Estate Planning Archives - Lonich Patton Ehrlich Policastri

Estate Planning: When Should You Begin?

August 16, 2022/in Estate Planning /by Michael Lonich

When should you begin starting your estate plan? The short answer is: if you’re reading this, it’s time. There are many misconceptions about the estate planning process and we are here to break it down so you don’t have to. While a portion of estate planning does refer to the management of any of your assets (including your house and retirement funds), that is not all an estate plan is for.

Estate plans can also be used to assign insurance beneficiaries, plan for funeral expenses, and establish guardianship over any living dependents. Keeping all of that in mind, it can be overwhelming to think about creating an estate plan. Making decisions for an estate plan is something that is easy to put off in favor of other, more pressing matters. However, an estate plan does not need to be created all at once and can easily be updated to reflect your priorities. Keep reading to discover when to begin estate planning and how to establish a timeline that is comfortable for you.

When to Begin Thinking About Your Estate Plan

The general rule for estate planning is “the earlier, the better.” Even if you do not consider yourself to have many assets, starting your estate plan as early as possible can save you time down the road. Assets to consider including in your estate plan at the start can be your bank account, any of your personal belongings, and a life insurance policy. Beginning your estate plan early makes it much easier to edit and add on to your estate plan as the nature of your assets change.

When to Make Changes

Estate plans cover vital information, so it makes sense that they can be changed to reflect your life situation. Significant life events, such as getting married, can be a great opportunity to reevaluate and update your estate plan. Updating your estate plan after having or adopting a child is also crucial. Estate plans include the ability to assign guardianship over dependents, allowing you to secure your child’s future. Buying property or switching jobs are also examples of events that are good triggers for estate plan evaluation. Major life events are not the only time you can update your estate plan, though. Making sure your plan is up to date prior to any large vacations or international travel is also a great idea. Evaluating and updating your estate plan frequently is an excellent way to make sure that all of your assets and loved ones are accounted for.

Estate plans are essential for ensuring that your decisions about your assets are known and respected. Estate plans are meant to be thorough and starting the process can feel daunting. At Lonich Patton Ehrlich Policastri, our experienced estate planning attorneys are here to guide you through creating an estate plan tailored to your needs. Call us at 408-553-0801 to get started today with a free consultation.

What Happens If I Don’t Do Estate Planning?

August 9, 2022/in Estate Planning /by Michael Lonich

No one likes to think about their mortality, but it is essential to plan for the future. It is tempting to put off creating your estate plan, but what happens if you wait too long?

Creating an estate plan is one of the most important things you can do for yourself and your loved ones. This document will dictate how your property is distributed after you die, and it can also provide instructions for health care decisions if you cannot make them yourself. If you don’t have an estate plan in place, it could lead to a lot of stress and confusion for your loved ones during a difficult time.

Elements of Estate Plans

An estate plan is a thorough a set of documents that may include a trust, Powers of Attorney, and advance directives. Each of these tools serves a different purpose, and they can all be customized to fit your unique needs.

A Power of Attorney (POA) can give someone the authority to make financial decisions on your behalf if you become incapacitated and an advance directive can outline your wishes for end-of-life care. Having a POA and an advance directive saves your loved ones from having to make critical decisions under stress.

Trusts are an effective way to plan ahead by letting another party (either a person or institution) manage assets for you. Establishing a trust can be more costly, but it is a way to ensure that your heirs will receive their inheritance without going through probate court. Probate is the legal process of transferring your assets to your heirs, and it can be both time-consuming and expensive.

You might be asking yourself, “Isn’t having a will enough?” While a will is an integral part of any estate plan, it is not the only component. A will only goes into effect after you die, and it can only address your assets that are subject to probate. In contrast, an estate plan can take effect while you are still alive, and it can cover all of your assets, including those that are not subject to probate.

How Do I Create an Estate Plan?

Creating a comprehensive estate plan requires more than just drafting a few documents. It involves taking a close look at your assets, liabilities, and family situation and then making strategic decisions about how to best protect your interests. Our experienced estate planning attorneys at Lonich Patton Ehrlich Policasti can help you identify and assess your unique needs and create a plan that fits those needs. We have years of experience making estate plans for people throughout San Jose and the greater Bay Area.

For a free consultation, fill out our contact form or call us at (408) 553-0801. No matter what your circumstances, we can help you create a plan that gives you peace of mind knowing that your loved ones will be taken care of after you’re gone.

Why Is Estate Planning Important?

July 19, 2022/in Estate Planning /by Michael Lonich

Oftentimes, estate planning can be misconstrued with needing to have a substantial amount of wealth – but that is not the case. Estate planning is a great way to make sure that your wishes are carried out regardless of your financial status. Protecting your assets and loved ones is essential in understanding the importance of estate planning and preserving your legacy.

Here are a few reasons why everyone, including you, should consider the importance of estate planning:

– It’s Not Just a Will

An estate plan is more than a will. While it is an avenue for people to understand how your assets should be handled, it is also much more than that. An estate plan can assist in helping your family understand what treatments you do, or don’t, want if you are unable to advocate for yourself. It is also a clear way to designate who should receive which of your monetary assets, including retirement accounts.

– It Saves Time and Money

Since the primary function of an estate plan is to provide instructions for beneficiaries, it can be hard to do so without one. If your estate plan does not exist, your assets can then be liable to distribution by the state. This can often involve the lengthy process of the state identifying your assets and then determining who they should belong to. Additionally, there are a lot of financial and tax rules that apply to assets once they no longer belong to you. Estate plans can help you navigate and understand taxes ahead of time so that the burden doesn’t fall on your loved ones. The only person who knows who your assets should go to is you. Making an estate plan saves those around you the mystery of what your wishes would be.

– It Protects Your Family

An estate plan allows you to have control, which means it can also help protect your family. Since estate plans provide a clear directive, it helps keep a lot of confusion away from your heirs. Reflecting on your assets and the people in your life that they should go to is a great way to keep things up to date. Without a directive, it can be difficult for those around you to understand what should go to who. Additionally, estate plans are a directive toward guardianship of children under the age of eighteen.

Get an Experienced Estate Planning Attorney on Your Side

While it can be difficult to think of the inevitable, by having an estate plan, you can feel confident that your wishes will be carried out. Estate plans put you in control, giving you the peace of mind that a decision has been made. LPEP law has helped hundreds of people like you to put things into perspective and understand the importance of estate planning. Our estate planning attorneys make the process as seamless as possible, guiding you every step of the way. When you’re ready, call us at 408-553-0801 to get started.

Do I Need a Trust to Avoid Probate?

June 29, 2022/in Estate Planning /by Michael Lonich

Very few people want to see an estate end up in probate. It is an expensive and lengthy process that requires a judge to validate and authenticate your will and name an executor. Creditors must then be notified and paid off before distributing your assets to the beneficiaries.

There are a few ways to prevent probate litigation, such as joint ownership and gifting some of your possessions to your loved ones while you are still alive. Another way to avoid probate is by establishing trusts.

What are trusts, and how can you set one up?

Types of Trusts

A trust is a legal arrangement in which one person (a trustee) manages property of another person (the beneficiary). Revocable, irrevocable, and testamentary trusts may be terms you have heard.

Revocable and irrevocable are living trusts that go into effect and are funded while the grantor is still alive. A testamentary trust is created through a will and does not take effect until after the grantor’s death.

Trusts can effectively manage your property and ensure it is distributed according to your wishes. But, each of them has its benefits and drawbacks.

Revocable Trusts

A revocable trust can be changed or terminated at any time by the person who created it, called the grantor. In addition to being a way to avoid probate, a revocable can be used to manage assets during the grantor’s lifetime, which can be helpful if the grantor becomes incapacitated.
Revocable trusts also have some drawbacks. Because the grantor retains control over the assets in the trust, they are still considered part of the grantor’s estate for tax purposes. Additionally, revocable trusts do not offer the same level of asset protection as irrevocable trusts.

Irrevocable Trusts

An irrevocable trust cannot be changed or terminated once created without the beneficiaries’ approval. This may seem like a drawback, but it provides some distinct advantages:
An irrevocable trust can help to protect assets from creditors. Once an asset is transferred into the trust, it becomes the property of the trust and is no longer subject to the claims of the grantor’s creditors.
It can help to minimize estate taxes. Assets in an irrevocable trust are not included in the grantor’s estate for tax purposes, so they are not subject to estate taxes when the grantor dies. An irrevocable trust can help ensure that assets are distributed according to the grantor’s wishes.
One common issue with irrevocable trusts is that they may not be able to be adapted to changes in the needs of the beneficiaries. For example, if a beneficiary develops a medical condition that requires expensive treatment, an irrevocable trust may not be able to be modified to provide for that need.

How to Navigate Estate Planning Concerns Such as Trusts and Probate

Due to the nuances of setting up a trust, you may want to consider working with an attorney. Our lawyers at Lonich Patton Ehrlich Policastri are experienced at crafting a variety of trusts. Call us at 408-553-0801 to schedule your free consultation.

Power of Attorney Duties after the Principal’s Death

June 14, 2022/in Estate Planning /by Michael Lonich

Power of attorney (POA) is a legal document that authorizes someone to act on behalf of another person. The person who designates power of attorney is the principal. The person acting on behalf of the principal is known as the agent.

This can be helpful if you need to delegate authority temporarily to manage finances, make medical decisions, or handle other legal matters when you are unable to act on your own behalf, such as during medical emergencies or extended travel abroad.

However, after the principal dies, a question often arises: who will handle their estate and manage affairs? The answer is a person with power of attorney doesn’t necessarily continue to manage the principal’s affairs after death.

Types of POA

If you are in a situation where you are considering granting power of attorney, you may be wondering what arrangement is most suitable. There are several common types of Power of Attorney designation:

General POA
General POA grants a designated agent the power to make decisions on behalf of the principal for a broad spectrum of matters, including banking transactions, sale or purchase of property, or contractual agreements. This should be used only in specific situations, as it grants extensive control to an agent to act on the principal’s behalf.

Durable POA
Durable Power of Attorney grants power to an agent if the principal becomes mentally incapacitated. This differs from other POAs, as typically, they are structured to end if you are mentally incapacitated. It’s important to note this doesn’t replace a conservator arrangement, as DPOA must be granted while the principal still has full mental faculties and cannot be granted retroactively.

Limited or Special POA
A limited POA allows a principal to grant power of attorney to an agent for use only in specific circumstances, such as cashing checks. Typically this type of POA is only granted for a set period or a particular task.

Medical Power of Attorney
Medical POA allows a principal to designate a specific health care agent to make medical decisions if they are incapacitated. This can include making decisions on medical treatments, surgery, life support, organ donation, and medical records release. An agent with medical POA also ensures a Living Will directive or Do Not Resuscitate order is carried out according to the principal’s wishes.

What happens after the principal’s death?

The validity of an assigned power of attorney expires in the event of the principal’s death. This means a person with POA of any kind can no longer act on behalf of the principal. A power of attorney order also cannot substitute or replace a will.

Once the principal has died, only a designated estate executor can manage the principal’s estate. A person with POA might also be the executor of a will, but it isn’t automatically assigned. Once the principal dies, their last will and testament will guide how their affairs should be handled. If they do not have a will, it falls to the courts to distribute any assets.

LPEP Law is Here to Guide You

If you have questions regarding power of attorney arrangements, reach out to the experienced team at Lonich Patton Ehrlich Policastri to discuss. Our team of seasoned family law and estate planning attorneys have years of experience in San Jose and the Bay Area and are ready to guide you to find the right solution.

Call 408-553-0801 or fill out our contact form to schedule a complimentary 30-minute consultation today.

How To Choose A Law Firm For Estate Planning

May 19, 2022/in Estate Planning /by Michael Lonich

No one wants to think about estate planning, but it’s a critical part of life. As you grow older, it becomes increasingly important to have a solid plan. A well-drafted plan can ensure your assets are distributed according to your wishes after you pass and help minimize the tax burden and emotional stress on your loved ones.

What to look for in a law firm

If you’re looking for a law firm to help you with estate planning, it’s crucial to select one with experience and expertise. When looking for a reputable firm, your local bar association or the Better Business Bureau is a great place to start. They will be able to tell you if there have been any complaints against the law firm.

Also make sure the firm you choose has experience in estate planning. Not all lawyers specialize in this area of law. Therefore, it is important to find a firm that is well-versed in all aspects of estate planning, including estate and trust administration, litigation, and probate, to ensure they can properly advise you.

After selecting a law firm, set up a consultation to ensure that you are comfortable with your attorney and feel confident that they can properly provide guidance and represent your interests.

What to expect during the estate planning process

Estate planning can be complex, but with the help of a knowledgeable lawyer, it doesn’t have to be daunting. The main components can include preparing a Last Will and Testament that outlines who will serve as the executor of your estate and designating your beneficiaries and what they will inherit. This document also outlines how your property and assets will be handled.

You may also want to set up a Durable Power of Attorney or POA, which allows designated agents – usually family members or close friends – to act on behalf of an incapacitated person if necessary. You can also designate a Healthcare Power of Attorney to authorize an agent to specifically make medical decisions if you cannot communicate your wishes in an emergency.

You may also want to consider setting up a Living Trust, which allows you to create a trust and transfer assets for your beneficiaries while you’re still alive, or a Living Will, which outlines your directives for how medical treatments should be handled if you are unable to advocate for yourself.

The importance of estate planning

Every person should consider having an estate plan in place in case something happens and they cannot make decisions for themselves. If you don’t have a plan in place, your loved ones may have to go to court to sort out your affairs. This can be a costly and time-consuming process, so it’s best to take care of this important task ahead of time.

LPEP can help

There are many firms out there, and it’s essential to choose the right firm for you. Our team at Lonich Patton Ehrlich Policastri has decades of combined experience navigating complex family law and estate planning cases in the Bay Area. We are ready to help you navigate your unique situation. Call us at 408-553-0801 to schedule a free consultation today.

What You Need to Know About California’s Durable Power of Attorney Law

May 10, 2022/in Estate Planning /by Michael Lonich

A durable power of attorney is a legal document that allows an individual to appoint someone else to make decisions on their behalf if they can no longer do so themselves.

However, California has specific criteria for a durable power of attorney to be legally binding. You will want to make sure you understand those requirements so that you or your loved ones won’t find yourselves facing a legal battle.

What is a Power of Attorney?

When creating an estate plan, you will want to appoint someone as your power of attorney. That person will be able to make decisions on your behalf if you are incapacitated and unable to do so yourself.

There are several types of powers you can appoint to someone, such as:

General power: allows the designated person to act on your behalf in any matters permitted by California law.
Limited power: the appointee can only act on your behalf in specific situations spelled out by you.
Durable power of attorney (DPOA): controls certain areas designated by the terms of the agreement, even if you become mentally incapacitated.
Healthcare power of attorney (HCPA) or healthcare proxy: makes decisions regarding your medical care if you cannot do so.
Financial power of attorney: you assign someone to oversee your assets and make payments on your behalf.

Does California Have Any Legal Requirements For Durable Power of Attorney?

California requires certain criteria for a durable power of attorney to hold up in a court of law.

First, both the principal person and the appointee must be legal adults. The person appointed as DPOA can not be affected by the principal’s incapacitation, and the POA does not go into effect until the principal becomes incapacitated.

To be legally binding, a DPOA must be signed by two witnesses (the principal can not be one of the witnesses) or be dated and acknowledged by a notary public.

What Are Some Things to Consider When Choosing an Agent to Act as a DPOA?

There are a few things to consider when choosing an agent under California’s durable power of attorney law. First, you’ll want to choose someone you trust implicitly to make decisions on your behalf. This person will have a great deal of power over your finances, so it’s essential that you select someone responsible and level-headed.

Finally, be sure to discuss your wishes with your agent in advance so they are clear on what you expect from them.

Planning for the Future

When it comes to planning for the future, you want to make sure you are getting the best legal advice. Our lawyers at Lonich Patton Ehrlich Policastri have years of experience and will guide you in making tough decisions about your future. We can discuss how much authority you want to give your durable power of attorney and ensure they carry out your wishes.

If you live in San Jose or the greater Bay Area, schedule your free consultation or call us at 408-553-0801.

What Are The Components To Include In An Estate Plan?

April 26, 2022/in Estate Planning /by Michael Lonich

When most think of an estate plan, they typically consider it something that is only for the wealthy, but that couldn’t be further from the truth. An estate plan is an important part of any individual or family’s financial security. It determines how your assets will be distributed after your death and can also dictate who will handle your affairs if you are incapcitated. Understanding the components to include in an estate plan is vital to making sure your wishes are carried out properly.

Important Components to Include in an Estate Plan:

Wills and Trusts
One essential part of an estate plan is the will, a legal document that details the distribution of your assets after your death. This includes things like property, money, and possessions. You will also want to have a trust that will allow someone else to manage your assets on your behalf. A trust can be helpful if you cannot handle your own affairs or if you want to provide for someone after your death.
Powers of Attorney
A power of attorney is a legal document that gives someone else the authority to make decisions on your behalf. You can give someone power of attorney for financial matters, healthcare decisions, or both. Powers of attorney can be revocable, meaning you can cancel them at any time, or irrevocable, meaning they cannot be canceled. If you become incapacitated without a power of attorney in place, your family will have to go to court to get the authority to make decisions on your behalf. You should appoint someone you trust to act on your behalf, and you should review your power of attorney regularly to make sure it still meets your needs.
Healthcare Directives
A healthcare directive allows you to specify your wishes for medical treatment if you cannot make decisions for yourself. You can use a healthcare directive to appoint a healthcare agent to be responsible for making decisions on your behalf and specify your preferences for medical treatment, including end-of-life care. If you do not have a healthcare directive in place, your family won’t know what you want and will have the make difficult decisions.
Beneficiary Designations
Beneficiary designations determine who will receive your assets after you die. You can name individuals, charities, or even trusts as beneficiaries. It’s important to carefully consider your beneficiary choices, as they can significantly impact your estate taxes.
Letter of Intent
A Letter of Intent spells out your wishes for your estate in the event of your death or incapacity. It can include instructions for dividing your assets, funeral arrangements, and any medical directives you may have. While it is not legally binding, a Letter of Intent provides valuable guidance to your loved ones during a difficult time.

Why You Need an Estate Planning Attorney

Creating an estate plan requires a lot of legal paperwork, and when it comes to your assets, you don’t want to leave anything to chance. Our attorneys at Lonich Patton Ehrlich Policastri will work with you to create a solid estate plan that will give you peace of mind.

If you live in San Jose or the greater Bay Area, contact us for a free consultation by calling (408) 533-0801.

What Is The Goal Of Estate Planning?

April 4, 2022/in Estate Planning /by Michael Lonich

Estate planning is a necessary process that everyone should undertake. You can ensure your assets are distributed according to your wishes and that your loved ones are taken care of by creating an estate plan. This topic may seem morbid to think about, but it’s essential to have a plan in place so that your loved ones don’t have to worry about it later on.

In this article, we will discuss how estate planning can help you achieve your goals.

What Is The Difference Between A Will And An Estate Plan?

Many people draw up a will and think they have completed their planning. However, having a will and having an estate plan are two different things.

A will is a legal document that dictates guardianship of your minor children and distribution of your belongings upon your death.

An estate plan is more detailed. It includes your will, but it also involves trusts, power of attorney, healthcare directives, and more. Basically, it determines how your assets will be managed upon your death or incapacitation.

Estate Planning Objectives

There are four main objectives when preparing an estate plan:

Protect your beneficiaries
If you die without a will, the court will decide how to disburse your assets. An estate plan allows you to designate who receives what. It also prevents long, drawn-out court battles between family members, which could become expensive and lead to family turmoil.
Protect your children
In a perfect world, you will live long enough to watch your children and grandchildren grow up. Nobody expects to die young. However, an essential part of an estate plan is preparing for the event that both you and your spouse may die while your children are still minors. You will want to ensure that your children are provided for, both financially and in terms of legal guardianship.
Protect your loved ones from significant tax liabilities
Estate planning allows you to manage your assets to minimize federal inheritance taxes while you are alive.
Protect yourself
An estate plan will give you the opportunity to discuss naming a Power of Attorney and how someone will manage your assets in the event you become incapacitated. You can also arrange for a Living Will to discuss advance directives and name a health care proxy to make medical decisions if you cannot do so.

How to Get Started on Your Estate Plan

It can be overwhelming to try to figure out everything on your own. As with any legal document, it is important to consult with an attorney when creating an estate plan. Your attorney can help you create a plan that meets your specific needs.

If you live in northern California, contact one of the Estate Planning Attorneys at Lonich Patton Ehrlich Policastri. Our legal team has years of experience helping people with estate planning and making the crucial decisions regarding their assets. Call us at 408-553-0801 to schedule a free consultation.

Why is Estate Planning Important for Families?

March 22, 2022/in Estate Planning /by Michael Lonich

No matter your age or financial status, you can always benefit from having an estate plan for your family. While it’s difficult to think of what will happen in the event of premature death, estate planning will remove the stress on your family while receiving your possessions.

If you want the best for your spouse and children, you should develop a comprehensive plan. There is more to estate planning than your assets, so learning the various documents in an estate plan is necessary.

This article will cover what estate planning is and why it’s so important for your family.

What is Estate Planning?

When hearing the word “estate,” you may picture a large mansion with numerous cars. However, an estate is considered everything you own–such as your property, investments, cars, bank accounts, and other personal possessions.

By creating an estate plan, you will develop a detailed plan on where these possessions will go in the event of your death. Without a plan, the decisions will be made by state law and probate courts.

In many cases, the decisions made by courts don’t reflect your family’s needs and true desires. For the benefit of your family, you need to develop a plan that includes the necessary documents.

Most estate plans for families include the following documents:

Will/Trust
Durable Power of Attorney
Beneficiary Designations
Letter of Intent
Healthcare Power of Attorney
Guardianship Designations

Estate Planning Saves Time and Avoids Taxes

When you don’t have an estate plan, your family will need to wait an extended period to receive your belongings. As the probate courts determine what to do with your items, your assets remain frozen.

This legal process is incredibly time-consuming and can take months or even years to complete. If you want to save your family the headache and stress of this, you should create a will and list the beneficiaries to your investment accounts.

An estate plan will also reduce the tax burden on your family. Fortunately, California has no state estate or inheritance tax that affects heirs. You will still need to pay the federal estate tax and income tax, with an estate plan helping to reduce the burden.

Protect Your Children with Estate Planning

Estate planning is more than determining who receives your investment accounts. If you have young children, you can name who their guardian will be in the circumstance you and your spouse pass away.

While this situation is uncomfortable to think about, you can have peace of mind knowing they will be taken care of by someone you trust. By not including this in your estate plan, the courts will determine your children’s guardians.

Develop the Ideal Estate Plan for Your Family

If you want to ensure your family is protected, you need the help of an experienced team that specializes in estate planning. Our law firm will develop the ideal estate plan for your unique needs. Contact us today at 408-553-0801 for a free consultation!