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Tag: death

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As we continue to embrace the digital world, the increase in online scams and cyber threats is an unfortunate reality. These risks impact everyone, including legal professionals who handle sensitive client information. However, with the right precautions, you can protect yourself from these digital dangers. It’s equally important to understand how lawyers safeguard client data against these threats. Let’s explore effective strategies for personal security online and the protective measures legal professionals implement for their clients.

In the spirit of “Star Wars Day” (May the Fourth), let’s call these cyber threats the “Dark Side” for a bit of thematic fun.

Seven Essential Tips to Shield Yourself from the Dark Side

  1. Confirm Identities: Always verify the identity of anyone requesting your personal details online. Scammers frequently pose as reputable companies. If a message seems suspicious, reach out directly to the company through official channels.
  2. Strengthen Your Passwords: Use long, unique passwords combining letters, numbers, and symbols. Avoid predictable patterns and consider using a password manager to keep track of your different passwords securely.
  3. Be Wary of Links and Attachments: Don’t click on links or download attachments from unfamiliar sources. These can redirect to fraudulent websites or download malware onto your device. If uncertain, it’s safer to avoid engaging.
  4. Update Regularly: Keep your operating systems and applications up to date to protect against vulnerabilities. Use reputable antivirus software to further safeguard your devices.
  5. Educate Yourself on Scams: Familiarize yourself with common scams like phishing. Awareness is your primary defense.
  6. Verify Unsolicited Calls: If contacted by someone claiming to be from a bank or a government agency, or even a relative in crisis, hang up and call back using a number you trust. Establish a family emergency code phrase to confirm identities in urgent situations.
  7. Never Allow Remote Access: Do not grant remote access to your computer unless you initiated contact with a legitimate tech support team yourself. Scammers often impersonate credible businesses to gain access.

What to Do if You Fall Victim to the Dark Side

Despite your best efforts, if you find yourself scammed, act swiftly. Notify your bank or service provider to secure your account if sensitive information was compromised. Change your passwords immediately, ensuring they are robust and unique. Report the incident to help prevent further fraud, whether it’s through local authorities, consumer protection agencies, or online platforms.

As we continue to embrace the digital world, the increase in online scams and cyber threats is an unfortunate reality. These risks impact everyone, including legal professionals who handle sensitive client information. However, with the right precautions, you can protect yourself from these digital dangers. It’s equally important to understand how lawyers safeguard client data against these threats. Let’s explore effective strategies for personal security online and the protective measures legal professionals implement for their clients.

In the spirit of “Star Wars Day” (May the Fourth), let’s call these cyber threats the “Dark Side” for a bit of thematic fun.

Rest Assured, Your Legal Guardians are on Watch

At Peaceful Warrior Law, we go beyond merely dispensing legal advice; we serve as lifelong, trusted advisors. If you’ve been impacted by a scam, we’re prepared to help fortify your defenses against future incidents. We specialize in creating robust estate plans that not only secure your data but also safeguard your legacy. If your elderly relatives are without an up-to-date estate plan, we can assist in protecting their assets and information too.

We Can Help

Interested in learning more about how we can help you and your family establish a secure Life & Legacy estate plan? Schedule a complimentary 15-minute consultation with us today.

This blog serves as an educational resource from our Personal Family Lawyer® Firm, ensuring you’re well-informed about crucial decisions for your life and your loved ones. To start organizing your estate or to discuss further how to protect your legacy, please contact our office to arrange a Family Wealth Planning Session.

Note: This content, sourced for educational and informational purposes, should not replace specific legal advice tailored to your circumstances.

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As an Estate Planning Attorney, I often take on the role of “Money Protector.” The reason being is that an estate plan is the effective management and distribution of assets on behalf of a person during their incapacity or at their death. Over 70% of Americans don’t have an estate plan in place, which means their family is paying tens of thousands of dollars to the government at their death, all of which can be avoided.

Over the many years of counseling clients, these are the 6 things, that I would never do, as a Money Protection Attorney:

THING 1: I would never leave anything to my kids when I die, instead I would leave everything to a trust where my kids are named as the beneficiary on that trust.

By opting to create a living trust and have your trust own your assets, whereby your kids are named as the beneficiaries on that trust, provides several advantages. The three main advantages that leaving your assets to a trust can provide are: 1) Control; 2) Creditor and Asset Protection; 3) Tax Strategies.

  1. Control: Creating a trust and naming your kids as the beneficiaries of the trust, as opposed to just having a Will or not having a plan in place at all, allows you to have more control over your assets, even after your death. You can specify how and when the assets are to be distributed, which can be especially beneficial if you have concerns about the maturity or financial management skills of your children at the time of your passing.
  2. Creditor and Asset Protection: A trust can provide protection for the assets from creditors, legal judgments, or divorces that your children might experience. This is because the assets are not in your children’s names directly but in the trust.
  3. Tax Strategies: A proactive plan that includes a trust whereby assets are held in the trust and then distributed to your kids allows you to structure your trust in a way that can minimize estate taxes, thereby preserving more of your wealth for your beneficiaries under current tax laws.

THING 2: I would never name my minor children as beneficiaries on my life insurance accounts, instead I would set up a trust and designate my trust as the beneficiary of my life insurance accounts and name my kids as the beneficiary of the trust.

Naming minor children directly as beneficiaries on life insurance policies or other financial accounts often presents several practical and legal challenges. Here’s why it might be more advantageous to set up a trust and name the trust as the beneficiary, with your children as the beneficiaries of that trust:

  1. Legal Limitations for Minors: Minors cannot legally control property or finances until they reach the age of majority (18 in most states). If you pass away when your children are still minors and they are direct beneficiaries, the court will typically appoint a guardian to manage the funds until they reach adulthood. This process can be time-consuming, costly, and might not necessarily align with your intentions for the management of the funds.
  2. Control Over the Funds: By using a trust, you can specify exactly how and when the money should be distributed to your children. This can include stipulations for education, health, maintenance, and support, or dispersing funds at certain ages or milestones, like graduating from college. This helps ensure the money is used in a way that benefits their long-term well-being.
  3. Protection from Creditors and Divorce: Assets held in a trust are generally protected from the beneficiaries’ creditors, legal judgments, or divorce settlements. This protection helps ensure that the assets are preserved for the intended purpose of supporting your children, rather than being vulnerable to external claims.
  4. Avoiding Probate and Privacy: Trusts can help bypass the probate process, which is public and can be lengthy and expensive. By having the trust as the beneficiary, the disbursement of life insurance proceeds can be handled privately and swiftly according to the terms you’ve established.
  5. Tax Considerations: Depending on the size of your estate and the structure of the trust, there can be significant tax advantages to using a trust to manage and distribute your assets, including life insurance payouts.

THING 3: I would never add my childrens’ name to my home to get around medicaid recovery. Instead I would put my home in a medicaid asset protection trust and my children would be the benefits of that trust.

Adding your children’s names directly to the deed of your home might seem like a straightforward way to manage estate planning and Medicaid planning, but it can lead to several significant issues, particularly regarding Medicaid asset recovery. Here’s why it’s often a better strategy to establish a Medicaid Asset Protection Trust (MAPT) instead:

  1. Medicaid Asset Protection Trust (MAPT): A better alternative might be to place the home into a MAPT, naming your children as beneficiaries. This type of trust is designed to own assets like your home while allowing you to retain some benefits, such as living in the home. Here’s why it’s effective:
    • Protection from Estate Recovery: Assets in a MAPT are typically protected from Medicaid’s estate recovery, as the assets technically no longer belong to you.
    • Maintaining Medicaid Eligibility: Since the assets in a MAPT are not considered yours for Medicaid eligibility purposes (assuming the trust is irrevocable and properly set up before the look-back period), it helps in maintaining eligibility for Medicaid.
    • Control and Management: With a MAPT, you can appoint a trustee who manages the trust according to the terms you’ve set, providing a structured way to handle the property and other assets without exposing them to the risks associated with direct ownership by children.

Setting up a MAPT can be complex and requires careful planning and timing to ensure compliance with Medicaid rules and to achieve your estate planning goals effectively. It’s crucial to work with an attorney who is familiar in Medicaid planning and trusts to ensure that the structure of the trust meets legal requirements and aligns with your objectives.

THING 4: I would never add my children’s name to my deed as a way to get around probate court. Instead I would put my home in a living trust and my children would be beneficiary of that trust.

Adding your children’s names to the deed of your home as a way to avoid probate can seem like a simple solution, but it has several potential pitfalls and legal complexities. Here’s why adding your children’s name to the deed can pose several problems:

  1. Legal and Financial Risks: When you add your children to the deed, they become part-owners of the property immediately. This exposure means that any financial difficulties, legal problems, or liabilities they face (such as divorces, bankruptcies, or lawsuits) could threaten the home. Creditors could potentially place liens on the property or seek to recover debts through your children’s ownership interest.
  2. Loss of Control: By adding your children to the deed, you dilute your control over the property. Major decisions such as selling or refinancing the property would require their consent, which could limit your flexibility and autonomy, particularly if there are disagreements or if logistical issues arise, such as a child living far away or being unresponsive.
  3. Potential Gift Tax Consequences: Transferring part ownership of your home to your children is considered a gift for tax purposes and may trigger federal gift tax liabilities if the value of the share exceeds the annual gift tax exclusion amount.
  4. Capital Gains Tax Implications for Children: If your children are added to the deed and later sell the property after your death, they might not qualify for the full homeowner’s capital gains exclusion typically available when selling a primary residence. This could result in a significant capital gains tax if the home has appreciated in value.

THING 5: I would never make my kids go through probate court — instead I would create a living trust which would avoid probate court.

Probate Court is the State’s plan for you if you don’t have an estate plan created for yourself. If you die with assets titled in your name, such as the deed to your real estate, the title of your bank accounts and investment accounts, or a single member owned business, you are leaving your family to have to go to probate court. Probate court can be thought of as the court’s supervision of transfer of ownership.

A more structured and safer way to avoid probate and ensure smooth transfer of your property after your death is to set up a trust, such as a revocable living trust. Here’s why:

  • Avoids Probate: The property in the trust does not go through probate, which can expedite the distribution process to your beneficiaries and keep it private.
  • Full Control During Lifetime: You can maintain control over the property as the trustee of your trust. This arrangement allows you to manage, sell, or refinance the property as you see fit during your lifetime.
  • Protection from Creditors and Lawsuits: Since the trust owns the property, your children’s creditors or legal issues typically cannot affect the home.
  • Stepped-Up Basis: Upon your death, your children can benefit from a stepped-up basis for tax purposes, potentially reducing capital gains taxes if they sell the property.
  • Flexibility and Specific Terms: You can specify in the trust document how and when your children will inherit the property, allowing you to address any concerns about their maturity, financial management skills, or other personal circumstances

THING 6: I would never create a Will and make my kids go through Probate Court. Instead I would create a living trust which would avoid probate court.

Probate Court is also the process in which the court validates your Will and distributes a decedent’s assets. In other words, if all your family has is a Will, they WILL be going through probate court.

A Will alone is not sufficient to keep your family out of probate court. A trust is.

BONUS TIP: I would never leave this earth without a good plan in place to protect my loved ones.

A comprehensive estate plan includes the following:

  1. A Revocable Living Trust
  2. A Pour-Over Will
  3. Financial and Medical Powers of Attorney
  4. HIPAA authorizations
  5. Funeral Instructions
  6. Minor’s Guardian Nominations
  7. Fully Funded Trust and Updated Beneficiary Designations

The question you need to ask yourself is: What experience do I want the people who I love to have to go through in order to become owners of the assets I want to transfer to them?

It’s crucial to remember that estate planning is about more than just documents; it’s about informed decisions that shape your future and the future of your family. To take your financial organization to the next level and make the best choices for your loved ones. Click here to schedule a Family Wealth Planning Session™ with us. Mention this article, and you can access this valuable $750 session at no charge.

As always, we’re here to support you on your journey toward financial security and peace of mind. Financial planning is a dynamic process, and with the right strategies in place, you can confidently navigate the ever-changing financial landscape and achieve your long-term goals.

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HOW MANY TIMES HAS ONE OF YOUR CLIENTS ASKED YOU “HOW SHOULD I TAKE TITLE TO MY NEW HOME?”

As an estate planning attorney, navigating clients through this pivotal question becomes a crucial aspect of our service. A correctly titled property is not just a matter of legal compliance; it’s a strategic move to ensure the financial security and wishes of the property owners are honored.

Realtors play a pivotal role in not just finding the perfect home for clients but also in navigating the intricate pathways of home ownership. One question that frequently arises, yet is often underestimated in its complexity, is, “How should I take title to my new home?” This question extends beyond the closing of a deal and delves into the realms of legal compliance, financial security, and estate planning. As a realtor, equipping yourself with knowledge on this subject isn’t just adding another feather to your cap—it’s about becoming an indispensable resource to your clients.

Realtors: You have the opportunity to make sure that your clients have all the benefits of rightly titled property and they will definitely thank you for it.

WHY IS TITLING PROPERTY CORRECTLY SO IMPORTANT TO HOMEOWNERS?

The Importance of Correct Titling:

The foundation of estate planning is control. Homeowners want assurance that their wishes, especially regarding their property, will be respected and executed.

If Titled Incorrectly:

If titled incorrectly, the property owner cannot control what happens to the property after he dies; second, if titled incorrectly, the heirs can lose the property to creditors, the government, or even an ex-spouse; third, if titled incorrectly, the heirs will have to pay capital gain on the sale of the property.  

THREE COMMON WAYS TO HOLD TITLE 

JOINT TENANCY:  

The worst part about joint tenancy is the owner who dies first cannot control what happens to the property after his or death.  Joint Tenancy ensures that there will be a probate upon the death of the second joint tenant.  Finally, the surviving joint tenant will pay capital gain on one-half of the property after the death of one joint tenant.

 

COMMUNITY PROPERTY:  

Possibly the most common way for married couples to own property, Community Property causes half of the property owned as community property to be probated upon the first death and the whole property must be probated upon the second death.  Probate is not fun- it is time consuming and costly!  

 

COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP:  

Like joint tenancy, CPw/ROS is a he who dies last wins situation, because the surviving owner controls the disposition of the property on her death.

 

THE FOURTH AND BEST WAY TO OWN PROPERTY – A REVOCABLE LIVING TRUST:  

Realtors: Present this option as a comprehensive solution, offering control, protection, and tax efficiency. It’s an avenue to sidestep probate, maintain privacy, and ensure a seamless transfer of the estate.

The best way for your homeowners to own their property is in a revocable living trust.  

  • A properly drafted and funded trust will avoid time consuming, expensive and public probate upon the first death and the second death.  
  • A revocable living trust will make sure that the right people receive the property after the death of both owners and that it doesn’t go to creditors, predators, or future spouses.  
  • Property received by the heirs can usually be sold free of any capital gain tax and can be protected from creditors and predators of the heirs.

Empowering Conversations with Knowledge:

Your role as a realtor is evolving. Clients are looking for more than property listings—they are seeking informed guidance. By understanding the implications of each title option, you can engage in deeper, more meaningful conversations with your clients, positioning yourself as a trusted advisor.

Revocable living trusts extend beyond financial savings, morphing into a protective shield for the property and its intended beneficiaries. In a world where creditors and predators lurk, having a well-structured trust is akin to building a fortress around the estate. It’s an assurance that the property will transition according to the explicit wishes of the owners.

The Realtor’s Advantage with Revocable Living Trusts:

Revocable living trusts stand out for their multifaceted benefits. Educate your clients about this option; explain how it enhances control, minimizes tax liabilities, and acts as a shield against third-party claims. When clients realize you’re not just about the sale but genuinely invested in their long-term welfare, your reputation and relationships will be solidified.

Conclusion:

In the competitive world of real estate, the realtors who stand out are those who offer value beyond the conventional services. Equip yourself with the knowledge of property titling, and transform each client interaction into an opportunity for empowerment. You’re not just helping clients buy a property—you’re guiding them to secure their legacy, and in doing so, you’re building your legacy as a realtor of distinction. Your informed advice on property titling won’t just close deals; it will open doors to enduring client relationships, referrals, and a reputation anchored in trust and expertise.

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Introduction

California’s Proposition 19, passed by voters in November 2020 and implemented on February 16, 2021, has redrawn the landscape of real estate taxation and inheritance. With these significant changes, estate planning strategies must evolve to encompass the new tax implications for inherited properties.

Before Prop 19: Property owners could pass their primary residences, and up to $1 million of other property, to their children (or grandchildren if both parents are deceased) without triggering a reassessment of the property’s value for tax purposes Cal. Const. art. XIII A, § 2.

The Mechanics of Proposition 19

Tax Base Transfer

Under Proposition 19, homeowners aged 55 or older, severely disabled, or victims of natural disasters are allowed to transfer their property tax base to a replacement residence up to three times California Board of Equalization.

Example:

Jane, a 57-year-old homeowner, decides to downsize. Thanks to Proposition 19, she can move from her family home in Silicon Valley to a smaller property in San Diego without experiencing a hike in her property tax, even though the market value of the new home is higher.

Before Prop 19:
  • Parents could transfer primary residences to their children without a change in the property tax base. They could also transfer up to $1 million of assessed value in other properties, like vacation homes or rental properties.
After Prop 19:
  • The property tax base can only be transferred if the child uses the inherited property as their primary residence, and there’s now a cap on the assessed value exclusion. Vacation homes or rental properties do not receive the basis transfer.

Inheritance Rules

The proposition modifies the rules around the inheritance of property tax bases California Legislature.

Implications for Estate Planning

1. Impact on Heirs

a) Increased Taxes:

Heirs inheriting properties that are not used as their primary residence or exceed the value exclusion cap will face higher property taxes, which could make inheriting and maintaining such properties financially unsustainable.

Example 1:

  • Before Prop 19: Alex’s parents leave him a family home with an assessed value of $500,000. Regardless of whether Alex decides to live there, rents it out, or leaves it vacant, the property’s assessed value for tax purposes remains $500,000.
  • After Prop 19: If Alex decides not to live in the inherited home, the property will be reassessed at its current market value, which could be significantly higher, leading to an increase in property taxes.

Example 2:

  • Before Prop 19: Sarah inherits her parents’ primary residence and a vacation home with a combined assessed value of $1.5 million. Neither property’s assessed value is reassessed for property tax purposes.
  • After Prop 19: Only the primary residence may be excluded from reassessment, and only if Sarah uses it as her own primary residence. The vacation home would be reassessed at current market value.
b) Selling Inherited Properties:

Given the new tax burdens, heirs may be compelled to sell inherited properties, a shift that could impact family legacies and long-term estate planning strategies.

Example:

Maria, who inherits her parents’ $2 million family home where the property tax is based on a $500,000 assessed value, will face a reassessment if she doesn’t move into the home. The increased property tax could make it financially challenging for Maria to keep the home, prompting a sale.

Implications for Estate Planning Strategies

a. Review and Update:

Individuals and families need to revisit their estate plans to accommodate these changes, especially those plans that include leaving homes to children.

b. Gifting Properties:

Some might consider gifting properties to their heirs before death to circumvent the new rules, though this comes with its own tax implications.

c. Trust Adjustments:

Estate planners will need to consider adjustments to trusts to optimize for the new tax landscape and minimize the financial impact on heirs.

Financial Planning Intersection

Wealth Management:

For wealthier individuals, the intersection of estate planning and financial planning becomes critical. The impact of Prop 19 may require diversifying assets or finding alternative methods to transfer wealth while minimizing tax impacts.

Real Estate Decisions

Downsizing:

Older adults might consider the implications of Prop 19 in their decisions to downsize or relocate, balancing the benefits of transferring their tax base with the limitations imposed on their heirs.

Adjusting Inheritance Strategies

Prop 19 limits the transfer of low property tax bases for inherited properties unless used as a primary residence by the heir, and even then, it is subject to a new value cap.

Example:

Mark inherited a property valued at $2 million from his parents. The original tax base was $500,000. Under Prop 19, if Mark does not use the property as his primary residence, the property will be reassessed at its current market value, leading to a significant increase in annual property taxes.

Navigating the Legal Terrain

Legal Citations

Prop 19 alters the application of sections 2.1 and 2.2 of Article XIII A of the California Constitution, impacting the reassessment rules of transferred property between parents and children or grandparents and grandchildren if the parents are deceased California Legislature.

Expert Consultation

The complexity of the proposition underscores the necessity of consulting with estate planning attorneys to revise and adapt existing plans, ensuring that they align with the new tax landscape while optimizing asset preservation and minimizing tax liabilities.

Conclusion

The implementation of Proposition 19 is a pivotal development with profound implications for real estate owners and heirs in California. It necessitates an in-depth review and, potentially, a comprehensive revision of estate plans to navigate the new tax implications effectively. Armed with informed insights and strategic adjustments, property owners can transition from reactive postures to proactive planning, turning the challenges of Proposition 19 into opportunities for optimized estate management and asset transitions.

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For California’s real estate owners, weaving through the intricacies of estate planning can be akin to navigating a labyrinth. However, with strategic planning, understanding of tax laws, and adept utilization of estate planning tools, property owners can ensure that their assets are not only protected but also serve as a legacy for generations. This article will explore the comprehensive steps, legal considerations, and practical examples to optimize estate planning for real estate owners in California.

California Homeowners Should have a Living Trust

Table of Contents

  1. DETAILED PLANNING WITH RELEVANT LAWS
    • Understanding Proposition 19
    • Navigating Federal Estate Tax Laws
  2. HOW A TRUST PROVIDES PROTECTION
    • Benefits of Establishing a Trust
    • Why a Revocable Living Trust is Usually Best
    • Other Types of Trusts That Provide Different Types of Protection
  3. EXAMPLES OF HOW COMPLEX ASSETS SUCH AS REAL ESTATE ARE INTEGRATED INTO INTO ESTATE PLANS 
    • Incorporating a Living Trust
  4. HOW DO YOU KNOW WHICH TYPE OF TRUST IS RIGHT FOR YOU?
    • Revocable Living Trust
    • Irrevocable Living Trust
    • Domestic Asset Protection Trust
    • Medicaid Asset Protection Trust

1. DETAILED ESTATE PLANNING WITH RELEVANT LAWS IN CALIFORNIA

A) Understanding Proposition 19

Under Proposition 19, effective February 16, 2021, California homeowners who are 55 or older, severely disabled, or victims of wildfires and natural disasters can transfer their property tax base to a new residence of any value anywhere in the state up to three times during their lifetime California Board of Equalization.

Prior to Proposition 19, homeowners would be able to pass down real property to their heirs and preserve their tax basis, wholly discouraging people to sell their family property and istead, opt to continue to pass it down from one generation to the next.

Example:

Let’s consider John, a 60-year-old long-term homeowner in San Francisco. His home, purchased two decades ago, has an assessed value of $500,000, although its current market value is $2 million. His annual property taxes are based on the assessed value, leading to substantial savings.

With Proposition 19 in effect, John has the option to purchase a new home in Los Angeles, valued at $2 million, without seeing a spike in his property taxes. He can transfer the $500,000 assessed value (adjusted for the difference in the market price of the two homes) to the new property, resulting in considerably lower property taxes than if the new home were taxed at its full market value.

B) Navigating Federal Estate Tax Laws

As of my knowledge cut-off in 2022, the federal estate tax exemption is at $11.7 million for individuals and $23.4 million for couples, indexed for inflation IRS.

Example:

If Sarah, a homeowner in San Diego, has an estate valued at $10 million, including her real estate, she won’t owe federal estate taxes upon her death, safeguarding her heirs from this financial burden.

2. HOW A TRUST PROVIDES PROTECTION FOR HOMEOWNERS IN CALIFORNIA

A) Benefits of Establishing a Trust

In California, establishing a trust can offer significant protection for homeowners by ensuring their property is managed according to their specific desires and providing a shield against probate proceedings upon death. By placing your home into a trust, you maintain control over the property during your lifetime while designating a successor trustee to manage the property upon your passing. This strategy not only facilitates a smoother and faster transfer of property to your designated beneficiaries but also helps protect the asset from public scrutiny and the often lengthy and costly probate process. Trusts can also offer a layer of privacy and may provide some protection against creditors, making them a wise consideration for anyone looking to safeguard their most valuable asset—their home.

There are many different types of trusts, but the type of trust that is the most foundational for all homeowners in California is the “Revocable Living Trust.”

B) Why A Revocable Living Trust is Usually the Best Option

A revocable living trust is a legal entity created to hold ownership of an individual’s assets during their lifetime and to specify how those assets are to be handled after their death. This type of trust is called “revocable” because it can be altered or completely revoked by the trustor (the person who creates the trust) at any point during their life, as long as they remain mentally competent. The trustor typically acts as the trustee, managing the trust’s assets, which might include real estate, bank accounts, and investments. Upon the trustor’s death, the trust becomes irrevocable, meaning it can no longer be changed, and the successor trustee then steps in to manage or distribute the assets according to the trust’s terms. This setup helps bypass the often lengthy and costly probate process, provides privacy since the trust details do not become part of the public record, and can offer more precise control over the distribution of assets to beneficiaries.

C) Other Types of Trusts That Provide Different Types of Protection

  • Irrevocable Trust

An irrevocable trust is a type of trust where the terms cannot be modified, amended, or terminated without the permission of the grantor’s named beneficiaries once it has been created. Unlike a revocable trust, the grantor, once they transfer assets into an irrevocable trust, effectively removes all of their ownership rights over those assets. This transfer is permanent, providing significant benefits such as protection from creditors and legal judgments, as well as potential tax advantages. Because the assets no longer belong to the grantor, they are not included in the grantor’s taxable estate, potentially reducing estate taxes. Irrevocable trusts are often used for asset protection, to provide for a beneficiary who shouldn’t directly inherit assets due to incapacity or irresponsibility, and for charitable estate planning.

  • Domestic Asset Protection Trust

A Domestic Asset Protection Trust (DAPT) is an irrevocable trust established under specific U.S. state laws to shield a grantor’s assets from creditors and legal claims. By transferring assets into a DAPT, the grantor relinquishes ownership but can still potentially benefit as a discretionary beneficiary, managed by an independent trustee. This structure ensures that the assets are generally inaccessible to creditors and not included in the grantor’s personal estate, providing significant protection while allowing the grantor some level of access to the trust’s benefits. DAPTs are particularly appealing to high-net-worth individuals seeking effective asset protection strategies.

  • Medicaid Asset Protection Trust

A Medicaid Asset Protection Trust (MAPT) is a type of irrevocable trust designed to protect an individual’s assets from being counted for Medicaid eligibility purposes. By placing assets into a MAPT, individuals can safeguard their wealth, ensuring it is not depleted by the costs of long-term healthcare, while potentially qualifying for Medicaid benefits. The trust must be properly structured and adhere to strict regulations, including a look-back period, typically five years, during which assets transferred into the trust may still be considered by Medicaid in determining eligibility. The grantor of the MAPT relinquishes control over the assets and cannot be the trustee, but they can designate who will receive the trust’s assets after their death. This setup allows the assets within the trust to be protected from both Medicaid recovery and other creditors, ensuring that the grantor’s legacy can be preserved for their beneficiaries.

3. EXAMPLES OF HOW COMPLEX ASSETS (SUCH AS REAL ESTATE) ARE INTEGRATED INTO ESTATE PLANS

A) Incorporating a Living Trust

Living trusts are pivotal for California property owners. They ensure that real estate and other assets are passed on seamlessly without going through probate, which can be a public, time-consuming, and expensive process.

Example:

Matthew, owning a beachfront property in Malibu, places it in a living trust. Upon his passing, the property is transferred to his daughter, Lisa, without undergoing probate, ensuring privacy and expediency.

B) Utilizing Gift Deeds

While gifting property can be an efficient method of asset transfer, it’s pivotal to understand the tax implications. The annual gift tax exclusion and lifetime gift and estate tax exemption play a crucial role IRS.

Example:

David gifts a condo in Sacramento to his son, Alex. Given the current annual gift tax exclusion, if the property’s value is within the allowable limits, there will be no immediate tax implications for either party.

4. HOW DO YOU KNOW WHICH TYPE OF TRUST IS RIGHT FOR YOU?

Choosing the right trust for a California homeowner who currently lacks an estate plan depends on their specific goals, financial situation, and needs for asset protection. Here’s a brief guide to help determine the most suitable type of trust:

  1. Revocable Living Trust: Ideal for homeowners who desire flexibility and control over their assets. This trust allows the grantor to retain control over the assets during their lifetime, including the ability to amend or revoke the trust. It helps avoid probate, provides privacy, and ensures that assets are distributed according to the grantor’s wishes upon their death. It’s a good fit if the primary concern is simplifying the administration of the estate rather than asset protection from creditors.
  2. Irrevocable Living Trust: Suitable for those who are willing to relinquish control over their assets for the benefit of asset protection and potential tax advantages. Once assets are transferred into this trust, the grantor cannot modify the trust without the beneficiaries’ consent. This trust offers stronger protection against creditors and can reduce estate taxes, making it a good choice for individuals with significant assets who are also concerned about future liabilities and estate tax implications.
  3. Domestic Asset Protection Trust (DAPT): Appropriate for individuals with substantial assets who seek to protect their wealth from potential future creditors while maintaining some beneficial interest in the trust. This type of trust is particularly effective in states that allow for DAPTs, providing strong creditor protection while allowing the grantor to remain a discretionary beneficiary.
  4. Medicaid Asset Protection Trust (MAPT): Best suited for individuals concerned about future medical costs and the possibility of depleting their estate through long-term care expenses. This trust protects assets from being counted for Medicaid eligibility, but it requires careful planning to comply with Medicaid’s look-back period and other eligibility criteria.

For a California homeowner starting an estate plan, a revocable living trust often serves as a foundational component due to its flexibility and the control it offers. However, if the homeowner is particularly concerned about protecting assets from creditors or ensuring Medicaid eligibility, considering an irrevocable trust, DAPT, or MAPT might be more appropriate. Each type of trust serves different purposes and comes with its own set of legal and financial considerations, so it’s essential to evaluate the homeowner’s individual circumstances and objectives thoroughly. Consulting with a specialized estate planning attorney can provide tailored advice and ensure that the chosen trust aligns with the homeowner’s overall estate planning goals.

Conclusion

Owning real estate in California presents both an opportunity and a responsibility. Through comprehensive estate planning infused with an intricate understanding of state and federal tax laws, property owners can turn potential complexities into streamlined, cost-effective processes that ensure asset preservation and legacy building.

Key Takeaways

  • Stay updated with the evolving tax landscape, including state-specific propositions and federal tax laws.
  • Incorporate specialized estate planning tools like living trusts to facilitate efficient asset transitions.
  • Regularly review and adapt your estate plan, considering the dynamic nature of the real estate market, tax laws, and individual asset portfolios.

It’s crucial to remember that estate planning is about more than just documents; it’s about informed decisions that shape your future and the future of your family. To take your financial organization to the next level and make the best choices for your loved ones. Click here to schedule a Family Wealth Planning Session™ with us. Mention this article, and you can access this valuable $750 session at no charge.

As always, we’re here to support you on your journey toward financial security and peace of mind. Financial planning is a dynamic process, and with the right strategies in place, you can confidently navigate the ever-changing financial landscape and achieve your long-term goals.

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If you own real estate, chances are you have purchased insurance to protect your assets against damage or loss. But have you taken the necessary steps to protect your assets against lawsuits or probate?

If you own rental properties, there is likely a nagging fear in the back of your mind about being sued by one of your tenants. And if there isn’t, there probably should be. It’s a major risk.

And while it may be heartbreaking to think about, there is always a chance your death could trigger a family feud over your home, vacation home or other real estate investments.

Two common estate planning tools for real estate asset protection include limited liability companies (LLCs) and trusts:

LLC

If you have income-producing property, then an LLC probably makes sense for you, since it protects your personal assets from lawsuits or claims that result from your ownership of the real estate. LLCs may also offer owners privacy since the property can be listed in a company name, not in your name directly. However, you must be sure you maintain the LLC properly so the planned for protections remain intact. It’s not too difficult though, especially with counsel.

TRUSTS

If you own vacation home property that you do not rent out on a regular basis, then a trust may be a better choice for you. There are several options: a Qualified Personal Residence Trust (QRPT) is an irrevocable trust (meaning it cannot be changed without the consent of the beneficiaries) that allows an owner to use the property for a fixed term, and then pass the property on to heirs. This is a commonly used structure to reduce the size of your estate for estate tax purposes.

A revocable trust (which can be changed without consent of the beneficiaries) is more flexible and, if you choose a dynasty trust, can last for multiple generations. The major benefit of the revocable trust, besides control of what happens to the assets after the death of the grantors, is that it keeps your assets out of the hands of the Court after your death, and totally within the control of your family.

You can also use a combination of LLCs and trusts to protect real estate assets if you have a combination of primary residence and rental properties. We can help you decide on the best course of action for your individual circumstances.

This article is a service of  Brittany Cohen, Esq., Personal Family Lawyer®. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

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What Happens To Your Debt When You Die?

Maybe you’ve wondered about your own debt or perhaps your parent’s debt—what happens to that debt when you (or they) die? Well, it depends, and that’s part of the reason you want to ensure your estate plan is well prepared. How you handle your debt can greatly impact the people you love.

In some cases, you could inadvertently leave a reality in which your surviving heirs—your kids, parents, or others—are responsible for your debt. Alternatively, if you structure your affairs properly, your debt could die right along with you.

According to the Federal Trade Commission, an individual’s debt doesn’t disappear once that person dies. Rather, the debt must either be paid out of the deceased’s estate or by a co-creditor. That could be bad news for you or the people you love.

What exactly happens to this debt can vary. One of the purposes of the court process known as probate is to provide a time period for creditors to make a claim against the deceased’s estate, in which case debts would be paid before beneficiaries receive their inheritance. But if there’s nothing in the probate estate and all assets are held outside of the probate estate, then what?

Well, that’s where we come in, and why it’s so important to get your affairs in order, even if you have a lot more debt than assets. Your “estate” isn’t just what you own, it includes what you owe, too. With good planning, we can help you align it all in exactly the way you want.

Debt After Death

When an individual dies, someone will handle his or her affairs, and this person is known as an executor. The executor can either be someone of the individual’s choice, if he or she planned in advance, or someone appointed by the court in the absence of planning. The executor opens the probate process, during which the court recognizes any will that’s in place and formally appoints the executor to administer the deceased’s estate and distribute any outstanding assets to their loved ones.

During this process, the estate’s assets are used to pay any outstanding debt. This usually includes all of an individual’s assets, although it doesn’t include assets with beneficiary designations, such as 401(k) plans and insurance policies. The estate doesn’t own these assets, and they pass directly to the named beneficiaries. Given these factors, if an individual’s assets are subject to probate and the person has outstanding debt, their beneficiaries will receive a smaller share of anything left to them in the estate plan.

How Unsecured Debts Are Handled After Death

Typically, unsecured debts, such as credit card debts, are the last form of debt the estate repays. In most cases, the estate first repays any outstanding secured debts, including car and mortgage loans. Following this, the estate repays the legal and administrative fees associated with executing the deceased’s will. From there, the estate repays any outstanding unsecured debt, including credit card balances. Usually, if the estate lacks the assets to repay these debts, creditors have no choice but to accept the loss.

However, in some states, probate laws may dictate how the deceased’s creditors can clear these debts in other ways, such as by forcing the sale of the deceased’s property. It’s worth noting that there’s a time limit for creditors to claim against an estate after the deceased dies, and this time frame varies between states.

Avoiding Probate

There are several things you can do to avoid probate. Perhaps the most common involves establishing a revocable living trust. Since the trust, not the estate, owns the assets, assets held by a properly funded and maintained trust don’t have to go through the probate process.

Despite this, creating a living trust doesn’t guarantee an individual’s assets will receive protection from creditors if that person has debt. What it does mean is that his or her heirs may have more flexibility compared to probate. In other words, by creating a living trust, your trustee may be able to negotiate with creditors more easily to reduce any outstanding debt. In theory, creditors may still sue to repay the debt in full. However, since this could involve significant costs, creditors may prefer to settle instead.

When Do Surviving Family Members Pay The Deceased’s Debts?

Most of the time, it’s unnecessary for surviving family members to pay the deceased’s debt with their own money. Instead, as noted above, payment of the debts are either paid out of the deceased’s estate, or if there is no estate, the debts are extinguished. However, there are some exceptions to this, including the following:

  • Co-signing loans or credit cards: If someone cosigns a loan or credit card with the deceased, that individual is responsible for clearing any outstanding debt associated with that account.
  • Having jointly owned property: If an individual has jointly owned property or bank accounts with the deceased, that person is responsible for clearing any outstanding balances associated with these assets.
  • Community property: In some states, including California, Arizona, Nevada, Louisiana, Idaho, Texas, Washington, New Mexico, and Wisconsin, the surviving spouse is required to clear any outstanding debt associated with community property. Community property is any property jointly owned by a married couple.
  • State laws: Some states require surviving family members, or the estate more generally, to clear any debts associated with the deceased’s healthcare costs. Additionally, if the estate’s executor failed to follow a state’s probate laws, it might be necessary for him or her to pay fines for doing so.

What To Do When Someone Dies With Debt

When someone dies with outstanding debt, it’s important to take swift action to handle their affairs and negotiate their debts. Below are some steps to follow when faced with this scenario:

01 – Understand Your Rights

Since probate laws vary between states, it’s a good idea to thoroughly research the probate process in your state, or hire a lawyer to handle the estate for or with you. Many states require creditors to make claims within a specific period, while also requiring surviving family members to publicly declare the deceased’s death before creditors can collect any outstanding debt. It’s also against the law for creditors to use offensive or unfair tactics to collect outstanding credit debt from surviving family members. It’s generally a good idea to ask creditors for proof of any outstanding debt before paying.

02 – Collect Documents

Collecting documents can be fairly straightforward, particularly if the deceased left all their vital financial papers in a single location. If the surviving family members cannot locate these documents, they can request the deceased’s credit report, which lists any accounts in the deceased’s name. We can do this for you as part of our post-death support services.

03 – Cease Additional Spending

This is essential to prevent any debts in the deceased’s name from increasing further, even if there is another person authorized to make payments. Ceasing additional spending. including canceling any recurring subscriptions, also helps prevent unnecessary complications when negotiating with creditors.

04 – Inform Creditors

Proactively contact the deceased’s creditors to look into options for negotiating the debt, and notify credit bureaus of the death. To complete this process, it’s useful to have several copies of the death certificate to share with insurance companies and creditors. Afterwards, ask to close all accounts in the deceased’s name, and request the credit bureaus freeze the deceased’s credit, preventing others from unlawfully getting credit in his or her name.

05 – Close The Estate

Once all debt has been paid off, forgiven, or extinguished, the executor can officially close the estate. The process for doing this varies based on how assets and debts were held, so don’t go into this part alone. Contact us to find out how we can support you.

We Can Help Ensure Your Family Doesn’t Get Stuck With Your Debt

Effective estate planning involves taking care of your affairs, and this includes ensuring your debts will be handled in such a way that your family isn’t left with a big mess or inadvertently forced into court. Consider scheduling a Family Wealth Planning Session with us to determine how we can help protect your assets and prevent creditors from reducing the gifts you want to leave your loved ones after death. Contact us today to learn more.

This article is a service of Brittany Cohen, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

[email protected]

858-427-0539

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The environmental costs of death are significant and constantly rising. With 8 billion people on the planet right now—all of whom have bodies that die and must be disposed of—we need to start seriously considering alternatives to traditional options for burial and cremation. Fortunately, more and more “green” options are being developed to reduce these costs, and this article looks at some of the latest innovations.

In most conventional burials, the body is pumped with toxic embalming fluid, placed in a steel casket, and buried within a cement-lined vault six-feet underground. According to the Green Burial Council, burials in the U.S. go through roughly 77,000 trees, 100,000 tons of steel, 1.5 million tons of concrete, and 4.3 million gallons of embalming fluid each year.

Although cremation is touted as more eco-friendly than burial, it still comes with serious environmental risks. In fact, cremating a single body uses about the same amount of gas as a 500-mile road trip, according to the Natural Death Center. Cremation also releases some 250 lbs. of carbon dioxide into the atmosphere, roughly the same amount an average American home produces in a week.

A return to nature

With the death rate expected to spike as Baby Boomers age, the funeral industry is poised to cause even more damage. While green funerals are a recent trend, natural burials were the norm until the Civil War, which coincided with the rise of the industrial age, embalming, and the modern funeral director business.

Today, natural burials are making a comeback. Green funerals are designed to not only be more environmentally friendly, but also less expensive overall than conventional burial or cremation. If you want to make your last act on this planet less harmful to the ecosystem, here are 6 green funeral options, along with the best way to include your final wishes in your estate plan.

01 – Green burial

Founded in 2005, the nonprofit Green Burial Council (GBC) establishes environmental standards for green cemeteries, funeral professionals, and funeral-product manufacturers. According to the GBC, a green burial must meet three general criteria:

  1. The body cannot be embalmed.
  2.  The body must be buried without a cement or metal vault or grave liner.
  3. Only biodegradable burial containers and shrouds may be used.

In green cemeteries, graves are typically marked by GPS or with a simple stone or tree, instead of  headstones, metal plaques, and other ornate markers. The grounds are often planted with native species, forgoing pesticides and mechanical landscaping. The graves are shallower than conventional plots, exposing the body to more natural organisms to speed decomposition.

Green caskets are constructed from biodegradable materials, such as untreated wood, bamboo, wicker, or cardboard. Burial shrouds should be non-bleached, undyed, and made of natural fabrics like cotton, linen, silk, wool, or hemp. To find funeral providers in your area that offer green burial, use the GBC’s list of approved companies.

02 – Aquamation

Without the need for embalming, caskets, or burial vaults, cremation is considered less harmful to the environment than burial. However, a new water-based method—aquamation—promises an even greener alternative. Also called “resomation” or “flameless cremation,” the method involves a chemical process in which lye, superheated water, and pressure dissolve the body, rather than burning fossil fuels. The ashes produced by aquamation can be scattered or placed in a biodegradable urn for burial.

03 – Mushroom burial suits

One of the latest innovations in green funerals are special burial shrouds containing mushroom spores sewn into the fabric. The suit fits like long-john pajamas, and the mushrooms facilitate decomposition. In addition to absorbing and purifying toxins released by the body, the fungi delivers nutrients to the soil to encourage plant growth. When he died of a stroke at the age of 52, TV and film star Luke Perry was reportedly buried in a mushroom burial suit.

04 – Eternal reefs

Eternal Reefs combine ashes from cremated remains with environmentally friendly concrete to create an artificial reef. Submerged on the ocean floor, these hollow “reef balls” create new habitats for coral, fish, and other marine life. Marked by GPS, your loved ones are encouraged to visit these living memorials by boat, snorkeling, or scuba diving. The company currently has locations in the waters off the following states: Florida, New York, North Carolina, Texas, South Carolina, Maryland, and New Jersey.

05 – Become a tree

If you aren’t near the water, but still want to leave a living memorial of yourself, a tree burial might be an attractive alternative. The startup Transcend plans to open forest-based cemeteries across the U.S., where rows of trees, rather than headstones, mark the graves. Here’s how it works: the body is wrapped in a biodegradable, linen shroud and placed in a shallow grave that’s lined with wood chips or hay. Then, a mixture of soil, wood chips, and fungi is used to fill the grave, and a young tree is planted on top. As the body decomposes, it provides nourishment to feed the tree.

Additionally, Transcend has partnered with the nonprofit One Tree Planted, which specializes in planting trees around the world. For every tree burial reserved, Transcend promises to plant an additional 1,000 trees right away. The company expects to launch their first tree burials in 2023. Visit their website to learn more, including how the company plans to ensure your tree will be well-maintained for years to come.

06 – Human composting

Another way your death can create new life is by having your remains composted. Known as “human composting” or “recomposting,” the process is similar to composting used to fertilize gardens and farms. The body is first placed in a steel cylinder filled with wood chips, straw, and alfalfa, along with bacteria designed to break down organic matter.

After roughly a month,  your body is transformed into what basically amounts to soil. The end product can either be returned to your family or used to revitalize local conservation areas. Developed in 2020 by the Seattle-based company Recompose, human composting is currently legal in five states: California, Washington, Oregon, Colorado, and Vermont, with legislation pending in Hawaii and Delaware.

Put Your Final Wishes In Your Estate Plan

Regardless of the method you select, it’s critical to include your desires,  plans, and the money to pay for disposal of your body in your estate plan. While green funerals are typically less expensive than traditional burial and cremation, they can still cost thousands of dollars. To avoid burdening your loved ones, at the very least, your plan should include enough money to pay for your funeral and legally name the person you want to carry out your desired wishes.

Moreover, it’s typically not a good idea to leave money for your funeral in your will. Any money left in your will won’t be accessible to your family until your estate goes through the court process of probate, which can last months or even years. Since many funeral providers require full payment upfront, if you leave funds in your will, your loved ones will likely be stuck with the bill.

To avoid the necessity for probate, we often advise our clients to leave money and directions for their immediate post-death wishes in a revocable living trust. A living trust doesn’t require probate, so the money for your funeral would be available to your loved ones right away. In the terms of your living trust, you can specify how you want your funeral carried out, and the person you designate as trustee is legally bound to use the funds in the exact manner the terms stipulate. This can be especially important for green funerals, which might not be something your loved ones would choose if left to plan things on their own.

Finally, you can change the terms of your living trust at any point during your lifetime, and with new alternatives being developed all the time, this flexibility would allow you to use the very latest innovations in green funerals. If you’re interested in creating a trust to cover your funeral expenses, meet with us to discuss the options.

Help Your Loved Ones And The Planet

With proper planning, you can ensure that your death is not only significantly easier and less expensive for your family, but that it also has the most beneficial impact on the environment. We’ll work with you to prepare an estate plan that includes enough funding to have your funeral handled in the exact manner you desire—without forcing your family to pay for it. Contact us today to learn more

This article is a service of Brittany Cohen, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge

[email protected]

858-427-0539

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If you have preferences about what happens to your digital footprint after your death, you need to take action. Otherwise, your online legacy will be determined for you—and not by you. If you have any online accounts, such as Gmail, Facebook, Instagram, LinkedIn, Apple, or Amazon, you have a digital legacy, and that legacy is yours to preserve or lose.

Following your death, unless you’ve planned ahead, some of your online accounts will survive indefinitely, while others automatically expire after a period of inactivity, and still, others have specific processes that let you give family and friends the ability to access and posthumously manage your accounts.

Because social media and other digital platforms are such a ubiquitous part of our daily routine, and they can offer intimate snapshots of your life, these digital assets can serve as a key part of your legacy—one you may want to protect after your death. Alternatively, you may prefer to keep your online history private and have it permanently deleted once you’re gone.

Whether you want to preserve your digital footprint or erase it entirely, you need to plan ahead to ensure your wishes are properly carried out. With this in mind, here we’ll discuss how some of the most popular digital platforms handle your account once you log off for the final time. From there, we’ll cover how to include these digital assets in your estate plan to ensure they’re properly accounted for, managed, and passed on in the event of your incapacity or death.

FACEBOOK

Unless you choose to have your account deleted, Facebook offers what’s known as a “Legacy Contact” for managing your profile after death.

Following your death, Facebook first memorializes your account. Once memorialized, the word “Remembering” is added to your profile name, and only confirmed friends can view your profile or find it in a search. Depending on your privacy settings, friends and family members can post content and share memories on your memorialized timeline.

However, memorialized accounts are locked, so your original content cannot be altered or deleted, even if someone has your password. Your Facebook account can be memorialized regardless of whether or not you select a legacy contact. To have your account memorialized, Facebook simply requires your family or friends to provide proof of your death using a special request form and evidence of death, such as an obituary.

If you’ve chosen a Legacy Contact, that individual can manage your memorialized account based on the permissions you’ve granted him or her. Some of the actions your legacy contact can perform include writing pinned posts, choosing who can view and post tributes on your profile, responding to new friend requests, updating your cover and profile images, and requesting your account’s closure.

However, there are certain actions your Legacy Contact won’t be able to perform. This includes logging into your account as you, viewing your direct messages, removing your friends, or making new friend requests.

GMAIL, GOOGLE, & YOUTUBE

The Internet titan Google owns several of the most popular web services, including Gmail, YouTube, Google Drive, Google Photos, and Google Play. In order to request how you want these accounts managed after your death, Google offers a function called Inactive Account Manager.

Using this function, you must first choose the amount of time—3, 6, 12, or 18 months—that must pass without any activity before the Inactive Account Manager service is triggered. The service lets you select up to 10 different people who can access your account once Inactive Account Manager goes into effect. You can specify the data those individuals will be allowed to access, including things like photos, contacts, emails, documents, and other content.

With Inactive Account Manager, you can also opt to have your account deleted. If so, you can have Google simply delete all of your content, or you can share your content with your designated contacts before deletion. If you share your content, your contacts will be able to access and download data from your account for 3 months before it’s deleted.

Should you choose to have your account deleted, your Gmail messages will be permanently deleted, and all data and content in all of your other Google-based accounts like YouTube, Google Drive, and Google Photos will also be deleted. If you die without setting up Inactive Account Manager, Google will automatically delete your account following two years of inactivity.

Finally, because Google owns YouTube, and YouTube videos have the potential to earn revenue indefinitely, it’s vital that you use the Inactive Account Manager to protect this potentially lucrative asset following your death. Additionally, you’ll also want to include these intangible assets in your estate plan, so they can be protected and passed on to your loved ones in the most beneficial way possible.

On that note, be sure to check back next week for part two of this series. In that article, we’ll continue our discussion about how the most popular internet platforms deal with your account after your death. From there, we’ll conclude the series by covering the most effective methods for including these accounts—and other types of digital assets—in your estate plan.

Until then, if you need support or advice on the best ways to protect and pass on your assets—digital or otherwise—reach out to us to discuss your options. Our Life & Legacy Planning Process is designed to ensure that all of your tangible and intangible assets, including your family legacy, are preserved and passed on seamlessly in the event of your death or incapacity. Contact us today to learn more.

This article is a service of Brittany Cohen, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge

[email protected]

858-427-0539