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Document on clipboard with pencil showing inherited IRA, inheriting an IRA
Michael Lonich

What Happens When You Inherit an IRA?

October 12, 2022/in Estate Planning /by Michael Lonich

The short answer is: it depends. Navigating what happens after inheriting an IRA (individual retirement) account can seem overwhelming, but we at Lonich Patton Ehrlich Policastri are here to help you know your options and determine your next steps. Estate planning is one of our areas of expertise, and we are more than happy to help you make decisions regarding your new inheritance.

Know what kind of IRA you have inherited.

The very first thing to do upon finding out you have inherited an IRA is to figure out important details such as what type of account it is. There are multiple types of IRAs, but the most common two are a traditional IRA and a Roth IRA.

  • With a traditional IRA, you contribute money before you are taxed on it. The money contributed might be able to be deducted from your taxes, and the money invested grows tax-deferred until withdrawing the money. Oftentimes retirees are in a lower tax bracket when they were working, the money might be taxed at a lower rate when they do begin withdrawing funds.
  • With a Roth IRA, you are taxed in your contributions before investing them. This means that when you do begin withdrawing money, you will not pay taxes on it, as long as you meet certain requirements.

Knowing the account type is significant because the tax treatment remains the same for the heir as it was with the original owner. The beneficiary will typically have to move the assets from the original account over to a newly opened inherited IRA in their name.

What type of beneficiary are you?

Anyone is able to inherit an IRA, but the rules for what they can do with it differ depending on whether the heir is the spouse of the deceased or not. Due to the passage of the SECURE Act of 2019, non-spousal heirs who inherit an IRA on or after January 1, 2020, now have even more limited options than before. Funds must be spent within 10 years of the original account owner’s passing, regardless of account type. Spouses tend to have more freedom with how they manage their inherited IRA.

Other factors that come into play include when the account was opened and if the original investor had begun taking out their required minimum distributions (RMD) for a traditional IRA.

There is no one-size-fits-all explanation for inheriting an IRA.

Each situation is different, and every heir faces different circumstances. Here at LPEP Law, we have highly qualified trust and estate lawyers on staff who are eager to help you determine your next steps once you inherit an IRA. Click here to schedule a free 30-minute consultation with us, or give us a call at 408-553-0801. We are more than happy to equip you with the knowledge of how to proceed as a beneficiary. We are committed to treating every individual client with the utmost respect and professionalism, and to making this journey as easy as possible for you.

https://www.lpeplaw.com/wp-content/uploads/2022/10/InheritedIRA.jpg 415 900 Michael Lonich https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Michael Lonich2022-10-12 19:14:392023-03-20 21:41:09What Happens When You Inherit an IRA?
Person signing divorce agreement, contested vs. uncontested divorce
Gretchen Boger

What Is the Difference Between Uncontested and Contested Divorce?

October 5, 2022/in Family Law /by Gretchen Boger

When most people think of divorce, they imagine a long and arduous process full of conflict and bitterness. However, this is not always the case. In some instances, divorces can be relatively smooth and amicable.

But what is the difference between a contested and uncontested divorce? Let’s take a closer look.

Contested vs. Uncontested Divorce

When both parties can’t agree on one or more issues, such as division of assets and debt, child custody, child support, and spousal support, it is considered a contested divorce.

In contrast, If parties have already agreed on all issues, then the divorce is considered uncontested. To file for an uncontested divorce, both parties must sign and file a marital settlement agreement with the court. If the court finds it is fair and equitable, it will approve the agreement and issue a final divorce decree. However, if the court finds that the agreement is unacceptable, it will send the parties back to negotiations to reach a resolution.

An uncontested divorce saves time, money, and stress for both parties involved. In addition, uncontested divorces tend to have a lower level of conflict, which can benefit any children involved. If the parties can communicate and cooperate with each other, they may be more likely to reach an agreement that is fair and agreeable to both sides.

While uncontested divorces are often cheaper and faster, there are certain benefits to a contested divorce.

  1. It helps to ensure that both parties are fairly represented. If one party feels they are not receiving fair treatment, they can hire an attorney and take their case to court.
  2. The judge will make sure that all assets are appropriately divided. In an uncontested divorce, both parties may be tempted to overlook certain assets to save time and money. However, in a contested divorce, both parties are required to list all of their assets and negotiate a fair distribution.
  3. A contested divorce can also help to protect the rights of both parties. For example, if one spouse is asking for alimony or child support, a court will review the case and make an unbiased ruling based on what is just.
  4. It allows the court to consider all of the evidence before making a decision. This can provide peace of mind for both parties knowing that the court has considered all relevant factors before ruling.

While no one likes the idea of going to court, a contested divorce can sometimes be the best option for ensuring an equitable outcome.

Whether you are considering a contested or uncontested divorce, the legal process is complex. If you live in San Jose or the greater Bay Area, our attorneys at Lonich Patton Ehrlich Policastri can help you with your case. Our team of lawyers has years of experience in family law and divorce litigation.

Contact us for a free consultation by filling out our contact form or calling 408-553-0801. We will make sure you receive a fair settlement.

https://www.lpeplaw.com/wp-content/uploads/2022/10/ContestedVsUncontestedDivorce.jpg 570 1280 Gretchen Boger https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Gretchen Boger2022-10-05 18:09:042023-03-20 21:31:56What Is the Difference Between Uncontested and Contested Divorce?
Paper chain of family sitting in set of cupped hands, child custody agreement
Gina Policastri

How to Develop a Child Custody Agreement Without Going to Court

September 27, 2022/in Family Law /by Gina Policastri

Separation and divorce are difficult for everyone involved, but if you have children the situation can become even more complicated. There are two types of child custody that you must consider: legal and physical. Legal custody refers to who makes the decisions for the child related to things like health care, schooling, and welfare issues. Physical custody refers to who is responsible for providing shelter for the child and who spends the most time with them. Parents can have sole or joint legal or physical custody. In general, a child custody agreement must be approved by a judge in order to be legal and enforceable under state laws. Even though a judge needs to approve the custody agreement, many parents prefer to develop a plan outside of court before bringing it to a judge, which is sometimes more cost-effective and less contentious than a drawn-out trial in court.

Developing a Parenting Plan

The first step in developing a custody agreement is to agree on a parenting plan, which is basically a proposed custody agreement outlining whether custody will be joint or not, the details of visitation schedules for the non-custodial parent, if applicable, as well as the duties and responsibilities of each parent. Parenting plans usually also provide information about parental rights and the rights of other parties who might be involved in the child’s life such as grandparents or stepparents. Although there is no set form for parenting plans, they can be as detailed or as simple as the parties want.

Ways to Arrange a Custody Agreement Outside of the Court

There are a few different ways to arrive at a parenting plan and then custody agreement outside of court:

  • Informal Negotiations – if parents have a mostly amicable relationship they might choose to create a parenting plan together through direct communication and discussion without involving outside parties.
  • Collaboration – if parents cannot agree on a parenting plan, they might choose to communicate through their attorneys.
  • Mediation – if direct communication or collaboration fails to provide the desired results, some parents turn to mediation, a process in which a neutral third party works with both parents and their attorneys. It should be noted that nothing the mediator says or does is legally binding.

Using any of the methods above, once the parents arrive at a parenting plan that is acceptable to both sides, both parties must sign the agreement and present it to the court for approval.

Deciding What is Best for Your Situation

Custody decisions are always delicate because the emotions and well-being of children are involved, but sometimes they can also be complicated by more serious issues such as domestic violence, allegations of abuse or one parent moving far away or even living in another country. Even in less complicated cases, parents going through divorce and fighting for custody tend to be stressed and emotional, which might make it difficult to think clearly or come to an agreement.

Hiring an attorney to assist you can make a particularly difficult time in your life easier. Our team of experienced family law attorneys at Lonich Patton Ehrlich Policastri has been helping families in the greater Bay Area navigate the complicated landscape of custody arrangements and the court system for decades. Call us today at 408-553-0801 to schedule a free half-hour consultation. We would be happy to discuss your options and help you decide on the best path forward in your unique situation.

https://www.lpeplaw.com/wp-content/uploads/2022/09/PaperChainofFamily-min.jpg 569 1571 Gina Policastri https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Gina Policastri2022-09-27 19:38:332023-03-20 21:31:03How to Develop a Child Custody Agreement Without Going to Court
Pen and prenuptial agreement with pen & rings sitting nearby, getting a prenup
Virginia Lively

What Are the Benefits of a Prenuptial Agreement?

September 13, 2022/in Family Law /by Virginia Lively

Getting married is an exciting moment in your life. As with many pivotal life events, marriage can come with an increase in responsibility. Marriages are deeply emotional and can involve sharing almost everything. Prenuptial agreements are a great way to ensure that you and your partner are on the same page before you get married. A prenuptial agreement is a legal document that outlines which assets belong to who. A common misconception is that getting a prenup creates an avenue for divorce. This is, however, untrue. In the best-case scenario, a signed prenuptial agreement will never go into effect. If, however, it becomes necessary, it is a great way to make sure that both parties can leave the marriage with agreed-upon assets. Read on to learn more about other benefits prenuptial agreements can offer.

Advantages of Getting a Prenup 

  1. Ensures Honesty & Fairness
    Prenuptial agreements are, first and foremost, agreements. This means that they require both parties to understand and be on the same page about how things will go. They encourage honest conversations and can be an excellent opportunity to build understanding with your partner. Additionally, prenuptial agreements are designed to be fair to both parties. Deciding what is fair, along with what makes sense for you and your assets, is a unique conversation that should be had. Having this conversation without the emotional turmoil that divorce can bring ensures that you are making clear and well-planned decisions. A legally-binding document made in good faith can give both parties the peace of mind that hard decisions have already been made.
  1. Offers Protection
    Prenuptial agreements offer many forms of protection. This can include financial protection, such as defining which assets belong to who. Another form of financial protection that prenuptial agreements offer is protection from debt. If one party has significantly more debt than the other, it can be vital for the person with less debt to take the protection that prenuptial agreements offer. Another form of protection that prenuptial agreements provide is emotional protection. The ability to ensure that any children you may have can receive assets is vital. This can ensure that your children receive what is fair. Additionally, getting a prenup can prevent long and messy divorces. A primary focus of a divoce, in a legal sense, is deciding how to divide marital property. Since prenuptial agreements clearly define that, they greatly shorten divorces. This makes it far less financially and emotionally draining.

Get the Support You Deserve

Marriage is a life-changing and joyous occasion. When it comes to finances and asset protection, though, there is no such thing as being over-prepared. Having a prenuptial agreement provides you an avenue for an honest conversation with your partner prior to marriage. Additionally, it can offer you the financial and emotional protection you deserve. At Lonich Patton Ehrlich Policastri, our attorneys are well-versed in helping you navigate the tough conversations and decisions that come with creating a prenuptial agreement. Reach out to us at 408-553-0801 today to find out how we can support you and your soon-to-be spouse.

 

https://www.lpeplaw.com/wp-content/uploads/2022/09/PrenuptialAgreementSigning.jpg 421 900 Virginia Lively https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Virginia Lively2022-09-13 01:00:052023-03-20 21:30:03What Are the Benefits of a Prenuptial Agreement?
Couple sitting apart from each other weigh out divorce option, divorce without a lawyer
Gretchen Boger

Can I Get Divorced Without An Attorney?

September 6, 2022/in Family Law /by Gretchen Boger

Divorce can be complicated and draining, both financially and emotionally. While some divorces may include complicated legal battles, there are others that have the simple focus of moving forward. In the case of the latter, the process for divorce can seem simple enough. Having a lawyer to help you navigate the divorce may seem unnecessary.

Filing For Divorce Without a Lawyer

In some parts of the country, it is fast and simple to file for divorce without a lawyer. Areas with strong domestic court systems may offer options to spouses that allow them to file themselves. This could include checklists and forms that help spouses navigate through the divorce process. It may even be possible to expedite the divorce if it falls within certain guidelines.

However, without a lawyer, it can be difficult to understand and follow the rules necessary to obtain a divorce. Learning the process can be overwhelming. Some courts require self-represented parties to take classes that provide information on the divorce process. Other courts do not provide this, instead expecting self-represented parties to obtain the correct information on their own. Additionally, courts that do not offer support in navigating divorces, or do not offer a way to file online, can prove exceedingly difficult for parties representing themselves. Parties must spend hours learning the process, finding the correct documents, and filing them with a clerk. Having a lawyer, who has navigated the process many times and understands what to do, can make life much simpler. While it is possible to file for divorce without an attorney, it can make it a very time-consuming and difficult process.

Alternatives to Hiring a Lawyer

The emotional and financial burden of divorce can make many decisions feel overwhelming. It can be hard to find the right lawyer, especially if you feel your case does not warrant an attorney at all. If hiring a lawyer is not a possibility for you, there are other options. One option is consulting with a lawyer on an as-needed basis. This could include asking an attorney to look over your paperwork before filing or receiving help navigating an online filing process. Consulting with a lawyer when you need to can provide a great balance between doing everything on your own and hiring a lawyer full-time. If hiring a lawyer is not an option because of financial constraints, visiting a family law clinic can be an excellent way to receive quality legal advice. Many clinics offer sliding-scale or flexible payment options, depending on the circumstances.

Determine What’s Right For You

Divorce can be a very tough obstacle to overcome. With so much uncertainty, it can be hard to decide whether hiring a lawyer is the best option for you. While it is not strictly necessary to have an attorney to complete a divorce, it can be extremely helpful. At Lonich Patton Ehrlich Policastri, we would be happy to discuss your options and assist you in understanding what’s best for you. Call us for a consultation today at 408-553-0801.

https://www.lpeplaw.com/wp-content/uploads/2022/09/CoupleThinkingAboutDivorce.jpg 626 1279 Gretchen Boger https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Gretchen Boger2022-09-06 12:06:402023-03-20 21:28:36Can I Get Divorced Without An Attorney?
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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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