A trust is a legal arrangement that grants a third party the power to manage your assets on behalf of the beneficiary—the person who will receive the assets. The main objective of a trust is to protect and eventually transfer assets from a grantor to an inheritor. 

To set up a trust, first decide on what assets you want to distribute. Common assets protected by trusts include real estate properties, bank accounts, and other investment assets. Choose who will be the beneficiary, and determine the conditions of your trust. 

When arranging your trust, you can identify more than one beneficiary if you have multiple inheritors. You’ll then need to find a trustee, typically an unbiased third party, to manage the trust. The final step will be to draft your trust document with an attorney. 

What are the Benefits of a Trust?

Trusts are a flexible way to preserve your assets and customize how your wealth is distributed. The main advantage of creating a trust is maintaining control of how your assets are distributed. You’ll be able to specify the precise terms of the trust and decide when the assets will be available to the beneficiaries. 

By setting up a trust, you can avoid probate—the judicial process in which a court reviews the assets of the deceased and determines inheritors. The trustee will follow the specific terms of the trust and distribute the assets without court involvement. There’s also a possibility of saving money that would’ve been spent on court fees and taxes. 

Other benefits of setting up a trust include:

• Creating flexible terms
• Protecting your assets
• Maintaining privacy
• Minimizing estate taxes

Types of Trusts

There are two main types of trust: revocable and irrevocable. Revocable trusts can be altered at any time during the grantor’s lifetime as long as they are competent. These types of trusts can be modified or even canceled until the grantor’s death, at which point the trust becomes irrevocable. 

On the other hand, irrevocable trusts can’t be changed once the papers are signed. If a modification is requested, all of the beneficiaries must be in agreement, and any changes to the terms will need to go through a lengthy court approval process. 

Although they are more permanent, irrevocable trusts can help minimize estate taxes. When you transfer the ownership of your assets through an irrevocable trust, you may be able to protect them from estate tax. If the value of your estate is at or above the federal tax exemption requirements and you’re confident about the terms of the trust, then an irrevocable trust could be a beneficial option.  

At Lonich Patton Ehrlich Policastri, we have decades of experience with family law and estate planning. Having assisted families in San Jose and the greater Bay Area, we can help you determine which type of trust will work best for your situation. Contact us for a free 30-minute consultation at 408-553-0801, and one of our attorneys will guide you through how to set up a trust. 

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

Separation and divorce are difficult, emotionally wrenching situations. When your children are involved, it can become even more stressful. You want the best for your children, and you also want to be as involved in their lives as possible. The following tips can help with navigating child custody issues with your co-parent.

1. Educate yourself about the child custody process and your rights

It’s important to have access to reliable information about child custody and parental rights in California. To help you make sense of this complex issue, the attorneys at Lonich Patton Ehrlich Policastri (LPEP Law) offer a free download entitled, “Child Custody Myths vs. Facts.” Some of the most helpful information includes: 

• How child support works in joint custody situations
• How your child’s preference affects a court’s custody decisions
• Your rights if your co-parent is alienating your child’s affection toward you
• How to obtain delinquent child support payments

2. Make a good case for yourself

When determining custody issues, a judge will consider specific criteria with regard to the children’s living environment. It’s a good idea to be proactive and present yourself in the best light possible.

• Make sure your home is safe, clean, and comfortable.
• Be ready to demonstrate your ability to care for your children’s basic needs – food, shelter, clothing, transportation, and school supplies.
• Keep yourself healthy both physically and mentally.
• Maintain a good working relationship with your co-parent.
• Stay involved in your children’s activities and education.

3. Stay organized and document as much as possible 

Depending on your relationship with your co-parent, you may be required to prove that you are dependable, responsible, and able to care for your children well. Keeping detailed notes about the visitation schedule you have established, your children’s calendar (e.g., doctor’s appointments, school events, holidays, etc.) and child support payments will help demonstrate in court that you are a capable and involved parent.

Although the involvement of both parents is usually preferable, if your former spouse is abusive in any way, puts your children at-risk in an unsafe environment, or does not have appropriate living arrangements to host your children, it’s vital to document any of those negative situations and present them in court.

4. Maintain positive communication

Do your best to keep all communication with your ex-partner, especially written communication like emails and texts, as civil as possible. Fighting with your former spouse in public or in front of your children is clearly not in your children’s best interests and can make an already tense situation worse. Even if you feel that they are being unreasonable, it’s important to stay constructive and polite on your end. If your child custody negotiations become contentious, your former spouse will not be able to use your words and actions against you. 

5. Hire an experienced family law attorney

Nothing is more important than being in your child’s life. Working out child custody and parental visitation issues can be daunting, especially when emotions are high. The experienced and compassionate family law attorneys at Lonich Patton Ehrlich Policastri understand the importance of family and can walk with you through the stresses of child custody litigation. Having experts on your side can help protect your parental rights and work toward the best possible outcome for your family. Call us today at 408-553-0801 to schedule a free 30-minute consultation. 

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

Divorce is a difficult and emotionally draining experience, especially when high-value assets are involved. With family networks, businesses, investments, wealth management strategies, and other financial components at stake in the divorce proceedings, it’s important for divorced couples to consider all of their options before making any drastic decisions. 

Regardless if you choose to settle or engage in litigation, there are specific considerations that you must take into account to ensure the fair division of assets and liabilities for both parties involved. 

What is Considered a High-Asset Divorce?

A high-asset divorce involves significant assets of different types. This could include financial accounts, investments, real estate or other properties, business interests, and various personal possessions. Therefore, there are unique and complex issues when dissolving the marriage. They also typically involve other considerations, such as spousal support, child support, and tax liability issues.

As such, couples need to be aware of the special attention required for their situation so that everything is correctly managed and accounting for all assets can be as accurate as possible. Doing this ensures each party is fairly compensated according to their contributions toward the marriage. 

What Assets Are Not Included in the Divorce?

California is a community property state, meaning that any assets or property obtained during the marriage is considered legally owned by both spouses and must be divided equally in a divorce. This includes all real estate, bank accounts, investments, retirement benefits, and other assets accumulated during the marriage. It’s important to note that it also encompasses all debts the couple incurred.

However, certain assets are exempt. These include inheritances or gifts received during the marriage and property acquired by either spouse before marriage.

Furthermore, a business started before the couple married won’t be considered community property. However, if the other spouse contributed to the growth of the company, then it may be regarded as a marital asset.

How Do I Prepare For a High-Asset Divorce?

Preparing for a high-asset divorce may seem daunting, but there are steps you can take to ensure that the process is as smooth and stress-free as possible. You must have comprehensive documentation of all assets and related information, including saving records related to investments, stocks, bank accounts, real estate holdings, business interests, and any other item with possibly confusing ownership laws. Hiring a forensic accountant may help with this process.

High-Asset Divorce Mistakes

A divorce is stressful, and couples must pay extra attention to avoid costly mistakes. Most commonly, divorcing spouses make the mistake of not fully disclosing all of their financial holdings. Whether intentionally or unintentionally, this omission can lead to accusations of fraud.

Another mistake is underestimating the complexity of these types of divorces. It’s vital that you partner with an experienced lawyer. Our attorneys at Lonich Patton Ehrlich Policastri will work with you to develop a strategy that protects your interests. Contact us for a free consultation to review your options. We will work diligently to ensure you receive what you are entitled to.

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