January 30th, 2012
As of January 2012, California law allows inheritors to completely skip probate when the deceased had a “small estate” whose value was no more than $150,000 in ordinary assets and up to $50,000 in real estate. Because numerous items – including cars, jointly owned property, and everything in a living trust – can be excluded in calculating these amounts, this law can help many families avoid the time and costs of going through probate. Here are the steps for a “small estate” transfer. Read the rest of this entry »
Posted in Probate & Inheritance, Trust Administration, Will
December 23rd, 2011
The new year offers a fresh opportunity to do the simple, affordable things necessary to protect your family’s financial future and peace of mind. Here is our 2012 checklist of seven essential legal protections that both you and your spouse or domestic partner should have in place to protect your family: Read the rest of this entry »
Posted in Estate Plan, Power of Attorney, Trust, Will
November 23rd, 2011
If you are in business for yourself, or have a family-owned business, one of your long-term goals is probably to pass on as much as possible to your heirs while minimizing any federal estate taxes. To help achieve this goal, you may wish to consider utilizing legally-approved ways to protect your assets from ever being devastated by a malpractice, business, or real estate lawsuit that goes against you. Read the rest of this entry »
Posted in Estate Plan, Life Insurance, Trust
October 28th, 2011
If you’re faced with probate or living trust disputes, through mediation you may be able to get the resolution you need to ease the conflict. It’s worked for many San Diego families. Mediation is a process where you and the other parties meet both separately and then together with a mediator, who’s a neutral third party trained to help resolve disagreements. It’s done outside of court, which means you and the other parties are in control of what happens and can agree on your own resolution, instead of having a judge decide for you. It also saves the time and cost of fighting over the issues in court proceedings. Typical probate and trust disputes that can be resolved through mediation, if the parties are willing, include: Read the rest of this entry »
Posted in Living Trust Inheritance, Probate & Inheritance, Trust, Trust Administration
August 19th, 2011
Have you ever heard of a rogue will? If not, that’s because it’s literally what it sounds like: a secret will, not prepared by an attorney, that attempts to change a previous will. To decide if a rogue will is legitimate and enforceable, the California probate court looks to see if it meets all the formal legal requirements for a valid will. However, a California Court of Appeal recently decided that in some situations, the maker’s failure to follow all the legal formalities required can be “harmless error. ” This allows the rogue will to replace the original will, and to change who inherits under the will, and how much they inherit. Read the rest of this entry »
Posted in Probate & Inheritance, Will
July 29th, 2011
Probate can be avoided with a living trust. Once the person who created the trust passes away, the “trustee” (a person named in the trust to assume this role) becomes responsible for “administrating” the trust. This means trustee is legally required to manage and distribute the property of the living trust in the exact way specified by the living trust document. Unfortunately, though, sometimes the chosen trustee is ineffective and must be removed by a court order. In this case, the court will name a different person to be the new trustee. Read the rest of this entry »
Posted in Living Trust Inheritance, Probate & Inheritance, Trust Administration, Will
June 17th, 2011
Medi-Cal is a government program to pay for essential health care services, particularly nursing-home care, for qualified low-income and disabled persons. According to California’s Department of Health Care Services (DHCS), over 8.5 million people were enrolled in Medi-Cal for at least one month during the 2008-2009 fiscal year.
Medi-Cal considers its payments to be a loan, and if no Medi-Cal planning is done, Medi-Cal will seek to recover its payments from any assets that remain after the death of both the ill person and their spouse. Read the rest of this entry »
Posted in Health Care, Medi-Cal Help
April 1st, 2011
Time magazine recently published an article discussing the number of Americans who have taken steps to plan for their own long-term care needs as they age. An insurance industry study found that 54% of baby boomers have no plans in place for their long-term care. The 44% who have a plan are often operating under the mistaken belief that increasing their savings account is sufficient.
The reality is that most people underestimate the cost of long-term care, or assume their family members will be able to handle their needs. The cost of a nursing home can easily exceed $100,000 per year. Medicare only covers 100 days of care, while Medicaid only covers care if the person has few assets. The enormous costs of nursing homes can quickly drain a person and/or their family’s life savings. Read the rest of this entry »
Posted in Medi-Cal Help
January 28th, 2011
Parents of special needs children face many unique challenges. They must balance medical, educational, and social issues in addition to the other normal trials of parenting. Raising a special needs child can also involve a complicated struggle to find the right resources to help the child.
Parents also face financial challenges in caring for a special needs child due to medical bills that may not be covered by insurance, as well as increased educational expenses and costs of therapy programs. For parents who have children who may require care into adulthood, there is the added worry of ensuring their child will be cared for after the parents pass away. As one financial planner notes, parents of a special needs child must essentially plan for three retirements—both of their own and their child’s long-term care.
A special needs trust is an estate planning tool that is available to help parents plan for and protect their special needs child’s future. A special needs trust can preserve government benefits, such as Supplemental Security Income (SSI) and Medi-Cal, for people with disabilities. These benefits have specific financial eligibility requirements. If a person with disabilities receives an inheritance when they reach adulthood, they may no longer be able to qualify for benefits.
A special needs trust is a wonderful way to help provide for a special needs child through his or her adulthood. Under a special needs trust, a trustee (who may be a friend, relative, or the trust department of a bank) is named to hold property for the benefit of the child with disabilities after the parents are no longer alive. The trust is used to provide for various needs of a person with disabilities, without causing them to be disqualified for government benefits and programs. The trust may be funded by the parents’ life insurance policies or with monetary gifts from relatives.
The trust can be customized based on the individual wishes of the family and the needs of the child.
San Diego Law Firm’s attorneys have many years of experience in setting up special needs trusts, and are knowledgeable about the precise legal rules that must be followed. They can create a trust that will permit your child or disabled adult family member to receive all government benefits to which they are entitled, that will fit your family’s needs, and that will help ensure that your special needs child will be protected and cared for in the future. To learn more about special needs trust, and to receive expert legal help in setting up your child’s trust, please call San Diego Law Firm at (619) 794-0243 to schedule an appointment.
Posted in Estate Plan, Special Needs Trust, Trust
December 22nd, 2010
In California, if a person dies without a will or trust, the “intestacy” laws apply. These laws provide a way to determine what happens to property when the deceased person did not create a will or trust stating their wishes. Who inherits the property depends on several factors, such as whether the deceased person was married and whether they had children.
Some people believe that a will or trust is unnecessary if their property automatically passes to their spouse and children under the law. However, a will and living trust are especially important for people who are married and those who have children to ensure the simple transfer of property, save on probate fees, and help safeguard a family’s financial future. Read the rest of this entry »
Posted in Estate Plan, Probate & Inheritance, Will
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