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Medical Emergencies And Unforeseen Events When planning for medical emergencies or unforeseen events in a trust, flexibility is key. You can’t predict future costs or know exactly what your estate will be worth when the time comes, so setting aside a fixed percentage or dollar amount isn’t always the best approach. Instead, it’s better to give the trustee discretion while also providing clear guidance on your intent. A well-drafted trust should make it clear that funds can be used for medical emergencies or other critical needs as they arise. At the same time, it should include instructions that help the trustee understand your priorities, whether that’s ensuring medical care, covering unexpected expenses, or maintaining quality of life. This way, if…Read More

From home improvements to gardening, DIY is taking the world by storm, powered by catchy online videos and difficult economic times. That said, one area you might want to think twice before trying to do everything yourself is estate planning. This article will help explain why, including information about: The risks of using DIY estate planning tools like online templates. Estate planning mistakes you might make and their consequences. The value an estate planning attorney brings to the process in California. Are DIY Estate Planning Services Legally Valid In California? First things first, DIY estate planning services and documents can be legally valid in California, at least in theory. This is true as long as no mistakes or oversights are…Read More

Funding A SNT Funding a Special Needs Trust means transferring assets into the trust to ensure they are properly managed and protected for the beneficiary. It’s a key step in making the trust effective. A trust does not automatically include all your assets. This is particularly important if you have multiple heirs such as one child with special needs and others without because you may have different trusts for different purposes. Typically, a revocable living trust is used for general estate planning, while a separate revocable special needs trust is created for a child with disabilities. This allows flexibility in deciding which assets go where. The most important asset to place in a trust in California is real estate. Any…Read More

Oh that dreaded word – taxes! We all know what a pain they are while you’re alive, but a court case that the U.S. Supreme Court recently declined to review has now established how much of a pain they can be after death! The case was decided in the 9th Circuit (which encompasses California) and is called United States v. Paulson. Since the U.S. Supreme Court declined review, it will be what everyone (including the IRS) relies on, unless and until there’s a future conflict between circuits and the U.S. Supreme Court picks it up. So, what bad news does this case establish? Well, the upshot is that if you are a successor trustee, you can be held personally liable…Read More

Recently (November 13th of last year) the Court of Appeal heard a case involving a handwritten amendment made to a trust. The initial trust left the family home to the three children in equal shares with the request that the children retain the property for at least 5 years after their mom’s death and if they ended up selling the property to please sell it to a family member. One year later, the mom (the “Trustor” in technical terms) wrote out a handwritten amendment to the trust on her own. She stated that her home was to go to the children in equal shares. However, if any of her three children wanted to sell their share of the property, they…Read More

In this article, you can discover… Reasons why it’s wise to plan ahead for incapacity. How conservatorship can impact your loved ones and personal freedom. How an experienced attorney can help you put secure estate plans in place. What Are The Risks Of Failing To Plan In Advance For Incapacity? By definition, being incapacitated means that you are no longer in a suitable state to make decisions for yourself. If you are a legal adult over the age of 18 who lives in California, your entire life could go on hold if you become incapacitated and have no one designated to make decisions on your behalf. Whether they be medical, financial, or otherwise, it can be difficult to handle your…Read More

ABLE Accounts An ABLE account, short for Achieving a Better Life Experience, is a tax advantaged savings account designed for those with disabilities to save for expenses without affecting their eligibility for government benefits. These accounts were established under federal legislation but are administered at the state level. In California, they are referred to as CalABLE accounts. To be eligible, applicants must have a significant disability that began before their 26th birthday. Those over 26 can still open an account if their disability onset occurred before age 26. Efforts are ongoing to raise the age limit, but the current rules remain in effect. If an applicant already receives SSI or SSDI benefits, they automatically qualify for CalABLE. If not, they…Read More

Unpacking Special Needs Trusts (SNTs) A Special Needs Trust (SNT) is a legal arrangement designed to preserve eligibility for government benefits while enhancing the quality of life for a beneficiary with special needs. If a person with special needs receives a direct inheritance or funds from a regular trust, those assets may be deemed countable resources by government agencies, potentially disqualifying them from essential benefits like Supplemental Security Income (SSI) or Medicaid. An SNT avoids this issue by holding the funds in a way that doesn’t count as the beneficiary’s direct asset. The trust terms dictate that the money be used for expenses that improve the individual’s life such as education, therapy, or recreational activities without affecting their eligibility for…Read More

This holiday season recalls cheesy holiday movies. Scenes are set with children visiting the family home – possibly for the last time. One of them wishes they could keep the home with all the memories and moments it brings to mind. They all bemoan the tax man who makes it impossible to keep that family home in the family. But is it? There’s usually only one major consideration for a child considering keeping the family home – can I afford it? Sometimes people think, “The family home is worth so much more than my current home, I don’t think I could afford it.” But frequently people forget the ability to keep their parents’ property tax basis under very specific conditions.…Read More