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By duda 03 Jan, 2024
Are you one of millions who setup your revocable living trust years ago and thought you were done? No question that a Revocable Living Trust (RLT) is a great, relatively simple, and effective estate planning tool. In fact, it is the core component of most estate plans. However, a RLT requires periodic review to ensure that it accurately addresses your family’s current circumstances and your ever changing goals. The following is a simple list of questions you should ask yourself on an annual basis to determine if your current plan is appropriate: Have there been any births, deaths, illnesses, or accidents in your family which would impact your distribution plan? Are your named beneficiaries competent and mature enough to receive the distributions pursuant to your current plan? Are any of your beneficiaries or heirs receiving or likely to receive any public assistance due to a disability? If so, please consider the appropriateness of a Special Needs Trust to protect that individual. Are the successor Trustees of your Trust and Executors of your Will all in good health and competent to serve in those capacities? Have all of your assets been changed to the name of the Trust and are your Schedules of Assets up to date? Specifically, have you purchased any new property or refinanced any old property, and have deeds been prepared to transfer that property into the name of the Trust? Has the size of your estate changed due to an inheritance, a new life insurance policy, or an increase in the value of investments, etc.? Are the attorneys in fact and health care agents for your Durable Powers of attorney in good health and still competent to serve in those capacities, or have those Powers of Attorney expired? If you have significant assets in tax-deferred or tax-free accounts such as 401k’s, IRA’s, Roth IRA’s, etc., do you understand your options regarding beneficiary designations, and how those designations will impact the estate and income tax planning aspects of your trust? New techniques are available to further protect these types of assets, without compromising the tax benefits associated with these tax-deferred or tax-free accounts. Additionally, you should also review your estate plan whenever a major change in the law occurs. At a minimum, we recommend that you sit down with your estate planning attorney to review your trust at least once every three years.
By duda 29 Dec, 2023
Life Insurance can be a wonderful estate planning tool when properly utilized. Not only does it provide income replacement in case of premature death, but it also provides liquidity in estates that may face significant Federal Estate Taxes. You may have been told by your insurance broker that life insurance is “tax free” to your heirs/beneficiaries. Not so fast…let’s clarify what is meant by “tax-free.” While the beneficiaries of a life insurance death benefit will typically receive that benefit free of any income tax, the total value of the death benefit will typically be included in the estate of the deceased individual for purposes of calculating Federal Estate Taxes. Remember, Estate Tax rates have fluctuated between 35 to 55 percent over the last decade. The estate tax exemption has fluctuated between $1 million and $5 million since 2001. This occurs because as the owner of the policy, the deceased individual held the power to direct where the death benefit would be paid. Thus, the IRS considers the full value of the death benefit subject to Federal Estate Taxation. To avoid Federal Estate Taxation on life insurance, you must simply avoid being the owner of the policy. The I rrevocable L ife I nsurance T rust (ILIT) is a simple and effective way to transfer life insurance proceeds “Estate and Income Tax Free” to your beneficiaries.
By duda 22 Nov, 2023
Do you own timeshare interests? If so, the following are a number of questions you may want to consider regarding your estate planning: How do you plan on distributing your timeshares to your beneficiaries when you're gone? Is it wise to make all of your kids co-owners after you pass? Did you purchase your timeshares with the hope that your kids and grandchildren could use them for years to come? Are you afraid they will be sold for a fraction of what you paid? If you're concerned about any or all of the above questions, perhaps you should consider adding Timeshare Trust provisions to your current revocable living trust. A Timeshare Trust is a way to hold title to all of your timeshare interests after you've passed. It will contain specific provisions to govern how the timeshares will be held for your family after you're gone. A Timeshare Trust allows you to designate one or more knowledgeable person(s) to manage the use of the timeshare properties or points. A Timeshare Trust can also ensure that the maintenance fees, insurance, and property taxes associated with timeshare ownership are paid proportionately by all beneficiaries. For example, the failure of a beneficiary to pay their fair share of the expenses could result in a forfeiture of use that year. Finally, a Timeshare Trust can ensure that these interests aren't sold unless a majority of the beneficiaries agree. A Timeshare Trust can be customized to meet your specific family circumstances and goals. When you use a Thousand Oaks estate planning attorney, they can assist you with the ins and outs of establishing a fool proof timeshare trust. Contact Pederson Law Offices if you're interested in learning more about how to plan for your timeshare interests.
By duda 19 Oct, 2023
If you are a Thousand Oaks homeowner, then chances are that you have a title for your property. There are a variety of different ways to hold a real estate title, and all of them have implications for the future. Normally, the way that your title is held will depict how your property is divided upon your passing. Sometimes, the way that a title is held will even surpass the wishes in your will, so you will want to make sure that you hold your title in a way that is effective for your personal plans. If you should choose, you can hold a title in your individual name . This means that you will be the sole owner of the property that you occupy. You can even make this arrangement if you are married or have children. There are a few drawbacks to this arrangement. For example, if you become mentally or physically incapacitated but are the sole owner of your property, then the court will need to appoint someone to act for you. This may not be the person that you would have wanted to manage your property. Chances are that if your property needs to be refinanced, or a line of credit needs to be opened, this court-appointed individual will be in charge of getting these jobs done. A will only goes into effect after you pass away, so if you are incapacitated and are the sole homeowner of a property, then that will won't help you. Also, most powers of attorney end at incapacity, so this document may not help you. A durable power of attorney is valid in the event of incapacity, but many financial institutions won't even accept your durable power of attorney unless it is on their form. Also, this document could give the person you listed the ability to do whatever he or she wants with your assets. That means that you're appointed property manager could sell the property and spend the proceeds. If you pass away and are the only titleholder for a piece of property, then the property will almost certainly have to go through the probate court system before it can be distributed to your heirs. This can be frustrating for heirs, as they will have to go through a legal process to strip your name off of the title and add the new owner's name onto the title. There are also options which allow for multiple names on a real estate title. For example, you can create a joint tenants with right of survivorship title . This is how most married couples hold a title because it means that the spouse will inherit the property in the event that one partner passes away. This normally postpones probate, because the children or survivors won't be able to divide the property until both spouses pass away. One thing to consider is that when adding a co-owner, you will lose control. This means that if you and your spouse or partner disagree on property issues, you could end up in court. Some people decide to hold real estate titles in a tenants-in-common arrangement. This is an ownership where each owner's share will be distributed as directed in his or her will. If there is no will, then the property will go to the owner's rightful heirs through a court process. In nine states, there is also an option to hold real estate by community property . This is an arrangement that is specifically for spouses. California is one of the states that honor this arrangement, saying that spouses give up their sole right to property when they get married. Another option is a tenants-by-entirety arrangement . This is a form of joint ownership which is available between spouses in some states. This is similar to a community property arrangement because the spouse automatically inherits the property when a husband or wife passes away. Some property owners also explore the option of a revocable living trust . This allows you to transfer the title of your real estate to the trustee of your trust but still maintain full control of your property. If you want to learn more about any of the above real estate arrangements, you are going to want a Thousand Oaks estate planning lawyer on your side. With the right attorney there to assist you, you can trust that you have a team to guide you through your decisions. You can work to keep your loved ones out of court with this law firm that is committed to excellence. Hire the Pederson Law Offices to help you work through your case today!
By duda 13 Sep, 2023
The term "beneficiary" comes up frequently during the process of estate planning because the efforts of estate planning are focused on transferring the decedent's assets to the beneficiary. A beneficiary is anyone who gains an advantage or profits from something. In the context of a will, or a trust, or administration proceedings, the beneficiary is someone who is eligible to receive distributions from a will or a trust, or otherwise from the decedent's estate; however, the beneficiary can also be the person who is named in a life insurance policy, a retirement plan, or other contract who is intended to receive the distribution specified in the policy. Usually any person or entity can be named as a beneficiary to a will, or a trust, or a life insurance policy. Also, the one distributing those funds (the benefactor) has the right to place various stipulations on how those funds are to be disbursed. For example, the benefactor can require that the beneficiary be married, or completes college, or reaches a certain age before receiving the funds. There can also be tax consequences for the beneficiary. To illustrate, while the principal on most life insurance policies is not taxed, the accrued interest may be subject to taxes. In most cases the benefactor will designate beneficiaries who are to receive the benefactor's assets after they pass away. However, if a beneficiary is not alive or if they don't qualify under the restrictions set forth, the assets will normally pass to what are called contingent beneficiaries. There are some types of accounts that don't allow restrictions beyond death of the primary beneficiaries; however, a trust in particular can allow for a variety of restrictions providing they are not illegal or made for an illegal purpose. At Pederson Law Offices, our Thousand Oaks estate planning attorneys can explain how the different estate planning tools are used to achieve a variety of goals. Whether you wish to bequeath your assets through a will, or if you have a child who is irresponsible with money and you're afraid that a windfall would be a disaster, there are ways to structure your estate plan so that your concerns are adequately addressed. We understand how no two clients' situations are identical and we are therefore here to provide you with a personalized and tailored estate plan that meets your goals and expectations, whatever they may be. If you have any questions or are interested in creating an estate plan of your own, we encourage you to contact us today at (805) 372-1507 .
08 Aug, 2023
When you develop your estate plan, you are deciding the best way to keep your memory alive and pass on your legacy to loved ones. When your property and assets are valued and considered with the help of an estate planning attorney, you can have peace of mind knowing it was decided with the best interests of all involved. While death taxes used to be considered the biggest threat to your beneficiaries receiving all of what you intended, a larger threat has taken its place: litigation. How the Internet Affects Estate Planning Estate planning attorneys are no stranger to families fighting over a will. Sometimes it is due to the lack of an estate plan while other fights are caused because the family simply did not get along with one another to begin with. However, more and more cases are popping up that do not fit into either of these categories. Instead, they concern pre-developed estate plans obtained from the internet. There are many reasons you may think that developing an estate plan without the help of a lawyer is a good idea: cost and time involved to name just a couple. With the rise of the internet and internet-based legal services, some people may find themselves making slight changes to forms, printing them out, and using this for estate planning. While this may be a good place to start, you need to think of your estate plan as a living document. If anything changes, you need to know that your estate planning concerns are properly addressed. For example, in a recent case, a woman left all of her property to her sister, unless her sister predeceased her, in which case her brother would receive her assets. The sister passed first and left her property to the woman. When the woman died, her brother was unable to access all of the property left by his sister since the additional assets were not properly titled nor identified in her estate plan. Even with information indicating that her property was to be left to her brother, the additional assets that were inherited from her sister were placed in intestacy and given to other relatives, contrary to the women's intent. In this case, the internet form that was used was either missing some critical provisions or the woman deleted them not understanding their purpose. Working with a qualified estate planning attorney can help to ensure that your property is distributed the way you intend following your death. Here is a link below to the full article regarding avoidable litigation resulting from the use of pre-printed estate plans: http://www.lexology.com/library/detail.aspx?g=a0f0d2b1-e3ee-407c-bc39-7b7acc411f5a Pederson Law Offices cares about your legacy. Call our firm to begin or revisit your estate planning today.
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