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
Estate planning can feel overwhelming, and it’s easy to put off. But with the right guidance, the process can be simpler, smoother, and much less daunting. As an estate planning attorney, I’m here to help Californians avoid common mistakes and make thoughtful decisions to protect their families and assets. This article covers some of the most frequent questions I receive, including: How often you should review or update your estate plan in California. How to protect your assets from the estate tax and the costs and complications of probate. How to avoid common mistakes and choose the right executor for your estate plan. 1. What Experience Do You Have With Estate Planning In California? It’s natural to want to know…Read More
We all know someone who left this world far too soon. Just recently, a friend of mine passed away, leaving behind her twin daughters. She was only a few years older than me, and her sudden death shook me. As I looked at my own child, I found myself asking, “What if that happened to me?” It’s a difficult thought, but these are the things we, as parents, can’t afford to ignore. That’s why it’s so important to me that my clients take the time to think through these scenarios, even the uncomfortable ones. The truth is, guardianship decisions are often among the most challenging aspects of estate planning for parents of young children, and the process can seem even…Read More
Planning for the future means ensuring your children will be in caring hands if you can’t be there. Nominating a guardian might feel like a big step, but knowing your child’s future is secure brings real peace of mind. This guide covers what Orange County parents—and parents across California—should know about choosing a guardian, including: How to nominate a guardian in California. Key factors to consider when selecting a guardian. What happens if you don’t name a guardian, and the essential documents you’ll need. What Is Guardianship In Estate Planning, And What Does A Guardian Do For My Child? In California, nominating a guardian can be fairly straightforward—you just need a written document expressing your wishes. Most people include this…Read More
Everyone values control over their life, future, and the choices they make. But inevitably, there may come a time when that control diminishes—whether due to temporary incapacity, permanent disability, or death. Estate planning offers a legal framework to maintain influence over what happens to your assets and loved ones after you can no longer make decisions. This article explains essential estate planning concepts in California, including: What makes up an estate plan, and when you might need one (not just for after you die!) What assets you can leave behind, and who you can leave them to (even your pets…sort of) The difference between key estate planning tools like trusts and wills. What Is An Estate Plan? An estate plan…Read More
