Calabasas Trust Lawyers

Everything You Need to Know About Self-Settled Trusts | Calabasas Trust Lawyers

by Estate Planning

There are a lot of different estate planning and asset protection planning trusts out there: revocable living trusts, Medi-Cal asset protection trusts, and life insurance trusts are just a few of them. One type of trust that Calabasas trust lawyers find to be useful, though sometimes only in narrow circumstances, is a self-settled trust.

What is a self-settled trust?

A self-settled trust is used to protect financial assets, real estate, personal property, and business assets from future creditors. Like most other trusts, once these assets are transferred into a self-settled trust, they’re legally owned by the trust and not by you. A self-settled trust is an irrevocable trust, which is the key feature in making sure that future creditors cannot reach the assets that are in the trust.

What are the limitations of a self-settled trust?

As mentioned earlier, there are a few limitations to self-settled trusts. The biggest limitation is the fact that they cannot protect assets from past creditors, so any debts incurred before the trust is created are still liable to be paid out from trust assets. Self-settled trusts are also not allowed in a number of states, as many lawmakers were worried that these trusts could be used to wrongfully avoid creditors. Self-settled trusts are legal in the following states:

·       Alaska

·       Delaware

·       Hawaii

·       Mississippi

·       Missouri

·       Nevada

·       New Hampshire

·       Ohio

·       Rhode Island

·       South Dakota

·       Tennessee

·       Utah

·       Virginia

·       West Virginia

·       Wyoming

How do I create a self-settled trust?

If you live in one of the states that allow self-settled trusts and want to create one to avoid future creditors, your first step should be to speak with an attorney who has experience with drafting self-settled trusts. Once you’ve chosen an attorney to create your trust, you’ll have to provide the following information:

·       The creditors from whom you want to protect your assets. Many people choose self-settled trusts if they worry about possible accidents or injuries, work in high-risk professions with liabilities, or own a business.

·       The trustee of the trust. You cannot choose yourself as the trustee of your own self-settled trust, since that defeats the purpose of the assets no longer being in your control. You’ll need to choose someone you trust or a corporate trustee who can fulfill those duties.

·       The assets that will go into the trust. Typically, people will put financial assets and real estate property into their self-settled trust, but everyone’s individual situation is different. You should bring a list of all your assets when you meet with your attorney so you can better determine what assets will go into the trust.

If you’d like to learn more about self-settled trusts and how one can fit into your estate plan, or if you currently have a self-settled trust and would like to have it reviewed by one of our experienced Calabasas trust attorneys, please contact us at (818) 334-2805 to set up a consultation.Report

Calabasas Elder Law Attorneys

Calabasas Elder Law Attorneys: Everything You Need to Know About Reverse Mortgages

by Estate Planning

There are many options available to seniors who would like access to liquid assets, and reverse mortgages are one of the most common – and misunderstood. Our Calabasas elder law attorneys have outlined everything you need to know about reverse mortgages, so you have the information you need to make the best choice possible.

What is a reverse mortgage?

A reverse mortgage is a financial tool available to seniors aged 62 and older who own their homes. It allows them to use their home equity as collateral to receive a lump sum, line of credit, or annuity to receive money. This makes the homeowner the borrower and the bank the lender, which means that interest will need to be paid on the monthly repayments to the lender.

When is the reverse mortgage loan due?

Typically, the borrower is responsible to make monthly payments to the lender until the amount that is borrowed is paid back. However, there are certain circumstances where the entire amount of the loan could be called due:

·       The borrower lives in a different primary residence. You must live in the home if you have a reverse mortgage, even if you still own the home. The lender will call the loan due if you rent out the home or move out for any other reason.

·       The borrower does not live in the home for 12 consecutive months due to health reasons. A senior suffering from health conditions who moves into a nursing home must move back to the home within 12 months, otherwise, the loan will be due.

·       The home is sold. The loan will be called due if the borrower either sells the home or transfers the title of the home to another person who is not also a borrower of the reverse mortgage.

·       The borrower passes away. There are cases where a non-borrowing spouse may be able to remain in the home after their spouse passes away, but certain conditions must be met. It’s best to speak with an experienced elder law attorney to find out how to avoid leaving the house if the loan is called due upon the passing of a spouse.

·       The loan agreement is breached. Reasons for a loan breach included non-payment of property taxes, a lapse in homeowner’s insurance, or if the house falls into disrepair.

Obtaining a reverse mortgage could be beneficial in certain circumstances, but as we listed above, there are a lot of different issues you should be aware of before you take out a loan. It’s best to consult with an elder law attorney who has experience with reverse mortgages to find out if taking a loan is best for you.

If you’d like to learn more about reverse mortgages and how they can impact estate planning, or if you have a reverse mortgage and want to have your existing estate plan reviewed, please contact us at (818) 334-2805 to set up a consultation with one of our Calabasas elder law attorneys.

San Fernando Valley Will Lawyer

It’s Been Five Years: Do You Know What’s in Your Last Will and Testament? | San Fernando Valley Will Lawyer

by Estate Planning

When was the last time you took a look at your Last Will and Testament? If it was five years ago or more, then you should consider dusting it off and reading through to make sure it’s up to date.

Remember, a lot can change in five years: the birth of new family members, marriages and divorces, or even significant changes in your finances are just some of the reasons you should revisit your Last Will and Testament, as well as the rest of your estate planning documents like your Power of Attorney and Living Will. Just keep in mind, though, that if you notice your Last Will and Testament is out of date and you revoke it, you should have a replacement ready to go.

Revoking a Last Will and Testament is not as cut and dry as simply ripping up the original document or putting it through a shredder. Our LA County probate court will, on rare occasions, accept a copy of a Last Will and Testament if there is reason to believe that the original is either lost or accidentally or maliciously destroyed. The simple fact that there is a precedent for courts accepting Wills marked “COPY” should give pause to anyone who thinks about ripping up their original Last Will and Testament to change their estate plan.

Instead, if you want to revoke your Last Will and Testament due to changes in your family’s situation, you should speak with an experienced San Fernando Valley Will lawyer. A Will lawyer can help you figure out the best way to change your estate plan, which will probably involve rewriting your Will, Power of Attorney, and Living Will documents. (Again, simply destroying these documents can create a legal mess by leaving you without the coverage an estate plan provides.)

Taking a look at your Last Will and Testament, as well as your other estate planning documents, every five years is a good habit to ensure your wishes are known to your family and you have the proper planning in place. If you believe you may have a problem with certain family members once you’ve changed your estate plan, you may want to seek the advice of an experienced San Fernando Valley Will Lawyer to talk about your options.

If you would like to learn more about revoking your existing Last Will and Testament, or if you’d like to review your existing estate plan, please contact us at 818-334-2805 to schedule a consultation.

North LA County Estate Lawyers

North LA County Estate Lawyers Answer, “What’s the Worst That Can Happen?”

by Estate Planning

Have you ever wondered what is the worse that can happen if you become incapacitated or pass away without an estate plan in place?

If you have, you’re not alone. This is actually a common question our North LA County estate lawyers receive, especially from those in close-knit families who believe that their kids (or other loved ones) will peacefully sort everything out when they pass away without needing any additional legal documents or guardrails in place.

Failing to Plan Makes Life Harder for The People You Love

The truth of the matter is that without a plan (or even the wrong plan) you make things much harder for the people you care about, even if everything goes as smoothly as possible and everyone gets along. Managing your affairs will also become much more costly and more time-consuming than they need to be if something happens.

You May Not Like The “Default Plan” The State of California Already Has for You

Remember, you are not obligated to create an estate plan; the state of California already has a plan that your loved ones will be forced to follow in the event you do nothing. However, this “default” plan is not one that very many people like. The only way to override the state’s plan is to legally create one of your own.

What If You Are Disabled or Incapacitated?

If a crisis happens during your lifetime and you don’t have a plan, you run the risk of losing flexibility and you may even lose control. Even if your loved ones want to help if you get sick or become incapacitated, they could be barred from getting involved with your affairs because of privacy or HIPAA laws. If that happens, all decisions about your care and your future will be made by a judge who doesn’t know you or what is important to you.

Make Planning a Priority to Protect Your Family, Your Wishes, and Your Assets

The bottom line is that an estate plan is a roadmap that’s designed to make life as easy and hassle-free as possible for yourself and your loved ones in the event of illness, incapacity, or death. It’s one of the most loving gifts you can give them. If this article has caused you to rethink your choice of going with the state’s plan for your affairs, we are here to help you. Simply contact our North LA County estate lawyers at 818-334-2805  to schedule a consultation.

Calabasas estate planning

Calabasas Estate Planning Lawyers: How Prenuptial Planning Offers Protection Against Life’s “What-Ifs”

by Estate Planning

Now that vaccinations have started and “normal” life is within our grasp, many couples are starting to resume their wedding plans. Those who have had to postpone their big day or got engaged during the pandemic are once again starting to put deposits on venues, purchasing gowns, and even planning honeymoons. However, Calabasas estate planning lawyers want everyone to know that estate planning and prenuptial agreements should be part of the process along with selecting flowers and all the “fun stuff.”

All marriages celebrate the joining of two lives together, a union of family and finances. And while estate planning is not exactly romantic, it can create a feeling of being protected even if the worst happens. Likewise, creating a prenup before the marriage can offer each partner security and confidence that all of their bases are covered as they enter into the union. Essentially, it sets forth how all property, assets, childcare, and spousal support would work IF the marriage did not survive. The prenup’s contents depend on the unique needs of each couple and the document is designed to protect each partner if the marriage were ending.

Couples are encouraged to create an estate plan together, but each partner will need their own lawyer when creating a prenuptial agreement. The reason is simple; the prenup is meant to protect each partner separate from the other. It is also vital to select an attorney in the state where the couple plans to reside, as there may be different laws regarding support after a marriage ends.

Calabasas estate planning lawyers are quick to point out that a prenuptial agreement is often a process that keeps marriages from ending in divorce. Starting the marriage on a strong financial foundation can bind couples closer together. It gives them an open and honest place to discuss financial plans, ideas on fidelity, wishes for the future, and how each views the marriage before entering the contract.

If you or a loved one is getting married, please consider an estate plan and prenuptial agreement as part of the wedding plans. That way, as you walk down the aisle, you know that no matter what, your future is protected. Call one of our estate planning lawyers at 818-334-2805 to schedule a consultation.

North LA County trust attorneys

North LA County Trust Attorneys: Will a Revocable Living Trust Protect My Assets?

by Estate Planning

Trusts are an excellent tool for estate planning and asset protection purposes. The most common type of trust is a Revocable Living Trust, which holds your assets and helps avoid the probate process when you pass away. However, Revocable Living Trusts do not help much when it comes to asset protection planning.

What Can I Do with a Revocable Living Trust?

As stated above, a Revocable Living Trust is an essential tool for avoiding probate. If you own enough assets to qualify for a full probate proceeding when you pass away, then you will most likely benefit from a Revocable Living Trust. Assets placed in the trust, such as a home and financial accounts, can pass to your beneficiaries without going through the probate process. This saves your loved ones time and money and provides a level of privacy for your personal affairs. A successor trustee of your choosing can also manage any finances you place in your Revocable Living Trust if you ever become incapacitated, or even if you just do not care to handle your own financial affairs anymore.

Will a Revocable Living Trust Protect My Assets?

Revocable Living Trusts do not protect assets from financial predators. If you owe money to creditors, then those creditors may take assets from your trust, even though the trust is technically the legal owner of the assets. Your Revocable Living Trust is not suitable for asset protection purposes because you are still considered the owner of the assets if you are the trustee because you have complete control over the trust. There are no restrictions on how you can spend the assets in the Revocable Living Trust, and you can revoke the trust at any time. Revoking the trust means the assets will revert to your direct ownership, putting them back under your control. In addition, all assets in the Revocable Living Trust are reported to the IRS for tax purposes under your Social Security number, meaning there is even less separation between you as an individual and the Revocable Living Trust. This is different from Irrevocable Trusts, which have their own tax identification numbers.

If you are interested in learning more about how certain Irrevocable Trusts can be used for asset protection purposes, or if you’d like to learn more about estate planning with a Revocable Living Trust, please contact our North LA County trust attorneys at 818-334-2805 to set up a consultation.

Calabasas estate planning lawyers

Calabasas Estate Planning Lawyers: Considerations Before You Add Your Child’s Name to Your Assets

by Estate Planning

It is well known that probate in California is not only costly but has the potential to be very time-consuming. Many look for loopholes in the system as an attempt to shorten or eliminate the probate process. Some believe that adding their child’s name to their bank accounts or even placing their child’s name on their property deed can help speed the process along. While this strategy might give your child quicker access to money and could potentially help transfer ownership of your property faster after you pass, Calabasas estate planning lawyers warn that it is likely to cause headaches in the long run. Here are just a few things to consider before taking this action.

1.     Your Child Has a Say in Important Decisions

By adding your child’s name to your deed, you have named them as a joint owner of the property. This creates a need for both parties to be in agreement regarding the sale or refinance of said property while you are still alive. The potential for intense family conflict exists if you and your child are not on the same page.  

2.     Sharing Creditors

Before deciding to add your child to your assets as joint owner, you must have a comprehensive understanding of your child’s credit situation. If they are in financial trouble, you could be at risk if you add him or her to your accounts. That’s because when you share ownership of assets, your child’s creditors could come after your assets for payment. Or, if your child is sued or gets a divorce, half of your assets could be up for the taking!

3.     Your final wishes may not be honored.

Having your child named as joint owner of your assets makes them the sole owner when you pass. Regardless of any verbal agreement with your child as to how you want your assets distributed, he or she will have complete authority over such decisions. This could be a problem if you have other children or you have specific wishes about how you want your assets split up when you are gone. Legally, your child who becomes the sole owner of your property does not have to share a penny with anyone else.

The good news is that there are safer and more efficient ways to help your children avoid probate without encountering some of the drawbacks and problems detailed above.  Consider talking to an estate planning lawyer before taking the step of adding your child’s name to your assets. We can help you get started. Contact our Calabasas estate planning lawyers at 818-334-2805 to set up a consultation.

San Fernando Valley Estate Planning Lawyers

San Fernando Valley Estate Planning Lawyers: How to Plan When You are Chronically Ill

by Estate Planning

More than half of Americans now have at least one chronic health condition, mental disorder, or substance abuse issue. That is a staggering statistic that San Fernando Valley estate planning lawyers who work with sick and disabled clients confront every day.

 There are varying definitions of what it means to be “chronically ill.” One definition is having a disease that a person will live with for many years. These types of illnesses include diabetes, cardiovascular disease, lupus, multiple sclerosis, hepatitis c, and asthma. Alternatively, some define chronic illness as an inability to perform at least two activities of daily living such as eating, toileting, transferring, bathing, and dressing. Or, the patient may require constant supervision by someone else for health or safety issues.

 Regardless of how “chronic illness” is defined, every adult living with a long-term diagnosis should have a few basic legal documents in place to ensure that their wishes are honored and that they are legally and financially positioned to receive the best care possible in the least restrictive environment as possible.

 For example, an experienced San Fernando Valley estate planning lawyer can help create legal documents such as Powers of Attorney forms or Healthcare Directives that appoint someone you trust to pay your bills, access bank accounts, and make medical decisions for you if you are incapacitated or otherwise unable.

 Additionally, a San Fernando Valley estate planning lawyer can help you utilize tools such as trusts to protect hard-earned assets from nursing homes, creditors, or predators. A living trust also offers control, as you can set rules and parameters as to how your assets are to be used and managed by a trustee who is overseeing your affairs. A trust can also help pass down your assets outside of probate, which can be a long and expensive process that most California residents would prefer to avoid.

 The bottom line is this: Do not assume that because you are suffering from a chronic illness that it is too late to take steps to better your financial situation or safeguard your family. Even if you (or a loved one) are currently in a nursing home, there may still be options! The first step is to simply contact our office. We will schedule a planning session with you and walk through all of the avenues of protection that could work best for your family. 

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.