In this Vlog, Attorney Justin M. Kennedy discusses Revenue Procedure 2022-32 and how the period for a surviving spouse to elect portability has been increased to five (5) years from the date of death of their deceased spouse. … [Read more...] about Five Years to Elect Portability (VIDEO)
Trustee Tax Liability (VIDEO)
In this Vlog, Attorney Justin M. Kennedy discusses the federal priority statutes and how they can create personal tax liability for a Trustee. … [Read more...] about Trustee Tax Liability (VIDEO)
Trust Administration Frequently Asked Questions (FAQs)
What is a Trust Administration? When a Trustor dies, the state of California requires that the Trustee of the Trust take some actions. The extent of these actions depends upon whether the Trust becomes irrevocable at the death of the Trustor or if the Trust provides specific actions for the Trustee to take upon the death. We recommend that upon a death of a Trustor, the Trustee schedule a meeting with an attorney within the first month to discuss the legal requirements upon death and what … [Read more...] about Trust Administration Frequently Asked Questions (FAQs)
Clayton Trust – The Advantages of the B-Trust
By: Justin M. Kennedy, Attorney Litherland, Kennedy & Associates, APC, Attorneys at Law Prior 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 … [Read more...] about Clayton Trust – The Advantages of the B-Trust
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...] about What Happens to a Living Trust when a Spouse Passes Away?
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...] about Who Administers My Living Trust When I Die?
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...] about Why Would I Need a Trust if I Have a Will?
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...] about Do I Pay Taxes on Living Trust Income?
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...] about Should I Have a Durable Power of Attorney?
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...] about Should I Use a Corporate Trustee?