Amending vs. Revoking a California Will

What happens if the plans in your current will no longer match what you want? It’s not enough to tell someone that you want to update things. Your will needs to be formally amended or revoked if you wish to switch things.

The creation of a will can be put off until you decide to finally work with an estate planning lawyer to document your wishes. Even when you create a will today, it may not be the case that this continues to account for your estate planning desires for years to come. In California you have two options when you need to update your will. The first is to create a new will and the second is to draft a codicil or an amendment to the will.

While you can legally amend your will on your own, it is advisable to work with a Pasadena estate planning attorney. This ensures that your estate plan fully encompasses your individual wishes and aligns with California law. Common mistakes could lead to will challenges in the future or distribution of your assets not in line with what you intended. If you fail to update your will after a significant life change, this could lead to unintended consequences for your beneficiaries. Some of the most common life circumstances that prompt people to update or revoke a previous will include marriage, divorce or the birth of a child.

In the event that your will is ruled invalid, California’s intestacy laws would apply, meaning that your assets will be distributed without your individual wishes considered. Working with a qualified Pasadena estate planning attorney can help you to discuss the benefits of establishing a new will or amending an existing one.

Is Probate Required for All Assets in California?

When you pass away, some assets will remain in your probate estate. This means that once someone submits your will to the probate court, this opens the formal process of identifying and then distributing all your assets either in accordance with your will or state laws. However, not every asset you own automatically ends up inside your probate estate.

Certain assets in your California estate may be classified as non-probate. In some cases probate may be required. You can discuss with a Pasadena estate planning lawyer your options for creating a probate avoidance plan. Here is an overview of probate versus non probate assets in California:

  • Trust assets: probate not required – these assets held in a trust are distributed according to the terms of the trust outside of probate.
  • Joint tenancy assets: no probate required as these directly passed to the surviving owner.
  • Real estate: in most cases probate is required – property that is owned solely or as tenants in common will usually go through probate.
  • Life insurance: no probate required since the proceeds go directly to named beneficiaries.
  • Retirement accounts: No probate required when a beneficiary has been designated.
  • Personal belongings: personal items may require probate unless other plans have been specifically outlined in a will.

Working with a Pasadena estate planning law firm helps you to discuss all of the important assets inside your estate and the most appropriate avenues for passing these on to your intended beneficiaries. Contact a Pasadena estate lawyer today for more information.

May is National Elder Law Month: What to Know

National Elder Law Month was originally inaugurated to bring awareness to senior care issues by President Kennedy. Elder law encompasses a broad range of different types of concerns, including planning for health care, decision making and documenting, being aware of how best to protect your finances for retirement and the possibility of long-term care, asset protection planning, legacy planning and other aspects of your estate.

Elderly individuals face many different possible challenges and documenting their estate wishes will help make things easier if and when something happens to you. For example, appointing a power of attorney agent could help you ensure that someone else is able to step in quickly and take over management of your affairs if something leaves you unable to do so, such as an accident, injury, or sudden illness.

Whether you’re concerned about elder law planning for an aging parent or yourself, it helps to have someone else to talk to about these important issues. You may want to create your elder law plan now and then make adjustments in the future as needed. While no one wants to think about the possibility of being unable to make decisions for themselves or having an urgent healthcare crisis, it is far better for you and your family to document these things now in the event of an emergency. You will make things much easier for all involved when you’ve taken the time to share what’s most important to you. Unsure where to start? We can assist with that.

An estate planning and elder law attorney in Pasadena can help walk you through every aspect of these comprehensive plans so that you understand how best to align your wishes with estate planning strategies. Don’t hesitate to contact a qualified Pasadena estate planning attorney today.

How To Get All of The Benefits of An Irrevocable Trust

Irrevocable trusts can be very powerful but also complicated estate planning instruments. In order to get the most out of your California irrevocable trust, you should work with a Pasadena area estate planning attorney to structure yours. An irrevocable trust needs to be carefully developed, managed and funded in order to get maximum benefits from tax and asset protection planning.

Both irrevocable and revocable trusts appoint a trustee to hold title to a property and that trustee has an obligation to use the property for the benefit of some other person known as the beneficiary. You give up additional control over assets in an irrevocable trust in exchange for asset protection and tax planning benefits. However, the trust maker of an irrevocable trust cannot themselves make changes to the trust after it has been formed, or transfer the property back out of the irrevocable trust.

A common misconception about irrevocable trusts is that simply transferring property into it will automatically protect that property from creditors or eliminate the possibility of federal estate tax. Although it is possible to achieve both these goals with a properly structured irrevocable trust, this is not automatic, and you must manage and fund the trust appropriately. You will also need to give up certain controls and rights. Working with an estate planning attorney in Pasadena is the best way to ensure you get all possible benefits and avoid potential challenges for your loved ones when structuring your estate.

What Does the Term Decedent Mean?

Many different terms and phrases are used in the context of estate planning, and these are not always completely clear. You may have heard the term decedent in the context of probate or estate planning in California, but you may feel unsure of what this means.

The term decedent is simply a formal way of referring to a deceased individual. Even when someone passes away, they may still have financial obligations, such as paying taxes or filing taxes. Trustees, executors, attorneys and other individuals may be responsible for carrying out the wishes documented by the decedent in things such as trusts or wills. In the event that a person passes away with no estate planning, these executors, trustees and attorneys may need to turn to state law to address administration of the estate.

In many cases, you will find the term “decedent” in official legal or policy language related to managing the deceased party’s affairs. In order to handle these aspects of estate administration, the appointed party will need proof of their role as personal representative, a copy of the death certificate, and information about the decedent such as date of birth and primary address.

Bear in mind that not all property owned by a decedent necessarily goes through the probate process. For example, in most cases, life insurance policies owned by the deceased are not considered part of the estate and are instead immediately distributed to the named beneficiaries on the policy rather than pending the closure of probate. If you have further questions about plans that you can take to help minimize difficulties for your loved ones when you pass away, you can speak to a Pasadena area estate planning lawyer.

Americans Stall Out When It Comes to Estate Plan Documents

A new study finds numerous shortfalls among American adults across generational wealth, age and gender lines. The study was conducted by Free Will and finds what it is about Americans’ attitudes on estate planning that makes them less likely to complete these important plans, strategies and documents, despite the fact that they wish for their loved ones to have an easier experience.

The lack of estate planning is a significant problem in the United States, especially given the $84 trillion expected great wealth transfer in the next few decades. Even people who work with financial advisors report failure to complete estate plans in high numbers with as many as 90%, saying they have no formal plan in place. With parents who have children aged 21 and above, half of them report that they provide significant financial contributions to assist their children. This could impact the parents’ overall estate plans and retirement planning strategies for themselves.

Conducting a revisit of your current financial and estate plan could help you to identify opportunities to do things more effectively. If you don’t have a documented estate plan, or if one was created so long ago that it’s no longer in line with your individual goals, consider this a formal reminder to set up a new plan now.

Our Pasadena estate planning lawyers work with individuals, families, and business owners regularly to document comprehensive plans related to medical decisions and care, financial management, and asset transfers.

Is There a Time Limit for Someone Challenging a Will in California?

Ideally, you will do everything possible to limit the chances of someone challenging or contesting your will after you pass away. Letters of instruction and advanced conversations with your family members, for example, could help clear up your actual intentions. However, a family member or friend who feels disgruntled by the decisions you’ve made with your estate planning may initiate a will contest.

In order to do this, they must have the standing to take such action. Children or other interested parties in California can challenge a deceased will validity in county probate courts.

These interested parties have a maximum of 120 days after the will has been admitted to submit an appeal. Grounds must be named in order for an interested party to challenge a will. This includes things such as incompetence, the existence of multiple wills, undue influence by a particular party, breaking laws in California or fraud.

A person is not eligible to challenge your California will simply because they have been left out of the estate plan. Legal grounds must exist, and this person must qualify as an interested party. Interested parties include any beneficiaries specified in the trust or will, the deceased’s heirs as recognized under California intestacy laws, and creditors owed money by the deceased.

If you’re concerned about what you can do to create a comprehensive estate plan that makes it more difficult for someone to issue a challenge when your estate enters probate, talk to our Pasadena estate planning attorneys now.

If you have further questions about structuring your own California estate plan, contact our office today to learn more.

What is Elder Power of Attorney Fraud?

Are you concerned about someone else who has recently started helping an elderly loved one manage their finances? You’re not alone. Growing concerns over elder financial abuse are common across the country, especially as it relates to power of attorney abuse.

A power of attorney is a document that allows someone else to make financial decisions or actions on your behalf. Unfortunately, elderly people may be more vulnerable to signing over powers of attorney to untrustworthy friends, family members or caregivers, and anyone else who may not need to have such powers.

Some states have taken proactive steps to write financial power of attorney laws designed to further educate elderly individuals about their rights and to cut down on the cases of fraud and abuse that occur. If you are a family member of an elderly loved one who has given financial power of attorney to someone else, you may need to watch for warning signs of potential fraud.

A power of attorney agent is legally obligated as a fiduciary to act only on behalf of the person they’re representing. But in many cases, no one is watching, which means that a dubious person could be taking negative actions that harm your loved one. If your loved one has no sense of their financial situation, is making significant financial transfers that don’t seem to make sense, or seems stressed out or unduly influenced by another person, you may need to be concerned about a financial power of attorney abuse situation.

Your ability to catch these signs early could help stop the depletion of your loved one’s financial assets. Having a solid estate plan with a financial power of attorney agent who is trusted can help to eliminate these problems. Talk to our Pasadena estate planning law firm about creating or revoking an existing power of attorney to ensure that you have someone you trust in place for these important decisions.

Have You Purchased Cryptocurrency for The Benefit of Future Heirs? Make Sure You Include Instructions in Terms of Passing It On

Your estate plan might incorporate many kinds of things that you pass on to loved ones, organizations, or other beneficiaries. Most people know that stocks, bonds, bank accounts, and real estate are included in many estate plans.

Coming up with a holistic list of everything in your estate ensures that it passes to who you want and in the way you want. If you overlook certain assets, they may not pass as you intended.

Many different types of assets can be included in your estate plan. More recently, these may include things such as cryptocurrency. If you have recently made the investment in cryptocurrency with the goal of passing it on to your children, you need to be prepared for passing this on in the future.

One analytics chain recently found that 1/5 of the total supply of Bitcoin in the world may be lost forever if the private keys are not properly passed on when the original owner passes away. This mistake can be easily avoided by thinking about the estate planning process in advance and working with experienced lawyers.

For example, you might use a trust for digital assets, which could name the trust as the main beneficiary for any crypto currency assets, such that these are pulled from your overall probate estate and instead are allowed to pass directly to beneficiaries who have been named in the trust. Name a trustee or a digital executor who is responsible for managing all of your digital assets after you pass away.

Don’t let your Bitcoin or other assets get tied up in the probate or other process. Make a full list of everything you own and note how you’ve currently planned for that asset transfer. This will help you stay organized.

Need help with the planning process? Let our Pasadena lawyers guide you through.

Is A Letter of Instruction a Legal Document?

Many different legal documents may form the basis of your California estate plan. But there is a good chance that you have a question about which ones meet the terms for qualifying as a legal document. Certain documents, including your will or a durable power of attorney, should meet the legal grounds for acceptance in the state of California in order to protect their legal validity. This ensures that someone is able to act with ease or carry out your wishes if something happens to you.

A letter of instruction, however, is your informal set of directions for your loved ones when you pass away. It generally accompanies your will and is used to express your personal decisions as well as directions about what is inside the will.

It may also include other instructions such as where to locate documents or your burial wishes. It is primarily most helpful for your family members and your executor to find this letter of instruction as soon as possible after you pass away. Although it is not an official legal document, it can be used in conjunction with it for this point in time, but it is recommended that you work with a Pasadena estate planning lawyer to help you with this process.