On January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012. If you have not reviewed your estate plan following the changes made to the estate and gift tax laws by this legislation, you need to ask yourself these 10 questions then schedule a meeting with your Family Trust Lawyer to ensure you have the answers:

1. Should your estate plan be updated to reflect the new laws, any new assets you may have acquired, or any other changes in your life over the last year?

2. Are your assets being tracked and documented so that if anything happens to you, your family knows exactly how to access your accounts and everything else you own?

3. If your family has a LLC or limited partnership, has it been maintained properly so as to comply with applicable tax laws?

4. If you made gifts to family or friends during the last year, are you within the exemption limit for the year?

5. Are you maximizing ALL opportunities for income tax deductions in 2013?

6. Are the people you designated as executor, trustee and beneficiaries of your trust still the right choices?

7. Are you employing the best strategies for year-end charitable gifts and contributions?

8. If you donate cash to a charity from an IRA, are you doing so properly?

9. Are there any opportunities to use a trust to protect your assets?

10. What should capital gains management strategies (or timing of long-term losses) should you be considering?

If you would like more information about creating or updating your estate plan, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.

Do you think trusts are only for the wealthy? While it is true that wealthy Americans commonly use trusts to protect and pass their wealth, there are a number of important reasons Americans of modest means should consider the use of trusts, too. Here are 7 of them:

1. Control distribution of assets. You probably wouldn’t just hand over your car keys to a child who has had no proper preparation for driving, and chances are you won’t want to hand over all your assets to a teenager either. But if both parents were to die without a trust, the children would inherit ALL the family assets upon their 18th birthdays. A trust, on the other hand, allows you to specify not only how, but when you want your children to inherit assets.

2. Protect assets from creditors. Placing an inheritance in a trust ensures that those assets are protected from your heir’s — or because California is a community property state, their spouse’s – creditors. A Lifetime Asset Protection or Wealth Creation Trust can accomplish just that.

3. Protect inheritance from spendthrift heirs. Not everyone is manages their money well. If your heirs are part of this group, a trust can be used to ensure the assets are not squandered due to spendthrift behavior.

4. Protect inheritance for children of a prior marriage. A trust can be useful in both providing for your current spouse and children, as well as any children from a previous marriage.

5. Provide for a special needs heir. Leaving assets outright to someone with special needs might disqualify them from receiving important government benefits. Don’t fall into that trap! By leaving assets in a trust you can bypasses this risk.

6. Avoid probate. With a trust, assets can pass to heirs without going through probate, saving beneficiaries the financial and emotional drain of a lengthy court process. Probate is expensive, public, and also completely unnecessary. Use a trust to keep your family out of court during their time of grieving.

7. Protect privacy. Once a will is entered into probate, it becomes a matter of public record and open season for creditors and predators. A trust, on the other hand, is a private document that can be administered between your heirs and their attorney, protecting your family’s privacy.

If you would like more information about how a trust can be used to protect almost ANY American family, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.

Retirement decision-making for baby boomers is very different than it was for their parents, when it was usually just one spouse (Dad) who retired.

More often than not, both spouses work now and must make decisions together on retirement, and each may have very different ideas of what that retirement should look like. Here are 5 important decisions you need to make as a couple before you retire:

Timing. Your financial position and how much (or how little) you enjoy your work are usually the main determining factors regarding when to retire. But couples also need to consider how to maximize their Social Security benefits.

Finances. If only one spouse has been handling the family finances, it’s time for a change. Both spouses need to understand the overall financial situation and how retirement may impact it.

Lifestyle. While one spouse may want to travel more in retirement, the other may just want to lounge around the house. While one may want to move, the other may want to stay put. For this to work, you need to compromise and make decisions together about your retirement lifestyle.

Healthcare. It is imperative that both spouses have good healthcare coverage, either from Medicare and supplemental plans or, if either will continue to work in retirement, from an employer’s plan.

Long-term care. Studies show that most of us will need some long-term care during our lifetimes. We can help you examine the options for long-term care coverage and help you put a plan together that meets your needs.

If you would like to learn more about retirement planning, we need to talk. Please call my office today.

 

A simple will is one of the most basic California estate planning documents there is, and everyone over the age of eighteen should have one to make sure that there is no question about what would happen to their assets (and kids) if something happened to them. But there are some cases when having a trust in addition to a will is imperative; here are six of them:

Avoiding probate or conservatorship. To carry out instructions in a will, a probate must be opened in the county where the decedent lived. That means your family is stuck dealing with the Court if you get hospitalized or die. As the old joke among attorneys goes, where there’s a will, there’s a probate. A trust, on the other hand, bypasses the probate process completely; saving the people you love time, money, privacy, and emotional energy.

Providing for a person with special needs. If you have a child or another dependent with special needs, a trust commonly known as a Special Needs Trust can protect assets for a special needs person without jeopardizing their qualification for government benefits. That’s a big deal. A will only allows you to transfer assets to a special needs person, but does not provide any protection for those assets.

Privacy. Since a will undergoes probate in California courts, it becomes a matter of public record. That means creditors, predators, and opportunists will all be on notice your loved ones are receiving assets. A trust is totally private.

Blended families. If you are part of a blended family, a trust can give you flexibility to ensure children of prior marriages are provided for in exactly the way you want.

Out-of-state property. If you own property in a state other than California, you can more easily transfer ownership via a trust than through a will. Transferring out-of-state property through a will usually means multiple probates in multiple states which translates into additional legal expenses, time, and emotional energy being sucked from those you love.

Asset protection. If you want the assets you leave for your loved ones to be protected from creditors, bankruptcy, and divorce, you want a trust. That kind of protection is a gift only you can give your loved ones. They cannot easily (or at all) set up that kind of protection for themselves.

If you would like to learn more about the use of trusts in California to pass on what you care about to the people you love, we should talk. Call us today.

If you’re visiting this site to find out what we charge for a Will or you are considering calling us (or any other law firm) to ask, “How much do you charge for a Will?” stop.

That’s not the right question.

The first question you need an answer to is, “What should I have in place to ensure me, my family, and my money are protected the way I want?”

Far too many people base their estate planning process on what it’s going to cost. Sometimes it turns out okay. Most of the time doesn’t.

The real problem is that you just don’t know what you need yet.

When you download a will template from the internet or fill out pre-printed documents from a book or buy a Do-It-Yourself kit from the office supply store, you don’t really know what you are actually putting into place.

Unfortunately, if tragedy strikes, it’s your family who will be left holding the bag.

It’s not uncommon for “cheap” estate planning documents to miscarry the decedent’s goals and fail to protect their family from probate, guardianship issues, high fees and taxes, and a host of other problems.

When you hire me, you aren’t just paying for documents.

_D0P7622 [F] smWhen you hire me, you aren’t merely renting my time. I will give you my best legal counsel and my heartfelt personal support. I will become an ally who will help you get your affairs in order, and keep them there, no matter what future changes occur in your life, the law, or tax policies.

You get legal documents, yes, but you get something much more important, too. When you hire me you gain my guidance throughout your lifetime as well as the peace of mind knowing I’ll be there for your loved ones when you can’t be.

So, when you call and ask me, “how much for a Will?” I can’t really give you an answer because I don’t in fact charge for Wills. I charge for advice, counsel, guidance, and support. The Will is a by-product of all that. And to be honest, I don’t even know yet if you need a Will.

Perhaps a Will would suffice for your family, but perhaps not. And if we have a conversation about how much a Will costs and then it turns out you need more than just a Will, you’ll be focusing on price rather than how to actually accomplish your goals … and I’ll have done you a great disservice.

So I won’t answer that question right up front, because it’s the wrong question to ask right up front. My process begins with a Family Estate Planning Session. And because I want every interaction between us to be extremely valuable to you (whether I ever write a Will – or any other documents – for you or not), I’ll send you a comprehensive information packet with homework for you to complete before our Session together so you can gain the most from your time with me.

I’ll review the homework you complete before we meet so we can invest our full time together examining your specific situation and looking at what would happen to you, your children, your money, and the people you love if anything happens to you.

I guarantee you will be heard, cared about, informed, educated, and empowered to make the best decisions for the people and things that matter most in your life.

If, after we spend that time together, it turns out you do need a Will (or any other type of legal planning), it will be because we came to that conclusion together. Then talking about pricing will make sense and can be put into context.

I can tell you this now, though- most of our foundational estate plan packages range between $2,000 and $8,000. Your package will be customized to the specific needs of you and your family, and YOU will be in control the whole time.

So how do you choose a lawyer, if not based on price?

Get referrals from your friends and family. Read client reviews, if available (and if not available, ask, “why not?”). When you call any law office to inquire about their services, rather than asking what they charge, ask HOW they charge and what makes their services different than others.

See who stands out. Your lawyer will be a member of your team for the long term (or at least he or she should be). A lawyer who looks at you as just another transaction isn’t likely to provide you with the level of service you need. You deserve a lawyer who is approachable, dedicated, and looks forward to being in a long-term relationship with you and your family.

That’s why simply asking, “What do you charge for a Will?” does not get you where you need to be to make smart, loving decisions for your family. In fact, that question can send you in exactly the wrong direction.

The far more powerful (and empowering) question to begin with is “What do I need to do to make things as easy as possible for my family after I’m gone?”

If you’re interested in having that conversation, we should talk. Please call me.
Signature - Marc

It is important to know the difference between a Will-based plan and a Trust-based plan so you can make an informed decision about what is best for you and, ultimately, your family.

A Will-based plan is an estate plan that does not include a Living Trust to hold title to your assets. For example, our Family Plan is a Will-based plan which includes the following legal documents: Health Care Directives, Powers of Attorney, Wills and optionally, if you have minor children, a Kids Protection Plan.

A Trust-based plan, on the other hand, is an estate plan that does include a Living Trust to hold title to your assets during your lifetime and to provide for the ease of transfer of those assets in the event of your incapacity or death. For example, our Trust Plan and Wealth Plan are both Trust-based plans which contain all of the legal documents included in the Family Plan PLUS one or more Living Trusts.

So, Why Should I Care?

The practical difference between a Will-based plan and a Trust-based plan is that without a Trust in place your family would have to go through the Probate Court process to get access to your assets in the event of your incapacity or death.

Your Will indicates both WHO you want to have access to your assets and HOW you want them distributed, but it does not keep your family out of Probate. Going through Probate (or guardianship in the event of incapacity) is expensive, time-consuming, totally public and completely unnecessary. But that’s what happens when you have only a Will in place instead of a Trust.

When you do have a Trust in place, there is a bit more work for you to do upfront because you need to ensure all of your assets are properly owned by the Trust throughout your lifetime (and insurance beneficiaries are designated to the Trust), but we are here to assist you with that (or even take care of it for you, if you prefer).

And, with our regular trust review process or valuable membership plan, we monitor your assets and ensure they are owned in the correct manner throughout your lifetime while also making sure your plan stays up to date as your life, your assets, and the law changes.

How Do I Know Which Plan Is Right For Me?

My process begins with a Family Wealth Planning Session. And because I want every interaction between us to be extremely valuable to you (whether you need a Will-Based Plan, a Trust-Based Plan, or no plan at all), I’ll send you a comprehensive information packet with homework for you to complete before our Session together so you can gain the most from your time with me.

I’ll review the homework you complete before we meet so we can invest our full time together examining your specific situation and assessing whether a Will-Based Plan or a Trust-Based Plan makes the most sense for you and your family.

I guarantee you will be heard, cared about, informed, educated, and empowered to make the best decisions for the people and things that matter most in your life.

If this is a conversation you’re ready to have, we should talk. Please call me.

father and sonNo one likes to think about death, especially their own. That is why many people procrastinate when it comes to estate planning. Because it’s for when you die, right? Wrong! When done through the right lawyer, creating an estate plan actually makes your life better.

Here are some of the things that estate planning does for you while you are alive:

  • Gets you thinking about the real meaning of your life, what you want to pass on beyond your life, and what’s most important to you now;
  • Makes you think about how you want to be cared for at the end of your life and lets you name who you want to make decisions for you if you become incapacitated;
  • Gets you thinking about your money, who you want it to go to, when you want it to go to them, and even what you want them to do with it;
  • Names guardians to care for your children in case you can’t;
  • Helps you minimize taxes;
  • Lets you provide for a child, or other loved one, with special needs without disrupting their governmental benefits;
  • Protects your assets from divorce, creditors, and lawsuits – yours or your children’s;
  • Enables you to gift portions of your estate to your children or even charities while you are still alive in a way that provides tax advantages and inspires wealth creation, not wealth depletion;
  • Helps you plan for your own long-term care in a way that won’t diminish your estate.

Of course, having an estate plan also offers you peace of mind knowing you have done what you could to protect loved your ones and pass your assets to them after death. Having an estate plan in place before you pass guarantees:

  • Your personal property and financial assets will go to the people you want to have them;
  • Your family won’t have to deal with the expense and pain of going through the probate process;
  • Your minor children are provided for in the way you choose, by whom you choose, with your values, and a trusted adviser in place to manage their finances until they come of age;
  • Your assets are protected for your heirs with distributions made at certain ages (or other milestones of your choice);
  • Your beneficiaries are named on retirement, life insurance, and other financial accounts so they get the assets in those accounts;
  • The financial privacy of your family is protected.

If you know you need an estate plan but have been procrastinating, now is the perfect time to create a plan that spells out how you will pass on your values, beliefs and money to your children. In fact, pick up the phone right now and our office today to schedule a time for us to sit down and talk.

We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.

gavel testament document and bags with dollar signResearch shows that a majority of baby boomers will receive an inheritance at some time during the lives, with the average inheritance estimated at $65,000. If you are the beneficiary of a family inheritance, here are 7 steps you can take to be sure you manage it wisely:

1. Re-examine your financial goals. Look at short-term gains vs. long-term benefits. Determine the direction you want to go and then invest your inheritance accordingly.

2. Review your estate plan. If you inherit a significant amount of money, you should review your estate plan to determine what new strategies can be put into place to protect your increased assets. If you inherit a valuable collection of art or jewelry, you’ll want to look into other ways to protect that, too.

3. Get rid of debt. If your inheritance is significant enough to allow you to pay off debt – especially credit card debt or loans with high rates -consider paying it off entirely. You can evaluate whether or not this is a good idea by estimating what you currently pay in interest and then determine if investing your windfall will provide a better return.

4. Have an emergency stash. If you do not already ave at least six months’ worth of living expenses in an emergency fund, it’s a good idea to get that shored up now.

5. Take your time. Explore your options and consider the best use of your inheritance before making any major moves. Inheritances are separate marital property in California, so if you are headed for divorce, it may be more prudent to just put the cash in an interest-bearing account until the dust settles.

6. Consult a professional. A financial planner and an estate planner will help you navigate your new wealth and save money.

7. Give yourself a treat. Put aside a small amount by for something special for yourself but don’t go overboard.

We can further advise you of all your options as part of a comprehensive estate plan. If you would like to have a talk about estate planning for your family, call our office today to schedule a time for us to sit down and talk.

We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.