The top concern for most clients in estate planning is the issue of estate taxes. In fact, for most people, the primary goal of estate planning is to reduce or eliminate estate taxes if at all possible. The federal estate tax rate is 40%, but there is an estate tax exemption available. While there is no longer a California estate tax, the federal estate tax remains. Here is some basic information you need to know about this issue. To learn how to reduce estate taxes and the ins and outs … [Read more...] about What You Need to Know About California Estate Tax [UPDATED 2019]
Estate Planning
2 Main Purposes of Estate Planning
Estate planning is meant to prepare you and your family for the chance of incapacity and for death. There are a variety of estate planning tools that can be used, depending on the specific goals of your estate plan. Purpose No. 1: Planning for possible incapacity Incapacity can be caused by either a physical or mental condition. The notion of incapacity, in a legal sense, refers to the ability to understand the nature of consequences of legal proceedings. However, when you are dealing with … [Read more...] about 2 Main Purposes of Estate Planning
Is it Possible to Reject an Inheritance?
Most people would take the news of an inheritance very well. Who wouldn't welcome some unexpected money or property? Yet, there are some circumstances when an inheritance would not be the best news. If you find yourself in a situation where it would be best not to accept an inheritance, how would you do that? The reality is, you can reject an inheritance. However, it is a little more complicated than saying, "no thanks." Your estate planning attorney can help you with your inheritance … [Read more...] about Is it Possible to Reject an Inheritance?
Three Benefits of a Living Trust
Most clients understand the importance of having a written legal document that provides instructions for distributing your assets after your death. But, which type of legal document should you choose, and why? If you are contemplating whether to create a will or a living trust, here are three benefits of a living trust that you should consider. How a living trust is different from a will Both a living trust and a last will and testament involve the distribution of assets, however, they are … [Read more...] about Three Benefits of a Living Trust
Living Trust: 3 Most Common Myths
A living trust is a particularly useful estate planning tool and should be included in every estate plan. However, before you take that step, there are a few common myths regarding living trusts of which you should be aware. This article will debunk the 3 most common myths. For a complete understanding of how this estate planning tool can benefit you, discuss your options with your Los Angeles estate planning attorney. Myth No. 1: You have to give up control of your property when you create … [Read more...] about Living Trust: 3 Most Common Myths
4 Reasons You Must Have an Estate Plan
If you want your estate to be protected for your loved ones, as nearly everyone does, then you must have an estate plan. Without estate planning, your family will likely face overwhelming tax burdens, as well as other unwanted consequences. You may also be leaving many of the decisions regarding your estate to the court instead of making them yourself. What is estate planning? Estate planning is the way you prepare yourself and your family for what happens after your death. Estate planning … [Read more...] about 4 Reasons You Must Have an Estate Plan
Three Ways to Avoid Federal Estate Tax
One of the most common concerns in estate planning is estate taxes. In fact, one of the basic goals of estate planning is either decreasing estate taxes or eliminating them altogether. With the current federal estate tax rate at 40%, it is easy to see how taxes could potentially reduce the value of your estate to a large extent. Estate taxes must be paid from any gross estate exceeding $5.45 million. Many, if not most estates, are not required to pay estate taxes because of Estate Tax … [Read more...] about Three Ways to Avoid Federal Estate Tax
4 Types of Wills and what they Should Include [UPDATED 2020]
All wills are required to meet certain standards in order to be considered valid in a court of law. The person making the will, or the testator, must be at least 18 years of age and of "sound mind." That basically means they must have the legal capacity to create a will. The testator needs to select an executor to manage the will, explain how the property should be distributed after death, and sign and date the will in the presence of the required number of witnesses. There are several … [Read more...] about 4 Types of Wills and what they Should Include [UPDATED 2020]
The Importance of Minimizing Surprises
One of the most critical documents in any estate plan is a health care directive or durable power of attorney. A durable power of attorney allows for the orderly management of your health care when you are unable to speak for yourself. Have you prepared a living will, health care directive or durable power of attorney for medical care? If you have prepared one or more of these documents, the next issue is: have you shared this document with your loved ones? Do your loved ones know who is … [Read more...] about The Importance of Minimizing Surprises
Not Every Power of Attorney is the Same!
As with most things, there are both advantages and disadvantages associated with a power of attorney. Understanding some of the ins and outs of a power of attorney can help you make an informed choice as to whether you actually need one. Basic definition of a power of attorney The individual who creates a power of attorney is referred to as the "principal." The individual who is authorized by the power of attorney to act on behalf of the principal is referred to as the "agent" or the … [Read more...] about Not Every Power of Attorney is the Same!
