If you currently own twenty-five percent (25%) or more of a business entity you must file a report of personal information (BOI Report). If the entity was formed prior to January 1, 2024, you must file a BOI Report by January 1, 2025. If the entity was formed on or after January 1, 2024, and…
If you are leaving your home to a child you should amend your Living Trust for a specific bequest with other provisions to avoid the impact of Prop. 19. Your child may inherit your home without property tax reassessment under certain circumstances. For this to occur, specific requirements must be met to acquire the Parent-Child…
The Trust Protector are new provisions that are designed to keep your Living Trust out of court proceedings such as Trustee/Beneficiary contests. More specifically, a Trust Protector may have the following authority. The Trust Protector (hereafter T.P.) is not active in the managing of the Trust. He/she would be similar to a referee of a…
Living Trusts are not known for asset protection but there are circumstances where they may be utilized. 1. Inclusion of a Spendthrift clause;2. To protect from Medi-Cal claims;3. Use of a Bypass or QTIP Trust;4. Protection for a beneficiary’s inheritance. Spendthrift Clause: This provision should be in all Living Trusts, It’s primary objective is to…
The home is the jewel of the assets, the dream of most people. It is the prize of the family and treated with great respect in most of our laws. So, how does a Living Trust and Estate Planning fit in with home ownership you ask? Answer: In more ways than you are more than…
I. Failure to Arrange and Update a Proper Living Trust Under California Law It is ludicrous not to have a properly executed Living Trust in California, especially if one owns real estate. California has one of the more archaic probate systems in the country that takes about 1 ½ years in San Diego County and…
There are a myriad of issues that may arise for your children, or other beneficiaries, in inheriting your estate such as taxes, mortgages and other debts, title issues, etc. But more importantly there is liability of your children to judgement creditors or divorce decrees. You have worked hard over the years to create an estate…
I. Amenable, Revocable, and Distribution Provisions The Living Trust, also known as an Inter Vivos Trust, becomes viable the day it is signed, unlike a Will which only becomes effective at death. The Living Trust document should also indicate when and how it may be amended or revoked. Basic individual and spousal Trusts provide that…
Over the next few articles I will address various sections of the Living Trust that I created and explain the purpose of the provisions. It may be an excellent time for you to take a look at your Living Trust and other documents to determine if they need updating at this time. The explanations will…
1. What happens when the Trust Creator fails to transfer financial accounts into the Living Trust? 2. Why Long Term Care Insurance should be owned by the Living Trust. 3. Make Retirement Senior Living Facilities reimbursement payable to the Living Trust. 4. Who pays the tax on Trust income after the death of the Trust…
Because of numerous questions we get on Trustee fees, I have decided to offer some guidance based on California Law. Historically, Trustee fees are referred to as “reasonable” in most Trusts. What does that mean realistically? California Probate Code Section 15681 indicates that if the Trust doesn’t specify fees, the Trustee is entitled to “reasonable…
First of all, A-B Trusts have been utilized primarily to protect from Federal Estate Tax (FET) historically. We also use them to plan with blended families. On the death of the first spouse, the Trust splits into two Trusts–the surviving spouse’s A Trust and the decedent spouse’s B Trust. Each Trust is funded with one-half…