LA County estate planning attorney

Make Your Medical Wishes Known for National Healthcare Decisions Day

by Estate Planning

National Healthcare Decisions Day is on April 16th, and it’s an important reminder for every adult to begin having conversations with loved ones about their most private wishes for medical and end-of-life care.

Far too many people assume that their families would make the choices they would want in an emergency. Yet every day we hear stories of adult children, siblings, or other relatives battling during a healthcare crisis over “what their loved one would have wanted” in that situation.

Incapacity Can Happen at Any Age

The coronavirus pandemic has been a reminder to all of us that illness and even incapacity can happen at any age. Over the past year, many adults, for the first time ever, expressed their thoughts about being placed on a ventilator and/or receiving experimental medication should they become seriously ill with COVID-19.

But planning must go beyond an initial discussion. You must also clearly and legally document your preferences, as well as choose an “Agent” whom you trust to make such decisions if you are unable to speak for yourself.

Documenting Your Wishes Takes Pressure Off of Loved Ones

Remember, emotions can run high during a healthcare crisis, and it might be hard for your loved ones to stop life support, for example, when they desperately want you around. Having your wishes spelled out in writing helps provide guidance during a stressful time and makes these types of decisions easier for your loved ones, especially in cases when other family members don’t agree.

How to Start “Tough Conversations” About Medical Care

In honor of National Healthcare Decisions Day, set aside time this month to have conversations with loved ones about your personal preferences for medical or long-term care. Here are some important issues to consider:

·      Whom do you trust to make medical decisions on your behalf?

·      How do you feel about feeding tubes, life support, and other artificial life-saving devices?

·      Is there any type of medical care you would NEVER want?

·      If you were permanently disabled or incapacitated, what would contribute or take away from your “quality of life?”


·      What are your thoughts on nursing home vs. in-home healthcare?

·      How would you like your family to pay for the care you may need if co-pays become excessive or insurance does not cover your treatment?

A Final Consideration About Your Choice of Healthcare Agent

One final point to consider when documenting your wishes and choosing a healthcare agent that will ultimately carry them out is that the person you nominate should want to have this responsibility. There are people who do not want or cannot handle making medical decisions– even for their own spouse.

Remember, if the time comes that the healthcare directive needs to be used, it is going to be a very stressful and emotional time for this person. Are they up for the job? Do they want the job? Take the time to have an additional conversation with whomever you are considering ensuring that they can, and are willing to, make the decisions that you would want in a crisis situation.

Calabasas Will lawyers

All You Need to Know About Leaving Money to Minor Children | Calabasas Will Lawyer

by Estate Planning

If you plan on leaving money to minor children in your Last Will and Testament, you’ll have an important issue to consider: Who will be in charge of managing the inheritance and keeping the child’s money safe from being lost or squandered if the parents pass away?

Estate planning is often easier for married couples in this situation. One spouse leaves everything to the other spouse, and the surviving parent will take care of the children. But what happens if something happens to both parents, either at the same time or within a short span of time?

Unfortunately, a Calabasas Will lawyer can tell you that there is no easy answer. Young beneficiaries usually require someone else to be named to manage their inheritance because they are legally unable (as in the case of a minor) or too immature to manage the inheritance themselves.

Parents often will ask the people named as guardians to also take responsibility for their children’s money and property. However, if you do not name anyone to manage finances for your children, the probate court will do it for you by appointing someone – oftentimes a complete stranger – to serve as the children’s financial guardian. The financial guardian selected by the probate court must report frequently and has limited authority to make decisions.

It’s also important to note that, unless a trust is utilized, children who are 18 or older will have complete control of the property and money left to them. That being said, you should consider raising the age at which your child gains financial responsibility to age 25 or older. This reduces the risk of your child’s inheritance being mismanaged or lost.

A Revocable Living Trust is the best way to manage your children’s inheritance so that they do not receive a lump sum of money before they are mature enough to handle it. A Revocable Living Trust allows you to raise the age or lay out key milestones in which the children receive their money. It also allows you to specify a trustee who oversees the distribution of funds to your children according to your wishes for their future and how their inheritance is to be spent.

If you have any questions about naming a person to manage a minor child’s finances, or if you are interested in learning more about setting up a Revocable Living Trust, please give our Calabasas Will lawyers a call 818-334-2805 for a consultation.

Calabasas estate attorney

The Future of the Federal Estate Tax- 2021 and Beyond

by Estate Planning

The IRS recently announced the 2021 federal estate tax rate limits, which are $11.7 million for individuals and $23.4 million for married couples. This is increased from $11.58 million and $23.16 million respectively in 2020. 

 Under this new guidance, wealthy Americans will be able to leave up to $23.4 million to their heirs without being subject to federal estate tax rates, which top out at 40%. The federal gift tax exemption will remain at $15,000 annually, meaning gifts made up to that amount will not be taxed by the federal government.

 Will There Be Changes Under the Biden Administration?

 While estate tax rates have stayed fairly consistent over the past few years, estate planning attorneys across the country are being asked by their clients how the presidential election may affect future federal tax limits.

 During the campaign season, the Biden/Harris team proposed reducing the estate tax exemption to $3.5 million for estates and $1 million for gifts. The ability to pass such measures, however, appears to be a long shot, considering the current makeup of the Senate. The Democratic party now holds a very slim majority and lowering the estate tax threshold is not particularly popular on the Republican side. It would be difficult, if not impossible, at this point to get a majority of Senators to agree to such legislation.

 Complicating matters further is the coronavirus pandemic. It’s anticipated that Congress will spend the next few months working on financial relief packages for individuals and businesses impacted by COVID-19. As such, major overhauls to the estate tax are anticipated to take a backseat in 20201 in favor of more pressing matters.

 However, when it comes to the whims of Congress, estate planning lawyers “never say never.” That’s why we are continuing to keep a watchful eye on Congress should support begin to emerge for estate tax reform in 2021 and beyond. For real-time updates, be sure to follow our estate planning blog, or subscribe to our newsletter. Finally, if you have specific questions about the federal estate tax or how to avoid “death taxes” on your estate when you are gone, please contact us at (818) 334-2805 to schedule an appointment. 

San Fernando Valley will and trust lawyer

Estate Planning and Divorce: What to Know | San Fernando Valley Will and Trust Lawyer

by Estate Planning

Estate planning offers legal protection for families and individuals through all of life’s transitions. Using tools such as wills, trusts, powers of attorney, and healthcare directives, estate planning helps individuals protect their wishes, safeguard their assets, and ensure provision and care for their loved ones following their death or incapacity.  

What Does My Estate Plan Have to Do with My Divorce?

 Your estate plan can be impacted greatly if it’s not updated after a divorce. For example, if your ex-spouse has been named as a beneficiary on your life insurance policy, he or she may still be able to collect the proceeds if you suddenly pass away without updating your documents. Your ex-spouse may also retain authority roles as your power of attorney or healthcare agent unless you revoke such power. As a single adult, you must also name the people you now want to act on your behalf or manage your affairs in an emergency once the role is no longer filled by your ex-spouse.

 Won’t a Divorce Automatically Stop My Ex-Spouse from Having Such Power?

 Again, not necessarily. In many states, a divorce does not nullify the beneficiaries named on accounts, nor will it prevent an ex-spouse from serving in authority roles where he or she may retain the ability to make life or death medical decisions or manage the ex-spouse’s money during incapacity. That is why you must update your documents after a divorce to be certain that your ex no longer has this power.

 What Documents Should I Update?

 While everyone’s estate plan is different, the following are the most common documents that should be updated after a divorce: 

·      Will

·      Trust

·      Power of Attorney

·      Healthcare Directive

·      Beneficiary Designations on Life Insurance Policies

·      Beneficiary Designations on Retirement Plans

·      Beneficiaries on any accounts with Transfer on Death Provisions

 Getting Help

 Each state has laws that dictate when documents can be updated or altered as you move through the divorce proceedings. It’s important to speak with an experienced San Fernando Valley will and trust lawyer before you make any changes, as any unapproved transfers or changes to your documents could be considered fraudulent. If you need help getting started, we are here to assist you with your planning. Contact our office by calling (818) 334-2805 to schedule an appointment. 

Calabasas estate planning

Calabasas Estate Planning: How to Help Your Older Loved Ones Avoid Fraud and Victimization- Part 2

by Estate Planning

In part one of this series, we provided a general overview of the ways that seniors are preyed upon by scammers and those who would seek to gain control of the elderly person’s finances for their own benefit. However, in order to stop fraud, it’s important to know the specifics. The following post will walk you through questions to ask your loved one in order to discover if fraud or exploitation is occurring. 

1. Ask older loved ones about suspicious phone calls.

Swindlers often cold-call seniors to get personal information. Here are a few common scams your loved ones should be aware of:

·       Sweepstakes scams: An elder receives a call that they have “won” a sweepstakes and must provide bank account information for a direct deposit or send a check to pay taxes on their “winnings.”

·       Grandchild scams: An elder receives a call saying something like, “Grandma, it’s me… please don’t tell my parents.” The caller then claims they are out of town and need to be wired money to make bail, pay for travel expenses, etc.

·       Voter registration scams: Someone calls about registering the elder to vote, asking for their address, birthday, Social Security Number, or a password or PIN code.

·       Healthcare scams: An elder may get a call offering discounts on health insurance or a call from someone claiming they work for the government and need a Medicare number or Social Security Number to issue a new card.

Encourage your loved ones to never give out personal information to strangers (or even people claiming to be friends or loved ones) over the phone.

2. Talk with them about their finances.

It’s a wise idea to meet with the senior’s financial advisors, accountants, attorneys, and other advisors so those people know you and can potentially contact you if they believe something suspicious is going on.

But be careful: becoming too involved in a loved one’s financial life may create the appearance of undue influence. It is important to help keep loved ones from being exploited, but you also don’t want to find yourself the subject of a lawsuit claiming that you are the one committing financial exploitation.

3. Keep abreast of changes to their estate plan.

Check to see if a non-relative has been included as a representative or beneficiary, or if any relatives have been cut out of the estate plan since the last time you reviewed it. There may be perfectly reasonable explanations for these changes. However, they could also indicate that someone is trying to manipulate your loved one.

4. Ask about caretakers or sudden “best friends.”

Has a non-relative, long-time friend, or neighbor started spending a lot of time with your loved one? Do they suddenly have a new “best friend” or someone who takes care of them at home?

These developments could be a sign that someone is trying to work their way into an elder’s life in order to exploit them, financially or otherwise. It might seem innocent enough (and even generous!) for a new friend to “hang out” with an elder and to take care of their medical and financial needs. But because of the potential for abuse, our Calabasas estate planning attorneys recommend hiring only licensed caregivers. Obtain reviews and make sure they have the proper licensure and training.

Making new friends and meeting people is fine. The goal is simply to communicate with your loved one to make sure they are not giving un-vetted people undue control over their life.

5. Investigate sudden missing items or extravagant new purchases.

It is important to talk with your elderly loved ones about finances so that, if they consent, you can regularly review their statements and stay up to date on other financial developments.

Have there been any large cash transfers? Vehicles suddenly missing or new ones showing up unexpectedly? Heirloom household items have disappeared? Fancy or expensive new gadgets showing up that are out of character for your loved one? This can indicate that someone has convinced the elder to give them assets or that they have duped the elder into buying something they don’t need.

A strong estate plan can help prevent elder fraud.

Keep an open dialogue with neighbors, friends, and advisors connected to older relatives or other loved ones. The more people you have looking out for your loved one, the less likely it is that someone can take advantage of them without your knowing.

Finally, you should encourage your loved one to meet privately with an experienced Calabasas estate planning attorney to determine if they need a revocable living trust and/or durable power of attorney. Having a legal document in place naming a trusted advisor, or agent, to help handle finances can help protect them. An experienced estate planning attorney also knows what questions to ask and the warning signs to look for in suspected elder exploitation. If you would like help creating these documents or navigating your next steps, please call our Calabasas estate planning firm at (818) 334-2805 to schedule a consultation. Report this

Calabasas estate planning attorneys

Calabasas Estate Planning Attorneys on How to Help Your Older Loved Ones Avoid Fraud and Victimization- Part 1

by Estate Planning

Elder fraud and financial exploitation have become an epidemic. As Calabasas estate planning attorneys, we are seeing more than ever before, con artists and family members alike taking advantage of their elderly relatives, friends, or neighbors.

The best defense against elder fraud is having caring friends or family with the senior’s best interests at heart. But those friends and family can only prevent elder fraud if they know how to spot it.

What is Elder Fraud?

Broadly defined, elder fraud is when someone improperly (or illegally) uses or steals a vulnerable senior’s assets. Every state has a different definition of “elder fraud” or “financial exploitation” of an elderly person, so look to your state laws to find an exact definition for where you live.

A recent survey identified the three most common scenarios of financial exploitation:

1.    Theft or diversion of funds or property by family members.

2.    Diversion of funds or property by caregivers.

3.    Financial scams perpetrated by strangers.

In the two most common scenarios of financial exploitation, the fraud is committed by someone who knows the elderly person. Most people think of fraud as emails from Nigerian princes or telephone scams. In reality, however, financial exploitation is commonly perpetrated by family and friends.

Another common misconception is that adults are only susceptible to elder fraud if they have a condition that can affect memory and reasoning skills. According to the Alzheimer’s Association, 15-20% of elders 65 and older have some type of mild cognitive impairment. But it is important to recognize that any senior can fall victim to elder fraud.

How Can I Prevent Financial Exploitation?

There are a number of things you can do to help prevent your loved one from being taken advantage of. Start by educating them on the tell-tale signs of elder fraud. Talk to them about their finances and the potential dangers they could face.

In part two of this series, our Calabasas estate planning attorneys will dive into the most common ways that seniors are targeted and how to help your loved ones from falling victim to such scams or acts of manipulation. Most importantly, if you are concerned that a loved one is being targeted by a financial predator or a loved one with bad intentions, you should seek help as soon as possible. That may mean calling the police, your loved one’s attorney, and in some cases, even the FBI.

Our Calabasas estate planning attorneys are here to guide you through any of the issues that you may be facing. To schedule an appointment, simply call our law firm at (818) 334-2805.