It is not that uncommon for relatively younger children to receive large sums of money and property from their parents’ estate. This may or may not be a good idea in some situations. If both parents or a surviving parent dies, what kind of restrictions should be placed on an inheritance? The question is more acute if a child…
I do a lot of presentations before groups and one of the most common questions I am asked is “How often do I need to update my estate plan?” As with just about any question asked of an attorney, the answer is, “It depends.” It depends on both changes in the law, both federal and state, and it depends on…
After a long and happy life, Grandpa Watkins moves on to the great beyond. He leaves a Last Will and Testament, duly signed and witnessed, in which he expresses his desire to have his assets divided equally among his two sons and two daughters. Unfortunately, several years prior to Grandpa Watkins’ death, his eldest daughter, Lilabeth, was killed in a…
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,…
Why do people avoid estate planning? A recent study found that some estate holders believe they don’t need an estate plan. They think a spouse or their children will automatically receive any assets they have. Others claim estate matters are too complicated to deal with or estate planning is too expensive and others say it simply takes too much time.…
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…
Embed from Getty Images When drafting a Power of Attorney for Finances, clients often wonder if they should execute a “Durable” power of attorney or a “Springing” power of attorney. A durable power of attorney means that the ‘agent’ you select can immediately step into your shoes and gain access to your accounts and manage your financial affairs. This power…