Law Office of Suzanne P. Nicholl, PC San Diego CA Probate Estate Attorney | Estate Litigation2024-03-06T17:40:31Zhttps://www.sdprobate.com/feed/atom/WordPressOn Behalf of Law Office of Suzanne P. Nicholl, PChttps://www.sdprobate.com/?p=476562024-03-06T17:40:31Z2024-03-06T17:40:31ZYour estate plan should cover what happens to your assets when you die. Yet, you might have concerns about leaving assets to a particular person.
You might be unsure if they are ready to handle it, and having worked hard to build this wealth, you don't want them to waste it. A trust can help you avoid this dilemma.
You can delay the distribution of funds
Let's say your children are still young. If you were to die in the next few years, they might not be able to inherit because no one can inherit before the age of 18. Once they turn 18, they still might not have the maturity to handle their inheritance. Thus, you may opt to create a trust to hold the money for them until they reach a certain age, say 21 or 25.
You can drip-feed them funds
You could also choose to pass someone a monthly or annual amount while preventing them from accessing the whole amount in one go. Then, if they mishandle the money, they will only be able to waste a certain amount, with the rest remaining safe inside the trust until the next scheduled distribution.
You can condition the distribution of funds
Imagine if your son is struggling with drug addiction. You still love him and want him to inherit your wealth. However, you are scared that receiving it could give him greater access to drugs, and he might die as a result. Instead, you could use a trust to incentivize him to overcome his problem, making attending a recovery program and staying clean for a certain amount of time a prerequisite for inheriting the trust’s contents.Deciding whether to create a trust and what rules to set can be challenging. That’s why it is advisable to take legal guidance.]]>On Behalf of Law Office of Suzanne P. Nicholl, PChttps://www.sdprobate.com/?p=476542024-02-22T20:50:06Z2024-02-22T20:50:06Zcosts associated with probating your will can help your loved ones to avoid unpleasant surprises when it’s too late to do anything to mitigate costs. With that said, no two estates are the same.
Cost concerns
While California does not have estate tax, your estate may, nonetheless, be subjected to federal taxes if it’s worth $13.61 million or more.
A valid will that has clear stipulations is quite easy to probate. The opposite is true of a will that is unclear or has invalid provisions. Simply put, will disputes cost money, and this can push up the cost of probating an estate.
Finally, other factors that can impact the cost of probating your California will include court fees, professional fees and accounting fees.
Protecting your legacy
Probate is inevitable when you create a will. Find out how proper legal guidance can help you protect your legacy – and preserve as much of your estate’s resources as possible – while you’re drafting your will.]]>On Behalf of Law Office of Suzanne P. Nicholl, PChttps://www.sdprobate.com/?p=476522024-02-10T03:11:56Z2024-02-10T03:11:56Zfour factors to consider when choosing a health care agent.
Closeness to you
Your health care agent should know you well. They need to understand your values and wishes, any existing medical conditions, allergies and so on. Essentially, they should be adequately informed to make decisions in your best interest. Picking a loved one you've not been in contact with for years may not be wise.
Willingness to discuss sensitive matters
Some of the topics you will discuss with your health care agent will be life-or-death situations, such as when to withhold or withdraw life support. You want to choose someone who is willing to discuss such topics so that they can understand what you want and the best ways to act on your behalf.
Assertiveness
Some of the decisions your health care agent will make may lead to conflicts because other family members or friends may disagree with them. Thus, it's vital to name a person who can make informed decisions without being distracted.
Age
Age is a crucial factor when choosing a health care agent. Consider choosing someone younger and thus likely to outlive you. This is also a good reason to name at least one alternate who will serve if your first choice is unable to assume their duties.
These are among the vital factors to consider when choosing a health care agent. Legal guidance can help you make these and other critical decisions.]]>On Behalf of Law Office of Suzanne P. Nicholl, PChttps://www.sdprobate.com/?p=476502024-02-02T04:43:29Z2024-02-02T04:43:29ZReading the trust document
The first step in trust administration is closely going over the trust document itself. It should detail the trustor's wishes and the additional responsibilities of a trust administrator.
Managing the assets in a trust
Assets, including cash, art, stocks, collectibles and other valuable items can all go into a trust. If you're in charge of administering a trust, you need to know what's in it and the value of these items. Knowing a trust's content enables you to manage it appropriately.
Taking accurate records
It helps to be good with numbers and recordkeeping if you have been named as the trustee. As you distribute a trust's assets to beneficiaries and settle trust-related debts, you'll need to take records of these transactions. Proper recordkeeping spares a lot of confusion for you and the beneficiaries.
Handling taxes
Trusts also require the settling of tax-related debts. You'll need to thoroughly read, complete and file Form 1041, which is the appropriate form for estate and trust-related federal tax returns. At this point, you'd also need to pay any outstanding taxes on behalf of the trust and the trustor if this person passed away.
Being a trustee can require a lot of work. If you're considering taking on this role, knowing its responsibilities can better help you prepare for it.]]>On Behalf of Law Office of Suzanne P. Nicholl, PChttps://www.sdprobate.com/?p=476472024-01-19T01:07:59Z2024-01-19T01:07:59ZCreate a living trust
Many people have wills, but those don’t always stop the probate process. In fact, wills often do go through the probate process. Living trusts are different, however. A living trust is an estate planning tool that allows loved ones to access assets as soon as you pass away. And you can continue accessing your assets while you’re alive.
Give your assets away
If you want to help your loved ones avoid a lengthy and stressful probate process, you can gift your assets before you pass. This process helps avoid wills, trusts and the probate process.
And your loved ones can enjoy your gifts while you’re still alive. As an added benefit, giving away your assets before you pass can help reduce the value of your estate, which can also reduce the amount of taxes that your loved ones will pay.
Organize your documents
Organization plays a role in preventing a lengthy probate case. If your loved ones can’t find all your documents, your estate can end up in probate court. Some documents to organize include your estate plan, life insurance policies and any amendments you’ve made.
The probate process doesn’t need to turn into a lengthy ordeal. There are steps to help alleviate stress and improve the process.]]>On Behalf of Law Office of Suzanne P. Nicholl, PChttps://www.sdprobate.com/?p=476452024-01-09T03:45:07Z2024-01-09T03:45:07ZTrust and integrity
When selecting the right attorney-in-fact for you during estate planning, choose a person you trust completely. This individual must act with integrity and honesty to make critical decisions on your behalf. Choose a family member or close friend with a history of ethical decision-making and responsible behavior. You can also choose a licensed financial advisor or attorney to fill this essential role.
Good communication matters
Select an individual who can discuss your wishes with you, understand your viewpoint and effectively communicate your wishes to the relevant parties when needed. This person must be available at any time and reachable in emergencies. The ability to have clear and open communication with this individual is a must for them to successfully fulfill the power of attorney role.
The attorney-in-fact needs to clearly understand your important wishes, values and preferences. This is especially essential if they must make healthcare or end-of-life decisions for you. Choosing someone who respects your beliefs and knows you well is more likely to result in them making decisions that align with your wishes.
Financial responsibility
Choose someone competent and financially responsible for a financial or general power of attorney. They may need to manage and pay your bills and make crucial financial decisions on your behalf. Consider the person’s ability to handle complex financial transactions and related matters.
Discussing your expectations upfront ensures your attorney-in-fact can advocate for your wishes and preferences. Designating someone using a signed power of attorney with clear and specific directions prevents the risk of confusion in your time of need.]]>On Behalf of Law Office of Suzanne P. Nicholl, PChttps://www.sdprobate.com/?p=474072023-12-19T17:31:58Z2023-12-19T17:31:58ZChallenges
One of the challenges when it comes to heirlooms is that unless they are sold and the proceeds distributed among your ears, they are not as easily divided as a retirement account or some other types of assets. Conflict may be even higher over items that are mostly sentimental in value, so you should include those in your planning as well.
Choosing recipients
Some people find that it is easier to gift these items one by one to loved ones while they are still alive. You can also specify who gets each item in your will. If some people are getting items that are significantly more valuable in monetary terms than others, you can make up the difference in other parts of the estate plan if you are concerned about keeping things equal.
Appointing a distributor
You could appoint someone to distribute these items. This person should be a disinterested third party and not, for example, one of your children deciding what their siblings will receive since this could lead to conflict. Be sure to discuss this role with them as part of your estate planning.
Talk about it
Perhaps the best option is to talk to everyone and find out what objects are valuable to each of them. This is not necessarily an easy conversation, but it may lead to the most satisfying outcomes.]]>On Behalf of Law Office of Suzanne P. Nicholl, PChttps://www.sdprobate.com/?p=474042023-12-07T20:59:29Z2023-12-07T20:59:29ZYou'll need to act quick
It's likely that you'll need time to grieve the loss of a loved one. However, as an estate executor, you will also need to take action in a timely manner to ensure that your mother or father's affairs can be settled. In addition to securing assets, your duties include opening a bank account for the estate, publishing a death notice and presenting the will to the probate court. Tax returns and other documents will need to be filed soon after your parent passes.
Tips for staying organized
Checklists may be available online to help you keep track of what you need to do and when you need to do it. Your loved one may also assist by creating a master list of important files, passwords and anything else that you'll need to settle their affairs properly. The court may also be of assistance throughout the case, and as long as you don't make any willful or malicious errors, it's unlikely that you'll be held responsible if something goes wrong.
As an estate executor, you'll likely spend weeks or months working with the court to ensure that bills are paid and assets are distributed correctly. You will also need to evaluate creditor claims or defend against claims made by beneficiaries or potential beneficiaries.]]>On Behalf of Law Office of Suzanne P. Nicholl, PChttps://www.sdprobate.com/?p=474012023-11-21T03:22:09Z2023-11-21T03:22:09ZDiscuss your decision with your family
When determining how to divide your estate, it is vital to consider the many people and organizations you will leave behind. Having a conversation with your family about your wishes may help create an easier process for your estate planning. Making sure your family knows your intentions can help them better understand your wishes and prevent disagreements after you die.
Consider your charitable donation options
Additionally, think about the causes and organizations that are most important to you and how your gift may create a better foundation for their operations. A bequest or a charitable gift can provide support for general operating funds or for specific projects. Take this into account when making decisions about your final gift.
Financial support options
The legal tool facilitating the gift is an aspect to contemplate when leaving assets to charity. Donors have many options from which to choose, such as a charitable gift annuity or a charitable remainder annuity trust. Each option available to you will have advantages and disadvantages. Thinking your options through before making a final decision may ensure your gift provides much-needed support.
Estate planning, while complex, is a crucial aspect of legacy planning. Using the legal tools available can make a difference to those people and organizations that continue after your death.]]>On Behalf of Law Office of Suzanne P. Nicholl, PChttps://www.sdprobate.com/?p=473982023-11-08T04:18:28Z2023-11-08T04:18:28ZWhat makes a spendthrift trust different
Like other types of trusts, a spendthrift trust has a person who sets up the trust (the grantor), a trustee who manages the trust, and a beneficiary who receives the assets. The grantor sets up the trust as part of their estate planning process.
With most trusts, the assets within the trust belong to the beneficiary once the grantor passes away. This is different from a spendthrift trust. In this instance, the trust itself owns the assets held within. The trust as a whole does not pass into the beneficiary’s name. The beneficiary will still receive the assets. However, this typically happens over a period of time. For example, the grantor may write into the spendthrift trust that the beneficiary will receive $1,000 per week until they turn 30 years old. At 30 years old, the beneficiary then receives the full trust. Another example would simply have the beneficiary receive $1,000 a month for the remainder of the trust.
Reasons to use one
One benefit to a spendthrift trust is that the trust itself owns the assets. This means that if the beneficiary owes debts, the trust does not count as one of their assets. Debtors cannot collect the trust as a way to pay the beneficiary's debts.
Another reason many grantors choose a spendthrift trust is to help the beneficiary manage their inheritance. Many grantors have concerns about leaving a large lump sum to a beneficiary with a history of unhealthy financial habits. By giving them small amounts over time, the grantor hopes to encourage safer spending behaviors.
Fortunately, spendthrift trusts are unique. When a grantor creates one, they can specify a timeline for the trust that meets their own desires. These trusts are an essential part of a detailed estate plan. They help California residents make their wishes for their estates clear so their estates are smoothly managed.]]>