By: Justin M. Kennedy, Attorney Litherland, Kennedy & Associates, APC, Attorneys at Law I spoke with a client, William, the other day who shared that he purchased his home many years ago for fifty thousand dollars ($50,000). That same home is now worth an estimated one and a half million dollars ($1,500,000). If the home was sold today, the capital gains taxes would be calculated on the difference between the sale price ($1,500,000) and the basis in the property ($50,000), for a taxable gain … [Read more...] about Exclusion of Gains from Sale of Personal Residence
Advantages of the Clayton 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 … [Read more...] about Advantages of the Clayton Trust
Litherland Law Office 2017 Government Policy Forecast
By: Matthew M. Shafae, Attorney Litherland, Kennedy & Associates, APC, Attorneys at Law Elections have consequences. On January 3, 2017, the 115th United States Congress met for the first time, with both houses controlled by the Republican Party. On January 20, 2017, our Republican president-elect will be sworn in as President of the United States. For the first time in a decade, two branches of our federal government will be controlled by one political party. And this president … [Read more...] about Litherland Law Office 2017 Government Policy Forecast
Advanced Medi-Cal Triggers – Spousal Election
By: Justin M. Kennedy, Attorney Litherland, Kennedy & Associates, APC, Attorneys at Law While at an estate planning conference in November, one of the speakers discussed a planning strategy that may benefit many married couples. The planning strategy involves adding Advanced Medi-Cal Triggers to a married couple’s estate plan, specifically a Spousal Election to the Living Trust and testamentary special needs trust language within the Pour-Over-Will. For a married couple, upon the first … [Read more...] about Advanced Medi-Cal Triggers – Spousal Election
Transfer on Death Deeds
By: Justin M. Kennedy, Attorney Litherland, Kennedy & Associates, APC, Attorneys at Law In 2016, the State of California introduced a new Transfer on Death Deed (TOD Deed). When the TOD Deed was first announced, we advised our clients against using it. One of the many reasons against using the TOD Deed is that the property could be subject to a Medi-Cal Estate Recovery claim upon the owner’s death. As of January 01, 2017, so long as the TOD Deed has at least one living beneficiary upon the … [Read more...] about Transfer on Death Deeds
Portability and Second Marriages
by Matthew M. Shafae and Justin M. Kennedy, AttorneysLitherland, Kennedy & Associates, APC, Attorneys at Law A lot of estate planning hypothetical situations involve the spouse dying, and the survivor getting hitched with some nefarious predator who is only after the survivor’s wealth. All of our attention is paid toward preserving the estate and protecting the kids. But what about a second marriage that actually benefits the kids, and helps preserve the estate? We recently had precisely … [Read more...] about Portability and Second Marriages
Join Us for Our Last Two Free Living Trust Seminars of 2016
If you do not have an estate plan – or if your estate plan consists only of a basic will – you may not be adequately protecting your family against probate and estate taxes. Without proper planning, your family could lose a large portion of your estate to probate fees and estate taxes, even if you have a will… Setting Up a Living Trust is One of the Most Important Things You Can Do for Yourself and for Your Family During Your Lifetime A Living Trust will transfer your estate to your … [Read more...] about Join Us for Our Last Two Free Living Trust Seminars of 2016
Keeping it Safe on the Road (An Elder Law Today Blog)
by Dedra Jize, OT, CSA Geriatric Care Manager, Litherland, Kennedy & Associates, APC, Attorneys at Law Most people agree that driving is one of the keys to independence. However, new driving challenges arise as you age. Arthritis can make flexing and twisting painful and weakened muscles make it harder to grip. Aging also affects vision, hearing, cognitive function and reaction time. Other challenges you may face include an increased number of cars on the road, lights and sounds that vie for … [Read more...] about Keeping it Safe on the Road (An Elder Law Today Blog)
Are All Trusts Asset-Protecting Trusts?
By: Matthew M. Shafae, Attorney Litherland, Kennedy & Associates, APC, Attorneys at Law The living trust is the bedrock foundation upon which our estate plans are built. It’s right there in the word: trust. It sounds safe and secure; it’s warm peace of mind. If you’ve been to one of our seminars or workshops, you’ve probably heard us tout the benefits of an asset-protection trust, and how our clients typically take advantage of this estate planning enhancement to leave property to loved ones … [Read more...] about Are All Trusts Asset-Protecting Trusts?
Sorting Through the Taxes That May Impact Your Estate Plan
By: Matthew M. Shafae, AttorneyLitherland, Kennedy & Associates, APC, Attorneys at Law The “T-word” usually makes our eyes glaze over and we picture an overworked accountant wearing a green eyeshade crunching a bunch of numbers for us every April. Well, unfortunately, I can’t make them go away, but I can attempt to explain how taxes may impact your estate planning. Within the context of your estate plan, there are typically three main taxes that are relevant: the estate tax, … [Read more...] about Sorting Through the Taxes That May Impact Your Estate Plan
