Top 5 Common Estate Planning Mistakes to Avoid

April 16, 2025/in Estate Planning /by Michael Lonich

If you’re younger than 50, you might not have given much thought to estate planning yet. However, estate planning is an important process that helps you protect and provide for your family. To help you get started, we’ve put together a list of the top five common mistakes to avoid in estate planning.

Mistake #1: Avoiding it Altogether

Thinking about being unable to care for your family is not a pleasant topic, which is why many people postpone or even completely avoid estate planning until it’s too late. Others think the process is too complicated, or that only people with a lot of assets need a will or trust. No matter the size of your estate, estate planning is beneficial.

A detailed estate plan gives you control over the distribution of your assets (including sentimental items and heirlooms) to your chosen beneficiaries but also helps you manage them during your life. If you have minor children, you can help protect their future by selecting an appropriate guardian. Estate planning can even protect your assets in cases of divorce or bankruptcy.

Without a will or trust, all these issues and more will be left up to the courts.

Mistake #2: Not Updating Your Estate Plan

If you’ve already made an estate plan, you might feel like you’re ahead of the game. Don’t forget to update it after certain life changes (e.g., marriage, divorce, birth of children, starting a business, etc.) though. Neglecting revisions to your plan can result in outdated provisions or even failure to comply with current laws, which could render the plan worthless. Experts suggest revisiting your estate plan every three years, as well as after major life events.

Mistake #3: Failing to Consider Tax Implications

Estate, gift, and income taxes can all impact the value of your estate (both during your lifetime and after your death). Estate planning experts can help you structure your plan to minimize these taxes as much as possible. In some cases, setting up a trust can be a good option.

Mistake #4: Choosing the Wrong Executor or Trustee

When thinking about who you want to carry out your wishes based on your will (executor) or manage your trust (trustee), you don’t have to automatically choose a family member. Consider whether the person is trustworthy, has the ability to handle the responsibilities, is in good health, and is willing to serve in this capacity.

Mistake #5: Not Planning for Incapacity

Estate planning is not just about end-of-life planning. It’s also important to have a plan in place in the event you become incapacitated and cannot make decisions for yourself. Two valuable tools include setting up a power of attorney and a living will that outline your wishes when it comes to medical and financial decisions made on your behalf if you’re unable to manage your own affairs.

Get Estate Planning Help from Experts

The estate planning group at Lonich Patton Ehrlich Policastri offers a full range of estate planning services and has years of experience in helping clients avoid common mistakes like the ones above. Schedule a free consultation to get started on securing your future today.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

How Can an Order of Protection be Reversed in California?

April 9, 2025/in Family Law /by Mitchell Ehrlich

Protective orders can be requested by a police officer (Emergency Protective Order), a judge (Criminal Protective Order), a victim of domestic abuse, stalking, harassment, etc. (restraining order), or in some cases of divorce to protect assets (Automatic Temporary Restraining Order). If you have an order of protection against you in the state of California, you have the option to request modifications or dissolution to that order if you so choose. Usually, you will need to present evidence in court to support your request. The following guide outlines the steps you need to take.

File a Request to Modify or Dissolve

If you want to change any of the terms of an existing order of protection (e.g., modifying parental visitation rights) or if you want the court to dissolve or dismiss the order completely, you would file a request with the court. Once you have filed your request, the court will schedule a hearing to provide you the opportunity to present evidence to support your request.

Provide Supporting Evidence

As with any other court case, you will need to gather and provide evidence supporting the need for a modification or dismissal of your order of protection. Witness statements, financial documents, texts, emails, doctor’s notes, etc. can all be used to show that circumstances have changed and the relationship has improved to the point where protection is no longer needed.

Attend the Hearing

It is very important to attend the hearing and provide your evidence to the judge in person. Both sides involved in the order of protection should be present. Based on the evidence, the judge will:

Modify the terms of the order as requested
Dismiss the order, which effectively reverses, dissolves, or lifts it, or
Deny the request, if the court finds that the order is still necessary for safety or other reasons

If your request is denied, you may choose to appeal the decision, however, the appeals process can be complicated, time-consuming, and expensive.

Other Considerations

The family court will always prioritize the safety of the protected party when considering a request to modify or reverse an order of protection. Orders of protection only remain valid for a set amount of time (as little as a few weeks to as much as five years), but the protected party can request that the order of protection be extended as necessary. On the other hand, in some cases, the court might agree to end or modify the order earlier than the stated time frame, if the evidence supports it.

Consult With Family Law Experts for Help

Family law can be complicated, but you don’t have to do it alone. If you are considering requesting a change to, or reversal of, a current order or protection, get a free consultation from the family law attorneys at Lonich Patton Ehrlich Policastri (LPEP Law). We have decades of experience helping our clients navigate the California family law court system, including working with restraining orders of all kinds. Let us help protect your rights.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

How to Minimize Estate Taxes: Strategies and Tips

April 2, 2025/in Estate Planning /by Michael Lonich

Nobody enjoys paying taxes, and it’s even worse knowing that after you pass away, even your estate will be taxed. We’re not saying that all taxes are bad. After all, they fund essential public services, such as schools, libraries, and infrastructures. But considering we are taxed on everything we earn and buy, it’s natural that everyone looks for ways to lower their tax bill.

Fortunately, there are several ways to minimize your estate taxes, ensuring that more wealth is passed on to your loved ones.

What are Estate Taxes?

Estate taxes are levied on your assets, including your property, cash, and investments before they are transferred to your heirs. Estate taxes differ from inheritance taxes, which the beneficiaries pay on the assets they receive.

California doesn’t have an estate tax; however, the federal government taxes everything above $13.99 million per individual. But, that exemption is set to expire at the end of 2025, and unless it’s extended, it will fall back to $7 million.

Marital Transfer

Married couples benefit from an unlimited marital deduction. When assets are transferred to the surviving spouse through a will or joint ownership, they are not subject to estate taxes at that time. However, a potential downside is that these assets become part of the surviving spouse’s estate, making them taxable upon their passing.

Gift versus Inheritance

Gifting allows you to transfer assets to loved ones while you’re alive. It could be money, personal property, or real estate. There are several advantages to this approach.

You can gift up to $19,000 per person annually without incurring a gift tax. This can significantly reduce your taxable estate.
Gifts of paying for someone’s tuition or medical expenses may be exempt from the gift tax.
You have the opportunity to help loved ones when they need it the most.
You can see the impact your gifts have on the recipients’ lives.

On the other hand, providing an inheritance means your beneficiaries won’t receive anything until after your death. You can retain control of your assets, which can be helpful in an unexpected financial crisis, like medical expenses. However, it doesn’t help minimize estate taxes.

Charitable Giving

Incorporating charitable gifts into your estate plan allows you to create a meaningful legacy and reduce your estate taxes. There are several methods to choose from:

Direct Donation

You can include a charity in your will to receive a percentage of your estate or specify particular assets, such as cash, stocks, or real estate. Any charitable donations are fully tax-deductible, thus reducing the amount of taxable estate.

Charitable Trusts

There are two main types of charitable trusts, both of which can reduce your taxable estate. A charitable remainder trust (CRT) places your assets into the trust and allows you or your beneficiaries to receive income from that trust for a specific term. Once the term ends, the remaining assets go to the charity.

Conversely, a charitable lead trust (CLT) allows the charity to receive income from the trust for some time, after which the remaining assets are passed on to your beneficiaries.

Special Use Real Estate Valuation

For families with farms or business properties, the Special Use Valuation allows the value of the real estate to be based on its current use at the time of the estate owner’s death rather than its higher market value. This lower valuation can help to lower the total taxable estate. This can be particularly helpful for families with ranches, orchards, groves, or wineries.

Discuss Your Estate Planning Goals with LPEP Law

There are several ways to minimize your estate taxes, and our attorneys at Lonich Patton Ehrlich Policastri can help you find the best ones for you. Our estate planning professionals will work with you and discuss various tax-saving strategies based on your current needs and goals.

Schedule your free consultation by calling 408-553-0801. We will show you how a well-prepared estate plan can alleviate the burden of estate taxes and preserve more assets for your loved ones.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

April 2025 LPEP Spotlight: Jack Treseler

April 1, 2025/in 2025, Spotlight /by Lonich Patton Ehrlich Policastri

Child Custody and Relocation: Navigating the Legal Landscape

March 26, 2025/in Family Law /by Gretchen Boger

People move for many reasons – a new job, getting married or remarried, to be closer to family, access to better education or employment opportunities, wanting a change of scenery or climate, etc. If you’re planning to move but have a child custody agreement in place, however, you will need to consider some additional steps to protect both your child’s best interests and your custodial or visitation rights. Although the laws governing child custody and relocation vary, especially when it comes to international relocations, thinking about the guidelines outlined below is a good place to start.

Understanding Child Custody Agreements

Child custody agreements generally provide guidance about where the child will live (physical custody) and who has the legal right to make important decisions about education, religion, healthcare, and more (legal custody). Custody can be shared between the parents (joint custody) or granted to only one parent (sole custody).

Family courts will always prioritize the child’s well-being when making custody decisions, and will usually seek out custody arrangements and visitation schedules that allow the child to maintain a relationship with both parents, unless one is unfit.

The Impact of Relocation on Custody

When one parent wants or needs to relocate, issues can arise if the new location is far enough away to complicate the existing custody arrangement and visitation schedule or interfere with the non-custodial parent’s ability to maintain a meaningful relationship with the child. The relocating parent can choose to work towards an agreement with the co-parent, pursue the case in court, or seek mediation.

Parental Agreement

If both parents agree to the relocation, they can work together on a revised custody agreement. However, the new agreement should be detailed, in writing, and signed by both parties to avoid future disputes. Some practical tips for working with your co-parent are to communicate early, to have a new, proposed custody agreement and visitation schedule already in mind, to be transparent, and to document everything in case you do need to pursue the case in court or mediation.

Court Approval

If one parent does not agree to the relocation, the other parent can seek to gain court approval by pursuing a relocation or move-away case. Family courts take several things into consideration when deciding on relocation cases, including:

The child’s best interests
Reasons for relocation
Impact on non-relocating parent
Child’s preferences (for older children)
Current parenting plans, custody agreements, etc.

Mediation

For parents who cannot reach an agreement but do not wish to pursue the case in court, mediation services can sometimes help resolve relocation disputes. A neutral, third-party mediator can facilitate dialogue and compromise, allowing the parents to reach a new custody arrangement and a visitation schedule that works for everyone.

Get Legal Support from Family Law Experts

Any time the wellbeing of your children is involved, the stakes are high. If you need to relocate and want to take your children with you or are concerned about the impact your move will have on your visitation rights, or if your co-parent is planning to relocate with your children, consulting with family law experts can help you understand and protect your rights. Lonich Patton Ehrlich Policastri’s attorneys have extensive experience working with clients dealing with parental relocation issues. Get started with a free consultation to find out how we can help you today!

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

How Do Life Insurance and Annuities Fit Into Estate Planning?

March 19, 2025/in Estate Planning /by Michael Lonich

Estate planning is an important tool that can help you provide for your loved ones after you’re gone but also help minimize taxes and maximize your funds both now and later. Life insurance policies and annuities can factor into your estate planning to ensure your estate planning goals are met. Below, we’ll go over how each of these tools can help on their own as well as how they can work together.

Life Insurance

Many people seek life insurance coverage to offer financial security to their beneficiaries. When it comes to estate planning, life insurance can serve other purposes as well.

Transfer of Wealth

Your family can use benefits from your life insurance policy as liquid assets to pay for funeral expenses, taxes, debts, and other expenses without having to worry about immediately selling off non-liquid assets like real estate or other investments.

Tax Mitigation

Often, people structure their life insurance policy in such a way that the benefits cover estate taxes, final income taxes, unpaid back taxes, etc.

Equalization of Inheritances

For those who have multiple heirs, you might find it difficult to distribute your assets equally, if you have non-liquid assets like a home or family business that you would like to give to particular beneficiaries. Life insurance benefits can be designated for other heirs to balance out the value of their inheritance.

Ongoing Financial Support

One of the main goals of estate planning is to provide financial stability for your family in your absence. Life insurance can be used to provide ongoing financial support for your children, spouse, and any other dependents.

Preserving Wealth

For individuals who have a high net worth, life insurance benefits can be placed in an irrevocable life insurance trust to protect the proceeds and keep them separate from the taxable estate, which helps preserve your wealth for your family.

Annuities

One of the most common estate planning goals is to ensure long-term financial security in retirement and beyond for yourself and your family. Annuities can be a great solution to supplement retirement funds since they are financial products that provide regular payments over time. When it comes to your estate plan, you might consider structuring the annuity as a joint or survivor annuity so that your surviving spouse and dependents can continue to receive this guaranteed income after your death.

Since annuities can be owned by a trust, many individuals choose this route to protect assets for their minor children or children with special needs or disability (known as a Special Needs Trust).

Combining Life Insurance and Annuities in Your Estate Plan

These two financial tools can often work together in your estate plan, with life insurance providing lump-sum funds to help cover immediate costs, and annuities providing a steady stream of income to offer financial stability in the long-term. Life insurance benefits can also be used to fund an annuity or trust that can help manage and preserve your assets for your family and beneficiaries.

Make the Most of Your Estate Plans

Working with estate planning experts like the Estate Planning Group at Lonich Patton Ehrlich Policastri (LPEP Law) can help you get the most out of your estate planning. They have significant expertise and knowledge in all areas of estate planning, estate and trust administration, litigation, and probate. If you’d like to learn more about how your life insurance and annuities can best serve your needs and estate planning goals, call LPEP Law at 408-553-0801 to schedule your free consultation.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

Gray Divorce: Navigating Divorce Later in Life

March 12, 2025/in Family Law /by Gina Policastri

You are not the same person you were 40, 30, 20, or even 10 years ago. Traveling to new places, meeting new people, and enjoying new experiences continue to change the person you are. Hopefully, that will continue throughout your life. Some couples change and grow together, navigating new interests and finding activities they both enjoy. They enter their golden years, excited for new adventures. Their children are grown and out of the house, and these couples are experiencing the freedom they had put on hold for so many years.

For other couples, they discover something altogether different. During those years of growth and change, their paths diverged. Now that they’re empty-nesters, their life together just feels empty. These couples understand that it may be time to part ways and start to experience life on their own terms.

The second scenario is becoming increasingly common. So much so that it even has a name: gray divorce.

Why is Gray Divorce Trending Upwards?

You only need to look at the non-fiction bestseller list on any given week to see there is an increasing emphasis on prioritizing personal happiness. That concept has broad cultural implications. We’ve seen couples married for decades that we were sure would last “until death do us part.” They are now reevaluating their choice to stay in a marriage that doesn’t provide them with happiness and satisfaction. But what else has changed?

One significant factor is longer life expectancies. Advancements in healthcare mean that the 50 and beyond group are living longer, healthier lives. Vibrant seniors are entering a new phase in their lives, with decades still ahead. They want those remaining years to represent a fresh start, which means ending an unfulfilling marriage.

Society has become more accepting of divorce over the last few decades. Baby boomers, who have been shaking up societal norms since their births, are leading the way with the gray divorce trend.

Gray Divorce’s Challenges

Older couples navigating the decision to part ways are discovering that gray divorces come with their own set of challenges. After decades of marriage, couples have accumulated significant assets, such as their primary residence, a second property, investments, and multiple bank accounts. Their most substantial asset is likely a 401(k) that has had years to grow.

According to California’s community property laws, the couple’s assets must be divided 50/50. This includes the 401(k), even if only one spouse was making contributions.

Another consideration is how California will determine spousal support. Many women have entered the workforce and built successful careers. Still, there are plenty of families where one parent stays home to raise the children while the other works outside the home. Spousal support may be substantial and permanent in gray divorces, where the couple was married for several years, with one parent out of the workforce.

Beyond the Financial Aspect of Gray Divorces

Divorcing after many years together could cause emotional turmoil, especially if one spouse doesn’t want the marriage to end. Identities become intertwined, and it can be challenging to unravel them. This situation can lead to loneliness and depression as one party faces the challenge of navigating a new reality.

Navigating a Gray Divorce Requires Special Care

Divorcing is hard, no matter how long you’ve been married. Still, gray divorces bring their own unique circumstances. They require a caring and compassionate attorney like ours at Lonich Patton Ehrlich Policastri. We have years of family law experience and are ready to help guide you through this challenging situation. We will ensure that your rights are protected and that you receive everything you are entitled to after your decades of marriage.

Contact us for a free consultation by calling (408) 553-0801 and start preparing for your second act.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

Who Needs an Estate Plan?

March 5, 2025/in Estate Planning /by Michael Lonich

True or False? Only rich, elderly people need to have an estate plan.

It wouldn’t be a surprise if you chose ’True.’ After all, just the word ‘estate’ brings to mind large country manors with huge tracts of land. And that’s how the Oxford Dictionary defines it.

However, there’s another definition that refers to an estate as all the money and property owned by an individual. Therefore, if you have any assets, you should have an estate plan.

But when should you create yours? That’s what we’re going to explore.

What’s in an Estate Plan

Everyone has different needs, and some estates may be more complex than others, especially if investments, real estate, retirement accounts, and luxury items exist. But some components should be included in every estate plan:

Last Will and Testament

68% of U.S. adults don’t have a will. They may assume that everything goes to their spouse or their children, but that’s not always the case. Instead, everything you own will be distributed according to California’s intestacy laws.

If you have a spouse and children, your spouse will get all the marital assets and half of any separate assets you may have. Your children will get the other half of the separate property. If you and your spouse don’t have children, then half of the separate property will go to your parents.

If you don’t have a spouse, everything goes to your children. The estate will go to your closest relatives if there is no surviving spouse or children. This has become such a common occurrence that it even has its own term: the laughing heir. Furthermore, without a will, certain sentimental items won’t get passed on to the people you wished to receive them.

Even more important than material belongings, you can name a guardian for any minor children you may have in your will. Without that designation, the courts will decide your children’s care, and they may be raised by someone who doesn’t share your values.

Power of Attorney (POA)

If you were hospitalized due to an illness or injury and couldn’t communicate, who would take care of your financial affairs? How would your bills get paid? What if there were important investment decisions that needed to be made?

A power of attorney is a legal document that gives a trusted individual the authority to make financial decisions if you become incapacitated.

Healthcare Proxy and Advanced Directives

Just like a power of attorney handles your financial affairs during your incapacitation, a healthcare proxy handles the medical decisions. In addition, advanced directives outline what you want regarding end-of-life care.

Digital Estate Plan

We spend much of our time online. It’s crucial that you provide instructions on how to access your accounts, which should include:

URL
Username
Password
If it requires multi-authentication

You will also want to outline what you want done with your social media accounts, any domain names that you own, and pictures and documents stored in the cloud.

Estate Planning Help from LPEP Law

If you’re an adult, you need an estate plan, and the time to start is now. You may have been putting it off because it feels overwhelming. That’s where our lawyers at Lonich Patton Ehrlich Policastri can help. We have decades of combined experience and work with people throughout San Jose and the Greater Bay Area in creating tailor-made estate plans.

That’s because we understand everyone’s situation is unique. We will discuss your goals in making an estate plan, ensuring it is customized to your specific needs.

Contact us today to schedule your free consultation by calling (408) 553-0801.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

March 2025 LPEP Spotlight: Damaris Alamillo

March 3, 2025/in 2025, Spotlight /by Lonich Patton Ehrlich Policastri

Will Child Custody Be in Favor of the Mother?

February 26, 2025/in Family Law /by Virginia Lively

When parents separate or divorce, one of the most significant concerns is child custody. A common question arises: Will the courts favor the mother in deciding custody arrangements? While many believe that mothers automatically have an advantage, the reality is more nuanced. Let’s explore how custody decisions are made and whether the belief about mothers being favored holds true.

How Courts Decide Child Custody

Family courts prioritize the best interests of the child above all else. This principle means that decisions are made based on what will provide the child with the most stable, loving, and supportive environment. Key factors include:

The child’s age, health, and emotional needs
Each parent’s ability to provide for the child (e.g., financially, emotionally, and physically)
The child’s current routine and stability
The child’s relationship with each parent
Any history of abuse or neglect

Courts also consider the child’s preference, depending on their age and maturity. There is no automatic assumption that one parent, such as the mother, is inherently better suited to have custody.

Does the Mother Have an Advantage in Custody Cases?

Historically, courts often awarded custody to mothers, especially for young children, under the “tender years doctrine.” This outdated belief assumed that young children needed their mothers for proper care.

Today, most courts have moved away from this presumption. Instead, they strive for gender-neutral custody decisions, meaning both parents have an equal chance to obtain custody based on their ability to meet the child’s needs.

That said, in some cases, mothers may still seem to have an advantage. For example:

Primary Caregiver Role

If the mother has been the primary caregiver—managing day-to-day tasks like meals, school activities, and bedtime routines—courts might view her as the more stable choice for custody.

Societal Expectations

Even though courts are more neutral today, societal expectations sometimes influence how custody arrangements are perceived. Mothers may still be seen as more nurturing, but this bias is decreasing.

Children’s Preferences

If children express a preference to live with their mother and can explain their reasons, courts often take this into account.

Can Fathers Get Custody?

Absolutely. Many fathers successfully gain custody, especially when they can demonstrate their involvement in the child’s life. Courts are increasingly recognizing the importance of fathers and the benefits of having both parents actively involved.

Fathers who are equally involved as caregivers and can show a strong emotional bond with their children have a solid chance of securing custody, either jointly or fully.

Joint Custody: A Common Outcome

In most cases, courts prefer joint custody arrangements where both parents share decision-making and parenting time. This approach allows children to maintain strong relationships with both parents.

Contact LPEP to Discuss Your Child Custody Case

While mothers historically had an advantage in custody battles, today’s courts emphasize fairness and the child’s best interests. Both parents are evaluated equally, based on their ability to provide a stable and supportive environment.

If you’re navigating a custody case, don’t hesitate to reach out to Lonich Patton Ehrlich Policastri. We understand how important family is, and we’ll do everything we can to help you see your children as often as you deserve.

Contact us today to set up your free consultation.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

Mistake #1: Avoiding it Altogether

Mistake #2: Not Updating Your Estate Plan

Mistake #3: Failing to Consider Tax Implications

Mistake #4: Choosing the Wrong Executor or Trustee

Mistake #5: Not Planning for Incapacity

Get Estate Planning Help from Experts

File a Request to Modify or Dissolve

Provide Supporting Evidence

Attend the Hearing

Other Considerations

Consult With Family Law Experts for Help

What are Estate Taxes?

Marital Transfer

Gift versus Inheritance

Charitable Giving

Direct Donation

Charitable Trusts

Special Use Real Estate Valuation

Discuss Your Estate Planning Goals with LPEP Law

Understanding Child Custody Agreements

The Impact of Relocation on Custody

Parental Agreement

Court Approval

Mediation

Get Legal Support from Family Law Experts

Life Insurance

Transfer of Wealth

Tax Mitigation

Equalization of Inheritances

Ongoing Financial Support

Preserving Wealth

Annuities

Combining Life Insurance and Annuities in Your Estate Plan

Make the Most of Your Estate Plans

Why is Gray Divorce Trending Upwards?

Gray Divorce’s Challenges

Beyond the Financial Aspect of Gray Divorces

Navigating a Gray Divorce Requires Special Care

What’s in an Estate Plan

Last Will and Testament

Power of Attorney (POA)

Healthcare Proxy and Advanced Directives

Digital Estate Plan

Estate Planning Help from LPEP Law

How Courts Decide Child Custody

Does the Mother Have an Advantage in Custody Cases?

Primary Caregiver Role

Societal Expectations

Children’s Preferences

Can Fathers Get Custody?

Joint Custody: A Common Outcome

Contact LPEP to Discuss Your Child Custody Case

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