Basis is the amount that a person has invested in an asset for tax purposes. Basis is used to calculate a variety of other aspects of an asset such as depreciation, amortization, depletion, casualty losses, and the loss or gain the owner experiences on the sale, exchange, or disposition of a property. This post discusses… Read More »
Blog Posts Page 74
Disclaiming Assets
Disclaiming an inheritance is an unusual decision that can make perfect sense. A disclaimer occurs when a beneficiary named in the will refuses to accept an inheritance. It seems absurd to refuse a gift but a disclaimer can solve common estate planning issues. Persons over 65 who are well-off may disclaim an inheritance to protect… Read More »
What Happens When There Is No Will?
When a family member dies without a will, it is referred to as dying “intestate.” A whole section of probate law is devoted to intestate situations. This law predicts what most people would want to happen to their assets at death. For example, California’s intestate laws predict that the property a married person obtained during… Read More »
What to Look Out for in Annuity Contracts
Annuity sellers promise a lot – but do they deliver? Fixed annuities seem to provide secure income that many seniors seek. However, there are several important considerations to think about before investing in an annuity. Lock-in period. Most annuities have a period where the purchaser pays into the annuity but cannot withdraw from it. The… Read More »
What Does Tenant in Common Mean?
Tenant in Common is a label seen most often on real estate titles. But what does it mean? Simply put, it refers to an asset owned by two or more people in undivided interest. An undivided interest means that although two people own the property, both have complete rights to use the property. The shares… Read More »
HIPAA and Estate Planning
Health care decision-making is a central concern of estate planning. Access to a loved one’s medical records may be necessary to make appropriate health care decisions. Protections for medical records are becoming stricter of late due to new civil penalties for wrongful disclosure of records. As a result, hospitals and clinics are becoming much more… Read More »
Is An Advanced Medical Directive Necessary?
Comprehensive in scope, practical in application and meaningful in effect, an Advanced Medical Directive is one of the most important estate planning documents available today. It tells physicians and loved ones how much, or how little, end of life care is desired. This simple document can resolve some of the most vexing questions families must… Read More »
Quick and Easy Ways to Transfer Property Immediately at Death
Perhaps the most convenient way to transfer property is simply registering the asset you wish to transfer as “transferrable on death” or “payable on death.” In California, a person can complete a transferrable on death registration form indicating who should receive the account or asset once the account holder is deceased. Payable-on-death designations in savings… Read More »
Tread Carefully: Planning for Medi-Cal
Many Californians lose access to Medi-Cal benefits simply because they are unfamiliar with the system. What most Californians do not realize is that there several options available to establish or maintain their Medi-Cal eligibility. Medi-Cal eligibility is based on age, financial means, or disability. The State requests information on an individual’s income and expenses to… Read More »
What Happens When an Executor Goes to Probate Court?
When one winds up in probate court, there is one saving grace: the Independent Administration of Estates Act (IAEA). This Act is quite helpful to executors because it permits them to take care of estate issues without obtaining formal approval from the probate court. This means fewer court appearances, calls, and less documentation in administering… Read More »
What is a Spousal (or Domestic Partner) Property Petition?
A spousal property petition is a tool that simplifies the probate process for married couples. It is also available to domestic partners. In essence, the spousal property petition streamlines the transfer of assets to a surviving spouse or domestic partner. It is quicker than the probate process and legal fees associated tend to be reduced… Read More »
Avoiding Probate 101
Much of estate planning regards how to keep loved ones from going through the burdensome and time-consuming process of probate administration. In California, three popular means exist to keep assets out of the probate process. They involve harboring assets in a living trust, titling property as joint tenancy, or titling property as survivorship marital property…. Read More »
Taking on Dementia
Research published in the New England Journal of Medicine suggests that the cost and prevalence of dementia will double by 2040. At staggering cost, how do families deal with this devastating disease? And how do they know if the wishes of their loved one should be honored? Below are some proactive and remedial steps families… Read More »
Keep a Small Business Going Through Anything
Small business owners adapt daily to the changing needs of their companies. However, often the companies are not prepared to adapt to the owners’ changing health needs. These companies do have a plan for an owner’s incapacitation or, in the worst case, death. Here are a few simple things to keep the company nimble during… Read More »
Help for Alzheimer’s At Home
Across the country, 70 percent of those with Alzheimer’s live at home, and are cared for by their family members. This is often a struggle. As Cathi Slade, who cares for her father with Alzheimer’s explains, “It’s exhausting dealing with someone that has dementia . . . because you have behaviors like they ask the… Read More »
The Long-Term Care Insurance Decision
As the costs of medical care continue to rise, many people wonder whether they should purchase long-term care insurance. While life insurance policies deal with a person’s eventual death, long-term care insurance deals with the possibility that a person becomes so ill that they require some sort of constant care. A recent article discusses whether… Read More »
Do I Need To Pay My Trustee?
The issue of trustee compensation is sometimes a confusing one. Not every trustee expects to be paid. Conversely some trustees expect compensation. A recent article discusses the “when and how” of trustee compensation. Trustee compensation is determined in the trust documents. When setting up the trust, the trust creator can specify whether there will be… Read More »
Did You Pick the Right Executor?
It may be difficult to select the person who will be responsible for managing and distributing the assets in your estate after your death. A recent article offers five tips to determine whether you have selected the right executor. Consider Expertise, as Well as Common Sense: While you can hire a business or professional to… Read More »
Minimizing Fees After Death
Death is expensive. While most people are quick to consider funeral and burial costs when estimating the cost of their death, many overlook the large cost of settling one’s affairs. A recent article offers suggestions of steps you can take now to reduce the burden of these fees after your death. 1. Execute a Solid… Read More »
Was the Will Valid?
If a loved one passes on, it is important to determine whether or not he or she had executed a valid will during life. As a recent article explains, a will is the most common estate planning tool because it is the most simple way through which a person can state his or her wishes… Read More »
