As we get older, one in four of us will require some level of caregiving services. This could range from simply running errands and providing occasional transportation to doctors, shopping, to providing extensive around the clock care. Experts estimate that family members provide more than $450 billion in elder care services annually. One question is "should family members be paid for this … [Read more...]
Qualified Domestic Trusts (QDOT)
The basic idea of a Qualified Domestic Trust or QDOT (normally built into most revocable living trusts) is to avoid the forced payment of estate taxes on the death of the first spouse with a large estate, where the intended recipient is a surviving spouse who is a non-U.S. citizen. Keep in mind that the following persons still enjoy an exemption from estate taxes on the first $5.54M in assets … [Read more...]
Refinancing Your Home – The Biggest Threat to Your Living Trust
Is Your Home Properly Titled to Your Living Trust After You Refinance? For most people their most valuable asset is their home. Ensuring that your home and the rest of your estate passes efficiently to your heirs is a fundamental reason people create a Living Trust. Most people recognize they must transfer title to their home to their Trust as soon as the Trust is created. Unfortunately, most … [Read more...]
Business Continuity Solutions In Case of Death or Incapacitation
How does your small business Corporation or LLC pass to your family members upon your death? We have come across many entrepreneurs and small business owners who have taken their business to the next level by incorporating into a C-Corp, or Sub-S Corporation or an LLC. This provides the business with a lot of protection and flexibility but it doesn't automatically pass down to your heirs upon … [Read more...]
Potential Heirs of Prince Say “Let’s Go Crazy”
A Case for Having a Living Trust Prince Rogers Nelson (The Artist Formerly Known As Prince) died April 21, 2016 of an accidental overdose of fentanyl, a synthetic opioid drug 50 times more powerful than heroin. Prince follows a long line of celebrities who died suddenly with complicated estates, more complicated family dynamics, and no estate plan to help sort it all out. Court and other … [Read more...]
Spring Cleaning: When Can You Purge Your Old Financial Records?
Feeling the urge to purge? April 18, 2017, was the deadline for individuals and C corporations to file their federal income tax returns for 2016 (or to file for an extension). Before you clear your filing cabinets of old financial records, however, it's important to make sure you won't be caught empty-handed if an IRS auditor contacts you. Still Not a Paperless Society E-filing is on … [Read more...]
Estate Planning for Baby Boomers
The boomers are coming! That's the gist of the many reports and news stories that have been published in the last few years. It seems that every week there are at least a few new stories which predict the great changes that are coming as 5 million boomers turn 65 every year for the next 15 years. Many of the changes predicted are ones that will affect the economy, social structure, residential … [Read more...]
How Much Does It Cost To Set Up a Living Trust?
The most common choice you have when setting up an estate plan is the choice between a Will and a Living Trust. A Will is always a one-way ticket to probate, unless your estate falls below a minimum threshold of value. In many states the minimum threshold is about $50,000. In California, that threshold is $150,000, except that if real estate is part of your estate, the threshold falls to … [Read more...]
Are All Wills a Matter of Public Record?
Your last Will and Testament is essentially your instructions to the Probate Court as to how you would like your estate distributed. When you die and your will is submitted to the court, a probate case is opened. As with any legal case brought before the court, it becomes a matter of public record. Most families don’t choose to share their personal and financial matters with the world while … [Read more...]
Administering an Estate through Probate With or Without a Will
Only a Trust Avoids the Probate Process In California, a probate process will need to be initiated in order to administer the estate if the decedent passed with no estate planning at all or only a Will. Probate is a Court-Supervised process that involves a 6-9 month minimum process (more often 15 months or more) in order to properly transfer assets from a decent to beneficiaries. Please … [Read more...]
