If you plan to leave part of your estate to a minor beneficiary, there are several legal and financial considerations to keep in mind. In the eyes of the law, anyone under the age of 18 lacks the life experience, maturity, and decision-making skills to own and manage property and other assets for themselves, leaving them open to exploitation and potential losses from mismanagement and poor decisions. 

Inheriting assets directly could also impact a minor’s eligibility for some government benefits, such as Supplemental Security Income and Medicaid. These benefits have specific income limits, and assets in a minor’s name might push them over those limits, thus disqualifying them.

So what happens if a minor beneficiary inherits property or assets? If there is no other plan in place, a probate court would likely step in to appoint a guardian to manage the minor’s inheritance until they come of age. The probate process can be intrusive, time-consuming, and expensive, so it’s a good idea to take steps now to provide for your beneficiaries and protect their best interests, even if they are minors. 

Careful estate planning is key to ensuring that your wishes for the distribution of your assets  to your beneficiaries are followed after your death or if you become incapacitated. The most common approach for safely arranging to leave an inheritance for minor beneficiaries is by setting up a trust. Below, you’ll find descriptions of different types of trusts that might work for you and your family.

Setting Up a Trust

When you create a trust in your estate plan, the trust itself becomes the legal entity that holds the assets, rather than your minor beneficiary. In most cases, you will also designate a trusted individual, known as a trustee, to manage and distribute the assets on behalf of your beneficiary until they reach an appropriate age. 

Types of Trusts

There are a few different types of trusts to consider.

• Living, or revocable living trust – parents maintain control over the assets throughout their lifetime, which allows them to make modifications as needed for different circumstances.
• Irrevocable trust – ownership of assets immediately transfers to the trust and no alterations can be made. Although not as flexible, this type of trust does have some tax benefits and also might provide better protection of the assets involved.
• Special needs trust – for minors with special needs, this type of trust protects their best interests, provides for their future needs, and also helps them maintain eligibility for much-needed government benefits.

Talk to an Estate Planning Professional

Of course, you want what’s best for your family both now and in the future. If you haven’t made an estate plan yet, it’s important to get started as soon as possible. If you do have an estate plan in place, it’s a good idea to review and update it on a regular basis with the help of an estate planning attorney.

The Estate Planning Group at Lonich Patton Ehrlich Policastri has significant experience in the full range of legal services related to estate planning: drawing up wills, revocable living trusts, special needs trusts, administration of trusts, litigation, probate, etc. Don’t leave your family’s future to chance. Call us today at (408) 553-0801 to set up a free, no-obligation consultation to go over your estate planning needs.

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

Estate planning is all about leaving a legacy – allowing you to provide for the people and causes most important to you even after you’re gone. Having this plan in place now can give you much-needed peace of mind and also means you can explore different options for how you want to structure your estate to achieve the greatest possible positive impact. 

It’s best to work with an experienced estate planning attorney to ensure you understand all the legal complexities, tax benefits, and pros and cons of the various approaches you can take, but the following is a brief description of some of the most common methods of incorporating charitable giving into your estate plan.

Charitable Trusts

Setting up a charitable trust is a great way to provide for both your non-charitable beneficiaries (i.e., your family) as well as for the charity or charities of your choice. The most common type of charitable trust is a charitable remainder trust.

With this type of trust, you would transfer assets into an irrevocable trust that would pay income to your heirs for their lifetime or a designated number of years up to 20 years. After the death of the beneficiary (or the end of the term of years), the remainder of the assets in the trust would be donated to charity.

There are different types of charitable trusts that vary in the amount and the ways in which the principal is distributed. The type you choose will affect the relevant taxes (e.g., estate, gift, generation skipping, and income taxes), so it’s always a good idea to check with your financial advisor and an estate planning expert to accomplish your philanthropic goals while also reducing any negative tax impacts on your non-charitable beneficiaries.

Outright Gifts

One of the simplest ways to support the organizations you care about is by designating assets such as cash, stocks, or proceeds from the sale of property to be given directly to charity as part of your will. Some of the benefits of this option are that the gift can have an immediate impact while also providing some flexibility to you to make changes throughout your life, unlike with a charitable trust, which is irrevocable.

Donor-Advised Funds

If you are interested in a more long-term option, many people choose to establish a donor-advised fund for their charitable giving. Working with a public charitable organization, you contribute assets to set up a tax-free investment fund. With this option, you receive tax benefits immediately while also having the freedom to make recommendations for how the fund will be used to support causes important to you. The funds continue to grow tax-free, which means your contribution can have a significant impact over a longer period of time. 

Ready to Get Started?

The estate planning group at Lonich Patton Ehrlich Policastri has significant expertise when it comes to preparing trusts and other estate planning documents related to transferring wealth and charitable giving options. Call us today at (408) 553-0801 to set up a free, no-obligation consultation to discuss your long-term philanthropic goals. We can help protect your family’s future while also establishing your legacy of philanthropy.  

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

In the modern digital era, our online presence has become a crucial aspect of our daily lives. We gather a substantial collection of digital assets, ranging from social media profiles and online banking accounts to emails and digital photo collections. While these assets hold significant value during our lives, it’s equally essential to manage them properly after we pass away. This is where the concept of digital estate planning becomes important.

Understanding Digital Estate Planning

Digital estate planning involves organizing and managing your online presence and digital assets so that they can be accessed or handled after your death. This can include a wide range of assets such as:

• Social Media Accounts: Facebook, Twitter, Instagram, LinkedIn, etc.
• Email Accounts: Personal and professional email services.
• Financial Accounts: Online banking, PayPal, investment accounts.
• Digital Files: Documents, photos, videos stored on cloud services or personal devices.
• Online Subscriptions: Streaming services, e-commerce memberships, and more.

Without proper planning, these assets can be lost, inaccessible, or misused, causing additional stress to your loved ones during an already difficult time.

Why Digital Estate Planning Matters

Digital estate planning is important for several reasons, including: 

• Prevention of Identity Theft: Unmanaged digital accounts can become targets for identity theft. Ensuring that your accounts are properly handled after your death can prevent this.
• Ease for Loved Ones: Your family and friends may need access to your accounts to settle affairs, retrieve important documents, or simply to preserve memories.
• Legal and Financial Implications: Some digital assets may have significant financial value. Proper management ensures that these assets are transferred according to your wishes.

For these reasons, it’s important to consider digital assets when it comes to your estate planning. 

Steps to Effective Digital Estate Planning

When it comes to digital estate planning, there are a few steps you need to take: 

• Inventory Your Digital Assets: List all your digital assets, including account login information. This should include usernames, passwords, and any security questions/answers.
• Appoint a Digital Executor: Just as you would appoint an executor for your physical estate, appoint someone to manage your digital assets. This person should be tech-savvy and trustworthy.
• Provide Clear Instructions: Outline how you want each asset to be handled. For example, you may want your social media accounts to be memorialized or deleted, and your email accounts to be accessed and then closed.
• Use a Password Manager: A password manager can securely store your passwords and provide access to your digital executor when needed. Ensure your executor knows how to access the password manager.
• Legal Considerations: Include digital estate planning in your will. Specify your digital executor and provide them with the necessary authority. Be aware that some online platforms have their own policies regarding the management of accounts after death.
• Regularly Update Your Plan: As you create new accounts or change passwords, update your inventory and instructions. Digital estate planning is an ongoing process.

Digital Legacy Tools for Digital Estate Planning

Many online platforms now offer tools to manage your digital presence after death. For instance, Facebook allows you to designate a legacy contact who can manage your memorialized account. Google has an Inactive Account Manager where you can specify what happens to your account if it becomes inactive. These tools can simplify the process for your loved ones and ensure your wishes are respected.

Do you have any questions about digital estate planning? The Estate Planning Group at Lonich Patton Ehrlich Policastri is well versed in this area and can include your digital assets in all areas of our estate planning services. Get started today by scheduling your free consultation.

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

Moving to another state can be both exciting and challenging. Between buying a new house, settling kids into new schools, changing healthcare and insurance providers, and finding your favorite new restaurants, you’re juggling countless details all at once. One important detail you might not be thinking about, though, is your estate plan. 

Even if you have worked with an experienced attorney to put together a detailed estate plan, it’s always a good idea to review that plan any time you experience a significant life event like getting married, having a baby, buying or selling a home, receiving an inheritance, starting a business, filing for divorce, or moving to a new state.

Laws related to several aspects of estate planning (e.g., wills, estate taxes, probate, etc.) vary from state to state and can significantly affect the validity or execution of your established estate plan. Below, you’ll find some examples of specific areas of estate planning that should be reviewed by an estate planning attorney in your new state of residence.

Is an Out-of-State Will Valid?

Although a properly written and executed will should be considered valid from one state to the next, there could be some potential discrepancies that might interfere with the execution of the will and complicate and prolong the probate process. For instance:

• Many states recognize holographic, or handwritten wills, as valid, but others do not. 

• Some states have specific requirements about witnesses when a will is being executed for it to be considered valid. Many states require at least two witnesses, but some do not require any. Sometimes, the witnesses need to be “disinterested” (i.e., not a beneficiary). 

• Requirements about having the will notarized or being dated also vary from state-to-state.

State-Specific Tax and Property Laws

State-specific laws related to inheritance and estate taxes can vary widely. In fact, some states don’t have any inheritance or estate taxes. So, moving to a state that does have estate taxes could have a significant impact on your estate planning overall. You might need to restructure assets, including setting up or adjusting trusts and arranging for gifts and charitable donations to help minimize the tax impact.  

In addition, understanding whether your state of residence is a community property state or a common law property state might affect spousal and family inheritance rights and require some adjustments in how you structure your assets in your estate plan. 

Probate Process

The probate process can look very different across state lines. You will want to be prepared by knowing what the thresholds, court procedures, and requirements are for your state. Also, if you have designated an executor who does not live in your current state of residence, some states might require you to change to someone local who will be better able to administer your estate. Or, your designated executor might be unwilling to administer your estate in a new jurisdiction.

Get Help From Estate Planning Experts

If you have moved to California from another state, or if you are a California resident who has not yet gone through the estate planning process, the attorneys at Lonich Patton Ehrlich Policastri can help! We have years of experience in guiding clients through the process of preparing wills, setting up living trusts, assigning power of attorney, litigation, probate, and more. Call us today at 408-553-0801 to schedule a free 30-minute consultation to get started. Let our team help protect your family’s future.

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

Blended families, characterized by spouses bringing children from previous relationships into a new union, are increasingly common today. In fact, 40% of families in the United States are blended.

While these families often experience a wealth of love and a fresh start, they also face the unique challenges of this significant change in family dynamics. Estate planning is one area where balancing the financial needs and the emotional well-being of all family members can seem overwhelming.

However, with thoughtful strategies, it’s possible to create an estate plan that fosters harmony and ensures all loved ones are considered and cared for.

Understanding the Legal Rights of Blended Family Members

It’s crucial to understand California’s laws regarding spousal inheritance and the rights of children from previous marriages. Not having an estate plan can lead to significant and unintended consequences for blended families. 

Without a will, the state’s intestate succession laws come into play. The surviving spouse gets 100% of the community property. If the deceased spouse has assets from before the marriage and only one biological child, the spouse will get 50% of the separate property, and the child will get the other 50%. If there are two or more biological children, the spouse will get ⅓, and the children will evenly split the other ⅔ of the separate property.

Without a will, unless they were legally adopted, the stepchildren would receive nothing unless they can prove the relationship with their stepparent started when they were minors and continued throughout their lifetime, and the stepparent would’ve legally adopted them if possible.

Open Communication is Essential for Estate Planning

Open and honest communication is the foundation of effective estate planning in a blended family. Encourage a family meeting where all parties can express their concerns and desires. This transparency helps set realistic expectations, build trust among family members, and avoid conflicts and misunderstandings.

Utilize Trusts When Estate Planning With Your Blended Family

Trusts are incredibly versatile tools for estate planning in blended families. They allow you to specify precisely how and when your assets will be distributed. For example, a revocable living trust can provide for your spouse during their lifetime while ensuring that the remainder goes to your children after your spouse’s death.

Don’t Forget Life Insurance Policies in Your Estate Planning

Life insurance offers a straightforward way to provide for specific family members without altering the distribution of other assets. It can ensure that your biological children receive an inheritance directly, or it can provide for a surviving spouse without impacting your children’s inheritance. 

LPEP Law Can Help With Your Blended Family’s Estate Planning

To address the unique needs and dynamics involved, estate planning for blended families in California requires careful consideration and strategic planning. Our attorneys at Lonich Patton Ehrlich Policastri have the experience and expertise to create estate plans for blended families and can guide you through the process.

Contact us for a free consultation by calling (408) 553-0801. We will tailor a solution for your blended family.

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