California Probate - Law Offices of Janet Brewer Blog

Should I Create My Own Estate Plan?

“The ongoing coronavirus pandemic has pushed many people to make long-delayed decisions about estate planning. Many people will try the do-it-yourself route via various websites or books. Internet DIY websites make it easy to download forms, but there are mistakes people make when they try do-it-yourself estate planning.”

US News & World Report’s recent article entitled “Do-It-Yourself Estate Planning Mistakes” provides some issues that do-it-yourself estate planners might encounter and why it is best to consult an experienced estate planning attorney.

What are the Right Questions to Ask? Completing a simple and straightforward form—like a beneficiary designation for your IRA— is one thing, but what about tax consequences, probate law, new legislation and court procedures? Are you ready to take these on? The trick is that you may not know what you don’t know. That’s why it’s money well-spent to employ the services of an experienced estate planning attorney.

Is My Situation Complex? Likewise, you may have property and assets all over the country (or world) that require expert advice. You must be certain that your planning, tax planning and financial planning all work together because they’re all interrelated. If you only work on one of these areas at a time, you may create complications in another area and unintentionally increase your expenses or taxes. It can also create headaches and expense for your heirs. If you have a child with special needs, a blended family, or want to control how and where a beneficiary spends your money, a cookie cutter approach won’t do. Instead, you should see an experienced estate planning attorney.

What are the Probate Laws in My State? Estate planning laws and taxes are different in each state.  Your state will have different rules and legal procedures for creating and administering an estate. There are many different state laws that govern inheritance taxes. There are 17 states plus DC that tax your estate, inheritance or both, and the tax laws can affect your situation when planning. Eleven states plus DC have only an inheritance tax. One state taxes both inheritances and estates.

If you mess up your estate planning documents, if could cause significant problems for your family. You best bet is to work with an experienced estate planning attorney in your state. Contact our office today to schedule your consultation.

Reference: US News & World Report (Dec. 18, 2020) “Do-It-Yourself Estate Planning Mistakes”

What Does an Estate Planning Attorney Actually Do?

“Estate planning is crucial, setting up a peace of mind for you, as you enter your senior years. Most people don’t create a will because they are afraid to even think about the possibility of death. It feels like too big of a responsibility.”

It’s critical to understand what will happen to your estate after your death. That’s where the help of an experienced estate planning attorney comes in, says VENTS Magazine’s recent article entitled “What Does an Estate Lawyer Do Exactly?”

An experienced estate planning attorney is a legal professional, upon whom you can rely to help protect your estate after your death or in the event that you become incapacitated.

He or she will make certain that your assets and property are handled correctly.

In addition to assisting you with your estate, an estate planning attorney can help handle any family members trying to get involved in your legal affairs.

It may be difficult to please everyone when creating your will. Having an estate planning attorney will help you make the best decisions when it comes to distributing your wealth.

Estate planning is critical—especially if you’re older, experiencing chronic illness, or just want to be smart about protecting your assets.

As we grow older, we can accumulate a long list of stressful issues and responsibilities. You may worry that your estate will be gobbled up by creditors once you pass away, or that your children will fail to distribute your assets as you intended.

Much of this stress is eliminated with the guidance and counsel of an experienced estate planning attorney. Having an estate plan allows you to enjoy a better quality of life, once you’re older. You won’t have to live every day with worry or stress about the future after you’re gone.

An experienced estate planning attorney is a valuable resource for your family, in the event someone tries to contest the will after your death. Estate planning attorneys also aid in distributing the wealth, protecting your property from creditors, and lowering estate taxes.

You can read more about how our process works, how we can make sure we are a good fit for your needs, and how to get started today right here.

Reference: VENTS Magazine (Sep. 28, 2020) “What Does an Estate Lawyer Do Exactly?”

How Do I Find a Good Estate Planning Attorney?

“Estate planning is a systematic method that manages the personal and financial matters of a person in case of death. The legal document for the necessary plan for death is called the Last Will and Testament, which includes the set of instructions for the condition and distribution of the estates.”

About 68% of Americans don’t have a will. With the threat of the coronavirus on everyone’s mind, people are in urgent need of an estate plan.

To make sure your plan is proper and legal, consult an experienced estate planning attorney. Work with a lawyer who understands your needs, has years of experience, and knows the law in your state.

EconoTimes’ recent article entitled “Top 3 Estate Planning Tips When Seeing An Attorney” provides several tips for estate planning, when seeing an attorney.

Attorney Experience. An estate planning attorney will have the experience and specialized knowledge to help you, compared to a general practitioner. Look for an attorney who specializes in estate planning.

Inventory. List everything you have. Once you start the list, you may be surprised by the tangible and intangible assets you possess.

Tangible assets may include:

• Cars and boats
• Homes, land, and any other real estate
• Collectibles like art, coins, or antiques; and
• Other personal possessions.

Your intangible assets may include:

• Mutual funds, bonds, stocks
• Savings accounts and certificates of deposit
• Retirement plans
• Health saving accounts; and
• Business ownership.

Create Your Estate Planning Documents. Prior to seeing an experienced estate planning attorney, he or she will have you fill out a questionnaire and to bring a list of documents to the appointment. In every estate plan, the core documents often include creating a last will and powers of attorney, as well as coordinating your Beneficiary Designations on life insurance and investment accounts. You may also want to ask about a trust and, if you have minor children, selecting a guardian for their care if you should pass away. You should also discuss estate taxes with the attorney.

You can read more about how our process works, the experience and expertise we offer, how we can make sure we are a good fit for your needs, and how to get started today right here.

Reference: EconoTimes (July 30, 2020) “Top 3 Estate Planning Tips When Seeing An Attorney”

What Can a Strong Estate Planning Attorney Help Me Accomplish?

“Too many people mistakenly believe that to have a need for estate planning, you must be old and wealthy. Nothing could be farther from the truth. Once you are a mature adult, independent, and income-producing, it is time to assume the responsibilities of preparing for your future. High on the list is preparing an estate plan with a clear understanding that your plan will be revised to adapt to changing circumstances.”

The Legal Reader’s recent article entitled “When Should I Start My Estate Planning?” explains that, as we settle down, we should start considering how we’ll provide for and protect those you love.

Talk to an experienced estate planning attorney—one with the knowledge and skill to help you design a workable, legally binding estate plan that will keep your assets safe as they accumulate, protect your spouse and children and consider the possibility that you may become incapacitated when you least expect it.

No matter what your age, the estate planning attorney you hire should have outstanding credentials and testimonials to his/her efficiency and personal concern.

This legal professional must be able to:

• Listen, understand, and address your individual needs
• Clarify your options
• Draft, review, and file all necessary estate planning documents
• Make certain your estate plan covers all contingencies; and
• Is prepared to modify your documents as your life circumstances change.

When you see that the future is unpredictable, you realize that estate planning can help you make that future as secure as possible.

Estate planning can be as complicated as it is essential. Accordingly, regardless of our age, speak with a highly competent estate planning attorney as soon as possible.

As the COVID-19 pandemic has dramatically shown us, planning for the unexpected can never be addressed too soon.

You can read more about how our process works, how we can make sure we are a good fit for your needs, and how to get started today right here.

Reference: Legal Reader (June 23, 2020) “When Should I Start My Estate Planning?”

6 Common Living Trust Mistakes to Avoid

Save your family the headaches and avoid simple living trust mistakes with these tips.

Creating a living trust is one of the best financial moves an individual can make. Having a living trust in place can secure your assets, ensure they go to the loved ones you have identified, and help to avoid potentially ugly legal battles in the event of death or incapacity. However, some living trusts include common mistakes that can invalidate or undermine some of the intentions if they aren’t properly addressed. Examples of common mistakes that are encountered include the following examples.

1. Not updating it regularly.

Living trusts often reflect the author’s intentions at a single point in time. However, family situations, legal ties, and financial holdings often change continuously. These changes are further exacerbated in the event that a move out of state or out of the country occurs. Updates to a living trust should be made whenever there is a substantial change in any circumstance that could impact the transfer of benefits, such as a birth, death, marriage or divorce in the family, as well as any relocation, or when tax laws change dramatically. Even in the absence of a substantial change, a living trust should be reviewed and updated at least annually.

2. Failing to Properly Title Assets.

Living trusts control the assets that are put under it; however, it is common for individuals to create a well-thought-out trust, yet not change the titling necessary to add the asset to the trust. Without proper titling and beneficiary designations to the trust itself, the trust cannot protect the asset itself. This mistake is one sure way to ensure that any assets owned outside of the trust will end up in probate court.

3. Selecting the Wrong Trustee.

The role of a trustee is to objectively analyze the circumstances, act in accordance with the trustor’s wishes, and equitably distribute assets. While many people automatically choose one or more of their children to fulfill this role, these individuals have a vested self-interest that may conflict with them fulfilling their duty as a trustee. Be sure that anyone you select has the capacity to truly perform their duty diligently; if you cannot identify someone in your personal life, it may be worth considering an external, professional trustee.

4. Minimizing the Impact of Creditors.

Living trusts do not automatically protect the assets from creditors, particularly if it is a revocable living trust. Because of this limited protection from creditors, it’s crucial to understand how any outstanding debt may impact the assets you have, and what will be available for beneficiaries. And while you can’t protect the assets from your own creditors, with a carefully drafted one, you may be able to protect your trust assets from your spouse’s or children’s creditors.

5. Forgetting About Estate Taxation.

All assets in a living trust are considered part of your gross estate for estate planning tax purposes – even real estate. You will want to calculate all of the assets and determine what the tax liability will be when the assets are transferred; this process will help your estate and beneficiaries avoid the surprise of a large, unexpected tax burden. Carefully crafted estate plans can take these concerns into consideration with local tax laws and help you to identify ways to reduce this tax burden and ensure that more of your assets stay in the hands of loved ones.

6. Why you should use an Estate Planning Professional to Prepare your Living Trust.

It’s incredibly easy to find form trust documents or software packages that can help you create your own living trust. While this might seem like an easy process, they certainly can’t provide the same level of protection that a professional estate planning service can. And the more complex your estate is, the more you can benefit from working with an experienced professional.

If you miss any step in creating your own trust, it can potentially invalidate the entire trust, or result in any number of unintended consequences. Many of the standard trust forms also act much more like a will in that they serve to distribute assets outright to beneficiaries. Many individuals with estate plans understand that lifetime trust for beneficiaries can provide better long-term protection for the assets.

Speaking with a trusted and experienced professional is the best way to understand all of your options and ensure that you have a living trust that serves its purpose.

How Do I Use the Pandemic to Finish My Estate Plan?

The coronavirus is making this a most challenging time. It can make considering our own death all the more frightening. However, for some, this is the perfect time to think about estate planning. Your estate plan should be a priority in this crisis.

While looking for issues is important, there are also opportunities to consider, according to Yahoo Finance’s recent article entitled “How to Take Advantage of New Estate Planning Opportunities Caused by the Coronavirus.”

For some, the current financial landscape may be advantageous, due to low interest rates and depressed asset values. That is where your estate planning strategy is needed.

The IRS just announced one of the lowest rates applicable to certain wealth transfer techniques. This, in addition to depressed asset prices, can make for some great opportunities.

This is a very good time for estate planning, because of the federal estate tax system. Even though the federal estate tax rate is a flat 40%, we can currently gift during life or leave at death a total of $11.58 million to children or loved ones without any taxes.

As a result, a married couple can leave more than $23 million to loved ones, before they start to pay federal estate tax.

The federal estate tax exemption is very liberal, when compared to the past. It is also scheduled to adjust upward for inflation until the end of 2025. The federal estate tax exemption will then be cut in half, unless extended or made permanent.

Yes, Congress can also act before that. They can enact a law, and a president could sign it to decrease the exemptions even sooner. Therefore, regardless of the current opportunity, it may be the right time to make gifts before the exemptions decrease.

The key is to have a strategic plan and to make decisions that are right for you and your family.

Estate planning can be intimidating and doubly so in this pandemic. Talk to an experienced estate planning attorney and take care of this today to protect your families and their futures.

You can read more about how our process works, how we can make sure we are a good fit for your needs, and how to get started today right here.

Reference: Yahoo Finance (April 2, 2020) “How to Take Advantage of New Estate Planning Opportunities Caused by the Coronavirus”

Preparing for Your First Meeting with an Estate Planning Attorney

When you schedule your first meeting with an estate planning attorney, you may not know how to prepare. You can take a few steps prior to the meeting that will help you get the most out of your time with the lawyer.

Assess What You Own

It is very helpful to go into your meeting with the lawyer holding a list of all the assets you own and their approximate value. The list gives the lawyer an idea of the estate planning structures that you may need, as well as the legal issues that could come up in the future.

Your list should include all cash, real estate, personal property (jewelry, valuable collectibles), vehicles, securities accounts, insurance, and retirement accounts that you own. Estimate each asset’s value if you can. If you have children, a spouse, or other relatives who could be affected by your estate plan, include information about them too. For example, your attorney will want to know if any of your relatives are not United States citizens (this can change a possible estate plan).

Think About Your Goals

What do you hope to achieve by making an estate plan? Maybe you want to protect your children in case you have a sudden medical crisis or pass away unexpectedly. Maybe you want your spouse to be financially secure in the future. Or you might want to give to charity, help out a financially insecure relative, or just make sure your wishes are carried out.

Tell the lawyer about your goals and wishes in the meeting, so that he or she can advise how an estate plan can help you achieve them. For example, you could protect your children with special gifts to them in your will, a guardian designation, and college savings plans.

Be Realistic About Your Limitations

Finally, temper your expectations going into the meeting with the attorney. If you do not have many assets on hand, the attorney might recommend against creating a trust (since administration costs can be high). Or you might expect that you will be able to set up your estate in a certain way but find out it won’t work.

Your lawyer should explain the different parts of the estate plan that he or she recommends and how they work together. Make sure you understand the plan before you start signing documents. If you understand the plan and continue to update it as time goes on, you can feel more secure about the future.

Planning your estate? Look to Janet Brewer, Esq. for thorough and thoughtful estate planning advice. Janet’s more than 20 years of legal experience will give you confidence and peace of mind. To schedule a “Get Acquainted” meeting, visit Janet's website or call her office at (650) 469-8206.

Why to Make a Customized Estate Plan

If you are thinking about the future, you may want to make an estate plan. But printing out a few forms from a random estate planning website could be a very bad decision. Instead, take the time to customize your estate plan to your individual circumstances.

What’s Wrong with Using a Form?

Just because estate planning forms are widely available on the Internet does not mean you should use them. These forms simply do not take into account what makes your life unique from other people’s. There is little ability to customize a form or add in special information. The forms you find may not even cover the exact kind of inheritance you want to leave.

Plus, you have no way of knowing whether an online form includes the right language. Estate planning laws vary from state to state – and even more so from country to country. The laws change over time too. As a result, the form you print out could have fatal problems that make it unenforceable in your state. Or it might omit instructions on how to properly sign the document and have it witnessed if required. At that point, you might as well have not signed it in the first place.

Making a Customized Estate Plan

Instead of going with a pre-printed form, opt for a customized estate plan made by a qualified California lawyer. Your lawyer should take the time to go over all the little details with you, so that you have peace of mind about your estate.

The estate plan could include a will, a trust, an advance health care directive or living will, a financial power of attorney, or other estate planning structures depending on your situation. You may want to build in special kinds of planning for a child with a disability, a beloved pet, or gifts to charity. The plan could even help you achieve retirement goals or save for your children’s college education.

If you are interested in a customized, legally enforceable estate plan, reach out to a lawyer in your local area today. When you speak to the lawyer, share information about your life and be honest about your circumstances. For example, you could talk candidly about previous marriages, debts, and financial problems. This information will help the lawyer to tailor your estate plan – by, for example, specifically excluding an ex-spouse from inheriting by the will. Reach out to a lawyer today to get started.

Planning your estate? Look to Janet Brewer, Esq. for thorough and thoughtful estate planning advice. Janet’s more than 20 years of legal experience will give you confidence and peace of mind. To schedule a “Get Acquainted” meeting, visit Janet's website or call her office at (650) 469-8206.

Choosing the Right Estate Planning Lawyer for Your Family

There are a lot of estate planning lawyers out there, but not all may be right for your family. When choosing an attorney, ask yourself a few key questions along the way.

What Are Your Goals in Estate Planning?

Think about the goals you want to achieve by making an estate plan. For example, would you rather get a basic plan done very quickly, or spend a bit more time tailoring the plan? You may think that you need only a will or only a trust, but after talking to a couple of attorneys it could become clear that you need more planning done. You also may have the goals of peace of mind that your plan is done, and comfort in working with a lawyer who understands you.

What Are Your Expectations for Your Lawyer?

Also think about your expectations for a lawyer, and talk to potential lawyers about those expectations when you meet them. You might prefer communication via email only, or you might want to meet in person several times. You might want to review all documents in advance before you sit down to sign them. Or you might want the lawyer to show you where each of your wishes are listed in your estate plan. Different lawyers have different styles of working and communicating, so thinking about what you prefer can help you decide whether someone is a good fit. But also be aware that most lawyers are very busy and may not respond to your emails or calls right away, though they should get back to you within a few days.

Do You Have Any Special Circumstances?

One big reason that you might want one lawyer over another is special expertise in a certain area. Your family might have circumstances that require a lawyer with related knowledge to make a proper estate plan. For instance, you might need a particular lawyer if you:

• Are not a U.S. citizen or have relatives who are not citizens
• Own a small business
• Have a child with special needs
• Are wealthy or earn a high salary
• Own a lot of real estate

Some estate planning lawyers focus on clients who need international estate planning or who have tax and business planning needs. Others have special knowledge of disability planning, high net worth estate options, or real estate management. Your needs can help you narrow down the pool of estate planning attorneys to find a good fit.

Planning your estate? Look to Janet Brewer, Esq. for thorough and thoughtful estate planning advice. Janet’s more than 20 years of legal experience and her knowledge of international and tax issues will give you confidence and peace of mind. You can read more about Janet here. To schedule a “Get Acquainted” meeting, visit Janet's website or call her office at (650) 469-8206.

Information to Share with Your Estate Planning Attorney

When you plan to visit an estate planning attorney for help making an estate plan or preparing a will, you should share some key information with him or her. This information could make the difference in preparing a very thorough estate plan or one that does not accomplish your wishes.

Make a List of Your Assets

Before you attend the initial appointment, start by making a list of your assets and their locations. For example, list out all:

• Real estate
• Bank accounts
• Retirement accounts or plans, like 401(k)s, pensions, or IRAs
• Trust income
• Inheritances
• Valuable personal property, like art, cars, or jewelry

You should note the physical location of all the assets on your list, as it may matter whether they are in California, another state, or another country. Also, make a note of their approximate value (if you know it).

Think About Your Wishes

As you make your estate plan or before you see the lawyer, consider your wishes. You might start by thinking about all dependents and relatives that you want to protect should you lose your job or pass away unexpectedly. These people could include:

• Children, including stepchildren, foster children, and adopted children
• Spouse(s)
• Parents
• Brothers and sisters
• Friends
• Caretakers or nannies
• Pets

You should note the citizenship and location of each person on your list, as well as any future plans to relocate. Also, tell your lawyer if you plan to relocate or live in more than one state or country.

If you are married, think about how you own property currently and how you owned it just before you married. Your lawyer will want to know which assets you own jointly with your spouse and which you owned before the marriage.

You also should consider if you want your spouse to inherit everything, or if you want to separately provide for your children or other relatives. Think about your relatives’ possible future needs, as well as your own. For example, your family might have a history of needing expensive medical care at the end of their lives. Or one of your children might have special needs for which you should account in your estate plan.

All of these considerations – and more – can help your lawyer make a very personalized estate plan. Be prepared when you arrive for your first appointment.

Planning your estate? Look to Janet Brewer, Esq. for thorough and thoughtful estate planning advice. Janet’s more than 20 years of legal experience will give you confidence and peace of mind. To schedule a “Get Acquainted” meeting, visit Janet's website or call her office at (650) 469-8206.