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Beneficiary word in a wooden frame on the office table. Business concept. You may have recently discovered that you are a beneficiary of a trust.

Rights of a Trust Beneficiary

January 18, 2024/in Estate Planning /by Michael Lonich

If you have recently discovered that you are a beneficiary of a trust, you likely have many questions.

That’s understandable. After all, there are several types of trusts, and some may have specific stipulations or requirements. Knowing how trusts work and your basic rights as a beneficiary can help you make informed decisions.

What is a Trust?

A trust is a legal arrangement that allows an individual (grantor) to transfer assets to a neutral third party (trustee) to hold and manage on behalf of someone else (beneficiary).

Trusts are used for several reasons. They might be established to control wealth, protect assets, provide for heirs, reduce estate taxes, or support charitable causes. Trusts can also be used in planning for incapacity or avoiding probate.

Types of Trusts

There are several different types of trust, but some of the most common types include:

A revocable trust, also known as a living trust, can be altered, changed, or revoked at any point during the grantor’s lifetime.
Irrevocable trusts can’t be changed or terminated by anyone other than the beneficiary once they’re created.
Charitable trusts are established for the benefit of a particular charity or the public.
Special needs trusts benefit individuals who can’t manage their finances due to a disability. This type of trust allows the beneficiary to enjoy the use of the assets held for their benefit while also allowing them to receive government benefits.
Spendthrift trusts are created for individuals who may be unable to control their spending. It gives an independent trustee authority to decide how funds may be spent for the benefit of the beneficiary.
Asset protection trusts are designed to protect a person’s assets from claims of future creditors.
Generation-skipping trusts allow for the distribution of assets to grandchildren, skipping the children.

Beneficiary Rights

In California, as a trust beneficiary, you generally have the following rights:

Right to information about the trust and its administration. This typically includes a right to request and receive copies of trust documents, account statements, and other relevant information.
Right to an accounting of trust activity, including detailed information about any income to the trust, expenses, and distributions from the trust.
Right to distributions as outlined in the trust agreement.
Right to take legal action to enforce the terms of the trust or remove the trustee if they are not administering the trust properly.
Right to terminate the trust if all beneficiaries agree and termination of the trust would not interfere with the trust purpose.

In addition, there may be more rights as outlined in the terms of your specific trust agreement.

Trust documents can be complex and challenging to understand. If you are a trust beneficiary, our attorneys at Lonich Patton Ehrlich Policastri can help explain the trust’s terms and how it impacts you. We can also help ensure your rights are protected and help resolve any issues or disputes. With our guidance and support, you can be assured your inheritance is in safe hands.

Consult us for a 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.

Diverse professional executive business team people discuss project sitting at meeting table in board room. Multiethnic company managers brainstorm financial plan working together in boardroom. business assets

How Do I Protect My Business In A Divorce?

January 11, 2024/in Family Law /by Gretchen Boger

Divorce is a complex landscape of emotions, decisions, and division of assets, and for entrepreneurs, the stakes can be even higher. Amid the personal upheaval, protecting a business you’ve poured your sweat, tears, and dreams into is essential. The intertwining of personal and business assets adds layers of complexity to the already challenging process of divorce. In this article, we’ll offer insights and strategies to help business owners safeguard their enterprises during divorce proceedings.

Understanding the stakes

In divorce, the treatment of business assets can significantly impact the outcome. The distinction between community property and separate property plays a pivotal role in determining what portion, if any, of the business might be subject to division.

Community property laws often consider businesses established during the marriage as joint assets, while pre-existing businesses might face evaluations for spousal claims. Navigating these legal distinctions is crucial in understanding the potential impact of divorce on your business’s ownership.

If you don’t have proper planning in place, divorce could possibly result in frozen business assets. For small or family-owned businesses, this can have a significant impact on your ability to run your business.

Protective measures for business owners

So, what can business owners do to protect their properties? Here are three protective measures you can take that may help to safeguard your business during divorce.

Prenuptial and postnuptial agreements

These legal agreements delineate the treatment of business assets in the event of divorce. They can specify the division or exclusion of business interests, offering a layer of protection for your business in the event of divorce.

Strategic business structuring

Careful structuring of the business entity and ownership arrangements can fortify its protection. Utilizing trusts, shareholder agreements, or creating a buy-sell agreement can safeguard the business’s integrity during divorce proceedings.

Comprehensive documentation

Diligent record-keeping and documentation practices establishing the business’s separate identity and value before and during the marriage can substantiate its status as separate property. This can potentially shield it from being considered as a marital asset during divorce proceedings.

Navigating divorce proceedings

In the midst of divorce proceedings, protecting a business requires a delicate balance between legal knowledge and strategic foresight. It’s a good idea to contact specialized legal counsel, well-versed in both business and divorce law to help you navigate this complex landscape.

Experienced attorneys can guide you through the processes of valuation, negotiation, and settlement, while advocating for equitable resolutions and safeguarding your business as much as possible.

Protect your business assets with LPEP Law

At Lonich Patton Ehrlich Policastri (LPEP Law), our family law attorneys are highly experienced in representing business owners who are considering divorce. We have previously represented many clients in high-asset divorce situations, and have over a decade of experience to call upon.

LPEP Law has worked with numerous clients over the years, including many small business owners dealing with divorce. Our family law experts work together with experienced business litigation attorneys to help protect your business and business assets during a divorce.

Contact LPEP today to set up a free consultation to discuss your specific needs.

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

LONDON, ENGLAND - SEPTEMBER 29, 2013: Father and his daughter view the artworks in Saatchi Gallery's "Paper" exhibition in London. Your intellectual property and artwork are unique assets that deserve special consideration when planning your estate.

Estate Planning for Artists: Protecting Your Intellectual Property and Legacy

January 4, 2024/in Estate Planning /by Michael Lonich

Estate planning ensures that your wishes, with regard to all your assets, are carried out after your death or if you become incapacitated. When most people think about estate planning, their minds immediately go to their tangible assets – house, car, jewelry, business, savings account, etc. For artists and other creators and innovators, though, estate planning should also extend to intangible assets like intellectual property and protecting the legacy of your artwork.

Your intellectual property and artwork are unique assets that deserve special consideration. The following are some things to consider and some steps you can take to help make the process easier for your beneficiaries, minimize future legal issues, and preserve your legacy as you see fit.

Choose A Reliable Executor

One of the most important decisions you need to make is who will be responsible for administering your estate on your behalf. When your estate includes artwork, it can be helpful to choose someone with expertise in this area. Certain intellectual property, especially patented ideas or products, require some maintenance like paying fees or re-filing with the U.S. Patent and Trademark Office after expiration. Your spouse, children, or other beneficiaries might not be equipped to keep up with the necessary paperwork and maintenance.

Prepare Your Portfolio

To properly account for all of your creative assets, create a detailed inventory of your work. Be sure to include digital art, music, written works, photography, ceramics, paintings, etc. Make a note about where all of your art is located, including if it is publicly displayed, and how to access it and all related documentation (i.e., contact information of curators, passwords, keys, codes, files, etc.).

If you have not already done so, have a professional appraise the value of your artwork. Once you know the monetary value, insure your artistic assets as well. Don’t forget to make a special note about any artwork that generates royalties for your estate.

Make sure that your chosen executor, as well as your spouse, your attorney, or anyone else you choose, has access to the catalog of your work, the appraisal, relevant documentation, and information about how to access your assets.

Consider Your Legacy

Some questions to think about as you consider your legacy include:

How do you want to be remembered?
What type of legacy and impact do you hope your art will have on the world at large and in the arts community?
Do you want to donate your works to charity or use them to set up a charitable fund for aspiring artists?
Should any income generated be used solely to support your family?
Who should control how your work is distributed in the future? Should it stay in the family?
Would you want any of your unfinished work to be completed by another artist? If so, who?

While it’s never easy to think about the end of our lives, having a plan in place can give you much-needed peace of mind that your legacy and your family will be protected in your absence.

Consult With An Estate Planning Expert

The attorneys at Lonich Patton Ehrlich Policastri (LPEP Law) have a wealth of experience in estate planning, estate and trust administration, litigation, and probate. They can guide you through this complicated process and go over all your options to determine what’s best for your unique situation, including minimizing the taxes on your estate and maximizing charitable benefits, especially if you choose to donate your art. Get started today. Schedule your free, 30-minute consultation with the experts at LPEP Law by calling (408) 553-0801.

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

signing contract on partners back, young couple on business meeting with life insurance and bank loan agent at modern office interior. collaborative divorce

When is a Collaborative Divorce Appropriate?

December 28, 2023/in Family Law /by Virginia Lively

It’s no secret that divorces can be costly, time-consuming, and emotionally exhausting. Some people stay in bad marriages rather than go through the expensive turmoil associated with most divorces. However, there is another option to the traditional divorce process – a collaborative divorce. Could a collaborative divorce be appropriate for you?

What is a Collaborative Divorce?

A collaborative divorce is a method of dissolving a marriage that emphasizes cooperation and respect. Instead of approaching divorce as a contentious, adversarial process, a collaborative divorce encourages the couple to work together to reach a mutually beneficial agreement. This form of alternate dispute resolution (ADR) aims to minimize conflict and promote a healthy, amicable resolution.

While a collaborative divorce may not work for all divorce cases, it could be appropriate in the following circumstances:

Both parties are willing to treat each other with respect and dignity during the process.
You and your spouse are willing to cooperate and make compromises.
You value your privacy and wish to keep the divorce details confidential.
You have children and wish to have more flexibility in creating custody and visitation agreements.

The Benefits of a Collaborative Divorce

One of the key advantages of a collaborative divorce is the control it provides to the couple. Instead of leaving decisions to a judge, the spouses have the power to negotiate and decide on the terms of their divorce. This process also tends to be less adversarial, reducing emotional stress and promoting healthier communication between the parties.

Furthermore, because the process is designed to avoid court, it can potentially save time and money. While the collaborative process does involve costs (such as attorney fees and costs for other professionals), these can often be less than the costs associated with a protracted court battle. Additionally, the couple is not at the mercy of the court’s schedule, so the process can usually be concluded relatively quickly.

The Collaborative Divorce Process

A collaborative divorce begins with each spouse hiring a collaboratively trained attorney. The couple and their attorneys then sign a participation agreement, committing to resolve their issues without going to court. If they can’t reach an agreement and decide to litigate, both lawyers must withdraw from the case. This stipulation is intended to encourage everyone involved to commit fully to finding a resolution through collaboration.

The next step involves a series of four-way meetings between the spouses and their attorneys. These meetings provide an opportunity for open discussion and negotiation, where all assets, debts, and issues related to children (if applicable) are addressed.

In addition to legal counsel, couples may involve other neutral professionals such as financial advisors, child specialists, and mental health professionals. These experts can provide guidance on complex issues like asset division, child custody, and emotional stress. The goal is to create a divorce agreement that respects the needs and interests of both parties.

Reach out to our attorneys at Lonich Patton Ehrlich Policastri if you think a collaborative divorce might be right for you or if you have questions about the process. We understand that divorce is a personal matter and will help you find the best option for your situation.

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

Worried Woman with Mobile Stalked by a Man. harassment

What to Know About Harassment

December 21, 2023/in Family Law /by Mitchell Ehrlich

In recent years, people have come to associate harassment with misconduct in the workplace. However, this unacceptable behavior can take many forms and occur in various settings.

Therefore, it’s important to know when and where harassment can take place and what your options are if you find yourself in such a troubling situation.

The Many Forms of Harassment

Harassment is an unwelcome behavior that intimidates, offends, or creates a hostile environment. It can be deeply damaging to the person experiencing it. Here are some common forms:

Sexual

This is one of the most widely recognized forms of harassment. It involves any unwanted sexual advances or obscene remarks, which can range from inappropriate comments to physical assault. It often occurs in a situation where the harasser is in a position of power over the victim.

Workplace

This type of harassment occurs when an employee is subjected to unwelcome conduct from a colleague. It may include bullying, unfair treatment, or offensive jokes. It can lead to a hostile and toxic work environment and may significantly affect an individual’s job performance and mental health. While workplace harassment can be towards anyone, it is prevalent among women from marginalized races and ethnicities.

Online

With the rise of digital communication, online harassment has become increasingly prevalent. It can include cyberbullying, stalking, doxxing (publicly revealing private information), and trolling.

Racial

Racial harassment targets individuals based on their race or ethnicity. It can involve racial slurs, derogatory comments, or acts of violence. It serves to demean, belittle, or intimidate individuals because of their racial background. Sometimes, global events can increase harassment towards a particular race, such as the proliferation of hate crimes against Asian Americans during the COVID-19 pandemic.

Stalking

This involves unwanted and obsessive attention by an individual toward another person. Stalking behaviors can include following the victim, appearing at their home or place of work, making harassing phone calls, leaving written messages or objects, or vandalizing the victim’s property.

Harassment can be a traumatic and distressing experience, but it’s vital to know there are options available. The first step is acknowledging the situation and understanding that it’s not your fault.

Keep a detailed record of each incident, including the date, time, location, people involved, and what was said and done. If possible, save emails, texts, social media posts, or any other form of communication as evidence.

If harassment occurs in the workplace, you will need to report it to a supervisor or the human resources department.

In California, harassment can be either a misdemeanor or a felony, depending on its form. Therefore, if the harassment continues or involves physical assault or threats, you need to reach out for legal advice. Our attorneys at Lonich Patton Ehrlich Policastri can review your situation and provide you with the help you need. We have extensive experience in protecting our clients from the many forms harassment can take and guide you through the process of obtaining a protective or restraining order.

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

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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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