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…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…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…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 assets and make changes to your estate plan whenever you choose. The Role Of A Trustee In California, the trustee…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 only have a will. Probate can be time-consuming, stressful, and costly for your loved ones. To avoid probate and ensure…Read More
The Basics Estate planning is the process of preparing for the management and distribution of your assets—your estate—after your passing. Contrary to what some might think, estate planning isn't just for the super-wealthy. Your estate can be as modest as a single-family home and a few bank accounts. The central document in estate planning is usually a revocable living trust, which outlines how your assets will be handled. Alongside this, there are supplemental documents, including a will. If you have children, your will should designate guardians for them. Estate planning also often includes power of attorney and advanced healthcare directives, which are essential if you become incapacitated. Other elements might include personal property memorandum forms and trust transfer deeds to move property into your trust. In some cases, you may even set up an LLC, with your trust as the owner, to manage certain assets. Protecting Your Family’s Future Estate…Read More
In this article, you can learn about: The importance and key components of a stock purchase agreement for companies and investors. The differences between stock purchase agreements and other types of equity agreements, such as stock option agreements and convertible note agreements. The role of legal and regulatory considerations in drafting and negotiating stock purchase agreements to ensure compliance and protect interests. What Exactly Is A Stock Purchase Agreement? A Stock Purchase Agreement is a crucial document that formalizes the transaction where a company issues stock to a shareholder. Initially, this typically involves common stock, though preferred stock may come into play later. It's essential to have this agreement in place, complete with appropriate vesting schedules, to avoid potential issues. The agreement outlines key details, such as the purchase price and vesting terms. Whether shares are earned upfront or over time, these specifics must be documented. Additionally, purchasing shares often…Read More
In this article, you can learn about: The importance of choosing the right legal entity and formation location for your startup. How consulting a business attorney early on can help you avoid common pitfalls and ensure proper documentation. The various legal documents and contracts essential for startups and how an attorney can help draft and review them. What Are Some Of The Key Legal Considerations For Startups? How Can A Business Attorney Help Navigate Them? When starting a business, deciding on the type of entity to form and where to form it are crucial decisions. Most people choose between forming a Limited Liability Company (LLC) or a corporation, which can be either a C corporation or an S corporation. These choices primarily hinge on tax considerations and the business's goals. For example, a small, local business like a hair salon might benefit from forming an LLC in their home state.…Read More
In this article, you can learn about: The process and benefits of forming an LLC for purchasing investment properties and integrating them into a trust. The steps involved in LLC formation, including necessary documents and compliance requirements. How to find the right attorney to assist with LLC counseling, focusing on specialized corporate law expertise. How Can Your Firm Help Investment Property Owners Create An LLC To Purchase Property That Will Then Become Part Of A Trust? When it comes to investment properties, forming an LLC can provide significant advantages. Our firm assists in either purchasing property directly under an LLC or transferring it to an LLC post-purchase. The process begins with forming the LLC in the state where the property is located, such as California. This involves filing the articles of organization with the California Secretary of State, drafting a member consent form, and creating an operating agreement that outlines…Read More
In this article, you will learn about: Key considerations in starting a business in California. How to protect your California business from litigation. The steps you’ll take when dissolving a California business entity. What Are Some Important Questions I Should Consider When Starting A Business In California? Embarking on the journey of starting a business is thrilling, yet it demands a significant investment of time and unwavering commitment. For those who are earnest about venturing into entrepreneurship, certain factors require careful consideration. The best first step to starting any business is to speak with an experienced business law attorney. During your consultation, you might consider the following questions: Are you going to be raising funds for your business? How many people are involved in the business? Do you plan on expanding or selling your business? What kind of entity will your business be? As you explore each question with your…Read More
