Do you have a plan for who will care for your pets after your death or if you become incapacitated and unable to care for them yourself? Many people assume that friends or family will volunteer to adopt their pets, but the reality is that many pets go unclaimed instead. Even if you’ve included instructions in your will to appoint a caregiver, it can sometimes be difficult to enforce your wishes legally.

So what’s the best way to provide a secure future for your beloved pets? Consider a pet trust.

What is a Pet Trust? 

A pet trust is a legally-enforceable agreement that allows you to designate a caregiver, set aside funds, and set out specific instructions for the care you want your pet to receive until their death. 

What to Include in a Pet Trust

We’ve put together the following tips to help you think about what to include in your pet trust.

Caregiver

The named caregiver will be the person who takes physical custody of your pet and becomes responsible for their daily care. Choose someone you trust but also someone who is both willing and capable of caring for your pet long-term. Have an honest conversation with them before assigning them as the caregiver and have a backup in mind in case your first choice cannot fulfill this role.

Trustee

Designate a separate person (or organization) to manage the money in the trust and make sure it is used appropriately for the care of your pet. Friends or family members can be good choices but you can also consider an attorney or even a non-profit organization that specializes in pet stewardship.

Funds

Set aside enough money to cover care costs for as long as your pet lives. Some people fund their trust through savings, a life insurance policy, or by selling property or other assets. It can be helpful to work with an estate planning attorney to make sure your method of funding the pet trust doesn’t conflict with your will and the rest of your estate plan.

When estimating the costs of care, think about food, veterinary visits and potential emergency care, grooming needs, medication, boarding or pet sitting, and burial or cremation. Try to factor in inflation and also think about how long you think your pet might live. Some species or breeds have specific health problems or shorter or longer lifespans. Do some research online or talk to your veterinarian to help you with estimates. 

Detailed Care Instructions

You know your pet best. Include as much detail as you can to help your chosen caregiver know exactly what your pet needs. Instructions should include things like:

• Diet and feeding schedule
• Any known health conditions
• Medications
• Behavior quirks and history
• Routines
• Preferred veterinarians
• Exercise needs
• Pet sitters or boarding facilities

Consult with an Estate Planning Professional

Establishing a pet trust can give you much-needed peace of mind that your beloved companion will be well-taken care of when you are no longer able to do so. The Estate Planning Group at Lonich Patton Ehrlich Policastri (LPEP Law) can guide you as you make the necessary decisions to set up your pet trust and incorporate it into your estate plan. Schedule your free, no-obligation consultation to get started today.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

Although it’s not the most comfortable topic, it’s important to plan for the future even if you are young and in great health. Many people put off writing a will, but drafting a comprehensive will and testament is an important step in making sure your wishes are carried out if you die or become incapacitated. Without a will, important decisions such as who will care for your minor children or who receives your assets might be left in the hands of the court. So how do you create a comprehensive will and testament? Consider the following tips:

Choose an Executor

An executor will be responsible for making sure the terms set out in your will are carried out appropriately. Since they will be managing your financial affairs, choose someone trustworthy who is capable of handling your estate and is willing to accept this role. It’s probably a good idea to name an alternate executor as well in case your first choice falls through.

Make a Detailed List of Assets

Assets are things that you own that have value such as real estate, financial accounts (e.g., bank accounts, stocks and bonds, retirement funds), personal property (e.g., car, boat, jewelry, heirlooms, art), cash, and business assets. Don’t forget to account for your virtual and digital assets as well. 

Designate Beneficiaries

How do you want your assets to be distributed? Be specific about the amount (or items) you want each individual, organization, or charity to receive. The more detail you can provide, the less chance for confusion and conflict.

Appoint a Guardian for Minor Children

For parents with minor children, one of the most important things to include is your choice of a guardian who will take care of them in your stead. Of course, you will choose someone you trust, but, if possible, try to find someone who has an existing (and good) relationship with your children. Make sure the person is willing and able to perform these duties in the long term.

Address Debts and Expenses

Your executor will use the assets in your estate to pay off any outstanding debts like mortgages, loans, credit card bills, medical bills, etc. However, it can be helpful to list your debts and expenses in the same way that you listed your assets to ensure that everything is covered and your beneficiaries will not be subject to creditors or legal action. 

Sign Your Will Properly

Make sure you understand your state’s laws regarding wills. To be legally binding, your will needs to be signed by you and at least two disinterested adult witnesses (i.e., not beneficiaries). In some states, the witnesses must sign in your presence while other states accept a signed affidavit.

Consult with an Estate Planning Attorney

Although there is software available to help you write a will, it’s always a good idea to talk to a legal professional. They can help you consider tax implications as well as estate planning tools that might be best for your situation such as a special needs trust, a living will, healthcare directives, power of attorney, and more. Your estate planning attorney can also safely store your will for you and set up regular reviews and updates to account for major life changes like getting married or having a child.

Schedule a free consultation with the estate planning group at Lonich Patton Ehrlich Policastri to get started on planning your future today!

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

Anyone who has assets should have an estate plan. In some cases, estate planning for LGBTQ+ couples can be even more important to make sure that your wishes with regard to distribution of assets, guardianship of children, and healthcare and medical decisions are honored. Below, we’ll go over some specific legal considerations that LGBTQ+ couples should consider and unique challenges that you might face when it comes to estate planning. 

Marital Status and Legal Rights

Although same-sex marriage is recognized legally at the national level, some states might not automatically recognize the rights of same-sex partners, especially when it comes to healthcare decisionmaking, inheritance rights, joint ownership of property, and tax benefits for spouses. In some places, LGBTQ+ couples are limited to civil unions or domestic partnerships. Although these statuses offer some protection and benefits, they might not be as robust as couples would like, so it’s vital to clearly document what you want using the legal documents discussed below.

Wills and Trusts

One of the first things to think about in estate planning is creating a will. List all of your assets and debts and how you would like everything to be distributed. For LGBTQ+ couples, a detailed will is especially important if you have children from a prior relationship, if you are unmarried, or if your family members do not accept your relationship. Clearly state who the beneficiaries are and what they should receive. Note that you should also designate your partner as your primary beneficiary on life insurance policies, retirement accounts, and other financial assets to ensure these benefits do not default to a biological family member.

You might also consider establishing a trust to help protect your assets and ensure that your partner is able to inherit directly without any legal issues or familial conflict. Trusts can also sometimes provide tax benefits and protect assets from creditors and the probate process.

Guardianship Provisions

For LGBTQ+ couples with children, it is important to establish legal parental rights, especially for the non-biological parent of stepchildren or for both parents if the children are adopted. This legal recognition means that both partners have custody and guardianship rights, which can protect against potential challenges from biological family members after the death of one of the partners. In addition, you can appoint a guardian for your minor children (including biological, adopted, and stepchildren) in your estate plan to clearly set out your wishes.

Healthcare Directives

Consider establishing a healthcare proxy or power of attorney for your partner. In some cases, without this provision, your partner might not be legally able to make necessary medical decisions for you if you become incapacitated. If you prefer, a living will can also specify your preferences for medical treatment if you become unable to communicate, which could become important if you are concerned that your family members might not recognize your partner’s role in your life.

Work with LGBTQ+ Estate Planning Experts

Clear, detailed, legally enforceable estate planning documents can help protect your partner and your family and minimize the risk of legal challenges from unsupportive family members. Given the unique challenges that LGBTQ+ couples might face, it’s a good idea to work with estate planning attorneys who are well-versed in these issues. The estate planning group at Lonich Patton Ehrlich Policastri can guide you through the estate planning process and help you navigate difficult and emotional decisions. Call us to schedule a free consultation today. 

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter. 

Estate planning used to be about deciding who got the house and inheritance money, choosing a guardian for our children, and making sure our final wishes were respected. As more of our business, our assets, and our lives moves online, however, it’s changing the way we have to think about estate planning. Digital wills and online estate planning have grown in importance over the past several years, so we’ve put together the guide below to help you better navigate this new reality.

What is a Digital Will?

Like a traditional will, a digital will is a legal document outlining how you would like your assets managed after your death. Unlike a traditional will, however, a digital will deals solely with your digital assets or estate and your online presence. You might choose to have your executor close and archive these accounts, transfer information to family members or others, preserve certain files, create a legacy account or website, or delete information.

Who Needs a Digital Will?

The short answer is that anyone who has digital assets, maintains an online presence through social media accounts, or conducts business online should have a digital will. Digital assets include cryptocurrency and nonfungible tokens, but can also include things in digital form that have value like books, photographs, animations, videos, email accounts, logos, gaming accounts, etc. 

What To Include in a Digital Will

Being as thorough as possible when you identify digital assets and accounts that need to be managed after your death is essential. Consider including the following:

Appoint a Digital Executor

Choose someone you trust to handle your digital assets. They should be familiar with your online presence and also have access to passwords and login information.

Inventory of Digital Assets

List all your online accounts (email, social media, financial services like PayPal, gaming, subscription services, etc.) along with login information. Investing in software that serves as a password manager that safely stores all of this information might be a good idea. If you have cloud storage services for videos, documents, or photos, include this information as well. For cryptocurrency or digital wallets, include instructions for accessing these accounts.

Instructions for Digital Property and Online Presence

What do you want to happen to your personal media like photos and videos, websites, blogs, digital content, domain names or logos, or online businesses? Should some media be deleted or transferred? If you sell goods online (e.g., Etsy, Amazon) note how you want your business to be handled.

For your social media accounts, you can have them deleted, memorialized, or actively managed by a designated executor. Email accounts can be archived, deleted, or transferred to someone else. If you have other messaging platforms like WhatsApp, be sure to indicate what you want to happen with these accounts as well.

Get Help With Your Digital Will

It’s always a good idea to consult with an estate planning attorney to make sure your digital will complies with state laws. In addition, some online services specifically include terms of service that address what happens to accounts after death, so be sure to consider those as well.

Schedule a free consultation with the Estate Planning Group at Lonich Patton Ehrlich Policastri to go over all your estate planning needs, including drafting your digital will.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

Nobody 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.

1. You can gift up to $19,000 per person annually without incurring a gift tax. This can significantly reduce your taxable estate.
2. Gifts of paying for someone’s tuition or medical expenses may be exempt from the gift tax.
3. You have the opportunity to help loved ones when they need it the most.
4. You can see the impact your gifts have on the recipients’ lives.

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.