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.

By the time some people reach retirement age, they have accumulated a substantial nest egg consisting of 401k’s, pensions, and IRAs. They saved with the intent of having a comfortable lifestyle during their golden years. But what happens to an individual’s hard-earned assets once they pass away? Understanding what happens with retirement accounts after death can help provide peace of mind for the account holder and their loved ones.

After someone passes away, the first step is locating all of their retirement accounts and contacting the financial institutions. If the deceased named a beneficiary for their accounts, the assets will go directly to them without needing to go through probate. However, the funds will become part of the deceased’s estate if there is no beneficiary. In that event, they will need to go through probate.

Probate is the legal process that involves authenticating the deceased person’s will, if one exists, and settling their estate, which includes paying debts and distributing assets to heirs or beneficiaries.

The duration of the probate process can vary widely depending on the complexity of the estate, taking anywhere from several months to a couple of years.

The relationship between the deceased and the beneficiary can also impact what happens to the retirement accounts. A spouse is able to transfer the funds of a 401k or IRA into their own IRA. Or, they can choose to take it over. In that event, there are three options:

• It can stay in the account until the employee has turned 72
• The spouse can take distributions based on their own life expectancy 
• They can follow the 10-year rule, which states the account must be emptied by the tenth year following the deceased’s death.

Non-spouse beneficiaries of an inherited IRA have different rules based on whether they are a designated beneficiary or an eligible designated beneficiary.

A designated beneficiary is a person whom the deceased named to inherit the balance of an IRA or other type of retirement account. They can be any person chosen by the account owner

On the other hand, an eligible designated beneficiary is a specific classification, such as:

• surviving spouse
• a disabled or chronically ill individual
• an individual who is not more than ten years younger than the IRA owner
• a minor child of the IRA owner

One key difference is that a designated beneficiary is required to follow the 10-year rule. Furthermore, any distribution from the account is considered taxable income.

However, eligible designated beneficiaries have different rules that allow them to stretch out distributions over their lifetime or the deceased’s, providing potential tax benefits.

Navigating the rules for inherited retirement accounts can be complex. Each person’s situation is unique, so getting professional advice is essential. Our attorneys at Lonich Patton Ehrlich Policastri have the expertise you need and can help ensure that your retirement accounts are part of your estate plan. Contact us for a free consultation by calling 408-553-0801 so you can protect your family’s financial future.

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

When it comes to financial planning, ensuring the smooth transfer of assets and wealth to your loved ones after your passing is crucial. One way to accomplish this is by designating a beneficiary for your various accounts and assets. Although it may seem simple, this task holds significant importance and requires careful thought and consideration.

In this article, we’ll explore the things to keep in mind when designating a beneficiary. We’ll discuss the significance of thoughtful planning, the legal and financial implications, and how to navigate potential complexities that may arise as you designate your beneficiary. 

What is a Beneficiary?

A beneficiary is an individual or entity designated to receive the assets or benefits of a particular account, policy, trust, or estate upon the death of the account holder, policyholder, or grantor. The designation of a beneficiary ensures that the assets are transferred according to the wishes of the account holder or grantor.

Beneficiaries can be named for various types of accounts and assets, including retirement accounts, life insurance policies, investment accounts, bank accounts, real estate properties, and trusts. The process of designating a beneficiary involves specifying who will inherit or receive the proceeds or assets associated with these accounts or policies.

Why is it Important to Choose a Beneficiary?

The designation of a beneficiary ensures that your assets and benefits are distributed according to your wishes. Choosing your beneficiary is a very important decision to make, for several reasons: 

• You retain control over who will receive your assets upon your passing
• It may bypass the probate process for your assets, which can be slow and costly
• It minimizes potential conflicts among family members or other potential claimants
• It lets you provide financial security and support for your loved ones
• If desired, you can contribute to a charitable legacy to leave a positive impact on society

Selecting a beneficiary is crucial in ensuring that your assets and benefits are distributed according to your wishes.

What to Consider when Designating a Beneficiary

Choosing a beneficiary isn’t a decision that can be made lightly. Here are a few things to keep in mind as you work towards designating your beneficiary: 

• Carefully consider your financial goals and the needs of your loved ones
• Have open and honest conversations about your intentions for beneficiary designations
• Review your will, trust, and other relevant documents to ensure consistency
• Familiarize yourself with the legal implications of beneficiary designations
• Consult with legal professionals to ensure compliance and minimize potential challenges
• In addition to primary beneficiaries, designate contingent (secondary) beneficiaries
• Regularly review and update your beneficiary designations to reflect any life changes
• Become familiar with the tax implications associated with beneficiary designations

As you can see, there’s a lot to think about when it comes to choosing your beneficiary. That’s why it’s always best to discuss your personal scenario with legal experts who can guide you in the right direction. 

Seek Professional Consultations Before Designating Your Beneficiary

The estate law attorneys at Lonich Patton Ehrlich Policastri have decades of experience in designating beneficiaries for accounts, assets, policies, and trusts. A consultation with an experienced lawyer can give you the peace of mind that your affairs are in order, on your terms. 

Call LPEP today on 408-553-0801 or complete this form for a free, 30-minute consultation.

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