be made…
Pre-planning protects both parties in a second marriage. Love can be a many-splendored thing, but when it results in a second marriage, careful estate-planning becomes a necessity. Second marriages are a blending process, often of children and assets. Prior to marriage, it is important to discuss your intentions concerning those assets and your heirs. While it is hoped that newlyweds…
A personal representative (or “ executor”) of an estate has many tasks and responsibilities. However, the California Probate Code allows a personal representative to claim a fee for services. The amount of compensation an executor may receive is based on the total value of the probate estate. The value of a probate estate is the sum of all probate assets.…
A Qualified Personal Residence Trust (QPRT) is an estate-planning tool that allows individuals to retain the right to live in their home for a specified period of time while also providing for the eventual transfer of a home at a lower transfer tax rate. A grantor using the QPRT transfers title to a personal residence to the trust (either a…
In California, a document called a small estate affidavit may be used to transfer an estate’s assets to the proper beneficiaries without having to open a formal probate proceeding with the court. To use a small estate affidavit, the estate must meet the following basic legal requirements: The basic requirements to use a small estate affidavit are the estate’s probate…
Chances are you have read or been told by someone that you should ‘avoid probate at all costs.’ This is especially true if you have a relatively sizable estate, which includes at least one house and some savings and/or investments in a portfolio. If one does not have a will, probate is the court administrative process whereby there is judicial…
If you are a homeowner in California, you may not be aware that there are different ways to hold title to your home. ‘Title’ means how you own your real property and that phraseology can usually be found in the language on your deed. How you hold title may have different legal effects while you are alive as well as…
John Lennon once wrote: “Life is what happens when you are busy making other plans.” This is a profound thought and it certainly applies to the areas of estate planning, unexpected death, a life-altering accident, unanticipated sickness, home care and assisted living. Regrettably, this lyric applies to Prince, the mega music star who recently died unexpectedly at the age of…
A trustee of a trust must carry out the terms of the trust and safeguard trust assets for the beneficiaries’ benefit. A trustee can be one person, multiple people, or a corporate trustee such as a bank trust department or trust company with employees who help manage and grow the trust assets. Whether or not you should appoint a corporate…
When we think of estate planning, most of the time we think in the context of spouses and children. In fact, most people do wind up bequeathing everything to their spouse and their kids. At the same time, power of attorney and advance health care directives are usually delegated to spouses and children. Yet, there are many successful persons who…