If you have ever watched any old Westerns, you may have seen a lone gunslinger depicted as drawing up his last will on a saloon napkin before he heads out into the street for his next precarious battle. His estate is a simple one; he’s got a horse, a saddlebag, the clothes on his back and his side arm to account for, and he hands the napkin to the barkeeper before he heads outside.

These days there are people who would have you believe estate planning is almost as simple. There may be no barkeeper or gunslinging involved, but they want you to think that all you have to do is fill in the blanks on a generic document and put it away somewhere for safekeeping.

The truth is that every family is unique, and there is no one document that is going to be suitable for every purpose.

There are a number of different scenarios that come into play, and one of these would be divorce and remarriage when you have children. Or you may have someone with special needs on your inheritance list. Perhaps you have an heir with spendthrift proclivities and this can be a source of concern.

The exact makeup of your family, coupled with the specific nature of your wishes, is going to dictate how you should proceed when you are preparing your assets for eventual distribution after your death. There is no one way to go about it that is suitable for everyone.

Personalized attention is the key to a well-crafted estate plan. If you would like to discuss your vision for the future with an expert, right now would be a good time to pick up the phone to arrange for a consultation with a licensed and experienced San Jose CA estate planning attorney.

My office also offers free estate planning seminars.  To find out more information on seminar dates, locations and times, follow this link:  Free Living Trust Seminars.

The Law Office of Roy W. Litherland is a member of the American Academy of Estate Planning Attorneys.

Let’s say that you suddenly have some good fortune. You win a lottery prize that will pay you a lump sum of $12 million.

This can seem like it is truly going to change your life and that of future generations to come. But the euphoria may be tempered a bit when you find that you are holding perhaps $7 million or $8 million after paying state and federal income taxes.

Still, the remainder is a lot of money and it will surely make a difference.

If you are like a lot of people, one of the first things that would cross your mind would be to give some of this money to your family members as a gift. Since you already parted with such a large chunk of it to pay your income taxes, you may assume that you can give gifts with this remainder without incurring any further taxation.

Unfortunately, this would be a misconception because there is a gift tax in place that is unified with the estate tax.

There is a unified exclusion that stands at $5.12 million right now. But, this is going to be reduced to $1 million at the end of this year if no changes to existing laws are made in the meantime.

Therefore, any gifts exceeding $1 million in 2013 would be subject to a 55% federal tax. And, after using your $1 million exemption giving gifts, all of your estate would be subject to the estate tax after you pass away.

The above is an interesting scenario to consider, but you don’t have to be a lottery winner to have assets exceeding the exclusion amount.

Given the far-reaching impact of the tax code, you really should take pause before divesting yourself of assets and obtain professional advice prior to making any decisions. If you are interested in doing just that, don’t hesitate to pick up the phone to arrange for a consultation with a highly qualified Campbell CA estate planning lawyer.

The Law Office of Roy W. Litherland is a member of the American Academy of Estate Planning Attorneys.

You can sometimes take a painful situation and extract something good from it, and this is something to consider when doing estate planning.

In addition to making preparations for the transfer of assets to your loved ones after you pass away, you should also consider advance health care directives such as a living will. A living will can be executed with the assistance of a San Jose estate planning lawyer.  A living will is used to state your choices regarding medical procedures that you would be willing to accept and those that you would prefer to deny in the event you are unable to communicate those wishes at some time in the future.

The issue of whether or not you would want to be kept alive via the use of artificial means is generally at the root of these documents.  You could also add additional preferences in your advance health care directive, and one thing to consider would be including your desire to be an organ and/or tissue donor. People pass away every day who are on transplant lists due to a paucity of available organs, so you could in a very real sense be saving someone’s life if you agree to become an organ donor.

Imagine the feelings of true gratitude by the individual whose life was saved by the utilization of your organs. And of course a selfless act is its own reward, and it can be a deeply satisfying feeling to know that one of your final acts helped others in need.

The Law Office of Roy W. Litherland is a member of the American Academy of Estate Planning Attorneys.

It is not uncommon to feel as though estate planning is something that only concerns our nation’s elderly. After all, the average lifespan exceeds 78 years, so if you’re not yet a senior citizen you have plenty of time to worry about it later on, right?

Of course, the likelihood of passing away increases as you age, and we all hope that we live long and robust lives. However, there are no guarantees. Tens of thousands of people pass away before they reach the age of 40 every year, and many people who are in this age group have dependent children still in the home.

The whole point of estate planning is to provide for people that you love after you pass away. As you pass through succeeding stages of life, the core dynamic underpinning your estate planning efforts will take on a slightly different focus.  

As a younger adult, it is indeed unlikely that you will be passing away while your children are still minors. However, you do have to take every precaution so that they have financial resources to draw from and a guardian in place if both parents were to pass away simultaneously.

And of course, if you are married with or without children you must make sure that your spouse is provided for in the event of your passing.  Most young families depend on two incomes, and if your income was to vanish your family can be left in a very difficult situation financially as well as emotionally.

Estate planning is important for all self-supporting adults regardless of your age, particularly if you are a parent. If you are presently unprepared, right now would be a good time to take action to arrange for a consultation with an experienced and highly qualified San Jose, CA estate planning attorney.

The Law Office of Roy W. Litherland is a member of the American Academy of Estate Planning Attorneys.

Estate planning is something that requires personalized attention, and it is a very good idea to retain the services of a good San Jose estate planning lawyer as soon as you become a responsible adult with people depending on you. Your lawyer will guide you in the right direction given your intentions, your family dynamic, and your unique situation.

The above having been stated, people who own small businesses are in a different position than those who work as employees. Everyone has to plan for the future in light of his or her own unique situation regardless of how you earn your income. But when you work for someone else, you don’t have to worry about what happens to the business after you are no longer involved.

On the other hand, when you own a business you have to devise a succession plan, and various different approaches may be appropriate.

If you have one child and this individual is going to run the business after your passing, you are faced with a certain situation and you must plan accordingly. But if you have children who don’t want to be involved in the business, you have a different situation that requires a different course of action.

Some people intend to sell their businesses to the highest bidder someday, and this is another possible scenario that will require a specialized approach.

Succession planning is important for small business owners; the sooner you act the better because your vision for the future will logically impact your decisions along the way. If you’re ready to get started, pick up the phone right now to arrange for a consultation with a qualified and experienced Los Gatos, CA estate planning attorney.

The Law Office of Roy W. Litherland is a member of the American Academy of Estate Planning Attorneys.

The facts surrounding the subject of long-term care are attention-getting.  For one, many people are surprised to hear just how likely it is that they may eventually need long-term care.

According to statistics that have been presented by the United States Department of Health and Human Services, approximately seven out of every 10 people who are fortunate enough to attain senior citizen status will someday need long-term care.  So if you have reached the age of 65 or have every intention of doing so, it is likely that you will need such care.

The cost of long-term care has become truly exorbitant, with the average annual expense for a private room in a nursing home in the United States reaching $87,235 in 2011. A 12 month stay in an assisted living community would cost you over $41,700 on average.

Of course, most people who need long-term care spend more than a single year receiving such care, and these are considerable expenses to be presented with during the latter stages of your life.

Medicare does not pay for long-term care.  However, Medi-Cal will pay for it if you can qualify, and qualifying can occur without divesting yourself of all of your assets. You can keep your place of residence, your car, and many valuable personal possessions without affecting your $2,000 personal resource limit.

However, there are intricacies to the laws that make it challenging to negotiate your way through the system without expert guidance. Should you be interested in the possibility of working toward Medi-Cal eligibility as a response to long-term care costs, the first step is to sit down and discuss the situation with a licensed and highly qualified San Jose, CA elder law attorney.

The Law Office of Roy W. Litherland is a member of the American Academy of Estate Planning Attorneys.

Advance planning is the key to a comfortable future, and the sooner you get started the better.  If you go forward without any type of overarching plan for the future, you may encounter some unpleasant surprises as the years pass and the typical retirement age starts to come into focus.

If you strip it down to the bare simplicity of the matter, retirement involves being able to pay your way without working. Most people go to work because they need the money. So, how do you reach the point where you no longer need this income? This is the question that you must ask yourself if you intend to retire someday.

After your active retirement years, there is also the period of time that is often referred to as the “twilight years.” This segment of time requires a particular brand of planning as well. Advance health care directives such as a living will and a durable medical power of attorney should be executed. You’re also going to want to appoint someone to handle your finances in the event of your incapacitation.

The intelligent course of action is to create a comprehensive plan for the future at a relatively young age and make adjustments as they become necessary. Should you be ready to begin, the logical first step is to sit down and discuss your vision for the future with a licensed and experienced San Jose, CA retirement planning attorney.

The Law Office of Roy W. Litherland is a member of the American Academy of Estate Planning Attorneys.

There are various steps that must be taken when you are crafting your legacy. For one, you need to inventory your assets in an effort to gain an understanding of exactly what it is that you have to give. You then must situate your assets in the optimal manner to protect them and mitigate asset erosion.

In addition to preparing assets for distribution, you also have to consider the unique personalities of the people who are on your inheritance list. If you pass away after living a long life, some of the people on that list are probably going to be mature and established in their own right. You may have no qualms about leaving individuals such as these lump sum inheritances with no strings attached.

But on the other hand, not everyone is good at managing financial resources. There could be someone who is in line for an inheritance that could be considered a spendthrift. You may have concerns about how this individual will handle his or her inheritance.

As a response, you could make this person the beneficiary of a spendthrift trust. When you do this, the beneficiary does not handle the funds directly. This task is assigned to the trustee that you appoint. Many people will utilize a trust company, or the trust department of a bank, to be certain that the funds are professionally administered.

The trustee will issue distributions to the beneficiary in accordance with your wishes. In addition, the assets placed in the trust are protected from creditors of the beneficiary.

If you are interested in the possibility of creating a spendthrift trust, simply take a moment to pick up the phone to arrange for a consultation with an experienced and professional Los Gatos, CA estate planning attorney.

The Law Office of Roy W. Litherland is a member of the American Academy of Estate Planning Attorneys.

One of the challenges that many senior citizens are going to face will be the need for living assistance. You may automatically think that you will live in a nursing home or an assisted living community should you need help with your day-to-day needs. This is certainly an option, but it is important to be aware of just how expensive this care has become.

According to a 2011 MetLife Mature Market Institute survey, the average annual charge for residence in an assisted living community in the United States is $41,700 ($55,044 in San Francisco). The same interim residing in a private room in a nursing home averaged $87,200 annually ($177,025 annual average in San Francisco). When you consider the fact that the average length of stay is between two and four years, this is quite an expense to be faced with late in your life.

The more affordable alternative would be to take steps that enable you to stay in your home as long as possible. A professional caregiver can be employed who will come in and help on an as-needed basis, and this can be affordable.

In addition, you could also modify your home to accommodate your physical limitations. Things can be installed such as step chairs, motion activated faucets, grab bars, walk-in showers, and even elevators. These modifications could make it possible for you to live comfortably in the home.

If you want to be prepared for all the eventualities of aging, you need to make plans in advance.  The best way of doing this is with the assistance of an estate planning and elder law San Jose, CA attorney with an office that specializes in life care planning (the combination of Medi-Cal planning and geriatric care management services).

The Law Office of Roy W. Litherland is a member of the American Academy of Estate Planning Attorneys.

You may have heard about “probate avoidance” and wondered what it is all about.  Many people aren’t sure what probate is, and therefore aren’t sure why someone would want to avoid it. 

Probate is the legal process of estate administration. When someone passes away, the probate court in the jurisdiction that is local to the deceased examines the Will to determine its validity. If the Will is deemed to be valid, the court will supervise the administration of the estate. The executor or the personal representative will be responsible for handling the tasks involved in the administration of the deceased’s estate.

One of the primary reasons people choose to avoid probate is because there are significant costs involved. The court itself is going to impose court costs that are based on a percentage of the overall value of the estate.

The executor is also going to have to pay legal fees on behalf of the estate. He or she may have to bring in a tax accountant, an appraiser or appraisers, and an estate liquidation company. In all, these expenses could add up to consume a significant portion of your estate.

If you go a different route, such as utilizing a revocable living trust rather than a last Will, you can avoid many of these expenses.  As part of my commitment to keep my community informed, I offer free living trust seminars.  For more information on these free seminars, follow this link:  Free Living Trust Seminars.

To explore probate avoidance options, take action right now to arrange for a consultation with an experienced and highly qualified San Jose, CA estate planning attorney.

The Law Office of Roy W. Litherland is a member of the American Academy of Estate Planning Attorneys.