Here is a bit more information about Prop 19: When California voters approved “Proposition 19” last November, it potentially reduced your children’s ability to retain your below market property tax assessment when they inherit your primary residence and could even force them to sell it. As a result, if you pass away after February 15, 2021, or gift your home to your children after that date, the property taxes may go way up, reflecting the full fair market value of the property, unless one … [Read more...] about What is Proposition 19 and Why You Should Care (2 of 2)
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What is Proposition 19 and Why You Should Care (1 of 2)
On November 3, 2020, California voters cast votes for many political offices and also on various propositions, including Proposition 19. Prop 19 was a ballot measure to modify Propositions 13 and 58. Background Proposition 13 passed in 1978. It limited property tax increases to 2% annually unless reassessed due to sale or other transfer. As a result, many properties in California have a property tax assessment far lower than the current fair market value. Proposition 58, passed in 1986, … [Read more...] about What is Proposition 19 and Why You Should Care (1 of 2)
Our Available Services During COVID-19/Coronavirus Pandemic
The health and safety of our clients, staff, and friends of the law firm are top of mind amid concerns about the spread of the Coronavirus (COVID-19). As estate planning and elder law attorneys, our practice is dedicated to serving our most vulnerable citizens, including seniors, those who are ill, disabled, experiencing mental health challenges and children with special needs. The uncertainty around the pandemic has many people with immune system challenges concerned about exposure to the … [Read more...] about Our Available Services During COVID-19/Coronavirus Pandemic
Will Your Estate Plan Still Work If You Move?
Before the pandemic, Americans were more mobile than ever. The pandemic has only increased the number of persons relocating for a variety of reasons. When you move, you have to change your address, your voter registration, and all sorts of other things. But, do you need to revise your estate planning documents? Like with many things in law, it depends on your situation. Attached is some insight from my friend and colleague Steve Hartnett, an estate planning expert. Read on to learn more. … [Read more...] about Will Your Estate Plan Still Work If You Move?
Understanding the Spousal Impoverishment Rules
If you are currently enjoying your retirement years, or will be soon, there is a good chance that you will face the need for long-term care (LTC) for you, or a spouse, at some point down the road. If that time does come to pass, covering the cost of LTC may involve qualifying for Medi-Cal benefits. Medi-Cal is California's version of the federal Medicaid program. Like many people, you may have heard stories about impoverished spouses that have you concerned about relying on Medi-Cal for help … [Read more...] about Understanding the Spousal Impoverishment Rules
Why You Need to Plan for the Cost of Dying
Protecting your loved ones is likely an important reason why you created an estate plan. For your estate plan to fully protect you and your loved ones, however, you may need to incorporate funeral planning into the plan. While it may not be easy to consider, the reality is that protecting your loved ones often calls for you to consider your own death. To help you understand, let's look why you need to plan for the cost of dying. Death Is Expensive Thinking of your death and funeral in … [Read more...] about Why You Need to Plan for the Cost of Dying
The Use of Trusts In Medi-Cal Long-Term Care Planning (Part II)
Last month we discussed generally how trust planning can be very useful in Medi-Cal Long Term Care planning. This month we’ll focus on specific types of trusts that can be useful in planning relating to Medi-Cal Long Term Care. They are: Medi-Cal Gifting Trust: This irrevocable trust is used to preserve clients' assets while still letting them qualify for Long Term Care Medi-Cal. With this trust, the person who creates the trust and puts his or her assets in the trust can't access the … [Read more...] about The Use of Trusts In Medi-Cal Long-Term Care Planning (Part II)
The Use of Trusts In Medi-Cal Long-Term Care Planning (Part I)
As many of our clients know, we regularly assist families facing daunting long term costs with planning aimed at obtaining available financial benefits from both the Veterans Administration and the Medi-Cal program. This planning is often very complicated but, nevertheless, extremely worthwhile for families struggling with these expenses. Valuable tools commonly used in our planning are various Medi-Cal Trusts. In this series of articles we’ll introduce you to these various trusts, and how … [Read more...] about The Use of Trusts In Medi-Cal Long-Term Care Planning (Part I)
Handling an Inheritance
If you are the fortunate recipient of an inheritance, be it small or large, from someone else’s estate, it is prudent to pause to evaluate the consequences. Tax Issues In the past, inheritances often came with tax consequences. Fortunately, this is not a problem for most Californians who inherit money or assets from other’s estates. The two most common tax issues related to inheritances are the estate tax, sometimes referred to as the “death tax” and the inheritance tax. The estate … [Read more...] about Handling an Inheritance
Planning for Medi-Cal’s Look Back Period
As clients of our firm well know, we are strong advocates for planning for not only our inevitable passing but also for the possibility for the need for some form of long term care. It’s a fact of life that the longer we live, the greater is the likely need for long term care. Paying for that care can be very expensive. The five basic methods to pay for such care are: 1.privately with one’s one assets; 2. with long term care insurance; 3. with Medicare, which is a limited benefit; 4. with … [Read more...] about Planning for Medi-Cal’s Look Back Period
