Contact Us
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.
MAKE A PAYMENT BY SCANNING THE QR CODE BELOW:
DISCLAIMER
This web site is intended for informational purposes only and is not legal advice. Nothing in the site is to be considered as either creating an attorney-client relationship between the reader and Lonich Patton Ehrlich Policastri or as rendering of legal advice for any specific matter. Readers are responsible for obtaining such advice from their own legal counsel. No client or other reader should act or refrain from acting on the basis of any information contained in Lonich Patton Ehrlich Policastri Web site without seeking appropriate legal or other professional advice on the particular facts and circumstances at issue.
© 2024 Lonich Patton Ehrlich Policastri. All rights reserved. Privacy Policy
How to Minimize Estate Taxes: Strategies and Tips
/in Estate Planning /by Michael LonichNobody 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.
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.
Child Custody and Relocation: Navigating the Legal Landscape
/in Family Law /by Gretchen BogerPeople 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:
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?
/in Estate Planning /by Michael LonichEstate 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
/in Family Law /by Gina PolicastriYou 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?
/in Estate Planning /by Michael LonichTrue 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.