Law Office of Parker & Cox, A Professional Law Corporation

Can my pet inherit from my estate after I die?

2024-02-12T01:54:48Z

If you consider your pets an important part of your family, you likely want to ensure that they are well cared for when you pass away. However, you cannot just leave them assets as you would a person because a pet is not a person and, therefore, cannot inherit.

The law considers pets as property

However much character Mr. Joules, your Persian cat may have, he has no more legal standing than the bed he snuggles up to you on or the metal bowl you lovingly place his food in twice a day. In the eyes of the law, ‘he” is an it.

You can use a pet trust

With all of this said, you can look after your pet by placing money in a pet trust supervised by a trustee. You can also name someone to care for the pet on a daily basis. You can pick one person to fulfill both roles or split it to provide some oversight. You can set how the trust money will be used, and the trustee should distribute it to the person of your choosing (typically the person taking care of your pet) per the rules you set out. If you wish to release $20 every Wednesday to buy Mr. Joules a fine piece of salmon, you can. If you wish for him to attend the grooming parlor once a month, you can stipulate the trustee releases money for that. Or, you can just leave it for the trustee to use their judgment as to when money needs spending. Learning more about how to create a pet trust can give you peace of mind, knowing that your pet who has given you so much comfort will be well looked after when you are no longer around. Seeking legal guidance is a good way to get started.

Is it time to update your estate plan?

2024-02-01T22:25:03Z

Estate planning allows a testator to instruct how their assets are handled after they pass away. Many people create these plans early in life. Over time, a testator may wish to alter their estate plan. There doesn't need to be an exact reason to update an estate plan. Here are a few reasons others have updated their estate plans:

Has it been more than 5 years?

It’s often recommended to update an estate plan every three to five years. It’s generally believed that people accumulate enough assets over five years to warrant a revised estate plan.

Did you get married or divorced?

Marriage is a major life event in many people's lives. Not only do people expect their lives to change somewhat after a marriage but it may be a strong reason to update an estate plan. A testator may alter their plan so that their spouse is included as a beneficiary, power of attorney or child guardian. These are major decisions that can also strengthen a marriage. Conversely, these changes to an estate plan may need to be reversed after a divorce. An ex-spouse may no longer be trusted as a power of attorney or child guardian. And, a testator may prioritize other beneficiaries over their ex-spouse.

Are you still close to your beneficiaries?

Many people alter their estate plans because their relationship with a beneficiary has changed. This can happen when a testator has a falling out with a beneficiary. Alternatively, if a beneficiary is deceased, then it may also call for an altered estate plan. Knowing why you want to alter your estate plan can help as you revise your former decisions. If you need help updating your estate plan, then you may need to reach out for legal guidance.

Types of estate planning fiduciaries

2024-01-17T13:56:02Z

Estate planning involves preparing your loved ones for life once you pass away. While the process is often misconstrued as morbid, the opposite is actually true.

Estate planning can give both you and your family members much-needed peace of mind. It can allow you to spend the rest of your days with a significant weight off your shoulders.

That being said, you can’t do it all by yourself. Several parties will be tasked with ensuring that your instructions are carried out. The most important parties involved in the estate planning process are called fiduciaries. Who are they?

The executor of the estate

Being the executor of an estate is a huge responsibility. This is the person tasked with settling your estate according to your instructions. They will have to notify relevant parties of your death and keep beneficiaries informed during probate.

The executor must always act in the best interests of the beneficiaries. They cannot act in their own best interests or profit from your estate. When making your estate plan, it’s important that you choose your executor carefully. You need someone who is trustworthy and both physically and mentally able to carry out their fiduciary duties.

Trustees

Estate plans often comprise numerous legal documents. A will is generally the fundamental part of an estate plan, but trusts can also play an important role. Trusts can carry out multiple functions. For example, you may set up a trust that releases funds over the years to pay for your child’s college fees. Or, you could establish a trust that ensures that your favorite charity remains financially stable for years to come.

The person tasked with managing the assets in a trust is known as a trustee, and their duties are fiduciary in nature. They must manage the trust according to your precise instructions. They cannot profit personally from the trust or ignore instructions. Failure to adhere to these conditions is a breach of fiduciary duty.

At each stage of the estate planning process, it’s vital to have legal guidance behind you. This can help ensure that you choose fiduciaries who will take their duties seriously.

What are the witness requirements for a California will?

2024-01-04T03:47:45Z

A will is a testamentary document that determines what happens with someone's property after they die. Most adults over the age of 18 have the legal authority necessary to draft a will. They can leave clear guidance regarding the legacy they leave after their death and possibly also name guardians for any minor children in their household. When someone cares enough about their legacy or their dependents to create a will, they want that document to hold up under scrutiny in the California probate courts. Someone needs to be an adult and be of sound mind to draft a will in California. They also need to meet all statutory requirements for estate planning. What witness requirements does California impose for the creation of a will?

Every will requires two witnesses

California law is very clear about the need to have two other competent adults serve as witnesses when someone signs a will. The need for witness signatures is one of the reasons why entirely electronic or digital wills are not an ideal solution for adults in California. Additionally, people should be aware of how the law restricts who serves as witnesses. There is a presumption enshrined in state statute that the documents may be the product of undue influence if a beneficiary of the will serves as a witness to its creation. In other words, testators generally cannot use any of their beneficiaries as witnesses without risking the possibility of legal conflict later in probate court. People who have nothing to gain from the estate are typically the best option. Understanding and complying with California's laws regarding wills can help people create estate planning documents that effectively protect their loved ones.

3 things that will help your executor

2023-12-20T16:23:16Z

Your executor's responsibilities will be complicated. That's why it's vital to make their job more manageable before they assume their duties. How can you do this? Here are three tips for helping your executor:

Help them understand their role

It’s possible that the executor you choose has never done this before - they may not be familiar with the role. It can be stressful for such a person to discover they have been named your estate plan's executor after your death or incapacitation. They will have a lot to learn and do within a short period. Therefore, it's crucial to inform them about the appointment earlier. Meet with them to discuss their duties. You should also connect them with the professionals you work with, including your attorney, financial advisor, tax professional and so on. This will allow them to understand their role in depth.

Update your documents

It can be challenging when your executor submits outdated documents to the probate court. You need to update your documents when circumstances in your life change. For example, if you get married/divorced, have a new child/stepchild/grandchild or sell/buy assets. Ensure you inform your executor of any changes you make. Accordingly, they can quickly discover an outdated document.

Let them know about the location of your documents

Your executor should know where your documents are to make their work easier when probate time comes. Further, ensure that the locations are accessible to your executor. If you keep your documents in a safe, your executor should have the code. If they are in a locked filing cabinet, give your executor the spare key. If they are in a safe deposit box, your executor should have the right to access it, and so on. Legal guidance is crucial for executors, as it helps them understand their role and, in turn, serve capably.

The advantages of charitable trusts

2023-12-12T19:16:27Z

California residents who are making their estate plans might want to consider using one or more charitable trusts as a component. This can be particularly useful for individuals whose estate is large enough that they are looking for ways to reduce estate tax, but charitable trusts have other functions as well. Essentially, they allow individuals to distribute money to both heirs and to charitable causes.

Types of charitable trusts

A charitable lead trust and charitable remainder trust are two main types of charitable trusts that may be used as part of an estate plan. A CLT makes annual distributions to one or more charities. At the end of the term of the trust, the remaining assets are distributed to noncharitable beneficiaries, usually family or other loved ones. With a CRT, it is the noncharitable beneficiaries who receive distributions, and the rest of the assets go to the charity at the end of the trust term. There are guidelines about what percentage of either trust's value must be distributed and what kind of tax advantages are available with each type of trust.

Combining trusts

The person who creates the trust is known as the grantor, and these trusts can be created while the grantor is still alive or on the death of the grantor. It is also possible to combine them in some situations, with assets divided between the two and ultimately providing more income for both charitable and noncharitable beneficiaries. There are a number of different strategies individuals can pursue using charitable trusts depending on their particular situation and goals. One of the greatest advantages of charitable trusts beyond the financial benefits is that they provide an opportunity for people to establish a long-lasting legacy that reflects their values, an important element of an estate plan for many individuals.

Estate planning and the holiday season

2023-11-29T02:59:14Z

Estate planning involves many critical steps to ensure that the probate court follows a planner's wishes. Of course, probate consists of executing a will, and other documents, such as power of attorney or a healthcare proxy, and these can be part of such planning. You may be putting documents together for the first time or revising current documents. Whether you are just beginning or are further along, the holidays may be a suitable time to engage in the estate planning process.

Holiday estate planning

During the holiday season, friends and family may be booked for many events that take up much time. However, the holidays might deliver more free time, thanks to seasonal vacations or closed offices. Such free time may not be accessible during other months, so an estate planner might use that time to perform estate planning duties not completed during the rest of the year. Using holiday time to read and review estate planning documents might result in making necessary changes. For example, seeing one's newborn grandchildren during the holidays may prompt someone to add them to a will. Others might acknowledge how many relatives passed on over the years, and such sentiments can move someone to draw up a will.

Moving forward with estate plans

The holiday season allows planners to meet with their relatives and beneficiaries. Estate planning need not be a solo event. A planner might discuss their concerns with their beneficiaries when everyone is gathering together. Talking about estate plans does not only have to involve conversations about writing documents and making revisions. A planner might tell beneficiaries where critical documents are located, such as a list of all accounts and information related to taxes and debts. Careful reflections on estate planning might sway someone to feel a trust would be preferable to a will. Others may reflect on the need for a living will.

3 simple ways to establish an estate plan as an unmarried couple

2023-11-13T03:47:08Z

Estate planning is an essential process that ensures your assets are protected in California, and it also ensures that they are distributed according to your wishes. Many people assume that estate plans are only necessary for married couples. That’s not the case. Estate planning is also essential for unmarried couples because this process can help to avoid many problems down the road. Here are three tips to establish an effective estate plan as an unmarried couple.

Create a cohabitation agreement

If you haven’t established a cohabitation agreement with your partner yet, now’s the time to do that. A cohabitation agreement is a legal document that outlines your rights and responsibilities in an unmarried relationship. The cohabitation agreement can address issues, such as property ownership, financial obligations, and inheritances.

Designate your beneficiaries

If you and your partner are creating your estate planning documents, it’s important to designate your beneficiaries. Making these designations can reduce problems with inheriting assets, such as bank accounts, investment accounts, and life insurance policies. It’s especially important that you name each other as beneficiaries. Naming your partner as the beneficiary ensures that they receive the benefits directly. This step can help you both avoid potential complications and delays.

Establish important directives

If you want to protect you and your partner, an advanced directive should be included in your estate plans. Advanced directives can give each of you the power you need should either of you become incapacitated or unable to make decisions. When constructing these documents, you must include medical and durable Powers of Attorney. Estate planning is an important step in planning for the future. a well-constructed estate plan creates a road map that can reduce stress should one of you passes away.

The value of an advance directive

2023-10-30T01:38:46Z

Estate planning can involve many different matters of concern. While many assume that it consists solely of writing a last will and testament, there are other documents legal under California law. One such document is an advance directive. An advance directive does not deal with financial matters, as it centers on health care decisions.

An incapacitated person’s directives

When writing a last will and testament or devising a trust, people think about their mortality and the effect their death could have on their beneficiaries. While such planning has potential value, it could be incomplete. For example, there may be instances where someone becomes incapacitated and is unable to convey their wishes regarding medical treatment and health care. An advance directive could prove valuable in this situation. One type of advance directive tells healthcare providers what type of treatment is requested when unable to convey wishes personally. Another type of directive works like a power of attorney. The document names someone as an agent who would make health care decisions on behalf of the grantor.

Concerns about health care directives

Several concerns about an advanced directive may arise during the estate planning process. For one, choosing the appropriate agent to handle health care decisions may require careful thought. Selecting a responsible person may require much consideration. Setting up a meeting with the person who will serve as the proxy seems advisable. This way, the individual may understand the wishes more clearly. Like other estate planning documents, an advanced directive must be legal under California law. Those attempting to draw up do-it-yourself documents could make mistakes that create problems when executing the directive. Proper planning might avoid such a situation.

A guide to QTIP trusts in California

2023-10-13T03:42:07Z

If you are happily married and have substantial wealth in California that could be subject to federal taxes, you may want to consider a QTIP trust for your partner. Here's what it does.

Understanding a QTIP trust and how it works

From the basics, trusts are legal arrangements that allow people to transfer their assets to others while still retaining some control over them. A QTIP (Qualified Terminable Interest Property) trust also does the same thing but with specific conditions attached to it. The grantor sets up the trust and transfers assets into it, which a trustee will then manage for the surviving spouse's benefit. The difference is that with a QTIP trust, the surviving spouse does not have direct control over the assets; instead, they have the right to receive income from the trust for their lifetime.

Benefits of a QTIP trust

Primarily, people who create these trusts want to avoid the heavy tax burden associated with the transfer of property to a loved one. Since they are irrevocable (the trustee takes full ownership of the trustmaker property), the federal government cannot associate the assets in a QTIP trust with the grantor, therefore making them exempt from estate taxes when they pass on to the surviving spouse. Moreover, this trust gives the property owner control over asset distribution. A QTIP trust allows the grantor to specify how their carefully chosen trustee will distribute their assets to their spouse and if they would like the remaining principal to also go to their children or other designated beneficiaries after the surviving spouse's death. Setting up a QTIP trust is a brilliant strategy to secure your wealth and ensure its distribution according to your wishes while also enjoying tax benefits. Still, it's important to remember that you should tailor financial decisions to your unique situation. If a QTIP trust seems like something your loved ones could benefit from, it's worth considering.