The Law Offices of Richard WingerdenWhite Collar Crime Lawyer2024-03-08T04:29:28Zhttps://www.wingerdenlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1101437/2021/07/cropped-favicon-32x32.pngOn Behalf of The Law Offices Of Richard Wingerdenhttps://www.wingerdenlaw.com/?p=484832024-03-08T04:29:28Z2024-03-08T04:29:28ZFind and give to charitable causes
Leaving behind assets to their loved ones is a goal for many during the estate planning process. You can do this while also setting aside a sum of money or valuable items for a charity that reflects your beliefs and values. You may choose to give funds to an organization that supports inner-city youth or a program providing food to less fortunate families. Speaking with an estate planning professional can help you understand how to make the biggest impact from what you have to donate.
Use a testamentary power of appointment
Creating an estate plan gives you the utmost control over your assets. You can also relinquish some of this power to your beneficiaries through a testamentary power of appointment. This allows asset recipients to have authority over asset distribution after they pass away. Your beneficiary could use this power to distribute more assets to a charity if their children are already well taken care of.
Making gifts in your memory
Understandably, people who are passionate about diversity and inclusion often love sharing these causes with others. You can help encourage others to support inclusivity by including a wish to ask for funeral memorial gifts in your estate plan that go toward your named charity.
It's human nature to want your loved ones and charitable organizations to remember you fondly. Having an estate plan focused on inclusion helps make those goals possible.]]>On Behalf of The Law Offices Of Richard Wingerdenhttps://www.wingerdenlaw.com/?p=484802024-02-26T03:35:57Z2024-02-26T03:35:57ZPassing on real estate to heirs
Part of estate planning should include avoiding the probate process that happens in a court at all costs. When probate is decided by a judge, who gets what may be completely out of your hands. It may be the opposite of what you prefer. With real estate, there are some strategies you can use to make your preferences known. These include:
outlining which heir or heirs will receive real estate in a will
adding heirs to the deed to a home
placing the real estate into a trust
Each of these has its own benefits and drawbacks. For example, simply adding your child to the deed to your house may cause issues if your child owes money to creditors. Transferring property to a trust may cause issues with the home insurance that must be addressed. Even so, probate will probably have an even worse outcome than any of those outlined above.
Keeping the property in the family
In certain cases, you may want to give the family home to a specific family member. However, you may be concerned with what will happen to it after that point. If you want to keep the house in the family and prevent it from simply being sold for a profit, you need to express that wish during your real estate planning. In this case, the best option is to place the property into either an inheritance trust or a dynasty trust.
You can then include rules for how access to the property will be managed and who will become beneficiaries after current beneficiaries die. This way, the home can be passed from generation to generation.
Overall, estate planning is important, and this is Moreso the case when it includes real estate. Take proactive steps to avoid leaving matters to chance when it comes to probate.]]>On Behalf of The Law Offices Of Richard Wingerdenhttps://www.wingerdenlaw.com/?p=484772024-02-12T19:22:14Z2024-02-12T19:22:14ZShared property and estate planning considerations
Shared property refers to any assets that two or more individuals jointly own. Examples could include real estate, bank accounts and investments. In California, community property laws often apply to shared property. These laws can impact the property’s distribution upon the death of one of the owners.
Without a clear estate plan, disputes and complications may arise among your beneficiaries. Including provisions for shared property in your estate plan can help meet your wishes and minimize the potential for conflicts.
Potential challenges
Without specific instructions, the courts may decide the fate of shared assets. This can lead to delays, expenses and uncertainty for your beneficiaries. Additionally, conflicts may arise among family members over the distribution of shared property, potentially straining relationships and causing unnecessary stress during an already difficult time.
Options for shared property
One common approach is to create a trust that holds shared assets and outlines their management and distribution after your passing. Another option is to establish joint tenancy or designate beneficiaries for specific assets, such as retirement accounts or life insurance policies.
Taking the time to address shared property can provide peace of mind and take care of your loved ones.]]>On Behalf of The Law Offices Of Richard Wingerdenhttps://www.wingerdenlaw.com/?p=484752024-02-08T08:47:48Z2024-02-08T08:47:48ZUsing a will
You can use a will to identify who you want to inherit your pets just as you would with any other property, but there are a couple of potential drawbacks to this approach. One is that it does not take into account what happens to your pets if you become incapacitated. The other is that there is not really any legal oversight regarding what happens to the pets or any money you may leave for their care.
Trusts and pet protection agreements
Perhaps the most secure solution for your pets involves creating a trust. You can place money in the trust to cover their care over their lifetime and specify what should happen to any remaining funds. You can then appoint a trustee and a caretaker. While this can be the same person, having one to manage the funds and the other the pet's care may be more secure. Another option is a pet protection agreement, which falls under contract rather than estate law. The contract is between you and the person you choose as caretaker. It may be permanent or it might be temporary in nature, covering a short period of incapacity.
Whatever approach you choose, be sure to leave detailed instructions as well about the kind of care your pet requires and any necessary medical information. As with other aspects of estate planning, you should review your plans for your pets periodically and consider whether any changes are necessary.]]>On Behalf of The Law Offices Of Richard Wingerdenhttps://www.wingerdenlaw.com/?p=484722024-01-30T04:47:00Z2024-01-30T04:47:00ZNaming beneficiaries
When estate planning, one of the most crucial steps to take is naming your beneficiaries. These are the people or organizations who will inherit your assets after your passing.
You can use life insurance to help with this process, as you can name both primary and secondary beneficiaries to your policy. This is especially useful if you have minor children or grandchildren, as they cannot directly inherit assets until they reach 18 years of age in California.
Avoiding probate
Probate is a legal process in California where the court validates a deceased person's will and oversees the distribution of their assets. This process can be lengthy, expensive, and can cause disputes among family members, making it an unpleasant experience for your loved ones. By using life insurance, you can bypass the probate process, as your insurance company will pay the death benefit directly to the designated beneficiaries without going through probate.
Covering estate taxes
In California, if your estate is worth more than $12.92 million, it may be subject to estate taxes. This can significantly reduce the overall value of your estate that your beneficiaries receive. However, life insurance death benefits are generally not subject to income or estate taxes, meaning that the full amount of the death benefit can go to your designated beneficiaries without any deductions.
Life can be a lot easier for you and your loved ones when you take advantage of every tool at your disposal to minimize your financial risk. Life insurance is one of the most effective ways to take care of your loved ones after you pass away. It provides financial security and peace of mind for your beneficiaries, ensuring that they are not left with any unexpected expenses or debts.]]>On Behalf of The Law Offices Of Richard Wingerdenhttps://www.wingerdenlaw.com/?p=484692024-01-11T04:47:15Z2024-01-11T04:47:15ZWhat is a living trust?
As with a will, you can use a living trust to specify who gets your assets. Unlike a will, a living trust does not have to go through probate. Assets that you place in the trust pass directly to your beneficiaries. This also means that your estate plan remains private. You can make changes to a living or revocable trust throughout your life, which is not the case with an irrevocable trust.
What is a pour-over will?
A pour-over will moves remaining assets into your living trust at the time of your death. It is not an uncommon problem for a person to create a trust and forget to fund it, but even if that does not happen, it is easy to forget to include certain assets in your trust. Using a pour-over will is a way to be sure that all of your assets will be included. Assets added at death may have to pass through probate, so they might not go directly to your beneficiaries the way that the things you placed in your trust while you were still alive do. However, the pour-over will can still help simplify the process of dividing your estate. In addition, using a pour-over will gives you the option of appointing a guardian for children under 18.
A trust can give you more control over how and when assets are distributed to beneficiaries than a traditional last will and testament. Combining a living trust with a pour-over will can help ensure that your plans will not be derailed if there are forgotten or overlooked assets.]]>On Behalf of The Law Offices Of Richard Wingerdenhttps://www.wingerdenlaw.com/?p=484662023-12-29T07:43:02Z2023-12-29T07:43:02ZUnderstanding domicile
A domicile clause dictates who gets to live in your premarital home and for how long. The person who takes the house will not change ownership and leave the home after the period ends. Every state has its different estate planning legal aspects. When you move to a new state, it is advisable to understand these aspects.
This will help you review and do a legal analysis of any possible document changes and updates. If possible, it is also advisable to study the effects of government law clauses affecting you. Often, a marital home is given to a partner who makes less money. This allows them to stabilize financially and maintain consistency for the children.
Importance of a prenuptial agreement
This is a document a couple drafts before marriage. A prenup document lists crucial matters that may occur during marriage. Some unexpected issues include the couple's property, income, debts, and divorce. The agreement should be in writing for it to be effective.
The prenuptial agreement becomes active when the couple marries. It remains effective until as long as the marriage exists. However, provisions may make rights expire during the marriage. Simultaneously, the rights may become active during instances like spousal support.
Proper estate planning is essential during your lifetime and even after death. Whether your estate is modest or substantial, proper planning safeguards your assets during a divorce. This also ensures your family's and beneficiaries' protection in case of your passing or incapacitation.]]>On Behalf of The Law Offices Of Richard Wingerdenhttps://www.wingerdenlaw.com/?p=484632023-12-21T04:22:00Z2023-12-21T04:22:00ZFunded revocable trust explained
A funded revocable trust is a legal entity that allows an individual (known as the grantor or settlor) to place their assets into the trust while still retaining control over them during their lifetime. This means that the grantor can add or remove assets from the trust at any time and can also change the terms of the trust as they see fit.
Funding the revocable trust
A crucial aspect of estate planning is ensuring that it functions as intended. Creating a revocable trust doesn't mean much if it has no assets to manage. To fully benefit from a revocable living trust, you, the grantor, must transfer ownership of your assets into the trust. You do this by re-titling your assets, such as bank accounts, investments, real estate and other property, into the name of the trust.
Benefits of a funded revocable trust
The main benefit of a funded revocable trust in California is that it allows for the avoidance of probate. Probate is the legal process of distributing assets after a person's death, and can be lengthy and expensive. When someone else takes ownership of your assets, such as a trustee in this case, the court doesn't have to get involved. This means that your beneficiaries can receive their inheritance quicker and with less hassle.
Moreover, avoiding probate makes the asset distribution process private. Unlike a will, which becomes a public record after your passing, a funded revocable trust keeps the details of your assets and beneficiaries confidential.
A revocable trust is an appealing estate planning tool for many individuals, thanks to the remarkable level of flexibility it provides. If it seems like the right option for you, it's important to note that properly funding it is as important as creating it. When done right, this trust can take care of your loved ones for generations to come.]]>On Behalf of The Law Offices Of Richard Wingerdenhttps://www.wingerdenlaw.com/?p=484602023-12-13T21:08:46Z2023-12-13T21:08:46ZTrust decanting
Trust decanting is named after the process of transferring wine from one bottle to another to remove sediment. When a trust is decanted, the desirable terms and provisions are “poured” into an existing trust with more favorable terms or into a new trust. The unwanted parts of the original trust are omitted. Most people choose to create new trusts as they allow them to draft terms and provisions that cater to their specific needs.
Trust decanting in California
Trust decanting is not permitted in all states, but it is allowed in California. The California Uniform Trust Decanting Act allows trusts created in 2019 or later to be decanted, but the settlor and all beneficiaries must be informed about and approve of any changes. If beneficiaries are under the age of 18, their legal guardians must be informed. In some situations, a court order must be obtained to decant an irrevocable trust in California. Charitable remainder trusts, grantor retained annuity trusts, qualified Subchapter S trusts and marital trusts created for tax or estate planning purposes cannot be decanted in California.
Estate plans should be flexible
Life is unpredictable and peoples' needs can change, which is why estate plans should be flexible. Irrevocable trusts provide several benefits, but they are very difficult to change. Trust decanting is a process that allows individuals to "pour" the desirable parts of an irrevocable trust into an existing or new trust, and California is one of the states where it is permitted.]]>On Behalf of The Law Offices Of Richard Wingerdenhttps://www.wingerdenlaw.com/?p=484572023-11-30T04:25:39Z2023-11-30T04:25:39ZPreparing for the conversation
Your adult children may not want to discuss estate plans and end-of-life issues during a festive season. However, communicating your objectives to everyone in the family is the best way to avoid conflict if you or your spouse die or become incapacitated.
Here are some preparation tips:
Set a meeting time and place.
Discuss end-of-life decisions with your physician and clergy.
Review and update documents, such as wills, insurance policies, investment account beneficiary designations, and healthcare advance directives.
Prepare a list of valuables and family heirlooms you wish to pass on to your heirs.
Things to discuss
Present your estate plan and allow your children to ask questions. Remember that your will is just one part of your estate plan. If you've set up trusts for your children, grandchildren, or charities, describe their terms, such as when funds can be distributed to beneficiaries. The same holds for life insurance policies and retirement accounts tied to your workplace.
Tell your kids what you want to happen if you become terminally ill or are no longer able to make decisions for yourself. Provide copies of living wills, powers of attorney, and advance directives. You should also let your family know who you have appointed as power of attorney or conservator should you become incapacitated.
If your home has sentimental value and one or more of your children might be interested in moving in after you die, discuss this at the meeting. Similarly, encourage your kids to speak up about any personal items they want. Designating what happens to personal property in your estate plan might prevent conflict between siblings after you die.
A frank and open discussion about your estate plans during the holidays is one way to ensure that all of your family members know what to expect when you die. This knowledge can help prevent conflict and ensure your children continue to have healthy relationships with each other even after you are gone.]]>