Estate planning is important for all responsible adults, and everyone should have a last will in place at a minimum. If you do not execute any estate planning documents you will die intestate, and the outcome of this is not consistent with most people's wishes. When you die without a last will or a trust in California directing the transfer of your assets, the condition of intestacy results. Under circumstances where you pass away without having a will or trust and no living relatives, the … [Read more...] about What Happens to My Property If I Die Without a Will or Trust in California?
What Is a California Special Needs Trust?
Each family has a different dynamic, and this is something to take into consideration when you are planning your estate. With this in mind, if you have someone with a disability in your family you may want to consider the creation of a special needs trust. We would like to explain the value of a special needs trust by way of a simple example. Suppose you have a family member who has a disability. You want to provide something for this individual when you're planning your estate. Because … [Read more...] about What Is a California Special Needs Trust?
What Are the Advantages of a California Durable Power of Attorney?
When you hear mention of a power of attorney, you may feel as though it is not something that you would need as part of your estate plan. Most people are aware of the fact that in a general sense a power of attorney is used to allow someone to act on your behalf in a legally binding manner. However, powers of attorney are in fact going to play a role in your estate plan if you want to be comprehensively prepared for the future. It's not all about arranging for the transfer of your … [Read more...] about What Are the Advantages of a California Durable Power of Attorney?
California Estate Planning: What Is the Marital Deduction?
Tax efficiency strategies are a must for high net worth individuals who are engaged in the process of estate planning in California. Fortunately, we don't have a state level estate tax here, though there are a number of states that do have their own estate tax. This is a break, but the federal estate tax can do more than enough damage on its own. You can pass along a certain amount of money to people on your inheritance list before the estate tax becomes a factor. This is why it is only … [Read more...] about California Estate Planning: What Is the Marital Deduction?
California Legacy Wealth Planning: What Is It?
The process of estate planning is going to mean different things for different people. What is important to one family may not be important to another. One of the deciding factors will be the extent of the estate in question. If you are simply transferring a relatively modest store of assets to your children and there is no estate tax responsibility, you are in a particular situation. However, if you have been extraordinarily successful throughout your life from a financial perspective, you must … [Read more...] about California Legacy Wealth Planning: What Is It?
How Large of an Estate Can Pass Federal Estate Tax Free in California?
There are many people who do not think that the federal estate tax is necessary or fair. They make a number of points. One of them is the fact that the estate tax is imposed on assets that remain in your estate after you have paid taxes on your income throughout your life. While you are living, there is no reason to impose a hefty tax on these assets by virtue of their existence. However, for some reason these assets are taxed after you die if they exceed a certain amount. This is why many … [Read more...] about How Large of an Estate Can Pass Federal Estate Tax Free in California?
Should I Have a California Durable Power of Attorney?
There are different types of powers of attorney, and they are used for different sets of circumstances. For example, a general power of attorney would give an agent of your choosing the ability to act on your behalf for all different types of purposes. Let's say that you are going to be out of the country for an extended period of time. The general power of attorney would allow your agent to handle all of your affairs. There are also limited powers of attorney. To provide another example, … [Read more...] about Should I Have a California Durable Power of Attorney?
What Is a California Family Limited Partnership?
Many wealthy families in California would do well to consider the creation of family limited partnerships. These estate planning devices can be useful for asset protection, and they can also facilitate asset transfers at a tax discount. Asset Protection First we would like to take a look at the asset protection that is afforded by family limited partnerships. If you were to be targeted by a creditor or litigant, your personal assets could be vulnerable if you do not take steps to protect them. … [Read more...] about What Is a California Family Limited Partnership?
Can You Give Away Assets to Qualify for Medi-Cal in California?
Medicare is a program that you pay into when you are working throughout your life. Payroll or self-employment taxes are used to fund the program. You qualify for Medicare coverage once you reach the age of 65 , and you go forward with health insurance during the latter portion of your life. Medi-Cal is a government program that provides health care for people that don't have health insurance and don't have enough money to pay for health care. There's no particular age at which you become … [Read more...] about Can You Give Away Assets to Qualify for Medi-Cal in California?
Are Your Trust Terms Obsolete?
The process of estate planning is just that: a process. If you truly want to be prepared every step of the way, you should not just create a living trust and then forget about it. Life does not stand still. The estate plan that you initially put into place will reflect the circumstances of your life as they stood at that time. Over the years, there may be additions and subtractions to the family, changes in your marital status, and improvements in your financial profile. All of these things … [Read more...] about Are Your Trust Terms Obsolete?
