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
Important Estate Tax Figure for 2016
/in Estate Planning /by Michael LonichFor 2016, the federal estate tax exemption has increased to $5.45 million per individual, up from $5.43 million in 2015.
The estate tax is a tax on the value of your estate which exceeds the estate tax exemption. Your estate consists of the fair market value of everything you own or have interest in at the time of your death. The total of all of these items is your “Gross estate.” Once your Gross estate is accounted for, certain deductions are allowed and thus your “taxable estate” is determined.
After the net amount is computed, the value of lifetime taxable gifts (beginning with gifts made in 1977) is added to this number and the tax is computed. The tax is then reduced by the available unified credit.
Many relatively simple estates do not require the filing of an estate tax return, however you should consult with an estate attorney. A filing is required for estates with combined gross assets and prior taxable gifts exceeding $5.45 for 2016.
Estate planning is a highly complex area of law. If you are interested in creating a trust for your family business or have any questions regarding your current estate plan, please contact the experienced estate planning attorneys at Lonich Patton Erlich Policastri for further information. The attorneys at Lonich Patton Erlich Policastri have decades of experience handling complex estate planning matters, including family business trusts, and we are happy to offer you a free consultation. Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may detail general legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.
Sources:
IRS 2016 tax: https://www.irs.gov/pub/irs-drop/rp-15-53.pdf
https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Whats-New-Estate-and-Gift-Tax
https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estate-Tax
What happens to the children after a split when you are not married?
/in Family Law /by Virginia LivelyThe Kardashians always seem to be in the news. While the Kardashians are widely known for their expensive lifestyle and new fashion trends, Kourtney Kardashian was all over the news after her split with Scott Disick. Kourtney and Scott were together for about 9 years and have 3 children (Mason, 6, Penelope, 3, and Reign, 1]). However, while there seems to be no issue with Kourtney keeping the kids, what happens to the children after a split when you are not married?
The concept of a “common law marriage” no longer exists in California. Thus, simply living together does not give rise to a “marriage” or other legal marriage-like union under California law. This means that a non-marital cohabiting relationship does not give rise to “spousal-type” rights, obligations or remedies (except under certain circumstances in an invalid marriage, a “putative spouse” or under a Marvin claim, where non-marital partners have the right to enforce expressed or implied agreements for support or property sharing in the event of a separation).
However, there are certain family statutory rights and obligations that arise regardless of there being a formal marriage. Child support, for example, is a statuary duty to support minor children (and certain adult children) imposed on the parents regardless of them having ever been married. California Family Code § 3900 provides that both the father and mother of a minor child have an equal responsibility to support their child. This duty continues until the unmarried child completes the 12th grade or attains the age of 18, whichever occurs first. However, the law does not limit the rights of parents to agree to provide additional support. A child support obligation between non-marital cohabiting parents is enforceable either through a parentage action or other action under the Family Code. Similarly, non-marital cohabiting partners have custody and visitation rights similarly to those formally married.
If you have any questions about child support or child custody, the Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. Please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information. Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.
Five Holiday Tips During Divorce
/in Family Law /by Riley PenningtonHolidays are the time in the year in which we all look forward to spending time with our family, friends, and loved ones. Consequently, dealing with divorce during this time of the year can be challenging. However, these five holiday tips may help to ease this difficult time.
1. Choose Who You Spend Time With. The holidays are usually filed with holiday parties and gatherings, however, these events may be stressful for a newly single person. While it is important to practice socializing in your new single lifestyle, you should not force yourself to go to these events. Only go if you expect it will be a pleasant experience for you. If not, then this is also an opportunity to start creating new holiday traditions in which you can find enjoyable.
2. Take A Break From The Divorce. During the holidays, things tend to slow down and not much is likely to get done. For this reason, this time of the year is a perfect time to take a break from the stress of divorce and focus on yourself. Take some time to refresh yourself and do something special to welcome your better life to come, such as reconnecting with old friends.
3. Make Plans to Fill the Voids. Even if you are doing something by yourself, it is still a plan. You can watch a new movie or even read that great book you have been wanting to get to.
4. Get Real. Remember that there is no “perfect family” like those Norman Rockwell paintings. In today’s world, families come in all shapes and sizes, so feel comfortable with your new situation because you are not alone.
5. Be Fair with the Children. While the holidays may be a difficult time for you, it is just a difficult, if not more so, for your children. They need to know that it is okay to spend time with both their parents and that they should not feel obligated to choose one over the other.
These are just a few tips available to individuals dealing with divorce during the holidays. The Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. If you are interested in learning more about scheduling where your children will spend the holidays, please contact Lonich Patton Erlich Policastri for further information. Keep in mind that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.
Souce: http://www.huffingtonpost.com/divorce-magazine/6-tips-for-divorcing-duri_b_8544912.html
Tax Traps to Avoid During Divorce
/in Family Law /by David PattonMany individuals negotiate and finalize their divorce without taking into account the tax impact of the decisions they are making. However, there are several tax traps that people could avoid while preparing to undergo divorce proceedings, which include their division of assets, their tax filing status, alimony, and child support.
One of the most hectic and stressful processes during divorce is the division of assets. However, instead of worrying about getting half of everything, there is something that individuals can do before they get divorced that would save them money. Before signing the divorce papers, the parties may transfer property tax-free using a property settlement agreement. Using a property settlement agreement, the ownership of major assets can either be signed over or the property can be sold and the proceeds can then be split amongst the parties.
Depending on an individual’s specific situation, certain filing statuses may be more beneficial than others. If an individual is legally divorced by December 31st, then he or she must file either as “single” or “head of household.” These statuses may also be used if parties have a legally binding separation agreement, or if the parties have lived apart for at least the last six months of the tax year. However, if the parties are still legally married as of December 31st and are still living together, then they must file as either “married filing jointly” or “married filing separately.” Generally individuals who file as either “head of household” and “married filing jointly” have lower taxes than those who file as “single” or “married filing separately.” So even though an individual may be going through divorce, he or she may still find it beneficial to file a joint tax return to save money.
Oftentimes, parties forget that alimony is considered taxable income for the recipient and an above-the-line tax deduction for the payer. It would be beneficial to the recipient of alimony to add his or her monthly alimony taxes into their monthly budget in order to understand how much alimony they really need.
While alimony can be considered in tax returns, child support payments cannot be included on the recipient’s tax return and they are not deductible to the payer. However, the payer of child support may remit the payments in the form of alimony in order to save money on taxes. Though the IRS allows this, any alimony that does resemble child support may not be fully deductible.
In an already costly process, these few tax tips may be able to help individuals save some money. While taxes may be the last thing on their mind, they should be prepared for these tax changes as soon as possible.
If you have any questions about taxes in the divorce process or any other issue, the Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. Please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information. Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.
Source: http://www.irs.com/articles/how-to-avoid-the-tax-traps-of-divorce
Source: http://www.divorcemag.com/articles/5-tax-traps-to-avoid-during-divorce
Have You Heard of Digital Estate Planning?
/in Estate Planning /by Michael LonichIn today’s increasingly technological world, leaving your digital accounts out of your estate plan can prove to be a big mistake. As of 2014, 84 percent of American adults own a personal computer and 64 percent own a smartphone.[1] As of June 2015, there were approximately 1.49 billion Facebook users, 300 million Instagram users, hundreds of thousands of videos uploaded on YouTube each day, and over 6 billion photos on Flickr.[2] Given the user increase, more and more people are challenged with administering a loved one’s digital assets.
Digital assets can include files stored on digital devices, email accounts, digital music, digital photographs, digital videos, social network accounts, file sharing accounts, online stores, and software licenses.[3] The entirety of these digital assets forms an individual’s digital estate. Due to the role technology has in today’s world, the deposition of digital assets has become a major issue in estate planning.
One of the biggest concerns necessitating digital estate planning is the emotional value of social network accounts. For example, in 2005 a dispute arose in which a mother, Karen Williams, turned to her twenty-two year old son’s Facebook account after his sudden death in hopes of learning more about him.[4] Ms. Williams found her son’s password and emailed the Facebook administrators, asking them to maintain her son’s account so she could look through his posts. However, within two hours, her son’s password was changed, essentially locking her out of the account. It was not until she filed a lawsuit that Facebook granted her ten months of access to her son’s account and after this period, his profile was removed.
With careful digital estate planning, situations like Ms. Williams’ are less likely to occur. Digital estate planning can also serve a variety of purposes aside from the emotional value. It can make things easier on executors and family members, it can prevent identity theft, it can prevent financial losses to the estate, and it can prevent unwanted secrets from being discovered.[5] However, the current state of the law is uncertain and changing in regards to digital estate planning. Currently, federal law addresses privacy concerns and regulates the unauthorized access of digital assets under the Stored Communications Act and the Computer Fraud and Abuse Act, which can create limitations for those attempting to plan for their digital assets. But recently, the Uniform Fiduciary Access to Digital Assets Act (UFADAA) was created and nearly half of U.S. states have introduced legislation this year to enact the Act.[6] The UFADAA is an inclusive law that would remove obstacles that prevent fiduciary access to digital assets and would also give access to a wide range of digital assets. In California, a bill has been introduced known as Assembly Bill 691 or the Privacy Expectation Afterlife and Choices Act (PEAC). PEAC would deny relatives access to electronic information of their loved one, unless the court finds that the person had previously agreed to pass them onto a fiduciary. This bill was unanimously passed by the House of Representatives and as of September 10, 2015, it was sent to the Senate floor with the instruction that it not be voted on until January 2016 in order for further negotiation among parties and amendment.[7]
Our daily lives have changed from sending letters and keeping photo albums to emailing and using social networking accounts. While the state of the law is uncertain, technological use increases each day, emphasizing the importance of digital estate planning to carry out an individual’s wishes.
Estate planning is a highly complex area of law. If you are interested in digital estate planning or have any questions regarding your current estate plan, please contact the experienced estate planning attorneys at Lonich Patton Erlich Policastri for further information. The attorneys at Lonich Patton Erlich Policastri have decades of experience handling complex estate planning matters, including nonprobate transfers, and we are happy to offer you a free consultation. Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may detail general legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.
[1] Michael Rosen-Prinz, The Uncertain Future of Estate Planning for Digital Assets in California, 21 Cal. Trusts and Estates Quarterly 37 (2015).
[2] Number of Monthly Active Facebook Users Worldwide as of 2nd Quarter 2015, STATISTA, http://www.statista.com/statistics/264810/number-of-monthly-active-facebook-users-worldwide/.
[3] Evan Carroll, Sample Will and Power of Attorney Language for Digital Assets, THE DIGITAL BEYOND, http://www.thedigitalbeyond.com/sample-language/.
[4] Karen Williams’ Facebook Saga Raises Question of Whether Users’ Profiles Are Part of ‘Digital Estates’, HUFF POST TECH (Mar. 15, 2012, 5:57 PM), http://www.huffingtonpost.com/2012/03/15/karen-williams-facebook_n_1349128.html.
[5] Gerry W. Beyer, Web Meets The Will: Estate Planning for Digital Assets, 42 Est. Pln. 28 (2015).
[6] States Struggle to Adopt Uniform Access to Digital Assets Act, ARMA INTERNATIONAL, http://www.arma.org/r1/news/washington-policy-brief/2015/04/08/states-struggle-to-adopt-uniform-access-to-digital-assets-act.
[7] Michael Rosen-Prinz, The Uncertain Future of Estate Planning for Digital Assets in California, 21 Cal. Trusts and Estates Quarterly 43 (2015).