West San Fernando Valley trust attorney

Revocable vs. Irrevocable Trusts: Key Differences Explained by a West San Fernando Valley Trust Attorney

by Estate Planning

When it comes to estate planning, understanding the different types of trusts available is crucial. Two common types are revocable and irrevocable trusts, each with its own set of features and benefits. As a West San Fernando Valley trust attorney, I often encounter questions about the differences between these two types of trusts and which one might be the best fit for a particular estate plan.

What is a Revocable Trust?

A revocable trust, also known as a living trust, is a flexible estate planning tool. The grantor – the person who creates the trust – retains the ability to modify or completely revoke the trust at any time during their lifetime. This flexibility allows for adjustments as life circumstances or estate planning goals change.

Benefits of a Revocable Trust

The main benefits of a revocable trust include:

  • Privacy: Unlike a will, a revocable trust is not a public record. It allows for a more private distribution of assets.
  • Probate Avoidance: Assets held in a revocable trust bypass the probate process, facilitating a smoother and quicker transfer to beneficiaries.
  • Control Over Assets: The grantor maintains control over the assets in the trust and can make changes as needed.

Upon the death of the grantor, a revocable trust typically becomes irrevocable, meaning it can no longer be changed.

What is an Irrevocable Trust?

An irrevocable trust, once established, generally cannot be altered or revoked. The grantor transfers assets into the trust, relinquishing control and ownership. This transfer is permanent, and the grantor typically cannot reclaim the assets or change the terms of the trust.

Benefits of an Irrevocable Trust

Key benefits include:

  • Tax Advantages: An irrevocable trust can provide significant tax benefits, including estate tax reductions and income tax advantages.
  • Asset Protection: Assets in an irrevocable trust are generally protected from creditors and legal judgments against the grantor.
  • Medi-Cal Planning: Properly structured irrevocable trusts can help in planning for Medi-Cal eligibility, as assets in the trust may not be counted against the grantor’s assets.

Choosing the Right Trust for Your Needs

Deciding whether a revocable or irrevocable trust is right for you depends on your individual circumstances, financial goals, and estate planning objectives. Factors such as the desire for flexibility, tax considerations, and asset protection needs all play a role in this decision.

Getting Help

Revocable and irrevocable trusts serve different purposes in estate planning. Understanding these differences is key to making an informed decision about which trust suits your needs best.

Whether you’re considering a revocable trust for flexibility or an irrevocable trust for asset protection and tax benefits, our West San Fernando Valley trust attorneys are here to guide you. Contact us at 818-334-2805 to discuss your estate planning needs and determine the best trust strategy for your situation.

Calabasas will and trust Lawyer

Calabasas Will and Trust Lawyer on Preparing for Life’s Surprises: Estate Planning for the Unexpected

by Estate Planning

Life is full of surprises, and while we can’t predict every turn, we can prepare for the unexpected. Whether it’s sudden incapacitation or an unforeseen financial shift, having a comprehensive estate plan can provide much-needed peace of mind. As experienced Calabasas Will and Trust Lawyers, we understand the importance of being prepared for every eventuality.

The Importance of Advanced Directives in Case of Incapacitation

One of the most critical components of any estate plan is preparing for the possibility of incapacitation. Advanced directives, such as a living will and a durable power of attorney, allow you to designate someone you trust to make healthcare and financial decisions on your behalf. These documents ensure that your wishes are respected and that your affairs are in capable hands if you’re unable to manage them yourself.

Establishing a Trust for Financial Flexibility

Trusts are another vital tool in estate planning, providing flexibility and control in managing your assets. They can be particularly useful in responding to unexpected financial changes. Whether it’s a revocable living trust that can be altered as your situation evolves or an irrevocable trust for asset protection, trusts offer a range of options to secure your legacy and support your dependents.

Updating Your Plan and Beneficiary Designations

Life changes such as marriage, divorce, the birth of a child, or a significant financial shift can all necessitate updates to your estate plan. Regularly reviewing and updating your plan and beneficiary designations ensures that your estate is distributed according to your most current wishes, helping to prevent disputes and misunderstandings among your loved ones.

Planning for Long-Term Care and Insurance Needs

An often-overlooked aspect of estate planning is preparing for long-term care needs. Long-term care insurance can protect your assets and provide for your care in the event of an extended illness or disability. Assessing your insurance options and planning for potential long-term care costs are crucial steps in safeguarding your future.

Consulting with a Calabasas Will and Trust Lawyer

Navigating the complexities of estate planning requires experienced guidance. Consulting with a Calabasas Will and Trust Lawyer ensures that your estate plan is comprehensive, up-to-date, and tailored to your unique needs and circumstances. Our firm can help you prepare for the unexpected, ensuring your estate is managed exactly as you wish, come what may.

Getting Help

The future may be uncertain, but your estate plan doesn’t have to be. Contact our Calabasas Will and Trust Lawyers today to create an estate plan that ensures you’re ready for anything life throws your way. Let’s protect your legacy together. Call us at 818-334-2805 to schedule a consultation with the mention of this post.

North LA County estate planning lawyer

Navigating Global Ties: North LA County Estate Planning for Expatriates and Dual Citizens

by Estate Planning

In our increasingly globalized world, more people find themselves living abroad or holding dual citizenship. This international lifestyle brings unique challenges in estate planning, particularly when it comes to navigating the legal landscapes of multiple countries. For expatriates and dual citizens, understanding these complexities is crucial, and a knowledgeable North LA County estate planning lawyer can be an invaluable asset.

Understanding the Complexities of Dual Citizenship in Estate Planning

Dual citizens must navigate the differing inheritance and estate tax laws of two countries. These laws can vary significantly, affecting everything from how assets are distributed to tax liabilities. It’s essential to have a clear understanding of both jurisdictions’ laws to ensure your estate is managed as you intend upon your passing.

Estate Planning for Expatriates

Expatriates face their own set of challenges in estate planning. Managing assets across different countries can be complex, and legal pitfalls abound. Key considerations include understanding how your residency status affects your estate and the legal implications of owning property in multiple countries.

Tax Implications in Multiple Jurisdictions

One of the most daunting aspects of international estate planning is navigating the tax implications. Dual citizens and expatriates often face estate taxes, inheritance taxes, and the risk of double taxation. Familiarizing oneself with tax treaties between countries and using strategic planning tools can help mitigate these tax burdens.

Cross-Border Legal Issues

Cross-border legal issues can complicate estate planning for those with international ties. The recognition of wills and trusts can vary between countries, making it important to consider having separate wills for each jurisdiction or an international will. Understanding these legal nuances is key to ensuring that your estate plan is effective across different legal systems.

The Role of a North LA County Estate Planning Lawyer

Given the complexities involved, consulting with a North LA County estate planning lawyer who focuses on international estate planning is crucial. Their expertise can help you navigate the intricacies of multiple jurisdictions, ensuring that your estate plan is comprehensive, legally sound, and aligned with your wishes.

Getting Help

Estate planning for expatriates and dual citizens presents unique challenges that require careful consideration and specialized knowledge. It’s not just about planning for the future; it’s about understanding and effectively managing the interplay between different legal and tax systems.

Our North LA County estate planning lawyers have the experience to guide you through the complexities of international estate planning. Contact us to ensure that your estate plan is robust, compliant, and tailored to your global lifestyle.

Helping hands, care for the elderly concept

Beyond Wills and Wealth: The Crucial Lesson from Jay Leno’s Conservatorship Case

by Estate Planning

The recent news that Jay Leno has filed for conservatorship over his wife’s estate is more than just celebrity gossip—it’s a stark reminder of an often-misunderstood aspect of estate planning. After 43 years of marriage, one would assume that Leno had every legal safeguard in place. Yet, this development reveals a critical oversight that can affect any couple, regardless of fame or financial status.

Estate Planning: It’s More Than Wills and Inheritance

Traditionally, estate planning brings up thoughts of wills, trusts, and discussions about who inherits what. These are undoubtedly important, but there’s another side to the story—the potential for incapacity. Life is unpredictable. Accidents, illnesses, or progressive conditions like dementia can render us unable to make decisions or communicate our wishes. That’s when the true test of an estate plan comes into play.

The Spousal Assumption

There’s a widespread assumption that marriage grants spouses the ability to automatically make decisions for each other. This myth is pervasive, yet the legal system tells a different story. Strict privacy and healthcare laws mean that without explicit legal permissions, such as a Power of Attorney or a healthcare directive, a spouse’s hands may be tied, leaving them unable to manage finances, make medical decisions, or even get information from doctors.

The Costly Path of Conservatorship

Without proper documentation, the only recourse may be to seek a conservatorship, where a court appoints someone to oversee the incapacitated person’s affairs. It’s a route fraught with challenges: it is time-consuming, can be quite expensive, and throws open what are very personal matters to the public eye.

How to Protect Your Voice and Your Choices

The key to maintaining control is preparation. Here are the documents that every adult should consider:

  • Durable Power of Attorney: This allows you to appoint a trusted individual to handle your financial affairs if you cannot do so yourself.
  • Healthcare Power of Attorney: It enables you to designate someone to make healthcare decisions on your behalf in case you’re incapacitated.
  • Living Will: This document spells out your wishes regarding medical treatment, including life support and other critical decisions.

The Role of Trusts

A Revocable Living Trust can also play a pivotal role. By creating a trust, you not only plan for the distribution of your assets after your passing but also ensure that someone you trust can manage your affairs without court intervention if you’re not able to during your life.

Educate, Communicate, Update

Creating these documents is just the first step. Educate the people you’ve appointed about their roles and your wishes. Keep the lines of communication open and review these documents regularly to ensure they reflect your current circumstances and wishes.

Final Thoughts

Jay Leno’s situation is a lesson for us all, highlighting the need for comprehensive estate planning that anticipates not just death, but also life’s unexpected turns. It emphasizes the importance of preparing for situations where we might not be able to speak for ourselves.

For those ready to take the next step, or if you’ve realized there’s a missing piece in your estate plan, our Calabasas estate planning lawyers are here to guide you. Ensuring your estate plan is complete and up-to-date is the best way to protect yourself and your loved ones from the uncertainties of the future. Please feel free to contact the office at 818-334-2805 if you need assistance getting started.

Calabasas will and trust lawyers

Calabasas Will and Trust Lawyers: Estate Planning Essentials for Young Families in California

by Estate Planning

Young families are busy! They are often raising young children and at the beginning stages of their careers. Estate planning is often at the bottom of their priority list – if it is even on the list at all! But our Calabasas will and trust lawyers would like to help bump that priority up by explaining several reasons why young families need estate planning.

  1. Who will raise your children if you can’t?

The odds are in your favor here, but there is a chance that something could happen to you and your spouse. If that happens, who will raise your children? Will anyone step up? Will there be a fight among your families about who raises them? You can avoid all of this trauma for your children by naming a guardian in your will. Remember, assuming guardianship of minor children is a major responsibility. Be sure to ask your preferred guardian if they would be willing to take over the responsibility first.

  • How will your money and property be left to your children?

If you do not have an estate plan in place, upon your death, your children who are under 18 would inherit their share of your estate and it would be held in trust in their name. Your children would then have access to those assets at age 18. Most parents think that leaving money to an 18-year-old would be a bad idea. You can control this by specifying in your will that your child’s inheritance should be held in trust for them until age 25, for example. A Special Needs Trust is an equally vital tool if your child has disabilities to ensure the inheritance you are leaving behind for him or her does not prevent them from receiving key public benefits such as Medicaid.

  • What happens to your family if one of you becomes incapacitated?

It’s not pleasant to think about, but what happens to your children and your spouse if you become incapacitated? With an estate plan, you and your spouse will create powers of attorney. These documents will allow someone that you name to act on your behalf for medical and financial matters. Usually, people pick their spouse to serve, but you might choose to ask others. Having these documents in place means that bills will continue to be paid and that someone who knows you well can make medical decisions that you would have made on your own if you could.

Parents – take steps to protect your family, even while your kids are young. Once you’ve done so, you’ll experience a sense of peace that you didn’t even know you were missing. Take the time to call our Calabasas will and trust lawyers today at 818-334-2805 to schedule a consultation.

LA Couty elder law attorney

LA County Elder Law Attorney: Is It Abuse or Neglect? 6 Red Flags to Watch for in a Nursing Home

by Estate Planning

Nursing home abuse happens in every state. Whether it’s from overworked staff, under-funded facilities, or simply the wrong people entrusted to care for the elderly, nursing home abuse can happen even in the seemingly nicest of places. While nursing home abuse is still the exception and not the rule, watch out for these six red flags:

Your relative is hungry, unwashed, and/or not medicated. These are obvious signs of elder neglect, especially if your relative is at a facility to get help with these things. A nursing home should have a plan in place to meet your relative’s needs, and if there are problems meeting these needs, then someone should be notified right away. 

Your relative seems afraid of or unusually deferential to certain staff members. There’s no reason an adult should be afraid of another adult in their own home. If your relative is not usually meek but has grown sheepish around the nursing home staff, or seems consistently afraid of the same person, there’s something wrong. The nursing home staff and residents should be treating each other with respect. Fear isn’t respect.

Overworked staff/understaffed/untrained staff. A nursing home needs doctors, nurses, and nurse’s assistants who are attentive and allowed to work to the best of their ability. If the nursing home staff seems incompetent, unknowledgeable, reluctant, or overwhelmed, that’s a problem that will only get worse with time. The staff should be able to meet your relative’s needs as they arise.

Unexplained Bruises or Injuries. While it’s possible that an elderly person is more delicate and prone to accidental injury, a nursing home should be designed to lessen the possibility of accidents and injuries. If your relative has an accident, you should be notified and there should be a report. However, too many “accidents” and injuries, small or large, may be the result of someone hurting your relative.

Your relative is either very distant now or doesn’t want you to leave. Abuse victims may withdraw from social activities, especially if they feel ashamed of what’s happening. They may feel that the abuse is their fault. They may also be afraid of what the abuser will do if the abuse is discovered or afraid of not being believed. Disabled seniors with cognitive problems may be dismissed when they complain about abuse. However, your loyalty is with your relative, not the nursing home.

Alternatively, your relative may become unusually clingy. If they seem fearful of you leaving them, then there’s probably a reason for that, especially if they want you to be in close physical proximity.

As with all abuse cases, file a police report. Then, speak to an LA County elder law attorney. Your attorney can offer guidance, connect you with administrative staff from other facilities where you may be interested in moving your loved one to, or refer you to an injury attorney should a lawsuit become necessary.  If you are experiencing a situation like this currently and you’d like to discuss your concerns, please contact our elder law firm at 818-334-2805 to schedule a consultation with an LA Couty elder law attorney.

San Fernando Valley Elder Law Attorneys

San Fernando Valley Elder Law Attorneys: How to Stay One Step Ahead of Social Security Scammers

by Estate Planning

Scammers want your information. They have all kinds of creative ways for getting your account numbers, address, and other personal information. Once they have it, they steal your identity. As San Fernando Valley elder law attorneys, we’ve seen it all too often.

One common scam involves calling unsuspecting seniors and asking them to verify their Social Security number. Here’s the script:

  • A call comes in from someone posing as a Social Security Administration (SSA) employee.
  • The scammer tells the victim that they are due a cost-of-living adjustment increase in their Social Security benefit.
  • The scammer tries to get the victim to “verify” their Social Security number, their name, their birth date, their parent’s names, and other personal information.
  • If the scammer is successful, they use the information to make changes to the victim’s direct deposit, address, and telephone information within the Social Security Administration system.

The Social Security Administration rarely calls and will never send an email to verify anything. They will, in most cases, send you a letter. If you are due cost-of-living or any other increase, you will get them automatically.

To protect yourself, the number one recommendation is to not accept phone calls from phone numbers that you don’t recognize. Here are a few other safeguards recommended by the AARP:

1) Never provide information such as your Social Security number or bank account numbers to unknown people over the phone or internet unless you are certain who is receiving it.

2) If you have questions about any SSA communication – a call, letter, email, or text – contact your local Social Security office or 1-800-772-1213.

3) Report suspicious calls to the Office of the Inspector General at 1-800-269-0271 or online.

4) Want to report a scam? Either contact your state attorney general or the AARP directly.

This latest scam is insidious. The thieves making these phone calls are very convincing. Please be sure to stay alert and warn your elderly friends and family members. If you still need guidance, feel free to contact our San Fernando elder law attorneys at 818-334-2805.

San Fernando Valley trust attorney

North LA County Trust Lawyer: Top 5 Mistakes to Avoid When You Make a Living Trust

by Estate Planning

A revocable living trust is an integral part of many estate plans. Its main purpose is to give you more control over how your estate is handled both before and after death while allowing your estate to avoid a lengthy probate process.

The idea of a revocable living trust is fairly simple: it becomes the owner of any assets you – the grantor – put into it. A trustee (typically also the grantor) is named to administer the trust and manage its assets. If at any time you feel the need to step down as trustee – maybe you can’t make it to the bank as easily anymore or just don’t feel like handling each aspect of your finances – the responsibility will turn to a successor trustee, who is someone you named in the trust to take over administration when you choose not to handle it anymore. The successor trustee can also take over in the event of your death, which will easily allow them to manage your assets that would otherwise be tied up in the probate courts until the estate is settled.

While this all sounds great, keep in mind that there are some mistakes that can come with setting up your trust which can ultimately be difficult to fix. Here are the top five mistakes you should avoid when making your revocable living trust:

Not including the right assets
As noted above, the main reason to create a revocable living trust is to avoid the probate process. As a rule, any asset that is solely held by a decedent has to go through probate, while any jointly held or trust-held asset does not have to go through the process. Putting a joint checking account in your trust may not make much sense, and neither would leaving out a house that is solely in your name.

Assuming you’ll be protected from estate taxes
Revocable living trusts do not protect estates from estate taxes. There are different kinds of irrevocable trusts available for that purpose, such as a credit shelter trust and marital life estate trust. These are much more complex trusts and require the experience of an LA County trust lawyer, which brings us to our next point…

Using a DIY trust maker
Many families have seen the effects of creating DIY trusts; namely, they don’t often work. Trusts must follow a strict set of guidelines that are set by the state and federal governments, and any trust that does not follow these guidelines is not worth the paper it’s printed on. An experienced LA County trust lawyer is the perfect resource for finding out if a revocable living trust is right for you and can craft it to meet your needs.

Creating a trust but not a will
Here’s an important note to keep in mind: a trust does not take the place of a will. In fact, a will (called a pour-over will when used in conjunction with a trust) is needed to control any assets that may not have made it into your trust. If you pass away without a will, then your estate will be distributed to beneficiaries as decided by the law – not necessarily the way you would want it.

Saving money now vs. saving money later
We get it – trusts can be expensive, especially compared to a very basic estate plan package. However, the extra cost today could end up saving your family and estate a serious price tag later when probate fees, time, and resources are all added up. A trust simplifies the process and is well worth the cost to whoever administers your estate once you’ve passed on.

If you want to learn more about creating a revocable living trust, or if you currently have a revocable living trust and would like to have it reviewed to ensure it still fits your needs, please give us a call at 818-334-2805 to set up a complimentary consultation.

Calabasas estate attorney

Everything You Need to Know About Prepaid Funerals | Calabasas Estate Administration Lawyers

by Estate Planning

It’s not something people want to think about, but funerals, even modest ones, can be very expensive. Many families pay more than $10,000 for services, burials or cremations, and other aspects of a loved one’s funeral. One idea that Calabasas estate administration lawyers have seen grow in popularity over the years is paying for funeral expenses in advance with a prepaid funeral contract to relieve family members from the stress of decision making and financial burdens. However, as with any financial decision, you should have as much information as possible before making a commitment to a prepaid funeral contract. Here are some key things to know:

You can plan your own funeral.
This may sound a little macabre, but think about it: you would be saving your family from the emotional rollercoaster of having to plan your funeral. They won’t have to guess what kind of service or funeral preparations you would want if you already made the decision.

You can save your family from the financial burden of funeral costs.
Funerals are often an expense that no one is ready for. Your estate may be able to cover the costs, but keep in mind that the California probate process takes on average about six months to settle, meaning it will be quite some time before your family is able to access the money to pay for the funeral. In fact, they may have to go out of pocket to settle debts before that time.

You’ll probably pay a lower price for your funeral.
Locking into a prepaid funeral contract years before your funeral can actually be cheaper, considering that prices always rise as the years go on. Consider that the average cost of a funeral in 2001 was just over $5000, which has doubled over the course of just 20 years.

It helps with asset protection planning.
Prepaid funeral contracts are considered non-countable assets for Medi-Cal planning purposes. Buying a prepaid funeral contract is usually part of the spend-down strategy when trying to qualify for Medi-Cal benefits.

There are, of course, some drawbacks associated with prepaid funeral contracts. The funeral home may go out of business, you may move out of state, and you also would not get the benefit of interest earned on the contract like you would if you put that money in an investment account instead. This is why it’s important to speak with experienced California estate administration lawyers before you sign any contracts. There may be other ways to handle your funeral plans before you pass away that fit along better with your goals.

If you’d like to learn more about prepaid funeral contracts, or if you already have a prepaid funeral contract and want to see how it fits into a new asset protection plan, please call us at 818-334-2805 to set up a complimentary consultation.

Calabasas estate planning attorney

Cryptocurrency and Estate Planning: How to Make Sure Your Digital Assets Pass to Your Loved Ones

by Estate Planning

While digital assets have been around for quite some time, it seems like very recently that people have been making them an integral part of their investment portfolio. We won’t weigh in on whether that’s a good or a bad thing; however, we will explore the effect of digital assets on estate planning. Namely, what happens to your digital assets once you pass away. But first, let’s start with a definition of cryptocurrency.

What is cryptocurrency?
Cryptocurrency is basically digital money. It can be used to pay for goods and services just like real money. The main selling point is that it’s backed by blockchain technology, which is a decentralized system that securely records and manages all cryptocurrency transactions. Long story short, the risk of your money disappearing from the internet one day using blockchain technology is relatively low.

Why do I need an estate plan?
Even though cryptocurrency is in a different class from the money that typically gets handled by an estate plan, there’s still a need to plan for what happens to it once you’ve passed away. Like any assets, cryptocurrencies are subject to the California probate process, which could potentially leave them tied up for years depending on the state of your estate plan. It doesn’t matter if your family knows where the accounts are and the passwords to access them; your cryptocurrency can still get held up.

Speaking of passwords brings us to another key to any good estate plan: you should have your accounts listed and where to find and access them. Estate plans aren’t just powers of attorney and last wills and testaments – they also include the information needed to help your loved ones administer your estate as quickly and painlessly as possible.

Putting a plan in place can protect your assets and give your family peace of mind that your affairs are in the best possible place to be handled. An experienced Calabasas estate planning attorney can speak with you about the details of your estate plan and how to craft it so it can account for your digital assets.

If you want to learn more about cryptocurrency and estate planning, or if you currently have an estate plan and want to see how an investment in cryptocurrency can affect it, please give us a call at 818-334-2805 to set up a complimentary consultation.