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LONICH PATTON EHRLICH POLICASTRI
1871 The Alameda, Suite 400, San Jose, CA 95126
Phone: (408) 553-0801 | Fax: (408) 553-0807 | Email: contact@lpeplaw.com
LONICH PATTON EHRLICH POLICASTRI
Phone: (408) 553-0801
Fax: (408) 553-0807
Email: contact@lpeplaw.com
1871 The Alameda, Suite 400
San Jose, CA 95126
Located in San Jose, Lonich Patton Ehrlich Policastri handles matters for clients in northern California, specifically San Jose and Silicon Valley. Our services are available to anyone within the following counties: Santa Clara, San Mateo, Contra Costa, Santa Cruz, Monterey, San Benito, and San Francisco. For a full listing of areas where we practice, please click here.
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How to Protect Your Assets from Creditors Through Estate Planning
/in Estate Planning /by Lonich Patton Ehrlich PolicastriEstate planning is an essential strategy for protecting your assets and ensuring that your wealth is passed on to your loved ones. One of the significant concerns for many people is how to protect their assets from potential creditors. By creating a robust estate plan, you can safeguard your hard-earned property, savings, and investments from being seized to satisfy debts. Here’s what you need to know.
Why Protecting Your Assets from Creditors is Important
Creditors can pose a serious threat to your financial well-being, particularly if you face lawsuits, medical debt, or business liabilities. Without proper protection, your assets could be vulnerable to claims, jeopardizing your financial future and your family’s inheritance. Estate planning offers legal ways to shield your assets from such risks, allowing you to maintain control over your wealth.
Effective Estate Planning Strategies for Asset Protection
Let’s take a look at some of the estate planning strategies you can put in place to protect your assets from creditors.
Create an Irrevocable Trust for Asset Protection from Creditors
One of the most effective ways to protect your assets from creditors is through an irrevocable trust. Unlike a revocable trust, where you maintain control over the assets, an irrevocable trust requires you to give up control of the property placed within it. Since the assets no longer legally belong to you, creditors cannot reach them. Irrevocable trusts are particularly useful in shielding high-value assets, such as real estate or substantial investments.
Establish a Family Limited Partnership (FLP)
A Family Limited Partnership (FLP) is another tool for protecting assets from creditors. In an FLP, family members own shares of the business, and these shares can be difficult for creditors to seize. While you may still control the partnership as a general partner, creditors can only access your personal interest, not the assets of the FLP itself. This type of arrangement is often used for family-owned businesses or investment portfolios.
Utilize Homestead Exemptions as a Strategy for Asset Protection
In the state of California, homeowners can take advantage of a legal provision known as the homestead exemption. This law provides protection for a certain amount of equity in one’s primary dwelling against claims from creditors. As of 2024, the protected equity value varies between $300,000 and $600,000, with the specific amount determined by the median home prices within the homeowner’s county of residence. Although this exemption doesn’t shield the entire value of a property, it does safeguard a considerable portion. This protection makes it substantially more challenging for creditors to compel the sale of a homeowner’s primary residence to satisfy debts.
Work with an Estate Planning Attorney at LPEP
The laws governing asset protection and estate planning can be complex, particularly in California. It’s essential to work with an experienced estate planning attorney who understands the legal nuances and can help you implement the best strategies for your specific situation.
Here at Lonich Patton Ehrlich Policastri, our experienced estate planning attorneys can help you with properly crafted trusts, partnerships, and legal documents to ensure your assets are protected and your legacy is preserved.
Protect your future and your family by taking the necessary steps today to shield your assets from creditors—contact LPEP today for a free consultation.
Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
Guide to Choosing a Legal Guardian for Your Minor Children
/in Family Law /by Virginia LivelyOne of the most important decisions you can make when thinking about your family’s future, is choosing a legal guardian for your minor children. A legal guardian will be responsible for raising, caring for, and protecting your children, including making vital decisions about their education and healthcare, if you are unable to care for them yourself.
Given the importance of this role, you should have a clear plan in place rather than leave it to the courts to decide. The following guide outlines important considerations to help you choose the best legal guardian for your minor children and what to do once you’ve picked one.
What To Look for in a Potential Guardian
Of course, you need your children’s guardian to be someone you trust to make decisions in their best interests. Although many people immediately look to family members, close family friends can often be an excellent choice as well, especially if your family dynamics are complicated.
Besides trustworthiness, though, you want to evaluate a potential guardian’s:
What to Do Once You Have Chosen a Potential Guardian
Once you have some candidates in mind, you should have an honest discussion with them before actually naming them as the guardian. It’s also a good idea to have alternates as well, in case your first choice becomes unavailable. Make sure all candidates are willing and able to take on this role and the responsibilities that come along with it. You might also want to discuss your choice with family members to avoid later conflicts and negative repercussions.
Talk to Your Children
Depending on your children’s ages, explain the situation in a way that is age appropriate and helps them feel secure.
Make Financial Arrangements
Consider establishing a trust to help provide appropriate financial resources to ensure the guardian can take care of your children the way you want. If your child has special needs, a special needs trust might be the best option.
Talk to an Estate Planning Professional
Once you’ve chosen a guardian and they have agreed, you should consult with an estate planning attorney like the ones at Lonich Patton Ehrlich Policastri (LPEP). Schedule a free, no-obligation consultation with LPEP’s Estate Planning Group to discuss your options and needs. They can help you draft the appropriate documents to put your choice in writing and include specific instructions about your wishes related to your children’s upbringing and future to help the guardian make good decisions. Don’t leave it to chance. Having a plan in place is an important part of protecting your family’s future.
Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
How to Protect Your Retirement Savings in Your Estate Plan
/in Estate Planning /by Michael LonichA common worry among older adults is that they will go into a nursing home and spend all of their retirement savings on skilled care. This is a realistic concern, considering that 70% of people aged 65 and older will spend some time in a nursing home. When you realize that the monthly cost of a nursing home in California is about $13,000, you understand that it won’t take long before your savings are thoroughly depleted.
However, with advance planning and examining your options, you can create an estate plan that will protect your retirement savings, no matter what may happen in the future.
Estate Planning Goes Beyond Asset Distribution
There’s a misconception that estate planning is something only done by rich, elderly people to ensure their belongings are distributed to their heirs after they die. In truth, estate planning is something every adult should do.
Estate planning is more than just creating a will outlining your final wishes. It’s also planning for the unexpected and asset protection. Estate planning also involves:
Asset Protection Trusts
You’ve spent several years saving for your retirement. Ensuring your savings are well-protected within your estate plan is just as important.
Medi-Cal is a joint federal and state program that can help pay for nursing home care if you meet certain financial eligibility requirements. This means that you will need to pay for your care until your savings have been spent far enough to be eligible for Medi-Cal.
An irrevocable trust can help protect your assets from being counted towards Medi-Cal eligibility. Assets transferred to this trust are no longer considered your property, allowing you to qualify for Medi-Cal. By transferring your assets into an irrevocable trust, you can protect them from being used to pay for long-term care. You can still receive income from the trust’s assets, providing financial support during your lifetime.
Not only will a properly structured trust protect your retirement savings, but it can also offer tax advantages. When you pass away, the assets will automatically transfer to your beneficiaries without going through the probate process.
Protecting Your Retirement Savings with Long-Term Care Insurance
Long-term care insurance is another effective strategy to protect your retirement savings. This type of insurance specifically covers the cost of nursing home care, in-home care, and other long-term care services.
You should choose a policy that covers a broad range of services and provides sufficient coverage to meet potential future needs.
Early Planning is Critical
Protecting your retirement savings requires careful planning and the right strategies. The earlier you start planning, the more options you have, and it helps ensure you are not caught off-guard by sudden healthcare needs. Our attorneys at Lonich Patton Ehrlich Policastri have extensive expertise in estate planning and asset protection. We will work with you to develop a comprehensive plan tailored to your situation.
Contact us for a free consultation by calling (408) 553-0801. Being well-prepared for any eventuality will allow you to enjoy your retirement with peace of mind.
Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
How To Get Full Custody of a Child Without Going to Court in California
/in Family Law /by Mitchell EhrlichTabloids and television shows would have us believing that all child custody matters are contentious court battles in which ex-spouses yell at each other and try to prove the other is an unfit parent. And while that may not always be the case, navigating the process of gaining full custody of your child can indeed be emotionally taxing and complex.
It doesn’t need to be that way. There are options for gaining full custody without the stress and expense of going to court.
California’s Child Custody Laws
Serving the child’s best interests is the court’s primary goal when determining custody. Therefore, the judge will consider the following:
Why Would One Parent Give Full Custody to the Other Parent?
It may seem surprising that a parent would willingly give up custody of their child, but there are actually several reasons why this may occur:
Determining Child Custody Through Mediation
One of the most effective ways to avoid court is through mediation. A neutral third party works with you and the other parent to facilitate communication and negotiate an agreement that works for everyone.
Mediators are skilled in conflict resolution and can provide a structured environment to discuss sensitive issues. Mediation is generally less adversarial and stressful than court proceedings. It can also save time and money. The couple meets according to their schedule instead of waiting for a court date, and they don’t have the expense of hiring attorneys or court fees. Mediation also allows both parents to have a say in the final agreement rather than having a judge decide.
Child Custody Negotiation Tips
Even with good intentions, child custody discussions can become heated. Therefore, you may want to keep the following ABCs in mind:
Always prioritize the child’s needs and well-being
Be open to compromise in order to reach a mutually acceptable agreement
Communicate honestly and clearly to prevent misunderstandings
LPEP Law Offers Mediation Services
Gaining full custody of a child without going to court may be difficult, but it’s not impossible. It can also be more beneficial for everyone involved. At Lonich Patton Ehrlich Policastri, we understand that child custody is a deeply personal matter. We offer mediation services and have helped San Jose and the greater Bay Area families resolve custody issues without court interference.
There are several options for gaining full custody of your child without going to court. Contact us for a free consultation by calling (408) 553-0801 to discuss what option is best for you.
Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
How Can I Control the Distribution of My Estate?
/in Estate Planning /by Michael LonichWe spend our lives building a strong financial foundation for ourselves and our loved ones. After a lifetime of accumulating assets, it’s inevitable that you want to ensure that your assets are allocated according to your wishes. Estate planning provides valuable tools to assist you in managing and disposing of your estate during your life and after death.
Why Estate Planning is Important
An estate plan is a set of legal documents that outlines how you want your financial affairs handled in the event of your death or incapacitation. It also allows you to specify your medical treatment preferences and name individuals to make financial and healthcare decisions on your behalf if you cannot.
A comprehensive estate plan can minimize legal complications and potential conflicts among beneficiaries. It can also help reduce taxes, avoid probate, and protect your estate from creditors.
A Will is the Foundation of Your Estate Plan
More than half of the adults in the United States don’t have estate planning documents or even a will. If you were to die in California without a valid will, the state’s intestate laws would determine how your estate is dispersed, and it’s likely not the way you would choose.
A will outlines how you want your assets to be distributed after your death. It provides clear instructions and names beneficiaries for specific assets, reducing the likelihood of disputes among heirs.
A properly drafted will is legally binding and will ensure your wishes are honored. Furthermore, it allows you to update it as your circumstances change, such as the birth of a child or the acquisition of new assets, such as an inheritance or selling a business.
However, using a will as your sole estate planning tool does have its drawbacks. A will needs to be validated, and your estate must go through probate. This process can be expensive and time-consuming, potentially delaying the distribution of assets.
In addition, once probated, a will becomes a public document, which may not be ideal if you are someone who values your privacy.
The Versatility of Trusts
A trust is a legal mechanism in which you assign ownership of your assets to a trustee, who then oversees and manages them for the benefit of your designated beneficiaries. Trusts can be customized to address a wide range of estate planning objectives. There are two primary ways to establish a trust:
#1. During your lifetime (living trusts)
#2. Upon your death (testamentary trusts)
Creating a trust requires drafting an agreement that specifies the terms and conditions for managing and distributing your assets. You then transfer your assets into the trust, which is managed by the trustee according to your instructions. The trustee is responsible for making the distributions to beneficiaries and ensuring compliance with the terms of the trust.
Trusts have multiple benefits, such as:
Trusts do have drawbacks, though. Setting one up and maintaining it can be more complicated and expensive than creating a will. They also require ongoing management and oversight.
LPEP Law Can Offer Practical Advice
Legal advice is crucial for drafting wills and trusts that comply with California’s laws and effectively communicate your wishes. At Lonich Patton Ehrlich Policastri, our attorneys can assist you with creating an estate plan that ensures your assets are distributed according to your wishes. We will review your goals and help you understand the benefits and drawbacks of various estate planning tools.
Contact us for a free consultation by calling 408-553-0801. Together, we can create a customized estate plan that will provide peace of mind for you and your loved ones.
Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.