Leaving someone an inheritance is not as simple as adding some zeros to his or her bank account balance. It can be…but this is not always in the best interests of your loved ones. It’s likely that some of your heirs are mature and established with a history of being able to handle their own affairs appropriately, and you may have no concerns about them. But you may also have some younger heirs who have not yet made their marks in life, or some family members who have personal problems or a … [Read more...] about Incentive Trusts: Using Your Legacy to Benefit Your Loved Ones
Do All Estates Have to Go Through Probate?
If you have recently suffered the loss of a family member or loved one, you may be concerned about the legal steps required to probate the decedent’s estate. Probate is the legal process in court by which a decedent’s estate assets are inventoried and valued, debts of the decedent are paid and assets eventually transferred to the beneficiaries or heirs of the estate. Whether or not an estate must go through probate depends on a number of factors. Wills, Trusts, and Estate matters are governed … [Read more...] about Do All Estates Have to Go Through Probate?
How Will Your Family Handle Your Estate Plan?
One of the secrets to estate planning is that your estate plan is only as effective as your family makes it after you pass away. This is whyexperienced estate planning attorneys spend a lot of time with their clients making sure that the clients designate appropriate people to positions of authority in an estate plan. It's also why estate planning attorneys often spend lots of time after clients pass away to make sure that the families understand and know how to implement the estate plan. All … [Read more...] about How Will Your Family Handle Your Estate Plan?
Personal Representatives in California
In California, the Probate process includes appointing someone to act as the Personal Representative of the estate. The Personal Representative is either an executor named in someone's will or an administrator appointed by the court when there is no will or the will does not name an executor. This is the person who actually handles all of the affairs of the estate; the Court does not do it personally. If you serve as a Personal Representative, it is important that you know what your duties are … [Read more...] about Personal Representatives in California
Revocable Living Trusts Are Not All the Same
Perhaps the most common form of estate planning today involves a Revocable Living Trust. Normally, when you create a Revocable Living Trust, you retitle your assets in the name of the trust and use them for your own benefit. After you pass away, the Trust distributes any remaining assets in the Trust to the named beneficiaries according to the terms of the Trust. However, there are other ways to use a Revocable Living Trust to distribute your assets to your heirs. If you have young children, … [Read more...] about Revocable Living Trusts Are Not All the Same
Are You Better Off Without an Inheritance?
When most people think about estate planning, they think about ways that they can leave assets to their heirs. They do not think about the opposite: planning to receive an inheritance. What you do after receiving an inheritance is just as important as planning what to do with your own estate. You should consider whether you are better off with or without the inheritance. Receiving assets can have a drastic impact on your financial situation. It can put you in a higher tax bracket in some … [Read more...] about Are You Better Off Without an Inheritance?
So You’ve Been Named an Executor . . .
When a person creates a Will, he or she chooses someone to act as executor of the estate. An executor is responsible for administrating the estate settlement process. Even though a probate court will likely be involved in this process unless the estate is very modest, it is ultimately the executor’s responsibility to make sure the decedent’s wishes are carried out. While steps vary in each case due to the unique aspects of each estate, there are several steps you can take to make sure your job … [Read more...] about So You’ve Been Named an Executor . . .
Special Needs Planning; Some Considerations
If you are the parent of a child with special needs, planning for his or her future without parents is a more critical matter than the issue would be for a parent of a child who is not disabled. The concerns are twofold: who will your care for child if you become incapacitated and what happens to the child at your death? Some of the questions you need to consider when you begin the planning process are: Whom would you trust as guardian for your child if you were unable to care for them … [Read more...] about Special Needs Planning; Some Considerations
More than Just Salad Dressing: The Ongoing Saga of Newman’s Own Foundation
When a famous individual dies, it’s always interesting to see how they set up their estate, if they bothered to undertake estate planning at all. These cases provide great lessons for Estate Planning practitioners both about what to do, as well as about what to avoid. In some cases, even when celebrities take the time to set up a proper estate plan, things go wrong. Paul Newman’s estate represents one such situation. My friend and colleague Tereina Stidd, an estate planning expert, has looked … [Read more...] about More than Just Salad Dressing: The Ongoing Saga of Newman’s Own Foundation
Discharge of Indebtedness Income and Student Loan Forgiveness
While many taxpayers may be excited about the prospect of reduced loan balances as part of Biden’s Loan Forgiveness Program, they may have questions about the potential tax consequences of that forgiveness. Under normal circumstances, creditors that discharge debt issue a corresponding Form 1099-C Cancellation of Debt to the debtor for inclusion in that year’s income. While the administration works out the kinks in the loan forgiveness plan, it’s important to understand the current provisions of … [Read more...] about Discharge of Indebtedness Income and Student Loan Forgiveness
