When Might a Beneficiary Not End Up Benefitting?
EVOLVING CASE LAW IN CALIFORNIA IS OPENING UP A NEW FRONTIER IN ALLOWING AN ESTATE PLAN’S TERMS TO “TRUMP” A BENEFICIARY DESIGNATION ON A NON-PROBATE TRANSFER One of the most long-standing and seemingly “bulletproof” estate planning mechanisms – the direct designation of a beneficiary on an account -- be it a bank account, an IRA, a stock account or the like, is increasingly no longer as ironclad as both practitioners and their clients have long believed. A modern trend in California is gaining momentum in probate courts across the state whereby title rules are increasingly being bent to accommodate a ... Read More
5 Tips to Rethinking Your Retirement Plans
If you’re relying on a 401(k) or and IRA plan for your retirement, Kiplinger.com is suggesting it is time to rethink your financial retirement portfolio. You may have built up a significant nest egg with these plans, but it does come with serious baggage during your golden years. It is impossible to argue against the early stages of a 401(k) when employers match your contribution to the plan. You can take advantage of the tax breaks because contribution money comes out of your paycheck before calculating taxes and that money compounds every year. When you retire, however, the tax impact ... Read More
Retirement Planning for Gen X
There are many things to consider in regard to retirement for Generation X as they enter their 40’s and 50’s. It’s advisable to look at and understand your personal finances, investments, insurance policies, legal documents, living arrangements, and healthcare. Creating a detailed checklist within these categories and taking action on each item will help you plan for the future. 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 in the ... Read More
Do You Know How a Certified Specialist in Estate Planning, Trust and Probate Law Can Help You?
A Certified Specialist in Estate Planning, Trust and Probate Law that focuses on elder law can help you and your family plan for the future. Elder law encompasses a wide range of legal matters affecting an older or disabled person. Issues related to Conservatorship, retirement, health care, including Durable Powers of Attorney for Financial Purposes, Advance Health Care Directives, Long-Term Care estate planning, Social Security, Medicare and Medi-Cal, and other relevant matters to aging all fall under the umbrella of elder law. An older family member who legally prepares for their aging process helps their family members by addressing day ... Read More
How Turning 18 Means It is Time for an Estate Plan
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 ... Read More
Social Security Funding is Now At Risk
The US Social Security Administrations funding trusts are known as the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund. In their 2019 annual report to Congress, the Board of Trustees released some startling detail about projected insolvency for the Social Security Program by the year 2035. The Social Security Administration (SSA) has been dipping into its "trust fund" to meet scheduled benefit payouts. Social Security program costs continue to exceed non-interest income. The OASI has no authority to borrow money, and during the COVID-19 pandemic, the American workforce is severely reduced. Now there are ... Read More
One Size Doesn’t Fit All
When we’re out discussing estate planning with folks, one of the most commonly posed questions is: “How do I know if I need a Trust?” And it’s a great question . . . one that deserves a bit of deeper analysis. In California, the California Probate Code serves as the “bible” governing the inner workings of Trusts and other testamentary instruments, and it dictates that “assets not held in trust must pass through probate.” (You’ll need to consult some of the previous blog posts on our website to gain an appreciation as to why it is so critical to avoid ... Read More
The Secure Act and its Estate Planning Implications
For beneficiaries of an IRA inheritance, the SECURE Act (Setting Every Community Up for Retirement Enhancement) can significantly impact the amount of time they have available to withdraw the funds available to them. The changes to inheritance tax law brought about by the SECURE Act, passed in December 2019 and taking effect in January 2020, do not affect inherited IRAs where the original owner died in 2019 or before. Though once the initial beneficiary has also died and the IRA is passed to another, the rules effective as of January 2020 will take effect with a few built-in exceptions. In ... Read More
The Laws of Intestacy
In our world of Estate Planning, we often delve into subjects that are somewhat prickly. There’s a popular misconception that “everybody fights about money when someone dies.” (Not actually true.) And after all, the very essence of estate planning is coming to terms with the reality of one’s own mortality – not necessarily a rosy foundation on which to build. But aside from that somewhat unpleasant aspect of our profession, one of the more amusing aspects is the nomenclature. Today’s topic: Intestacy – sounds like a gruesome disease (probably not as horrible as a topic for another day – ... Read More
