Is Your Estate Plan Updated for the New Year?
You should check your estate planning documents every so often, to make sure they’re still good, especially with big life changes like births, marriages, divorces, and moving to another state. Children grow up, marriages dissolve, property gets sold, residences change and laws change. It is critical that your estate planning documents are Long-Term Care Compliant so that you are in a position to successfully navigate a health care crisis without destroying your nest egg. That’s why we recommend that you consult us for an estate plan check-up every five years or so. What Happens If You Retire in Another State? ... Read More
Retirement Planning Considerations for Gen Xers
Retirement planning is becoming a more urgent matter for Gen Xers (born between 1965 - 1980) as they enter their 40s, 50s, and 60s. There are many things to consider, including finances, investments, insurance policies, legal & estate planning documents, living arrangements, and healthcare. It is advisable to make a detailed checklist within these categories and take action on each item. Meeting with an attorney can help you establish overall goals for your retirement and legacy planning while ensuring the steps you take will lead you to retirement success. With regards to longevity, things may not be what they seem ... Read More
Navigating Estate Plans Across State Lines
When it comes to estate planning, life's changes can sometimes lead to questions about the validity of your plans. One common situation that raises concerns is relocating to a different state. If you find yourself in this scenario, you might wonder if your estate plan remains valid. In this article, we'll explore the factors to consider when evaluating the status of your estate plan after moving out of California. Understanding Estate Plans An estate plan is a comprehensive set of legal documents detailing how your assets and affairs should be managed and distributed upon passing. This typically includes documents such ... Read More
Six Important Questions When Planning for Retirement
Almost everyone dreams of retiring one day. Planning for retirement can be done no matter your age, but experts encourage people to start as early as possible. Retirement planning can seem daunting for many people as they focus on day-to-day financial obligations. Many people have no idea where to start. Below are six simple questions that can help people of any age plan for retirement. What does retirement look like to you? This is an essential question to ask when planning for retirement. Begin by jotting down your ideas and if you’re married, include your spouse’s ideas for retirement. Maybe ... Read More
The Rising Tide of Caregiving Costs: Navigating the High Price of Longevity
In an era where medical advances and improved living conditions have led to longer lifespans, the aging population faces a new challenge – soaring caregiving costs. The emotional, physical, and financial toll of caring for elderly loved ones has become a significant concern for many families. As the demand for long-term care continues to grow, families are grappling with the daunting reality of expenses that can easily surpass the million-dollar mark. In this blog post, we will explore the rising tide of caregiving costs and shed light on the challenges faced by families when taking care of their aging relatives. ... Read More
How to Pass On Your Heirlooms and Forego the Drama
Passing down heirlooms from generation to generation is a cherished tradition that transcends time and culture. These tangible mementos of our family's history hold sentimental value and can help keep the stories of our ancestors alive. However, we often unwittingly pass on unresolved family tensions and disputes alongside the passing of precious heirlooms. It is essential to recognize the potential for family drama when planning your estate to ensure a smooth transition of your legacy. This blog post will explore the importance of mindful estate planning, open communication, and preserving family harmony to ensure that your heirlooms are embraced with ... Read More
Essential Estate Planning Documents for College-Bound Students
Sending your child to college is an exciting time filled with new opportunities and challenges. While you're busy helping them pack and preparing for the transition, it's crucial to consider their well-being and future security. As a parent in California, ensuring your college-bound student has the proper estate planning documents in place is a responsible step that can provide both of you with peace of mind. Once your child turns eighteen in California, they become an adult, and your right to make medical and financial decisions as well as gain access to their information terminates. Here is what can be ... Read More
Restoring Prop 58: The Howard Jarvis Taxpayers Association’s Initiative to Repeal Prop 19
At Botti & Morison, we are committed to keeping our clients informed about the latest developments in estate planning and tax laws. The recent changes brought about by Prop 19 have had significant negative impacts on estate planning for our clients. Virtually every one of our clients regrets that Prop 19 has passed. Our clients want to know what can be done about it. What follows is what can be done by you. The Howard Jarvis Taxpayers Association (HJTA) is taking a significant step to address these issues with an Initiative Constitutional Amendment set for the November 2024 Ballot. Following, ... Read More
Discuss Your Estate Plan with Family Members
A comprehensive estate plan is the best vehicle for transferring assets upon your death to your loved ones. However, many of us often overlook the crucial part of communicating our estate plan to family and heirs. Even with a thorough and up-to-date estate plan, your family may experience emotional or financial turmoil despite your best efforts. To correctly manage the expectations of loved ones and provide for a smooth transition of wealth, have conversations, and share information about what is to come. Whether you are a modest or a high net worth individual, preparing the next generation to handle wealth ... Read More
Can You Take Your Social Security Benefits Early if You’ve Been Laid Off?
If you are close to retirement age and recently lost your job, there is a good chance you may not find work again. The Great Recession (2007-2009) saw workers aged 62 and more were about half as likely to become re-employed compared to those in the age group of 25 – 34. The Becker Friedman Institute for Economics at the University of Chicago found that more than four out of ten jobs lost during the COVID-19 pandemic may never come back, pushing many pre-retirees into early retirement. For many, this means an unexpected shortage of cash. As retirement can last ... Read More
To A/B, or Not To A/B, That is the Question
Most revocable living trusts for married couples, established prior to 2018, require that the trust be divided into two or more “sub-trusts” upon the death of the first spouse. This is for federal estate tax or “death tax” planning purposes. These trusts are known as A/B or A/B/C Trusts. They were designed primarily to reduce or eliminate estate taxes by preserving the federal estate tax exemption (the value of assets which can pass free of tax) of the first to die. An A/B Trust works like this: Upon the death of the first spouse the B Trust is funded ... Read More
Preserve Generational Wealth With 3 Tips
Have you considered what is required to preserve generational wealth and your legacy? Or the impact an inheritance will have on family members in different stages of life after you are gone? You may worry that children and grandchildren will lose motivation and work ethic after they inherit. Some beneficiaries may experience favoritism, or relationships could dissolve over trivial disputes. How can you ensure their inheritance contributes to generational wealth and is used to achieve a better future? Your loved ones must be ready for this new responsibility. Ideally, an inheritance will improve their lives while ensuring its use follows ... Read More
