By: Justin M. Kennedy, AttorneyLaw Office of Roy W. LitherlandPrior to 2014, for married clients with estates valued at over one million dollar ($1,000,000), our office often recommended ABC Trusts. This trust structure was used to preserve the Deceased Spouse’s estate tax exemption. For much of that time, there was a one million dollar ($1,000,000) estate tax exemption. Utilizing the ABC Trust structure allowed you to double that, to be able to pass two million dollars ($2,000,000) free of … [Read more...]
What Happens to a Living Trust when a Spouse Passes Away?
In this blog article, we will address the issue of living trusts as they apply to married couples and what happens to the trust upon the passing of the first spouse.First, we will review the value of living trusts in general.Many people assume that a last will is the best choice when they are planning their estates. They believe that trusts are only useful for those who are very wealthy. However, this is not entirely true. While there are trusts that are utilized to meet the objectives … [Read more...]
Who Administers My Living Trust When I Die?
The process of estate planning involves exploring your options. You do not want to make any assumptions without knowledge of all the facts, and people often do harbor misconceptions about trusts.One of the misconceptions is the idea that you cannot handle assets that you convey into any type of trust. This is not the case when it comes to a revocable living trust. When you create and fund this type of trust, you can act as the trustee while you are alive. If you create a joint living trust … [Read more...]
Why Would I Need a Trust if I Have a Will?
Estate planning is not a one-time event. Your initial estate plan is going to be devised based on the way that your life was at that time. It is like a snapshot, but life goes on after that day. As your life changes, your existing estate plan could become obsolete. As a result, estate planning should be viewed as an ongoing process.If you used a will when you put an initial estate plan in place because your family was small and your life was uncomplicated, this is understandable. At the same … [Read more...]
Do I Pay Taxes on Living Trust Income?
When you understand some things about estate administration, you can see why so many people decide to use revocable living trusts.If you hold on to your property throughout your life and arrange for its distribution through the terms of a last will, the heirs to the estate will have a significant waiting period on their hands.The estate administration process takes place under the supervision of the probate court. After your passing, the executor or personal representative would be required … [Read more...]
Should I Have a Durable Power of Attorney?
Should I Have a Durable Power of Attorney? from Roy W. Litherland Powers of attorney are often used within the legal field. Learn more about durable power of attorney in california in this presentation. … [Read more...]
Should I Use a Corporate Trustee?
When you are planning your estate, you may want to consider the utilization of a revocable living trust as a vehicle of asset transfer.If you have a revocable living trust in place, you can continue to control the assets while you are alive and well. At first, you can act as the trustee. The trustee is the person who administers the trust. As the trustee you would control the actions of the trust throughout your life.The beneficiary of the trust receives monetary distributions from it. You … [Read more...]
Revocable Living Trust in San Jose: Who Should I Name as Successor Trustee?
When you are planning your estate, you may want to consider the creation of a revocable living trust. For the most part, these trusts are popular because they facilitate the transfer of monetary assets outside of the process of probate.Your estate must be probated when you use a last will rather than a trust to express your wishes regarding the distribution of your resources after you die. The probate process comes along with some significant pitfalls.Most people are going to want to … [Read more...]
The Importance of Incapacity Planning
THE IMPORTANCE OF INCAPACITY PLANNINGWho Will Manage Your Health Care Decisions?For most of our lives, the greatest risk to our well-being is the ever-increasing likelihood of becoming seriously ill or injured. When illness or injury makes us unable to manage our own affairs, we may face the legal ordeal of a Conservatorship which can be a living nightmare for those who must go through it.Many people fail to plan ahead for their possible incapacity because they think it only happens to … [Read more...]
Attention to Detail Is Key When Planning Estate
There are a plethora of details to attend to when you are planning your estate if you want to be comprehensively and effectively prepared. Simply looking for the easy way out is a recipe for disaster.Speaking of easy ways out that can yield disastrous results, you would do well to take pause before trying to construct a last will using an online tool. Experts have weighed in on the subject, and unintended consequences can result when you try to go this route.Additionally, as a layperson are … [Read more...]