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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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The Disclaimer: An Arrow in the Savvy Planner’s Quiver
/in Estate Planning /by Michael LonichWe won’t all be lucky enough to inherit a large sum of money upon the death of a loved one. But, if you do, you may want to consider disclaiming that inheritance under special circumstances. When you disclaim an inheritance, you are refusing to accept it.
Some of you reading this are probably thinking, “You’ve got to be crazy if you think I am ever going to flat out refuse any money that I have coming to me.” Nevertheless, for others who already own plenty of property or are looking to reduce gift or estate or gift taxes, disclaiming an inherited gift could be in the best interests of you and your family.
Let’s say you already have a healthy estate of several million dollars when your father dies, leaving $400,000 to be split evenly between you and your sister. You know that your sister, a single mother, could really use the money and you would like to help her out. In this situation, disclaiming could be beneficial for in two ways.
First, by disclaiming your half of the gift, the entire $400,000 can be transferred directly to your sister. This kind gesture ensures that the person who really needs the property can have it with little difficulty or complications, since a disclaimant never truly owns the property. Furthermore, disclaiming a large gift could help minimize the size of your estate for the benefit of your family at the time of your death. Estates beyond a certain size have to pay steep estate taxes* before your money can go to your beneficiaries. By disclaiming gifts you don’t need, your family can avoid those taxes and enjoy more your hard-earned wealth.
Second, by disclaiming your half of the gift, you will not have to pay gift taxes on any amount you want to give to your sister. In 2014, the IRS limits the amount of cash that can be given tax-free to a particular individual. In this situation, if you were to accept the $200,000 and then try to give it to your sister as a cash gift, any amount over $14,000 given to your sister in a given year would count towards your lifetime gift limit.** Any amount of cash gifts which exceed that limit—$5.34million in a lifetime—will be subject to a gift tax of up to 40 percent. Ouch. To keep things simple and tax-free, disclaiming the inheritance is your best bet.
Deciding whether or not to disclaim is a big decision that can have serious benefits or consequences. In order to make the decision that is best for you and your family, speak with an experienced estate planning attorney before you act. If you need estate planning advice, call Lonich Patton Erlich Policastri to schedule a free half-hour consultation. Our attorneys are passionate about estate planning and have decades of experience handling complex estate planning matters, including wills and living trusts. If you are interested in developing an estate plan or reviewing your current estate plan, contact the experienced estate planning attorneys 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 detail general legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.
*To learn more about estate taxes, click here: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estate-Tax
**This is known as the “annual gift exclusion.” For those who are interested in learning more about the exclusion, click here: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Gift-Tax
Does “Shacking Up” Mean We’ll Be “Splitting Up”?
/in Family Law /by Gina PolicastriAs it turns out, cohabitation doesn’t cause divorce after all – but rather, the age at which you cohabitate determines your risk for divorce. For years, social scientists have linked cohabitation with divorce, cautioning couples to resist moving in together by correlating “shacking up” with “splitting up.” However, recent studies reveal that the biggest predictor of divorce is actually the age at which a couple begins living together, whether before the wedding vows or after.
Previous studies compared the divorce rates of couples who cohabitated with those who didn’t by using the age of marriage as the focal variable. Arielle Kuperberg, a sociologist behind the new studies, used a different variable: Kuperberg compared the relationships using the date of first moving in together. That date, she reasoned, is when a couple really takes on marriage roles, regardless of whether they have a legal certificate. Using this novel method, Kuperberg found no link between whether people had cohabited before marriage and their rate of divorce. She also found that the turning point in age for picking a life partner appears to be around 23, an age that likely coincides with college graduation. “That’s when people are able to pick a partner who is more compatible,” she explains. “Maybe they are a little more mature. They’re a little set up in the world.”
Sociologists also discovered that while moving in may be irrelevant to divorce rates, rushing into cohabitation may have its disadvantages. Sharon Sassler, a sociologist at Cornell University, found that most cohabitors with college degrees move in together only after a long stretch of dating. On the other hand, more than half of the cohabiters without college degrees move in together after less than six months of dating. Sassler explained this phenomenon through financial motivators: financial need seems to push the less well-off into romantic roommate situations before they are ready, increasing the chances that the relationship will dissolve. Therefore, Sassler argues that it is the type of premarital cohabitation that predicts divorce, and not necessarily cohabitation in itself.
If you are interested in cohabitating with your partner and are concerned with your rights in the event the relationship dissolves, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization). Having a knowledgeable, experienced family law attorney by your side can prove to be invaluable for resolving your concerns. Lonich Patton Erlich Policastri’s attorneys have decades of experience handling complex family law proceedings and offer a free half-hour 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 include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.
Sources: http://news.yahoo.com/best-predictor-divorce-age-couples-cohabit-study-says-131122832.html?soc_src=mediacontentstory; http://www.foxnews.com/health/2014/03/10/cohabitation-doesnt-cause-divorce-after-all/
Can Your Child Sue You For Child Support?
/in Family Law, In the Community /by Mitchell EhrlichNo, your child cannot sue you for child support – not yet, anyway. Recently, 18-year-old Rachel Canning caused a national stir when she sued her parents in a potentially precedent-setting lawsuit: the New Jersey teenager filed a lawsuit against her parents requesting $654 in child support per week, thousands of dollars in attorney fees, and immediate reimbursement of her high school tuition.
Ms. Canning claimed her parents threw her out of their Lincoln Park home two days before her 18th birthday, whereas her parents insisted the teenager moved out voluntarily. Her father, Sean Canning, explained that his daughter left the family home because she didn’t want to do reasonable household chores, be respectful, or abide by their curfew. Mr. Canning stated that “the whole thing is just destroying our family. We love our daughter. She’s our pride and joy.” A retired Police Chief, Mr. Canning explained that he’s “a liberal, liberal parent… I was tougher on my cops at work than I’ve ever been at my home, that’s for sure.”
Last week, Morris County Court Judge Peter Bogaard ruled in favor of the Canning’s, reasoning that any other decision would set a bad precedent by setting limits on parenting. The court expressed concern that Ms. Canning’s rare case, if successful, could inspire similar suits in the future. Brian Schwartz, chairman of the New Jersey Bar Association’s Family Law Section states that “in my 20 years of practicing family law in New Jersey, I’ve never seen anything like this.” Adds Jeralyn Lawrence, the incoming Family Law Section chair: “This could open the floodgates of recalcitrant kids fighting with their parents, moving out, and then suing them to keep paying.”
To the relief (presumably) of all parties involved, Ms. Canning returned home to her parents and siblings this morning. During this afternoon’s press conference, Ms. Canning’s lawyer said the suit brought against her parents had been settled “amicably,” and that her return home was not contingent upon any financial or other considerations.
Notably, Ms. Canning was not seeking to be emancipated from her parents – her lawsuit was primarily financially driven. With emancipation, minors essentially function as adults in society. Generally, they can attend the schools of their choice, enter into legally binding contracts, purchase a home, keep any income earned from a job, and so on. In court filings, Ms. Canning insisted she was “old enough to do what she wanted” – but perhaps she realized that without anyone bankrolling her endeavors, her options to do whatever she wants at this stage in her life are fairly limited.
If you have any questions about your family law issues, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization). Having a knowledgeable, experienced family law attorney by your side can prove to be invaluable for your situation. Lonich Patton Erlich Policastri’s attorneys have decades of experience handling complex family law proceedings and offer a free half-hour 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 include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.
Sources: http://www.foxnews.com/us/2014/03/05/new-jersey-teen-sues-parents-for-support-claiming-was-kicked-out-home/; http://www.latimes.com/nation/nationnow/la-na-nn-rachel-canning-goes-back-to-family-20140312,0,1541517.story#axzz2vmlZmHUm
Beware: Sign Your MSA With Care
/in Family Law /by Gretchen BogerA Marital Settlement Agreement (or “MSA”) is essentially a contract between a divorced couple that memorializes the division of property and debt. The document also allows the parties to include almost anything they desire in the agreement, such as who will provide support for adult children. The MSA is usually incorporated into the final judgment and signed by the judge, giving the contract the same effect of a court order.
Due to the finality and force of an MSA that has gone before the judge, promises made in the agreement should be made very carefully and taken very seriously. If you agree to something in your MSA, you must be prepared to follow through. One New Jersey father* learned that the hard way and will be required to provide fifty percent of the support his daughter needs at Cornell law school, per the MSA he signed with his ex-wife.
The father argued that although he agreed to help his daughter with her higher-education costs, he wanted to have a say in where she studied and where she lived. Not surprisingly, he wished her to choose a less-expensive alternative, but she chose Cornell. As of today, Cornell law school’s cost of attendance is around $80,000.
In the end, this father must pay about $120,000 for half of his daughter’s legal education because the agreement did not include typical language that would have given father a say in his daughter’s educational decisions. MSA’s are serious business; this situation is one example why it pays to have a great attorney looking out for your interests.
If you need guidance creating your MSA or are interested in creating a prenuptial agreement, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization). Our attorneys have decades of experience handling MSA’s and complex family law proceedings, and happily offer a free consultation to new clients.
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.
*“Dad must pay half of his daughter’s law school expenses at Cornell, appeals court says,” via ABA Journal: http://www.abajournal.com/news/article/dad_must_pay_half_of_his_daughters_law_school_expenses_at_cornell_appeals_c
Philip Seymour Hoffman’s Will (Part 2): More Than Just Nickels and Dimes
/in Estate Planning /by Michael LonichThis is the second part of our series examining Philip Seymour Hoffman’s estate plan.
In the wake of Philip Seymour Hoffman’s untimely death, his estate planning documents have given us some insight into the actor and father of three. Hoffman’s estate plan was executed in 2004 and his will included some unique requests.*
Hoffman requested that the guardian of his children raise his oldest child, his son Cooper, in Manhattan, Chicago or San Francisco. He stated that “If my guardian cannot reside in any of such cities, then it is my strong desire, and not direction, that my son, Cooper Hoffman, visit these cities at least twice per year throughout such guardianship.” And the reason that Hoffman preferred these cities? “[S]o that my son will be exposed to the culture, arts and architecture that such cities offer.”
Hoffman’s will serves as a reminder that a will can be about more than just money and property. Your will can be a place to memorialize your wishes for your family, pets, property, or anything else your desire. Although wishes like Hoffman’s are not legally binding, your family may appreciate the chance to act on your desires in your absence. Your words could help your family make tough decisions in the future.
Hoffman’s will is a great reminder to get creative with our estate planning documents, for our family’s sake. If you’re interested in updating the language in your will, or would like to learn more about estate planning in general, call Lonich Patton Erlich Policastri to schedule a free half-hour consultation. Our attorneys are passionate about estate planning and have decades of experience handling complex estate planning matters, including wills and living trusts. If you are interested in developing an estate plan or reviewing your current estate plan, contact the experienced estate planning attorneys 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 detail general legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.
*Read the original article that inspired this post, after the jump: http://celebrity.yahoo.com/blogs/celeb-news/philip-seymour-hoffman-s-will-revealed–did-not-want-son-raised-in-los-angeles-220210762.html