Creating an estate plan is vital to providing financial security to your loved ones, establishing generational wealth, and ensuring your final wishes are carried out. When we consider our estate plan, we tend to think in terms of physical assets, such as real estate and personal property. 

However, as technology evolves, many of our assets only exist in a virtual world. Therefore, it only makes sense to establish an estate plan that covers our digital assets in addition to our physical ones.

What Are Virtual Assets?

Virtual assets are non-physical assets that can be traded or transferred digitally. They can be used for payment or investments. Examples of virtual assets include cryptocurrencies, such as Bitcoin or Ethereum, virtual goods in online games, digital arts, and other forms of digital property that are representations of real-world assets.

The value of virtual assets can fluctuate significantly and is often determined by factors such as demand, scarcity, and utility within their respective digital ecosystems.

Why Should You Include Virtual Assets in Your Estate Plan?

Virtual assets can hold both sentimental and monetary value. Including them in your estate plan ensures a comprehensive valuation of your wealth after you pass away. If they have significant value, such as cryptocurrency or frequent flyer miles (depending on the airline’s policy), they can help ensure your beneficiaries benefit from them.

You can also help preserve your legacy by having a plan to distribute NFTs, digital art, and other online content.

Some digital assets, such as social media, email, and online banking or payment accounts, are often tied to personal information and can hold financial benefits. If they are not included in your estate plan, there is the risk that they will be inaccessible after your death and lose any value.

Last, unmanaged digital assets can increase the risk of identity theft and fraud. Cybercriminals can exploit inactive user accounts, leading to potential financial and reputational damage.

Creating a Digital Estate Plan

Here are some steps you can take to ensure your digital assets are properly included in your estate plan:

1. Make a comprehensive list of all your digital assets. This includes online financial accounts, email accounts, social media profiles, digital collections (music, e-books, photographs), blogs, and cryptocurrencies.
2. For each digital asset, list the necessary access information. This might include usernames, passwords, security questions, and other required details for login.
3. Specify what you want done with each virtual asset. Do you want them transferred to another person, closed, or maintained? Would you like your digital collections downloaded and given to a specific person?
4. Your virtual assets will likely change and grow over time. Regularly review your inventory and update your estate plan to ensure nothing is left out.

Creating a digital estate plan to safeguard your virtual assets can be challenging. California’s Revised Uniform Fiduciary Access to Digital Assets (RUFADAA) allows for the management and disposition of your virtual estate. However, the laws are complex, so it’s best to discuss your estate plan with one of our attorneys at Lonich Patton Ehrlich Policastri. We have the expertise you need to create an estate plan that covers your physical and virtual assets. 

Contact us for a free consultation by calling (408) 553-0801. We will work with you to create a complete estate plan that ensures the fulfillment of your wishes.

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

Estate planning ensures that your wishes, with regard to all your assets, are carried out after your death or if you become incapacitated. When most people think about estate planning, their minds immediately go to their tangible assets – house, car, jewelry, business, savings account, etc. For artists and other creators and innovators, though, estate planning should also extend to intangible assets like intellectual property and protecting the legacy of your artwork. 

Your intellectual property and artwork are unique assets that deserve special consideration. The following are some things to consider and some steps you can take to help make the process easier for your beneficiaries, minimize future legal issues, and preserve your legacy as you see fit. 

Choose A Reliable Executor

One of the most important decisions you need to make is who will be responsible for administering your estate on your behalf. When your estate includes artwork, it can be helpful to choose someone with expertise in this area. Certain intellectual property, especially patented ideas or products, require some maintenance like paying fees or re-filing with the U.S. Patent and Trademark Office after expiration. Your spouse, children, or other beneficiaries might not be equipped to keep up with the necessary paperwork and maintenance. 

Prepare Your Portfolio

To properly account for all of your creative assets, create a detailed inventory of your work. Be sure to include digital art, music, written works, photography, ceramics, paintings, etc. Make a note about where all of your art is located, including if it is publicly displayed, and how to access it and all related documentation (i.e., contact information of curators, passwords, keys, codes, files, etc.).  

If you have not already done so, have a professional appraise the value of your artwork. Once you know the monetary value, insure your artistic assets as well. Don’t forget to make a special note about any artwork that generates royalties for your estate.

Make sure that your chosen executor, as well as your spouse, your attorney, or anyone else you choose, has access to the catalog of your work, the appraisal, relevant documentation, and information about how to access your assets.

Consider Your Legacy

Some questions to think about as you consider your legacy include: 

• How do you want to be remembered? 
• What type of legacy and impact do you hope your art will have on the world at large and in the arts community? 
• Do you want to donate your works to charity or use them to set up a charitable fund for aspiring artists? 
• Should any income generated be used solely to support your family? 
• Who should control how your work is distributed in the future? Should it stay in the family?  
• Would you want any of your unfinished work to be completed by another artist? If so, who?

While it’s never easy to think about the end of our lives, having a plan in place can give you much-needed peace of mind that your legacy and your family will be protected in your absence.

Consult With An Estate Planning Expert

The attorneys at Lonich Patton Ehrlich Policastri (LPEP Law) have a wealth of experience in estate planning, estate and trust administration, litigation, and probate. They can guide you through this complicated process and go over all your options to determine what’s best for your unique situation, including minimizing the taxes on your estate and maximizing charitable benefits, especially if you choose to donate your art. Get started today. Schedule your free, 30-minute consultation with the experts at LPEP Law by calling (408) 553-0801. 

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

For many couples, domestic partnerships have emerged as a modern, refreshing alternative to a traditional marriage. Whether you’re a same-sex couple seeking legal recognition or a pair looking to solidify your union without the formality of marriage this article will teach you the basics of domestic partnerships in California. 

What is a domestic partnership?

A domestic partnership is a legally recognized relationship between two individuals who have chosen to live together and share their lives without entering into a formal marriage. While the specific rights and benefits associated with domestic partnerships can vary depending on the jurisdiction, they generally provide a legal framework for committed couples to enjoy many of the same privileges and protections that married couples do. 

Domestic partnerships are often sought by individuals who want to solidify their relationships without the formalities and expectations that marriage entails, or by same-sex couples in places where marriage equality has not been fully realized. 

What are the benefits of a domestic partnership?

Entering into a domestic partnership offers a range of benefits, which can vary based on the specific laws and regulations of your state. While the advantages may differ, here are some common benefits associated with domestic partnerships:

• Legal recognition of your relationship
• The option to share or combine healthcare benefits
• Certain tax advantages and benefits, such as joint tax filing and deductions
• The right to inherit property and assets in the event of your partner’s death
• Legal parental rights and responsibilities, including custody and visitation rights
• Immigration benefits or a pathway to legal residency
• Simplified dissolution in some cases, compared to divorce proceedings

Because the specific benefits and requirements of domestic partnerships can differ significantly depending on where you live, it’s essential to consult with legal professionals in your area to understand the full scope of benefits and responsibilities associated with domestic partnerships. 

How to obtain a domestic partnership in California

California has been a trailblazer in recognizing domestic partnerships, offering legal recognition and benefits to couples in various types of committed relationships. In California, you must meet certain eligibility criteria to enter into a domestic partnership. Both individuals must be at least 18 years old and not married or in another domestic partnership. There are no restrictions based on gender.

As long as you and your partner meet the eligibility criteria, you can complete the necessary forms and file them with your county clerk’s office. Once your forms are submitted, they will be reviewed and processed by the county clerk’s office. This may take several weeks, so be prepared for some waiting. Upon approval, you will receive a domestic partnership certificate, which serves as legal proof of your partnership. 

Contact LPEP for expert legal assistance

California’s recognition of domestic partnerships demonstrates a commitment to providing legal protections and benefits to a diverse range of couples. However, the specific requirements and procedures may change over time, so it’s crucial to seek legal assistance before you get started.

At Lonich Patton Ehrlich Policastri, we specialize in assisting our clients to obtain domestic partnerships and representing same-sex couples and others who have entered into domestic partnerships. Contact us here or call (408) 553-0801 to schedule your free consultation. 

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

If you have taken the time to create an estate plan, then you understand the importance of ensuring your family’s financial security after you have passed away. You have taken the necessary steps to enable your assets and estate to be passed on with minimum complications and taxes. 

However, in recent times, new laws and regulations are changing how individuals prepare for the future.

One law that has caught people’s attention is the Corporate Transparency Act (CTA) and how it may impact their estate plans. Understanding the purpose of the CTA and its implications can help you decide if you need to revise your estate plan.

What is the Corporate Transparency Act?

The Corporate Transparency Act was signed into law in January 2021. The purpose of the act is to enhance the transparency of corporate entities and prevent illicit activities such as money laundering, financing terrorists, tax evasion, and other illegal financial acts.

Starting January 1, 2024, many companies in the United States will need to disclose information to the Financial Crimes Enforcement Network (FinCEN) regarding beneficial ownership, the individuals who actually own or control the company. Both new and existing businesses will need to comply, and the reports will be stored in a secure, non-public database that will only be accessible to authorized government agencies and law enforcement.

How Does the CTA Affect Estate Planning?

The Corporate Transparency Act doesn’t just affect corporations. It is expected to have a significant impact on real estate holdings, asset protection planning, and estate planning. Many people use Limited Liability Companies (LLCs), corporations, and partnerships in estate planning for privacy and asset protection. With the Corporate Transparency Act’s new reporting requirements, these entities will face increased scrutiny, thus affecting the privacy the beneficial owners once had.

Additionally, trusts that have beneficial ownership in a business may need to comply with the Corporate Transparency Act disclosure regulations.

And, while the Corporate Transparency Act itself doesn’t directly affect tax laws, it could have indirect tax implications in relation to estate planning. Specific estate planning strategies are aimed at minimizing tax liabilities, and the new reporting requirements could influence how trusts are used in asset protection.

What Should You Do?

If you have an estate plan that involves an LLC or another entity covered by the Corporate Transparency Act, it’s essential to understand the implications of this new law and how it will impact your existing structures. Our attorneys at Lonich Patton Ehrlich Policastri can assist you. You may need to restructure assets, revise trust agreements, or explore other options for wealth preservation. We have significant experience working with individuals on estate planning and asset protection planning throughout San Jose, Silicon Valley, and the Greater Bay Area.

Contact us for a free consultation by calling (408) 553-0801. We can discuss how we can guide you through the complexities of the CTA while still achieving your estate planning goals.

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

Did you know that less than half of all Americans surveyed currently have a will? It’s easy to understand why. It can be uncomfortable to think about the end of your life or what will happen to your family when you’re no longer there to provide for them. But having your will in place is one of the most important things you can do to protect your loved ones’ future. 

Everyone should have a will no matter the size of your estate. Without one, a probate court will end up making important decisions about who inherits your property or money, and who will take care of your children after your death. Having a will in place, on the other hand, ensures that your wishes are carried out.

So how much does it cost to make a will? That depends on a few different factors, such as how you choose to draft it, where you live, and the size and complexity of your estate. The following is a discussion about some of the options available to you when drafting your will and how much you can expect to pay for each. 

Write a Holographic Will

A holographic will is another name for a completely hand-written will that you draft yourself. Online templates and software are available to walk you through the process and give you a better idea of what you need to include. Although this option might sound appealing at first because it’s free (aside from a small fee to have it notarized), not all states accept holographic wills as valid. Unless you have legal experience and are familiar with the laws in your state, it can also be easy to make mistakes or omit important information, which might complicate things for your designated beneficiaries. 

Use an Online Legal Service

Several online services exist that will charge a fee ranging anywhere from $50 to around $200 to draft your will. Although you might have access to trained specialists to help you, these documents usually rely on you filling out an online questionnaire that might not fit your specific situation or needs.

Hire an Estate Planning Attorney

While hiring a professional is the most expensive option, it is often worth the extra money for the peace of mind of knowing that your legal document is valid and error-free. In addition to familiarity with the laws in your state, a good estate planning attorney will also be able to walk you through all your options and consider alternatives you might not be aware of, like a living will. 

Depending on where you live, you might pay as little as $300 to as much as $1,000. Generally speaking, if you live in an area with a higher cost of living, attorney fees will also be higher. Attorney fees can also be affected by how complicated your needs are. For instance, if you have a large estate with a lot of assets, if you have several beneficiaries to consider, if you have a special needs child, if you own a business, if you are divorced, etc., it might take longer for you and your attorney to work through all the issues to your satisfaction, resulting in higher fees. At the end of the day, though, knowing that you and your loved ones don’t have to worry about the future is worth it.

Consult the Experts at Lonich Patton Ehrlich Policastri

At Lonich Patton Ehrlich Policastri, we have decades of experience in helping our clients draft wills to ensure their wishes are clearly set out and will stand up in court. Our estate planning attorneys can also work with you to update your will after a major life event like the birth of a child, buying or selling a house, starting a business, getting divorced, or coming into an inheritance. Call us today at 408-553-0801 to schedule a free consultation. We look forward to working with you to protect your family and your future.

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