Estate Planning

Families are a complex system of support. No matter the generation, there is usually a division of labor between the principals. In the United States, the stereotypical model envisions a husband employed outside of the home while the wife manages the child care and/or household. Increasingly we are seeing a multitude of models, including the wife functioning as the primary earner or the spouses sharing the roles equally. Whatever the division of labor, it is not unusual for these roles to … [Read more...] about Does Your Estate Plan Anticipate the Bereavement Effect?

One of the most frequent questions I receive from clients goes to the very heart of estate planning—the difference between a will and a trust. When creating a trust, most individuals also create a will (usually a pour-over will), which further confuses the issue. When a client seeks guidance from me on whether it is better to create a will or a trust, the short answer usually is: it depends. A will (sometimes called a last will and testament) is a foundational estate planning document and one … [Read more...] about Which is Better: a Will or a Trust?

I was contacted by a young woman in her early 30s after the passing of her beloved grandmother. She described herself as grandma’s favorite and the only member of her family that grandma would trust to administer her estate. Grandma had left a car, an apartment complex and a home full of possessions. And while grandma has no minor children, she is the sole means of financial support for two minor grandchildren who have lost their parents. The young woman searched high and low but cannot find … [Read more...] about Your Mother Always Said: Don’t Leave a Mess!

As you travel through the various seasons of life, you may not require the same estate plan.  A plan you created in your 30’s could be vastly different from the one you need in your 60’s. 1.     Young & Single.  In your 20’s you most likely only need a Durable Power of Attorney for finances and an Advanced Health Care Directive.  If you are single, this means that you name your parents to make financial and medical decisions if you are unable to. Once you purchase a new home, it’s time to … [Read more...] about Life’s Stages Dictate Different Estate Plans

I am often asked to name the essential documents for an estate plan. In California, an estate plan should include four or five basic estate planning documents. If your current family and financial situations do not warrant the need for a Revocable Living Trust, then your foundational estate plan based on a will-based estate planning will include the following three important legal documents: 1.     Last Will and Testament; 2.     Advance Medical Directive; and 3.     Financial Power of … [Read more...] about What are the Crucial Estate planning documents?

Through online legal document portals, consumers have access to a number of DIY legal documents available on the internet to create their own wills and power of attorney.  This may save them money and time.  But has the internet really empowered the public to handle their estate planning or does it create many avoidable problems? Most lawyers agree that using online legal documents may result in errors.  While filling up the online documents, one may miss a simple question; some terms may be … [Read more...] about Do-it-yourself (DIY) estate planning – Is it worth saving the few dollars?

Estate planning is brimming with acronyms.  The QTIP Trust is yet another, though perhaps one of the easiest to remember. It stands for “Qualified Terminable Interest Property” Trust, and it is very helpful for couples who desire to leave property to one another, while saving as much on estate taxes as possible. The Irrevocable QTIP Trust A QTIP Trust is a type of irrevocable trust that is used most often to leave assets to a surviving spouse, who will in turn leave those same assets to their … [Read more...] about Should I Create a QTIP Trust?

There are many different strategies available for minimizing exposure to transfer or gift taxes.  One such strategy is very helpful if you possess highly appreciable assets.  If you transfer appreciable assets, name a beneficiary to assume ownership of any remaining assets, once the term of the trust ends, you can save substantially on gift taxes. The history of estate and gift taxes Long ago, the government established the federal estate tax, which imposed a special tax on the estate of every … [Read more...] about How to Transfer Appreciable Assets as Gifts

The term “irrevocable” means not able to be changed.  Therefore, by definition, an irrevocable trust is one that cannot be modified, changed or revoked. Once you create an irrevocable trust, the terms are considered written in stone and, regardless of the reason, its terms cannot be altered in the future. So, what makes a trust irrevocable is the inability to change its terms. Types of Irrevocable Trusts There are basically two types of irrevocable trusts: living trusts and testamentary … [Read more...] about What Makes a Trust Irrevocable?