The Importance of Updating Your Estate Plan: Avoiding Pitfalls and Ensuring Effectiveness

/in /by

You likely already understand the importance of creating an estate plan. Having a will, trust, power of attorney, and advanced health directives provides peace of mind to you and your family that your affairs will be managed in the event of death or incapacitation. 

For many of us, making an estate plan allows us to check one item off our never-ending to-do list. However, keeping it updated is just as important. After all, life changes, and so should your estate plan.

Life Events That Affect Your Estate Plan

Throughout your life, you will experience significant events. You may experience all of them or just some, but these are the ones that will require you to review and update your estate plan.

Marriage

Getting married changes your legal and financial status. You may want to update your estate plan to include your spouse in your will, designate them as a beneficiary, grant them power of attorney, or name them as your healthcare proxy.

Divorce

Just as getting married affects your estate plan, so does getting divorced. You’ll likely want to remove your ex-spouse from your will, trusts, power of attorney designations, and any beneficiary designations on life insurance policies or retirement accounts.

Birth or Adoption of a Child

The arrival of a new family member is a cause for celebration and an important time to update your estate plan. You may want to name a guardian for your minor children in the event of an untimely death, set up trusts for their future, and ensure they are included in your will and added as beneficiaries to life insurance policies and investment accounts.

Change in Financial Status

A significant increase or decrease in your wealth should prompt a review of your estate plan. If you received an inheritance, consider how these assets will be distributed. Starting a successful business will also require you to consider what will happen to the company if you die or become incapacitated and to name a successor. Conversely, if you’ve experienced a financial loss, you may need to adjust how you allocate your remaining assets.

Retirement

Retirement is another life change that often requires adjustments to your estate plan. You may need to make revisions to reflect changes in income, plan for potential long-term care needs, and other retirement-related factors.

External Circumstances That May Require You to Update Your Estate Plan

Even if you have never experienced any of the life events listed above, other circumstances will necessitate reviewing and updating your estate plan.

Death of a Beneficiary or Executor

If a person named in your estate plan passes away, you should update your estate plan. This could be a beneficiary set to inherit from you or an executor, trustee, power of attorney, or healthcare proxy tasked with managing your estate and affairs.

Changes in Tax Laws

Tax laws change regularly, and these changes can significantly impact your estate plan. It’s crucial to review your estate plan to ensure it complies with updated regulations and that there are minimal taxes on your estate.

LPEP Law Can Assist You With Creating and Updating Your Estate Plan

Whether you need assistance creating an estate plan or updating your current one, our attorneys at Lonich Patton Ehrlich Policastri can help. We have extensive experience in estate planning and can work with you to ensure your estate plan covers all of life’s contingencies and reflects your wishes. Our lawyers can guide you on how to structure your plan to minimize taxes and provide your loved ones with peace of mind and financial security. 

Contact us for a free consultation by calling 408-553-0801.

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

How to Plan for Incapacity in Your Estate Plan: Choosing a Power of Attorney and Health Care Proxy

/in /by

There is no escaping death. We understand that, so we make sure to prepare a will and name beneficiaries to ensure our assets are distributed according to our wishes and that our loved ones will be taken care of financially. But what many people don’t plan for is the possibility that something will occur that will leave them incapacitated. Incapacity can result from a variety of situations, such as severe illness, injury, or cognitive decline. When a person becomes incapacitated, they may not be able to make important financial or health care decisions.

Therefore, it’s crucial that you name a power of attorney and a health care proxy to make decisions on your behalf when you cannot do so. And while they both have decision-making authority, they each serve very different functions.

Power of Attorney

A power of attorney (POA) is a legal document that authorizes another person (agent) to handle certain matters on your behalf (principal). In California, there are different types of POAs.

  • A durable power of attorney can be general or limited but remains in effect if you become incapacitated.
  • A general power of attorney gives the agent broad powers to act on your behalf. It allows the agent to take a wide range of actions, such as managing financial and business transactions and handling legal affairs. However, without the durability clause, the agent’s power ends if you become incapacitated.
  • A limited power of attorney is used when you want to give only specific powers to the agent.

Considering the responsibility placed upon the POA, you should consider the following factors when making a selection:

  • Choose someone you trust implicitly to act in your best interests
  • Ensure the person is capable of handling complex financial matters and understands your assets and obligations.
  • You will want someone who communicates effectively and can make your preferences known regarding financial decisions.

Health Care Proxy

A health care proxy is a legal document that designates an individual to make medical decisions for you if you cannot do so. Here are some things to consider when making your choice:

  • Select someone who understands your values and preferences regarding medical treatment to ensure they will make decisions that align with your beliefs.
  • The person you choose should be geographically accessible
  • Your health care proxy will need to be able to communicate with medical professionals and should be capable of explaining your wishes and making informed decisions.

After you appoint your agents, it’s crucial to communicate your wishes clearly. Provide your POA with information about your assets, liabilities, income, and expenses. Discuss your values, beliefs, and preferences regarding medical treatments and interventions with your healthcare proxy.

It’s essential to seek legal advice when creating your documents to ensure their validity. Our lawyers at Lonich Patton Ehrlich Policastri can guide you through the process. We are experienced in all estate planning matters and can help you tailor your documents to meet your specific needs.

Contact us for a free consultation by calling 408-553-0801.

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

Estate Planning for Immigrants: Navigating Legal and Tax Issues

/in /by

Planning for the future is a significant step, and when it comes to safeguarding your assets, navigating the complexities of estate planning is crucial. For immigrants, this journey often involves unique challenges tied to diverse cultural backgrounds, legal intricacies, and various tax considerations. 

Here, we’ll unravel the intricacies of estate planning for immigrants, shedding light on the legal and tax aspects that might come your way. By understanding these nuances, immigrants can embark on the path to securing their family’s financial future with confidence. 

Understanding Estate Planning for Immigrants

Estate planning is all about making sure your assets are in good hands and your family is taken care of down the road. For immigrants, this means facing some special considerations. 

Firstly, cultural background plays a role. Different communities might have specific ways of handling inheritances, and it’s crucial to address these nuances when planning your estate. Clear communication within families becomes even more vital to ensure everyone is on the same page.

Then comes the paperwork. Immigration and identification documents aren’t just important for your daily life; they play a crucial role in estate planning too. And, depending on where you’re from and where you are now, estate planning can get a bit tricky with different legal rules in play. 

Legal Considerations for Immigrants in Estate Planning 

When it comes to estate planning, immigrants face a set of legal considerations that differ from those of native-born individuals. Here’s just an example of some of the considerations immigrants must keep in mind when it comes to estate planning. 

Documentation Challenges

Immigration status and documentation play a significant role in estate planning for immigrants. Having the proper immigration and identification documents is essential for establishing legal ownership of assets and ensuring a smooth transfer to beneficiaries. We’ll discuss the importance of obtaining and maintaining these documents to avoid complications in the estate planning process.

Jurisdictional Issues

Immigrants may have connections to multiple countries or states, each with its own set of laws governing estates and inheritances. Dual citizens, permanent residents, and non-resident aliens are subject to US laws as well as the laws in their country of citizenship when constructing a will. This can become very complex and is a key reason why professional legal advice is so important for immigrants. 

Tax Implications for Immigrants in Estate Planning

Estate taxes are charges imposed on the value of a deceased person’s estate before it’s passed on to beneficiaries. For immigrants, understanding how these taxes work and whether they apply to your situation is vital. 

If you’ve lived in more than one country, or if you have assets in different nations, you might face international tax complexities. Dual residency and overseas assets can trigger tax implications both in your current country of residence and in your home country. 

Trust Your Estate Planning to the Experts

Estate planning involves many different legal, cultural, and tax considerations, especially for immigrants. At Lonich Patton Ehrlich Policastri, our skilled estate planning attorneys will help you navigate the legal complexities of estate planning for immigrants and protect your family’s future. Contact us here to set up your free consultation. 

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

Digital Inheritance: Safeguarding Your Virtual Assets in Estate Planning

/in /by

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.

Rights of a Trust Beneficiary

/in /by

If you have recently discovered that you are a beneficiary of a trust, you likely have many questions. 

That’s understandable. After all, there are several types of trusts, and some may have specific stipulations or requirements. Knowing how trusts work and your basic rights as a beneficiary can help you make informed decisions.

What is a Trust?

A trust is a legal arrangement that allows an individual (grantor) to transfer assets to a neutral third party (trustee) to hold and manage on behalf of someone else (beneficiary).

Trusts are used for several reasons. They might be established to control wealth, protect assets, provide for heirs, reduce estate taxes, or support charitable causes. Trusts can also be used in planning for incapacity or avoiding probate.

Types of Trusts

There are several different types of trust, but some of the most common types include:

  • A revocable trust, also known as a living trust, can be altered, changed, or revoked at any point during the grantor’s lifetime.
  • Irrevocable trusts can’t be changed or terminated by anyone other than the beneficiary once they’re created.
  • Charitable trusts are established for the benefit of a particular charity or the public.
  • Special needs trusts benefit individuals who can’t manage their finances due to a disability. This type of trust allows the beneficiary to enjoy the use of the assets held for their benefit while also allowing them to receive government benefits.
  • Spendthrift trusts are created for individuals who may be unable to control their spending. It gives an independent trustee authority to decide how funds may be spent for the benefit of the beneficiary.
  • Asset protection trusts are designed to protect a person’s assets from claims of future creditors.
  • Generation-skipping trusts allow for the distribution of assets to grandchildren, skipping the children.

Beneficiary Rights

In California, as a trust beneficiary, you generally have the following rights:

  1. Right to information about the trust and its administration. This typically includes a right to request and receive copies of trust documents, account statements, and other relevant information.
  2. Right to an accounting of trust activity, including detailed information about any income to the trust, expenses, and distributions from the trust.
  3. Right to distributions as outlined in the trust agreement.
  4. Right to take legal action to enforce the terms of the trust or remove the trustee if they are not administering the trust properly.
  5. Right to terminate the trust if all beneficiaries agree and termination of the trust would not interfere with the trust purpose.

In addition, there may be more rights as outlined in the terms of your specific trust agreement.

Trust documents can be complex and challenging to understand. If you are a trust beneficiary, our attorneys at Lonich Patton Ehrlich Policastri can help explain the trust’s terms and how it impacts you. We can also help ensure your rights are protected and help resolve any issues or disputes. With our guidance and support, you can be assured your inheritance is in safe hands.

Consult us for a free consultation by calling (408) 553-0801.

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

Estate Planning for Artists: Protecting Your Intellectual Property and Legacy

/in /by

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.

What Often Gets Overlooked In Retirement And Estate Planning?

/in /by

When it comes to retirement and estate planning, there’s a lot to think about. Amidst the complexities and uncertainties of the future, certain critical elements often get overlooked or are underestimated as we do our best to plan for the future. 

In this article, we’ll explore some of the often-overlooked considerations in retirement and estate planning. This knowledge can help you make more informed and comprehensive preparations for your retirement and the transfer of your assets to future generations.

What is the difference between retirement and estate planning?

Retirement planning and estate planning are two distinct yet interconnected financial processes, each serving unique purposes in your financial life. Retirement planning involves setting financial goals for your retirement, ensuring you’ll have enough money to live comfortably after you stop working. On the other hand, estate planning is the process of setting up a plan for the transfer of your estate to your beneficiaries. 

Retirement planning: Factors that are easy to overlook

Retirement planning involves much more than simply setting aside a portion of your income in a retirement account. While most of us diligently save for our retirement years, there are several factors that we often overlook. These aspects can have a profound impact on our quality of life during retirement. Here are a few key considerations that are commonly underestimated:

  • Healthcare expenses, which tend to increase with age
  • Inflation, which erodes the purchasing power of money over time
  • Life expectancy, which can leave you financially vulnerable 
  • Not understanding or maximizing your social security and pension plan payouts 
  • Failing to strategize for tax-efficient withdrawals, which leads to unnecessary taxation 

As you can see, retirement planning involves careful consideration of many different factors. To ensure a secure and comfortable retirement, it’s essential to take these often-overlooked elements into account and seek professional guidance when needed. 

Estate planning: Key factors to consider

Estate planning is the process of arranging for an efficient and orderly transfer of your assets to the beneficiaries you’ve chosen upon your passing. While many recognize the importance of estate planning, certain crucial factors within this realm are often underestimated or overlooked, including:

  • The importance of a well-drafted will in ensuring your intentions are carried out
  • Strategies to minimize probate, such as using trusts, to streamline estate settlement
  • The regular review and revision of your beneficiary designations 
  • Using trusts to protect assets, provide for dependents, and minimize estate taxes
  • Understanding estate tax thresholds and exemptions 
  • Designating your digital assets, including social profiles and crypto accounts
  • Establishing end-of-life healthcare decisions or living wills

To ensure your estate is managed in accordance with your wishes and to minimize potential complications for your loved ones, it’s crucial to give careful thought to these often-overlooked factors in your estate planning endeavors. 

Contact LPEP for expert retirement and estate planning

Consulting with an experienced estate planning attorney can help you create a comprehensive plan that safeguards your legacy and provides peace of mind for both you and your family. At Lonich Patton Ehrlich Policastri (LPEP Law), our experienced attorneys have exceptional attention to detail to make sure these critical factors aren’t overlooked when it comes to your retirement and estate planning. 

Contact our team for a free consultation today.

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

How to Obtain a Domestic Partnership

/in /by

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. 

How Is Child Support Determined in California?

/in /by

A primary concern of divorcing parents is how it will impact their children’s standard of living. In the state of California, both parents are legally responsible for the financial well-being of their children.

But how does the court determine the amount each parent should provide?

There are many considerations that go into determining child support, and it starts with a formula from California Family Code § 4055 that takes into account the parents’ combined total income and the amount of that which must go towards financial support: 

CS = K[HN – (H%)(TN)]

CS = child support amount

K = the combined amount of both parents’ income that is to be allocated towards financial support

HN = the net monthly disposable income of the parent who earns more

H% = the approximate percentage of time the higher earning parent has physical custody of the child compared to the other parent

TN = total net monthly disposable income of both parties

Each parent’s net disposable income includes the following:

  • Wages
  • Tips
  • Bonuses
  • Commissions
  • Dividends
  • self-employment earnings
  • Rental income
  • Unemployment
  • Disability income

Another key factor in determining child support is custody and time-sharing. The custodial parent, who has the child for the majority of the time, typically receives child support from the non-custodial parent. 

In a 50/50 custody situation, child support may still be required from the higher earner.

The purpose of child support is to ensure the availability of financial resources necessary for their well-being, including:

  • Covering their basic needs, such as food, shelter, and clothing
  • Healthcare expenses, including medical, dental, and vision care
  • Educational costs like fees, uniforms, books, and other related expenses.
  • Childcare if both parents work 
  • Extracurricular activities such as sports, band, or dance lessons.

Child support orders are not set in stone. They can be modified if there are changes in circumstances, such as a significant change in income or alterations in custody arrangements. Only a court order can change the amount of financial support. 

Even if both parents agree on the new amount, it still must be approved by the court.

Additionally, non-payment of late payment of child support can lead to legal consequences, including wage garnishment, property liens, or applying any tax refund toward the delinquent amount.

Understanding how child support is determined in California can be complex. Still, it’s crucial to ensure a fair outcome for all parties involved and protect the best interests of the child. If you’re navigating child support issues, consider seeking advice from a legal professional who specializes in family law. Our attorneys at Lonich Patton Ehrlich Policastri work with families throughout San Jose, Silicon Valley, and the Greater Bay Area. We can assist you in navigating the legal process and answer any questions you may have.

Contact us for a free consultation by calling (408) 553-0801.

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

Will My Estate Plan be Impacted by the Corporate Transparency Act?

/in /by

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.

Free 30-Minute Family Law or Estate Planning Consultation

1 + 6 = ?

Contact Us

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.

MAKE A PAYMENT BY SCANNING THE QR CODE BELOW:

DISCLAIMER

This web site is intended for informational purposes only and is not legal advice. Nothing in the site is to be considered as either creating an attorney-client relationship between the reader and Lonich Patton Ehrlich Policastri or as rendering of legal advice for any specific matter. Readers are responsible for obtaining such advice from their own legal counsel. No client or other reader should act or refrain from acting on the basis of any information contained in Lonich Patton Ehrlich Policastri Web site without seeking appropriate legal or other professional advice on the particular facts and circumstances at issue.

About | Why LPEP | Contact | Blog

© 2024 Lonich Patton Ehrlich Policastri. All rights reserved. Privacy Policy

LPEP COVID-19 Office Protocol