I was recently asked what someone should do when they suspect that the co-owner of a parcel of property has obtained a loan using a forged power of attorney. I responded by advising that the first thing to do is answer a number of factual questions, the very first of which is whether or not any such fraudulent activity has actually occurred. If the co-owner has executed any documents pertaining to the "jointly" owned property, such document will be a matter of public record and reflected in the … [Read more...] about Actions by Someone Holding a Fraudulent Power of Attorney
Compelling a Conservatorship
I am frequently asked the question of how and when do family members draw a line in the sand and decide that their elder can no longer take care of themselves. This is a very tough legal and emotional question, probably one of the hardest for family members to address. And where the elder is adamantly uncooperative, it becomes even harder. No one wants to tell their parent or other loved one that they are no longer capable of taking care of themselves. The emotional confrontation can be … [Read more...] about Compelling a Conservatorship
Prolonged Trust Administration
I was recently asked what the ramifications are for a trustee unduly prolonging a trust administration. The answer is that the legal ramifications will depend upon the circumstances. There is no set period of time during which the administration of a trust must be completed unless it is set forth in the trust document itself. If an estate tax return is due, it must be filed within 9 months after the date of death unless it is extended by filing an application with the IRS. There are also rules … [Read more...] about Prolonged Trust Administration
Preventing Fraudulent Changes in a Trust Document
I was recently asked how to prevent someone from fraudulently changing the terms of a trust by removing pages and inserting changes. The answer is, the wider the distribution of the trust's contents, the more difficult it is to commit fraud. Distributing multiple copies of the trust instrument will eliminate the possibility of the one and only copy being changed to meet some fraudulent goal. You can also record your living trust with the county recorder's office. Additionally, make sure that … [Read more...] about Preventing Fraudulent Changes in a Trust Document
Veteran’s Administration Special Pension Programs
I was recently asked an in-depth question regarding a spouse qualifying for VA benefits. I thought this topic would be of interest to those who read my blog. Summary of question: My mother recently placed my father in a nursing home due to his dementia, which has proved to be a huge financial burden. However, my mother is not eligible for Veteran's Aid since she has a sizable IRA account and, therefore does not qualify for aid. If she converts her IRA account to an annuity, she could qualify … [Read more...] about Veteran’s Administration Special Pension Programs
Changing Title of Assets into the Trust Name
As an estate planning attorney I am often confronted with situations where the person who has created a trust has not done all of their homework. In short, I’m talking about situations where the trustor has not undertaken the action necessary to transfer registered title of one or more assets into the name of the trust. As an example, pretend Bill Doe creates a living trust, and notwithstanding instructions given him to do so, he does not change the title ownership of his brokerage account … [Read more...] about Changing Title of Assets into the Trust Name
How The New Estate Tax Exclusion Affects Your Estate Plan
To read this article, follow the link below to our website Law Firm News section at: https://attorneyoffice.com/estate-planning/news.aspx?cid=10798 … [Read more...] about How The New Estate Tax Exclusion Affects Your Estate Plan
Cross Purchase ILIT Example
Facts: Partner A and Partner B are partners in an LLC treated for income tax purposes as a partnership and co-shareholders in other entities. Partner A and Partner B have entered into a buy-sell arrangement which among other things provides that in the event of the death of one of them, the other will purchase the deceased shareholder’s interests. The obligations to purchase have been partially funded with life insurance. Thus Partner B is the owner of a life insurance policy on Partner A’s … [Read more...] about Cross Purchase ILIT Example
Can the Government Go After Assets in a Trust to Recover Medicare or Medi-Cal Benefits?
I was recently asked the above question and wanted to share the answer on my blog. First, we need some clarification. Many people receive MEDICARE, but a person’s assets and income are irrelevant for qualifying for MEDICARE. And there is no recovery for benefits received through the MEDICARE system. So if your parent(s) are only receiving MEDICARE, there are no issues or concerns. On the other hand, MEDI-CAL is a means based program. The applicant’s financial means are examined in order to … [Read more...] about Can the Government Go After Assets in a Trust to Recover Medicare or Medi-Cal Benefits?
Aggregate Theory Community Property Agreement
Why is it important to have a contract between spouses implementing the aggregate theory of community property? First, what is the difference? California Probate Code Section 100 provides that upon the death of one spouse, one half of each asset belongs to the surviving spouse, and one half of each asset belongs to the deceased spouse. This is commonly known as the “prorate” theory of community property. And it can create problems. For instance, pretend a husband (now deceased and hereinafter … [Read more...] about Aggregate Theory Community Property Agreement
