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...]
How Not To Leave Your Home To Your Kids
One thing that some people try to do to avoid probate is to transfer their house to their children while they are alive. For many, it seems like the simplest and easiest solution. This can be accomplished by adding the child to to ttile to the house as a joint tenant or by gifting it to them outright. However, a cautionary tale, that may or may not be literally true, illustrates what can happen when you do this. The story involves a judge who made a big legal error.The judge’s daughter and … [Read more...]
Protecting Your Kids' Inheritance From Their Creditors
If one or more of your children have accumulated a lot of debt, you might hesitate to give property to those kids in your estate plan. The property might well end up in the hand’s of a child’s creditors, so many people think it better to give the property to another family member. However, you can leave assets to an indebted child without fear that creditors will get it all.A spendthrift trust is specifically designed for this type of situation. You can fund the trust with the money and … [Read more...]
What You Need to Know About Testamentary Trusts
A good trust is one that suits your needs and desires. For many parents with young children, a testamentary trust is exactly what you are looking for if you are concerned about your children being able to manage property if you were to die suddenly. Here are a couple of quick points about testamentary trusts and why they are useful.The trust relationship.Every trust is basically a specific legal relationship between certain people. When you create a trust you select who these people are and … [Read more...]
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 while … [Read more...]
