In this article, you can discover… California legal loopholes that can endanger your family’s assets. How poorly structured estate planning documents can threaten wealth. The benefits of working with a seasoned estate planning attorney. What Are Common Legal Loopholes In California That Put Family Wealth At Risk During Estate Planning? Estate planning loopholes in California abound, but most are unaware of them. As such, one of the biggest mistakes people make is assuming a will is enough to avoid probate. In California, if your assets exceed $184,500 and you only have a will, your estate will still go through probate court, which can be incredibly costly, stressful for your family, and time-consuming. Probate is also a public process where creditors and 3rd party fraudsters and estranged family members may try to claim something from your estate. Another common issue is not properly funding a trust. Even if you set up a revocable living trust, failing to transfer assets into it such as real estate, bank…Read More
In this article, you can discover… The various ways prenuptial agreements can help protect your family assets. How a postnuptial agreement can impact life after marriage. How an estate planning attorney can help coordinate trusts and prenuptial agreements. How Does A Prenuptial Agreement Protect Family Assets In Estate Planning Under California Law? California is a community property state, which means that any income or assets acquired during a marriage are generally considered to be owned equally by both spouses. When dividing property and debts during a divorce, the law typically requires a 50-50 division of those assets. However, a prenuptial agreement allows couples to make alternative arrangements. If both parties are represented by their own attorneys and the terms are fair, a prenup can specify how assets will be divided, overriding the default community property rules. This can help protect family assets and clearly define what belongs to each party before entering the marriage. Do Prenuptial Agreements Supersede California’s Community Property Laws In Estate Disputes?…Read More
In this article, you can discover… The differences between community property versus separate property. How California law defines “inherited assets”. How redefining assets can be helpful, and how an attorney can assist. What Is The Difference Between Community Property And Separate Property In California Inheritance Law? In California inheritance law, community property and separate property are vastly different, so it is incredibly important that you understand the differences when determining how assets are owned and distributed. So, before we get into it all, let’s quickly define what they are. Community Property This is any income or assets earned during the marriage, and is automatically shared equally between spouses. As such, neither spouse can unilaterally gift or transfer community property without the other's consent. Separate Property This encompasses assets acquired before marriage, after divorce, or received as a gift or inheritance. By extension, they remain the particular individual’s separate property, giving them full control over how it is distributed in estate planning. Separate property can be…Read More
In this article, you can discover… The legal steps involved in restructuring a California business. How restructuring can impact licensure and permits. How proper legal guidance can help you avoid pitfalls and risks during restructuring. What Are The Legal Steps Involved In Restructuring A Business In California? The first step we take is understanding your goals and your reasons for restructuring. This could be due to tax considerations, reducing certain fees, moving to another state, or accommodating business growth. For example, a business transitioning from a small operation to one with multiple partners or seeking investment may need to restructure to attract investors or align with industry norms, such as forming a Delaware corporation. Once your goals are clear, we determine the type of restructuring and handle the legal requirements. This often involves securing proper consent, such as board or member consent, depending on the entity type. There may also be state-specific filings in both the state the entity is converting out of and the…Read More
In this article, you can discover… How overlooking a license can negatively impact your business Common tax errors new business owners make and how to avoid them How the right legal guidance can help you avoid fines and complications How Can Overlooking A License Affect A New Business? Overlooking licenses can significantly impact a new business. Licenses may be held by third parties or classified as open-source, allowing others to utilize them. Without proper agreements in place, disputes over ownership and usage rights can arise. To prevent this, you need to establish clear terms with any third parties you’re dealing with and document them in corporate agreements, such as intellectual property transfers or license agreements. Why Is Failing To Draft An Operating Agreement In Los Angeles A Mistake? An operating agreement sets the rules for an LLC, defining how your company operates and resolving potential disputes. Without one, disagreements among members or owners can arise, leading to unnecessary and potentially damaging conflicts. A well-drafted operating…Read More
In this article, you can discover… What digital assets are, and how to pass them on to beneficiaries Whether a power of attorney can manage digital assets for you How to protect your digital intellectual property What Are Digital Assets? Are They Recognized In California? Digital assets include things like cryptocurrency, NFTs (Non-Fungible Tokens) (which may be stored in separate wallets or devices with encryption that makes third-party access challenging), digital media, Software and Code, Domain Names and Intellectual Property. In California, digital assets are recognized as part of estate planning, and our documents include provisions to address them. If you’re concerned about your digital assets and ensuring they are properly managed, you should reference specific details about them in your trust documents to ensure clarity and protection. Which Digital Assets Can Legally Be Included In My Estate Plan? All digital assets can be included in your estate plan. Typically, these refer to cryptocurrencies like Bitcoin, various tokens like BONK or WIF, or NFTs. Most…Read More
Questions To Prepare For Meeting With An Estate Planning Attorney During your initial consultation, your estate planning attorney will likely ask you some questions to understand your situation and goals, including things such as: If married, are you and your spouse on the same page? Do you want your assets to go to specific people, such as any children you may have? Are there any concerns about the responsibilities of your trustee, executor, or guardian? What is your citizenship status? What is the citizenship status of your trustee? (It’s preferable that the trustee be a U.S. resident and at least a green card holder to avoid potential negative tax implications, especially for those who have recently arrived or are not permanent residents.) What is the value of your estate? Is it close to the federal tax exemption? (This exemption changes frequently, so the attorney will consider the total value of your estate, including retirement accounts and life insurance, whether you’re single or married.) Do you…Read More
In this article, you can discover… The benefits of having a will in place in California Whether your spouse will automatically inherit your estate when you pass away How an attorney can clarify your misconceptions and guide you through estate planning Does Having A Will Prevent Probate In California? Having a will in California does not prevent probate, especially if the value of your assets exceeds $184,500. In this situation, your estate will likely need to go through probate to distribute assets according to the will. A will provides instructions for how assets should be handled but doesn’t bypass the legal process. You will do well to consider creating a living trust. It would allow assets to pass directly to beneficiaries without the delays and costs of probate, offering you and your loved ones greater privacy and efficiency. If I Don’t Have A Will In California, Will The Government Get All My Assets? If you don’t have a will in California, the government typically will…Read More
Guardianships And Why They Are Essential Guardianship is a vital aspect of estate planning, especially if you have minor children. While a friend or family member may step forward to claim responsibility for your child without a designated guardian in place, what do you do if they pass away? Having a legally binding document that specifies who you want to serve as the guardian or a backup guardian is one sure way to ensure your child is cared for well into the future. If no guardian is named and no one steps up, there's a risk that your children could be placed in separate foster care systems, which could unnecessarily break up your family. For this reason, anyone with children should have a will in place to ensure their guardianship wishes are honored. Choosing A Guardian When choosing a guardian for your child in California, consider whether the person is responsible and capable of caring for your child. It's important to think about whether they…Read More
Exploring Beneficiaries A beneficiary of a trust is typically the grantor while they are alive, as the trust is designed for their benefit during their lifetime. However, upon the grantor's passing, the contingent beneficiaries—those designated to receive the estate after the grantor's death—come into play. Traditionally, grantors choose their own children as the contingent beneficiaries. However, the grantor can designate any family members, friends, or even charities to receive a portion of the estate. Choosing Beneficiaries For Your Estate When choosing beneficiaries for your estate, especially if you have children, it's important to consider their financial responsibility and maturity. Ask yourself whether they will be financially savvy and responsible at the point in time they would receive the assets. You'll also need to decide how to divide the estate among your children, whether equally or in specific percentages. If you’re concerned a beneficiary would lack the maturity to steward their inheritance well, you may want to consider distributing it over a period of time, especially…Read More
