Understanding the Due on Sale Clause in California Estate Planning
Real estate often plays a central role when creating an estate plan in California. Given the state’s high property values and unique legal landscape, ensuring a smooth transfer of property to your heirs is critical. One often overlooked issue in estate planning is the Due on Sale Clause in mortgage agreements. Understanding how this clause applies—and how to navigate it within the context of California’s laws—can protect your estate and your loved ones. What is the Due on Sale Clause? The Due on Sale Clause is a standard provision in mortgage agreements that allows the lender to demand full repayment ... Read More
The Importance of a Digital Estate Plan
In today's digital age, our online presence is as significant as our physical assets. From email accounts to social media profiles, cryptocurrency to online banking, and even digital photo collections, we live much of our lives online. Yet, many estate plans overlook these digital assets, leaving loved ones with uncertainty and legal hurdles. Additionally, California's tech-savvy population often accumulates significant digital assets, making a Digital Estate Plan even more crucial for residents. A Digital Estate Plan is essential to a comprehensive estate plan. It ensures that your digital life is properly managed and passed on according to your wishes. What ... Read More
Choosing Your Successor Trustee: The Pros and Cons of Naming Co-Trustees
When discussing estate planning with clients, one question almost always arises: Can I designate more than one person as my successor trustee? It’s a great question and one that deserves thoughtful consideration. Beyond deciding who should inherit your assets, choosing your successor trustee (or “executor” if we’re talking about a will) is one of the most significant decisions you’ll make when creating an estate plan. Ideally, this selection includes your primary choice and at least one alternate designee. In most cases, the creators of a trust (trustors) often choose their children as successor trustees. It’s common for parents to worry ... Read More
Is Your Estate Plan Up To Date?
Estate planning is a critical step in protecting your family and ensuring your wishes are carried out, but it’s not a one-and-done process. Life is constantly changing, and those changes often have a significant impact on your estate plan. That’s why periodic reviews are essential. Why Updating Your Estate Plan Matters Over time, various factors can make parts of your estate plan outdated or ineffective. These might include: Family Changes: Marriages, divorces, births, and deaths all affect the distribution of your assets and who you may want to name as guardians, trustees, or beneficiaries. Financial Changes: Significant increases or decreases ... Read More
When is the Right Time to Talk to Your Kids About Your Estate Plan
Conversations about estate planning, particularly wills, can be emotionally charged. Yet, having open, honest discussions with your children about your plans is one of the most meaningful gifts you can give them. It ensures your wishes are understood, prevents misunderstandings, and reduces potential family conflicts down the road. At Botti & Morison, we take a team approach to estate planning. We aim to help families navigate these discussions with clarity, compassion, and confidence. Here are some tips to guide you as you talk to your kids about your Estate Plan: Choose the Right Time and Place Timing is everything. Select ... Read More
A Forgotten Form Costs $1 Million: Lessons in Estate Planning
When it comes to estate planning, the devil truly is in the details. A recent case involving a $1 million retirement account underscores the importance of keeping your estate plans current. The cautionary tale involves a man who, despite breaking up with his ex-partner in 1989, discovered decades later that she was still set to inherit his sizable retirement savings due to an overlooked beneficiary form. The Importance of Updating Beneficiary Forms One of the most common yet crucial mistakes in estate planning is failing to update beneficiary designations on retirement accounts, insurance policies, and other financial instruments. In this ... Read More
Digital Assets and Estate Planning
When people establish their estate plan, they often think about their physical assets. However, there’s no doubt we do more and more online each day. Therefore, it’s equally important to consider digital assets. With the emergence of new technology, there are more opportunities being created for people to possess digital assets. If not properly planned for, you or your loved ones may have no control over your digital assets after you pass away. What is a Digital Asset in Estate Planning? California Probate Code §871(h) defines digital assets as electronic records in which an individual has a right or interest. ... Read More
Why Parents Should Consider an Estate Plan for Their “Adult” Children
In most states, when your child turns 18, it might be hard to imagine that little child who once needed you for everything has now become – overnight – an adult. Now your child is free to vote, marry, apply for a credit card, make medical and financial decisions, sign contracts, and live independently. No wonder the law calls this coming-of-age “emancipation.” But if your adult child is hurt in an accident and needs somebody to make critical medical decisions, you cannot be the one to do that without your child having named you as an agent under an Advance ... Read More
Understanding FDIC Coverage on Trust Accounts: A Crucial Aspect of Estate Planning
When it comes to estate planning, ensuring the protection and distribution of assets is paramount. Trusts are a popular tool utilized to safeguard assets and dictate their allocation according to the grantor's wishes. However, understanding the nuances of Federal Deposit Insurance Corporation (FDIC) coverage on trust accounts is crucial to safeguarding these assets for beneficiaries. At Botti & Morison Estate Planning Attorneys, we recognize the importance of comprehensive estate planning, which includes navigating the complexities of FDIC coverage. In this blog post, we'll delve into the critical aspects of FDIC coverage on trust accounts and how it impacts estate planning ... Read More
Advance Dementia Directives – A Crucial Element in Estate Planning
In the realm of estate planning, it's essential to consider not only the distribution of assets but also the potential challenges that may arise in the later stages of life. One such challenge is dementia, a progressive condition that can significantly impact an individual's ability to make decisions. At Botti & Morison, we understand the importance of addressing these concerns proactively. We provide our clients with a cutting-edge, state-of-the-art Advance Dementia Directive in addition to an Advance Health Care Directive. They are two critical but separate and distinct custom-drafted legal documents. Our Advance Dementia Directive is a powerful tool that ... Read More
A Comprehensive Estate Plan Is Necessary to Make Sure Your Final Wishes Are Carried Out
To be sure your final end-of-life wishes are followed; you must prepare a comprehensive estate plan. Many put off making these plans thinking there is always time. The sad reality is that none of us are guaranteed time. Others may be bothered by the thought of death itself and allow this to paralyze them when it comes to making plans and getting their affairs in order for the end of life. However, most of these same people have wishes and thoughts about where and to whom their assets are distributed. Many of them also have ideas about what they do ... Read More
Factors to Consider When Including a Vacation Home in Your Estate Planning
A vacation home is a place where families enjoy their time together. Sharing time and creating memories is the hallmark of such properties, and often there is a desire to preserve the home's ownership within the family system for generations to come. Yet, even seemingly harmonious families can experience discord and exasperation when parents are no longer alive to mediate conflicts. Creating a plan around your family vacation home can avoid later disputes and a potentially forced sale of a beloved property. The Value of a Family Vacation Home Statistics show that over eighty percent of vacation homes, cottages, and ... Read More
