April 2022 - Lonich Patton Ehrlich Policastri

What Are The Components To Include In An Estate Plan?

April 26, 2022/in Estate Planning /by Michael Lonich

When most think of an estate plan, they typically consider it something that is only for the wealthy, but that couldn’t be further from the truth. An estate plan is an important part of any individual or family’s financial security. It determines how your assets will be distributed after your death and can also dictate who will handle your affairs if you are incapcitated. Understanding the components to include in an estate plan is vital to making sure your wishes are carried out properly.

Important Components to Include in an Estate Plan:

Wills and Trusts
One essential part of an estate plan is the will, a legal document that details the distribution of your assets after your death. This includes things like property, money, and possessions. You will also want to have a trust that will allow someone else to manage your assets on your behalf. A trust can be helpful if you cannot handle your own affairs or if you want to provide for someone after your death.
Powers of Attorney
A power of attorney is a legal document that gives someone else the authority to make decisions on your behalf. You can give someone power of attorney for financial matters, healthcare decisions, or both. Powers of attorney can be revocable, meaning you can cancel them at any time, or irrevocable, meaning they cannot be canceled. If you become incapacitated without a power of attorney in place, your family will have to go to court to get the authority to make decisions on your behalf. You should appoint someone you trust to act on your behalf, and you should review your power of attorney regularly to make sure it still meets your needs.
Healthcare Directives
A healthcare directive allows you to specify your wishes for medical treatment if you cannot make decisions for yourself. You can use a healthcare directive to appoint a healthcare agent to be responsible for making decisions on your behalf and specify your preferences for medical treatment, including end-of-life care. If you do not have a healthcare directive in place, your family won’t know what you want and will have the make difficult decisions.
Beneficiary Designations
Beneficiary designations determine who will receive your assets after you die. You can name individuals, charities, or even trusts as beneficiaries. It’s important to carefully consider your beneficiary choices, as they can significantly impact your estate taxes.
Letter of Intent
A Letter of Intent spells out your wishes for your estate in the event of your death or incapacity. It can include instructions for dividing your assets, funeral arrangements, and any medical directives you may have. While it is not legally binding, a Letter of Intent provides valuable guidance to your loved ones during a difficult time.

Why You Need an Estate Planning Attorney

Creating an estate plan requires a lot of legal paperwork, and when it comes to your assets, you don’t want to leave anything to chance. Our attorneys at Lonich Patton Ehrlich Policastri will work with you to create a solid estate plan that will give you peace of mind.

If you live in San Jose or the greater Bay Area, contact us for a free consultation by calling (408) 533-0801.

Is An Annulment Better Than A Divorce?

April 19, 2022/in Family Law /by Riley Pennington

No one enters into a marriage intending for it to end in separation. However, sometimes marriages don’t work out, and couples find themselves considering a divorce. While divorces are more common, they can be a difficult and expensive process. Annulments are another option that some couples may want to consider, though they are not without their own set of challenges.

So, is an annulment better than a divorce? The answer depends on your individual circumstances. Knowing the details of both options and the regulations within California for who qualifies for an annulment or a divorce can help you make the best decision for yourself and your situation.

What is the difference between an annulment and a divorce?

The core difference between an annulment and a divorce is that an annulment voids a marriage, so it’s as if it never happened. Meanwhile, a divorce recognizes the existence of a marriage and is a legal dissolution of said marriage.

The primary consideration in deciding whether an annulment or a divorce is most suitable for your situation is to evaluate the reason, or grounds, for the separation.

Several common reasons are often cited when couples seek a divorce, including imprisonment, abandonment, adultery, or irreconcilable differences. Couples can also seek a no-fault divorce, in which both parties agree that neither party is responsible for actions that lead to the divorce.

Meanwhile, annulments typically occur when either one or both persons have reason to believe that the wedding should not have happened at all. In the state of California, there are several possible “grounds” for an annulment, including situations where a person has been coerced to marry, either partner is engaging in bigamy, either person is unable to make a sound decision due to mental disability or substance abuse, or either person is underage, in an incestuous situation, or related by blood.

A common misconception is that marriages that have only lasted a brief amount of time can qualify for an annulment, but that isn’t always the case. For an annulment to be granted, it must be proven in court that extenuating circumstances such as one of the conditions outlined above occurred. Given these more stringent annulment requirements, they are typically a less common option for couples looking to separate.

Annulments in California

One key difference when seeking an annulment instead of a divorce is that there are not the same guidelines requiring division of property as there would be in traditional divorce proceedings. When an annulment occurs, both parties are typically reverted to their pre-marriage financial state. They wouldn’t split assets like property or monetary holdings in the same way that might happen with a traditional divorce.

However, California does consider the existence of the putative spouse, or a person who, in good faith, was under the belief that the marriage was legal. In these situations, a judge may intervene to divide property and other assets and make a ruling on eligibility for spousal support, which is not typically awarded during an annulment.

Additionally, children born during a marriage that is later annulled are still considered “legitimate” children. Therefore, they remain entitled to parental support from both parents, though a judge may need to step in to clearly define parental rights.

However, California has legal statutes called “presumptions of paternity,” where it is accepted that while a marriage may have been invalid, the husband is the children’s father. This makes it less of a challenge to establish paternity.

Do I need a lawyer for an annulment?

It’s always a good idea to have experienced representation for any legal matter. A seasoned attorney can guide you through the separation process and help determine whether a divorce or an annulment is the right solution for your situation.

If you are looking for help navigating the legal process for a divorce or annulment in California, contact the expert team at Lonich Patton Ehrlich Policastri at 408-553-0801 to schedule a free consultation today.

Should I Get a Prenuptial Agreement?

April 12, 2022/in Family Law /by Gina Policastri

Marriage is a thrilling time for any couple, as two people plan to embark on an exciting new chapter together. Getting married is a big step in a relationship, but it is also a life-changing and legally binding event that should be entered into thoughtfully and with all the facts available to you.

One important question to ask before getting married is whether you should create a prenuptial agreement. No couple wants to think about divorce prior to getting married, but prenuptial agreements can be beneficial in case of a split as a tool to help protect each person’s interests.

What is a prenuptial agreement?

A prenuptial agreement, or a “prenup,” is a legal document that outlines how assets and liabilities will be divided in a divorce. Many view prenups as negative, but they can be quite beneficial if executed correctly.

While some feel that a prenuptial agreement can take the romance out of the situation, indeed, it can be the opposite. It’s an opportunity for you and your spouse-to-be to outline your wishes on the financial aspects of a marriage without being in the midst of a possibly emotional divorce situation.

This can alleviate some of the financial strife of divorce by ensuring both parties are clear on how assets will be divided and cut down on legal fees from mediation if a couple cannot reach an agreement during divorce proceedings.

Why do I need a prenuptial agreement?

Typically prenuptial contracts have been thought of as something only the uber-wealthy need, but that’s not the case. Many modern couples can also benefit from having a prenuptial agreement.

Prenups help prevent disputes over property and assets during a divorce. This is especially important if either spouse comes into the marriage with significant assets, such as wealth, property, or a business.

Prenuptial agreements can also be used to outline child custody and support arrangements, protect spouses from debts that were held before the marriage, or protect inheritances for children from previous marriages.

What if I don’t have a prenup?

If there is no prior agreement in place in the case of a divorce, the state’s laws will determine how property is divided, utilizing the state’s standard property rights for married couples.

Typically this means that any assets accumulated during the marriage are to be divided equally, though the exact guidelines can vary from state to state.

Creating a prenup

It is important that you seek professional legal help when drafting a prenuptial agreement to ensure that an agreement will be considered valid if it should be reviewed in court.

A court will examine whether the agreement is unfair or made under coercion and can invalidate the agreement if it appears that either party entered the agreement under duress or undue pressure. Each party should have their own legal representation to ensure that their interests are represented fairly and communicated clearly. An experienced lawyer can also help guide you through the process to ensure that you have the proper documentation in place.

Get An Expert Team on Your Side

When it comes to family law and estate planning, experience matters. For decades, Lonich Patton Ehrlich Policastri has been helping individuals and families with complex family law and estate planning matters. We’re proud to serve the Bay Area and provide our clients with the highest level of legal care possible.

Click here or call 408-553-0801 to schedule a free consultation today.

What Is The Goal Of Estate Planning?

April 4, 2022/in Estate Planning /by Michael Lonich

Estate planning is a necessary process that everyone should undertake. You can ensure your assets are distributed according to your wishes and that your loved ones are taken care of by creating an estate plan. This topic may seem morbid to think about, but it’s essential to have a plan in place so that your loved ones don’t have to worry about it later on.

In this article, we will discuss how estate planning can help you achieve your goals.

What Is The Difference Between A Will And An Estate Plan?

Many people draw up a will and think they have completed their planning. However, having a will and having an estate plan are two different things.

A will is a legal document that dictates guardianship of your minor children and distribution of your belongings upon your death.

An estate plan is more detailed. It includes your will, but it also involves trusts, power of attorney, healthcare directives, and more. Basically, it determines how your assets will be managed upon your death or incapacitation.

Estate Planning Objectives

There are four main objectives when preparing an estate plan:

Protect your beneficiaries
If you die without a will, the court will decide how to disburse your assets. An estate plan allows you to designate who receives what. It also prevents long, drawn-out court battles between family members, which could become expensive and lead to family turmoil.
Protect your children
In a perfect world, you will live long enough to watch your children and grandchildren grow up. Nobody expects to die young. However, an essential part of an estate plan is preparing for the event that both you and your spouse may die while your children are still minors. You will want to ensure that your children are provided for, both financially and in terms of legal guardianship.
Protect your loved ones from significant tax liabilities
Estate planning allows you to manage your assets to minimize federal inheritance taxes while you are alive.
Protect yourself
An estate plan will give you the opportunity to discuss naming a Power of Attorney and how someone will manage your assets in the event you become incapacitated. You can also arrange for a Living Will to discuss advance directives and name a health care proxy to make medical decisions if you cannot do so.

How to Get Started on Your Estate Plan

It can be overwhelming to try to figure out everything on your own. As with any legal document, it is important to consult with an attorney when creating an estate plan. Your attorney can help you create a plan that meets your specific needs.

If you live in northern California, contact one of the Estate Planning Attorneys at Lonich Patton Ehrlich Policastri. Our legal team has years of experience helping people with estate planning and making the crucial decisions regarding their assets. Call us at 408-553-0801 to schedule a free consultation.

April 2022 LPEP Spotlight: Jessica Siegel

April 1, 2022/in Spotlight /by Lonich Patton Ehrlich Policastri