With over half of all marriages in America ending in divorce, it is no surprise that the number of blended families has also steadily increased over the past few decades. If you are one of those people whose is planning to remarry in the near future, you are likely concerned about how to create a successful blended family. Often, the partners in a blended family bring with them children from previous relationships as well as assets and debts. Discussing your financial strategy with your future … [Read more...]
Don’t Accidently Disinherit Your Children
Each and every day, children are unintentionally disinherited and receive nothing when their parent dies. If you’re like most people, this is not what you want. Here are two examples illustrating how children are disinherited. Example One Jim and Susan have a long happy marriage. They have been married for 32 years and have four children, all boys. Jim has a heart attack and dies. He and Susan owned everything jointly so at his death, Susan inherited all of the assets. Several … [Read more...]
How Not to Unintentionally Disinherit Your Children
When asked if they are going to disinherit their children, most folks reply, “Of course not.” However, many of them do, unintentionally. The Perils of a Blended Family Unfortunately, the unintentional disinheritance of children happens every day. It usually happens in blended families, which are comprised of second, third, or even forth marriages and children from previous relationships. No matter what promises are made or understandings are had, a spouse that is not the parent of all … [Read more...]
Ins and Outs of Inheriting an IRA
What are the tax implications of an inheriting an IRA? The answer depends on several factors: Is it a traditional IRA or a Roth IRA? The funds in a traditional IRA have never been taxed and will be taxed as they are withdrawn. Roth IRAs contain post-tax dollars and are not again taxed upon their withdrawal. Is the beneficiary of the IRA a spouse, a non-spouse person, or a charity? When the beneficiary of an IRA is the spouse of the IRA owner, the spouse will have a number of … [Read more...]
Do I Need an Estate Plan? I’m Not That Old
We are often asked by prospective clients: “Do I need an estate plan?” This is particularly the case for folks under 40 or 50, who just can’t imagine themselves dead or incapacitated. We are also often asked about planning by our clients who have adult children with assets and children of their own. As we all know, we can't and don’t know the future. Should a premature death or disability occur due to an unexpected injury or illness, having an appropriate plan in place will reduce needless … [Read more...]
An Update On ABLE Accounts
We have previously wrote about the long-awaited arrival in California of the so-called ABLE accounts. Formally, known as an Achieving a Better Life Experience (ABLE) account, they are a low-cost, easy-to-access plan established by federal law that began rolling out in 2016 and is now available in California. Modeled after the so-called “529 accounts”, an educational savings program offered by individual states, ABLE accounts let children or adults with disabilities incurred before age 26 … [Read more...]
Some Items for Your College Age and Young Adult Family Members
This fall, many young adults will either head off to college or break out on their own. In addition to the typical list of items they may take to college, they should be prepared with the proper legal documents. What's that? You weren't aware that your now adult children need legal documents? Well, they absolutely do because in the eyes of the law (if not their parents), 18-year-olds are adults. Legally speaking, parents’ legal authority ends when their children turn 18. While your child … [Read more...]
Answers To Your Living Trust Questions (3 of 3)
Trusts have been around for hundreds of years; specifically, the living trust gained popularity in the 1970s as a probate avoidance technique. Today, living trusts are often used as a foundational document in estate plans. We've found that many folks have both questions and misconceptions about the living trust; so, in this three part series, we answer your living trust questions. Does everyone need a living trust? Most folks would likely benefit from having a living trust; however, if … [Read more...]
Estate Planning for Adult Children Suffering from Alcoholism
Estate planning can extend your loving support and guidance to your children even after you are gone. If you have a child with an addiction problem such as alcoholism or other substance abuse issue, you can put your best efforts forward in ensuring that the inheritance you leave for him won’t be used to fuel the addiction or even kill him. Perhaps, this is one of the most important benefits of estate planning for adult children. Alcoholism runs rampant and often does not rear its ugly head … [Read more...]
Estate Planning Q and A: Part II of III
One of the best parts of an estate planning attorney’s job is answering client questions. It’s an essential part of the estate planning process so we’ve outlined some of your questions below. This is part II in our three part estate planning question series. Do I have to leave my children an inheritance? No, even minor children are not legally entitled to an inheritance. Many would argue that there is a moral obligation to leave funds for the care of minor children. If you choose not … [Read more...]
