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…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.…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…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…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…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…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…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…Read More
Trusts: The Foundation Of Robust Estate Planning A trust is a legal vehicle used to avoid probate. It's a document, not registered anywhere in the state of California. While some states require registration of wills and trusts, California considers these private documents. The only item typically registered is the deed to your house, often through a trust transfer deed, which serves as evidence that you may have a trust in place. All other estate planning documents are also regarded as private. In California, there are various types of trusts available, including revocable trusts, irrevocable trusts, special needs trusts, and Medicaid Asset Protection Trust (MAPT). While there are many options, the majority of people opt for a revocable living trust. This type of trust allows you to retain control over your…Read More
Overviewing Wills A will is an essential legal document that outlines your wishes regarding the distribution of your assets and the care of any minor children after your death. For California residents, it's particularly important, but it’s not always enough to avoid the probate process. A will primarily serves to designate guardians for your minor children and appoint an executor who will be responsible for settling your estate. The executor plays a crucial role in managing your affairs according to your wishes. Having a will is a necessary step, but it alone might not prevent your estate from going through probate, which can be a lengthy and expensive process. In California, if your assets exceed $184,500 in value (the current threshold), your estate will likely go through probate if you…Read More
