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Tag: living trust

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What Happens to Your Social Media Accounts After You Pass Away?

When we pass away, our social media accounts, repositories of personal memories, interactions, and expressions, don’t just vanish. Each platform has unique policies for handling the profiles of deceased users, from erasing them to turning them into memorial sites. It’s crucial for us to know these options to ensure our digital legacies are managed according to our wishes.

Platform Policies for Deceased Users

As of April 2024, here’s what you can expect from the major social media platforms:

  • Facebook: Users can choose to either permanently close their account or transform it into a memorial page where friends can continue posting memories. Facebook allows you to assign a “Legacy Contact” who can manage the memorialized profile by changing profile pictures and responding to friend requests, but they cannot access private messages.
  • Instagram: Similar to Facebook, Instagram offers options to either memorialize an account or have it permanently deleted. Memorialized accounts feature a “Remembering” label and are removed from public spaces like the Explore section. Proof of death must be provided to enact these changes.
  • TikTok: Currently, TikTok allows the deactivation of a deceased user’s account upon request by family members or legal representatives, provided they can show proof of death. There is no option to memorialize accounts at this time.
  • X (formerly Twitter): X permits family members to close a deceased user’s account by submitting necessary documentation, which leads to the permanent deletion of the account without a memorialization option.
  • YouTube: Managed by Google, YouTube falls under the Inactive Account Manager policy, which lets users set directives for their account in case of prolonged inactivity. Options include sharing data with trusted contacts or deleting the account altogether.
  • LinkedIn: Immediate family members or colleagues can request the removal of a deceased user’s profile by providing proof of death. LinkedIn focuses on maintaining a professional environment and does not offer a memorial option.

Managing Your Digital Afterlife

Directly logging into a deceased person’s social media account is generally discouraged due to privacy and security concerns. Instead, platforms require family members to follow specific procedures, providing the necessary documents to either close or memorialize accounts. This process can be cumbersome and emotionally taxing.

However, preparing in advance can make it easier for your loved ones. By consulting with an estate planning lawyer, you can create a digital asset plan that details your preferences for each account, whether to close or memorialize them.

Role of Estate Planning Attorneys

A competent estate planning attorney can guide you in drafting a comprehensive digital asset plan, appointing an executor, and preparing all necessary legal documentation to empower your executor to act on your behalf with digital platforms. They can also suggest secure methods to store your account information, ensuring it remains accessible yet protected until needed.

Our Commitment to Your Legacy

At Peaceful Warrior Law, we do more than just draft documents. We understand your unique needs and help you plan thoroughly, ensuring no detail is overlooked, including your digital footprint. Our approach prevents the stress and confusion often associated with managing digital legacies.

To find out more about how we can help you craft a plan that includes your digital assets, schedule a complimentary 15-minute call with our office today.

This article is a service of Brittany Cohen, a Personal Family Lawyer® Firm. We are dedicated to ensuring that you make informed, empowered decisions about your legacy and the well-being of your loved ones. Join us for a Family Wealth Planning Session to become more financially organized and confident in the choices you make for yourself and your family.

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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:

When crafting an estate plan in California, it’s crucial to address the multifaceted aspect of real estate ownership to ensure a seamless transition of assets. Real estate can often be the most significant component of an individual’s estate, and adequately addressing it is essential for comprehensive estate planning. Depending on when you purchased or acquired California real estate, there is a good chance that the property has appreciated in value, or is likely to appreciate in value. for this reason, when crafting your estate plan, your real estate portfolio requires additional thought that should not be overlooked. Sometimes it’s not always as straightforward as simply choosing a beneficiary to receive the property following your passing.

Fortunately, an experienced San Diego estate planning lawyer can assist you through this process.

 

When drafting your estate plan, here are ten pivotal questions to consider.

1. What Real Estate Do You Own and Who Do You Want to Receive Your Real Estate?

Evaluation:

Begin by taking stock of all your real estate assets. List each property, including primary residences, rental properties, vacation homes, and any undeveloped land. This foundational step is crucial for the subsequent planning stages.

Then list who your potential beneficiaries are and the relationship you have with them. How old are your beneficiaries? Are they related to you? 

2. How is My Real Estate Titled?

Ownership Structures:

Identify how each property is titled – whether individually, jointly, or through a business or trust. The title structure profoundly influences how the property is handled in estate planning and taxation.

Common ways to hold title in real estate can be:

  • Tenants in Common
  • Joint Tenants
  • Husband and Wife, as Community Property with Rights of Survivorship
  • Individual as sole and separate property
  • In a Trust
  • LLC

3. What is the Value of My Properties?

Appraisal:

Obtain current appraisals to know the market value. This valuation will play a significant role in tax planning and distribution to heirs.

4. What Are the Tax Implications?

Tax Liability:

Understand the potential tax liabilities, including property, capital gains, and estate taxes. California’s Proposition 19 has nuanced tax implications that should be understood and planned for.

5. How Should I Distribute My Real Estate?

Beneficiaries:

Decide how you wish to distribute each property. Consider the beneficiaries’ individual needs, preferences, and their ability to manage real estate.

  • Will my beneficiaries use the real property as their primary residence in the future?
  • Should I distribute the real estate into the names of my beneficiaries where there names will be on the deed upon my death?
  • Should I distribute the real estate in an Asset Protection Trust to my beneficiaries?

These questions are all incredibly important to consider for purposes of Prop 19 and transfer tax reassessment purposes.

6. Is there a mortgage on the property?

Who will assume your mortgage?:

Under the Garn-St Germain Depository Institutions Act of 1982, lenders cannot enforce the due-on-sale clause in certain situations, such as property transfers between family members upon death, during a divorce, or into a living trust.

7. How Can I Protect My Real Estate from Creditors?

Asset Protection:

Explore strategies to protect your properties from potential creditors’ claims, lawsuits, or other liabilities. Legal tools like LLCs or trusts can offer enhanced protection.

8. Is My Real Estate Suitable for a Trust?

Trust Incorporation:

Consider incorporating trusts to avoid probate, provide for privacy, manage tax implications, and ensure a structured distribution of assets.

Revocable Living Trusts are best for probate avoidance and privacy. You can build in estate tax and capital gains tax planning strategies within your Revocable Living Trust.

Who will be responsible for the expenses of the property, including taxes and upkeep, during the administration process?

9. How Does California Law Affect My Estate Plan?

Legal Landscape:

California has specific laws regarding real estate and estate planning. How do these laws impact your properties and your overall estate?

10. Should I Consult with a Professional?

Expert Guidance:

Consider seeking advice from an estate planning attorney, especially one well-versed in California’s complex legal and tax landscape, to ensure your estate plan is robust, compliant, and optimized for your specific circumstances.

Conclusion:

The intertwining of real estate and estate planning is intricate, necessitating thorough scrutiny and strategic planning. By addressing these ten questions, you embark on a journey of crafting an estate plan that not only stands the test of legal and financial scrutiny but also honors your legacy and provides for your heirs with foresight and diligence.

Call to Action:

Embarking on estate planning, especially where real estate is involved, requires nuanced insight. Reach out to our team of seasoned estate planning professionals at Peaceful Warrior Law in San Diego, California, to guide you through each step, ensuring peace of mind and a legacy preserved. Contact us today for a personalized consultation.

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THE REAL COST TO YOUR FAMILY OF FAILED ESTATE PLANNING: NOT UPDATING YOUR PLAN This is the fourth in an ongoing series of NLBM articles discussing the true costs and consequences of failed estate planning. The series highlights a few of the most common—and costly—planning mistakes we encounter with clients. If the series exposes any potential gaps or weak spots in your plan, meet with us, your neighborhood Personal Family Lawyer, to learn how to do the right thing for the people you love. If you’re like most people, you probably view estate planning as a burdensome necessity—just one more thing to check off of life’s endless “to-do” list. You may shop around and find a lawyer to create planning documents for you, or you might try creating your own DIY plan using online documents. Then, you’ll put those documents into a drawer, mentally check estate planning off your to-do list, and forget about them. The problem is, your estate plan is not a one-and-done type of deal. In fact, if it’s not regularly updated when your assets, family situation, and/or the laws change, your plan will be totally worthless when your family needs it. What’s more, failing to regularly update your plan can create its own unique set of problems that can leave your family worse off than if you’d never created a plan at all. The following true story illustrates the consequences of not updating your plan, and it happened to the founder and CEO of New Law Business Model, Alexis Neely. Indeed, this experience was one of the leading catalysts for her to create the new, family-centered model of estate planning we use with all of our clients.

THE FATHER-IN-LAW STORY

When Alexis was in law school, her father-in-law died. He’d done his estate planning—or at least thought he had. He paid a Florida law firm roughly $3000 to prepare an estate plan for him, so his family wouldn’t be stuck dealing with the hassles and expense of probate court or drawn into needless conflict with his ex-wife. And yet, after his death, that’s exactly what did happen. His family was forced to go to court in order to claim assets that were supposed to pass directly to them. And on top of that, they had to deal with his ex-wife and her attorneys in the process. Alexis couldn’t understand it. If her father-in-law paid $3,000 for an estate plan, why were his loved ones dealing with the court and his ex-wife? It turned out that not only had his planning documents not been updated, but his assets were not even properly titled. Alexis’ father-in-law had created a trust so that when he died, his assets would pass directly to his family and they wouldn’t have to endure probate, but some of his assets had never been transferred into the name of his trust from the beginning. And since there was no updated inventory of his assets, there was no way for his family to even confirm everything he had when he died. To this day, one of his accounts is still stuck in the Florida Department of Unclaimed Property. Alexis thought for sure this must be malpractice. But after working for one of the best law firms in the country and interviewing other top estate-planning lawyers across the country, she confirmed what happened to her father-in-law wasn’t malpractice at all. In fact, it was common practice. When Alexis started her own law firm, she did so with the intention and commitment that she would ensure her clients’ plans would work when their families needed it and create a service model built around that.

KEEP YOUR PLAN UP TO DATE

We hear similar stories from our clients all the time. Indeed, outside of not creating any estate plan at all, one of the most common planning mistakes we encounter is when we get called by the loved ones of someone who has become incapacitated or died with a plan that no longer works. By the time they contact us, however, it’s too late. We recommend you review your plan annually to make sure it’s up to date, and immediately amend your plan following events like divorce, deaths, births, and inheritances. We have built-in systems and processes to ensure your plan is regularly reviewed and updated, so you don’t need to worry about whether you’ve overlooked anything important as your life changes, the law changes, and your assets change. You should also create (and regularly update) an inventory of all your assets, including digital assets like cryptocurrency, photos, videos, and social media accounts. This way, your family will know what you have and how to find it when something happens to you, and nothing you’ve worked so hard for will be lost to our state’s Department of Unclaimed Property. We’ll not only help you create a comprehensive asset inventory, but we’ll make sure it stays up to date throughout your lifetime.

PROPERLY TITLE YOUR TRUST ASSETS

When you create a trust, it’s not enough to list the assets you want it to cover. You have to transfer the legal title of certain assets—real estate, bank accounts, securities, brokerage accounts—to the trust, known as “funding” the trust, in order for them to be disbursed properly. While most lawyers will create a trust for you, few will ensure your assets are properly funded. We’ll not only make sure your assets are properly titled when you initially create your trust, we’ll also ensure that any new assets you acquire over the course of your life are inventoried and properly funded to your trust. This will keep your assets from being lost, as well as prevent your family from being inadvertently forced into court because your plan was never fully completed.

KEEP YOUR FAMILY OUT OF COURT AND OUT OF CONFLICT

As your Personal Family Lawyer®, our planning services go far beyond simply creating documents and then never seeing you again. Indeed, we’ll develop a relationship with your family that lasts not only for your lifetime, but for the lifetime of your children and their children, if that’s your wish. We’ll support you in not only creating a plan that keeps your family out of court and out of conflict in the event of your death or incapacity, but we’ll ensure your plan is regularly updated to make certain that it works and is there for your family when you cannot be. Contact us today to get started with a Family Wealth Planning Session.
This article is a service of Brittany Cohen, 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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July is National Family Reunion Month and the perfect time to reconnect with family from near and far, share life’s updates, and reminisce about the wonderful memories you share together. If you’re getting together with family this month, it’s also a perfect time to talk to your loved ones about your shared goals, family resources, and the legacy you want to leave behind for the next generation.

You might think that estate planning is too somber a topic for a happy family reunion, but it can actually be an opportunity to bring you closer to your loved ones by giving everyone time to speak openly about their wishes for the family and can help everyone feel unified by working together toward the family’s future wellbeing.

Not sure how to bring up estate planning in a way that makes your family feel empowered? Keep reading to learn how to navigate the conversation without scaring away party guests!

Invite Your Loved Ones to the Conversation In Advance

No one wants to be that party guest who won’t stop talking about a sad news story or their personal troubles. Don’t get me wrong, it’s important to share the good and the bad with our loved ones, but pushing a mellow topic at a happy occasion is sure to dampen the mood and turn off the other guests.

Instead of bringing up the topic on the spot at your reunion, reach out to your relatives in advance and let them know that you’d like to set aside some time during the reunion to talk about your family’s legacy and how you can work together to take care of each other in the future.

Everyone likes to feel they’re being looked after and that their input in family matters is wanted and valued. Any ongoing concerns with your family, such as an aging relative’s declining memory or your upcoming knee surgery, are great lead-ins to bring up the topic in a way that feels natural.

If anyone is resistant to the idea of talking about estate planning, don’t push them. Instead, keep your energy warm and empathetic, and keep the invitation to the discussion open in case they change their mind.

Be Vulnerable and Explain Why Estate Planning Is Important to You

Assure everyone that the goal of the conversation is to make sure the family’s future security and well-being are taken care of no matter what happens – not to try and pry into anyone’s finances, health, or relationships. Instead, it’s about ensuring everyone’s wishes are clearly understood and respected, and not about finding out how much money someone stands to inherit.

Be sure to tell your family that talking about these issues now is also a good way to avoid future conflict and expense. When family members don’t clearly understand the reasoning behind one another’s planning choices, it’s likely to breed conflict, resentment, and even costly legal battles in the future.

Instead, tell your loved ones that you’d like to start the conversation about estate planning early and continue it as an open dialogue with the whole family for years to come. Positioning the conversation as one about planning for the future health and well-being of your family rather than as a conversation about dividing assets at someone’s death will help your relatives will feel more at ease, and some may even be eager to be involved in the conversation.

If you haven’t yet handled your own planning, now would be a great time to start. You can have the conversation with your loved ones by sharing about your personal experience and how handling your own estate planning has helped you to think more deeply about what matters to you, how you want to live out the rest of your life, and how you’d love to share this experience with your whole family.

Set a Time and Place for the Conversation

Rather than trying to find the right moment to bring up the topic, set a time and a place with your family in advance of the get-together. Be sure to schedule a specific time, but don’t feel like the meeting invite needs to sound too serious or foreboding. Asking if everyone can meet around the fire pit at 6:00 pm or meet at your house for coffee at 9:00 am is perfect.

I also recommend giving everyone an end time for the discussion as well. By doing this, your loved ones will know what to expect and won’t feel worried that the conversation will eat up too much of their time.

Setting boundaries for the conversation will also help motivate members of your family to participate and stay on topic.

To make things even easier, come to the meeting with a list of the most important points you’d like to cover and encourage your family members to do the same. But keep the list short so you don’t go over the time you’ve set aside for the discussion.

If there are too many things to cover in the time allotted, that’s okay. Talk about the most important topics and agree as a family to get together again on a specific date either in person, on the phone, or via video chat to continue the discussion and flesh out any details that were left for later.

Focus on Your Family’s Legacy

While talking to your loved ones about estate planning, remember to talk about your family’s legacy and your desire to pass on your cumulative stories, memories, values, and lessons to the younger generation and beyond. A family reunion is a wonderful way to come together, and estate planning can be an amazing tool for memorializing your family’s most important assets – your human assets.

You and your loved ones have generations of stories, traditions, and triumphs worth protecting and celebrating. Let your family know that estate planning isn’t just about planning for death – it’s also about planning ahead so you can enjoy your life to the fullest knowing that everything and everyone you love will be taken care of if you become ill or when you die.

For my clients, it’s also a unique opportunity to capture your family’s most valued memories and stories through a process I call the Family Wealth Legacy Interview. During the interview, I help my clients record the things that mean the most to them and the things they want to pass on that are far more valuable than money.

What would be more precious than being able to share and watch this recording of our loved ones at future family reunions for generations to come?

If you would like more advice on how to talk to your family about estate planning or are interested in beginning your own estate planning journey so you can ensure your family is taken care of and share your personal planning experience with your family, give me a call at (858) 427-0539.

It’s my passion to guide you through every stage of planning your life and legacy, and when there’s an opportunity for an entire family to come together on their estate planning goals, love and happiness are bound to follow

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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Including a trust as part of your estate plan is a smart decision. It allows you to avoid probate, maintain privacy, and distribute your assets to your loved ones while also providing them with a lifetime of asset protection, if you choose it for them. But, here’s the thing you might not know, and is critically important to remember: simply creating a trust is not enough. For your trust to work, it has to be funded properly and may need to be updated over time.

Funding your trust means transferring ownership of your assets from your own name into the name of your trust. This can include bank accounts, investments, real estate, and other valuable possessions.

By funding your trust properly, you ensure your assets are managed according to the terms of your trust and will be distributed according to your wishes when you die or if you become incapacitated.

But, if you fail to fund your trust, it becomes nothing more than an empty vessel. Your assets won’t be protected or distributed as intended, at least partially defeating the purpose of creating a trust in the first place! While your assets can still get into your trust and be governed by your trust after your death, that means that your family still goes to court to get your assets there, and that’s a costly endeavor.

To make sure your trust works for you, avoid these funding fiascos and work with an attorney who will ensure that everything that needs to get into your trust does.

Forgetting to Update Your Account Beneficiaries

Many people mistakenly believe that a will or trust alone is enough to dictate how their financial accounts should be distributed after they die. However, this isn’t the case. Without proper beneficiary designations on your accounts, your wishes may not be honored and your assets could end up in the wrong hands.

Remember, the beneficiaries you designate on your accounts supersede any instructions in your will or trust, so this step is vitally important. 

Take a moment to review your various accounts, such as bank accounts, retirement plans, and life insurance policies. Ensure that each account has your trust named as your designated beneficiary, unless you’ve made different plans for that specific account.

When you’re working with a lawyer, make sure your lawyer has a plan for each one of your beneficiary-designated assets, communicates that plan to you, and that the two of you decide who will handle updating your beneficiary designations. Then, make sure you review your beneficiary designations annually. In our office, we support our clients to do all of this with well-documented asset inventories, and a regular review process built into all of our plans.

Your Attorney Didn’t Move Your Home Into Your Trust

For many of us, our home is our most important and valuable asset. But if your attorney doesn’t deed your home into your trust, your home won’t be included under the terms of your trust if you become incapacitated or pass away.

That means your home could end up going through the long and expensive probate court process in order to be managed during an illness or passed on to your loved ones after you die. If you own a $300,000 home, that means your family could lose up to $15,000 or more just to transfer your home to your trust and then distribute your home pursuant to the terms of the trust – and that’s not including any other assets that would have to go through probate.

A knowledgeable estate planning attorney shouldn’t miss this step, but it happens. And if you’re using a DIY service online to create a trust without the help of any attorney at all, it’s bound to happen!

That’s why it’s so important to work with a lawyer who takes the time to make sure every asset you own is in your trust before they say their farewells.

Not Reviewing Your Plan and Accounts Every Three Years

You might wonder how not reviewing your estate plan every few years could really make your plan worthless. Well, the good news is that failing to review your plan is unlikely to completely eliminate the benefits it provides you because an estate plan is made up of a number of moving parts, not just a will or a trust.

But, failing to keep your financial assets up to date and aligned with your estate plan can result in huge issues for you and your family and can even make the trust you invested in worth little more than the paper it’s printed on!

That’s because your trust can’t control any assets that don’t have the trust listed as the owner or beneficiary. By reviewing your accounts every 3 years, you can help catch any accounts that don’t have your trust listed in this way.

For example, it’s very common for clients to open a new bank account and forget to open the account in the name of their trust or add their trust as a beneficiary.

Thankfully, by comparing my clients’ financial accounts to their estate plan at least every 3 years, I’m able to catch simple oversights like this that could cause their assets to be completely left out of their trust.

Make Sure All of Your Assets Are Included In Your Plan with Help From Your Personal Family Lawyer

Getting your legal documents in place is an important step, but it’s equally important to know that the documents themselves are not magic solutions (as magical as they may seem!). Merely creating a trust or naming beneficiaries on your accounts doesn’t guarantee that your wishes will be carried out unless all of the pieces of your plan are coordinated to work together.

If you aren’t experienced in the area of estate planning, trying to coordinate all these pieces yourself can be a recipe for disaster.

That’s why I work closely with my clients to not only create documents but to create a comprehensive plan that accounts for all of your assets and how each one needs to be titled to make sure your plan works for you the way you intended.

Plus, I offer my clients a free review of their plans and financial accounts every three years to ensure that their plans accurately reflect their lives and their wishes for their assets and loved ones.

If you want to know more about my process for funding your trust and making sure nothing is ever left out of your plan, reach out to me at (858) 427-0539. I can’t wait to hear from you.

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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Get ready for an interesting twist in the world of legal and business news. You may already be familiar with the upcoming Corporate Transparency Act, set to kick in next year. If you aren’t, it’s time to get in the know because it could impact you, and if it does, you’ll need support.

Starting January 1, 2024, every small business will be obligated to submit an annual report revealing the names of their major owners. Now, here’s where it gets intriguing. If you happen to have a trust that holds partial or full ownership in a business, that business might be required to disclose private details about your trust, including details about the name of your trustee or beneficiaries, in your annual corporate report to the government. But how do you figure out if your trust needs to be reported?

What Is the Purpose of the Corporate Transparency Act and What Does It Require?

Enacted in 2020 and set to take effect on January 1, 2024, this Act aims to tackle money laundering and terrorism financing schemes involving “shell” corporations—companies that exist merely on paper and don’t engage in actual business or trade (like “Vamonos Pest” in Breaking Bad).

Under this Act, small companies will now have to disclose the names of any owners who hold 25% or more ownership in the company, as well as any individuals who exercise significant control over the company’s activities. The goal is to identify and expose shell corporations that are frequently involved in money laundering, as such illicit activities tend to occur within small businesses rather than large corporations.

To comply with the requirements, businesses must submit an annual report to the Financial Crimes Enforcement Network (FinCEN) containing the following details about each owner or controller:

  • Business name
  • Current business address
  • State in which the business was formed and its Entity Identification Number (EIN)
  • Owner/controller’s name, birth date, and address
  •  Photocopy of a government-issued photo ID (such as a driver’s license or passport) of every direct or indirect owner or controller of the company

Failing to file an annual report could result in serious repercussions, from paying a fine of $500 for every day the report is late up to imprisonment for two years.

Does My Trust Need to Be Disclosed?

Since a trust can own a business or a share of a business, trusts are also involved in the Corporate Transparency Act, but under more limited circumstances.

So how do you know if your trust information will need to be disclosed?

The new rule applies to any company that is created by filing a formation document with the Secretary of State or a similar office, such as corporations and limited liability companies (LLCs).

Non-profits, publicly traded companies, and regulated companies like banks and investment advisors are exempt from the rule. Large companies are also exempt if they have 20 or more full-time employees in the US and generate $5 million in sales. So, if your trust owns a share of any of these types of companies, it doesn’t need to be reported.

If you have an LLC or corporation you created but aren’t actively using to run a business, that company is exempt from reporting due to its inactivity, so your trust wouldn’t be reported in that instance, either.

But if your trust owns a share of a small, for-profit company (like a small family business or local investment), the beneficial owner of the trust will need to be reported to the Financial Crimes Enforcement Network.

The beneficial owner is the person or people who benefit from the trust or have the power to make major decisions about the trust assets. Depending on how your trust is written, this is usually the trustee, but it can also be the beneficiaries of your trust.

Make sure to contact us at (858) 427-0539 to have your trust reviewed before 2024 to make sure you report the correct beneficial owner of your trust.

Does the Corporate Transparency Act Affect My Trust’s Asset Protection?

One of the best things about creating a trust is that it provides you and your family with an extra level of privacy and provides asset protection from divorce or lawsuits for your trust’s beneficiaries after you’re gone.

Thankfully, having a trust that owns a business or a share of a business doesn’t take away from the trust’s ability to provide asset protection to your heirs.

While the new Corporate Transparency Act rule reduces some of the privacy benefits that come with owning assets in a trust, the names of your trust, trustees, and beneficiaries aren’t made public and are only used by the government for the specific purpose of investigating financial crimes.

Because of this, trusts remain an excellent tool for providing privacy, avoiding probate, and setting up your family with a lifetime of asset protection and financial security.

Guidance for Your Family Now and For Years to Come

If you have a trust or are curious about creating an estate plan for your family, you may be wondering how changes in the law will affect your plan in the future and how you can possibly plan for them.

Unlike many estate planning attorneys who serve their clients once and never see them again, I see estate planning as a life-long relationship. Your life and the world around you are constantly changing, and your estate plan should too.

That’s why I keep my clients informed about any changes in the law that may affect their estate plan and offer to review your plan for free every three years to make sure that your plan still works for you just as well as it did on the day you created it.

If you’re ready to create a custom plan for the ones you love or have questions about how the Corporate Transparency Act might affect you, give me a call today.

I can’t wait to serve you now and for years to come.

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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Blended families were once considered “non-traditional” families, but today, blended families are becoming just as common as non-blended families. Currently, 52% of married couples (or unmarried couples who live together) have a step-kin relationship of some kind, and 4 in 10 new marriages involve remarriage.

If you’re part of a blended family, you’ve probably recognized the extra layer of complexity that comes with planning for your family’s needs and accommodating the many relationships that exist between step-parents, step-kids, and step-siblings. Topics that might be straightforward for a “traditional” family – such as where to spend the holidays or who gets the old family car  – are more complex.

Feelings tend to be more sensitive, as the person in a “step” role may feel self-conscious about their place as the “outsider” of the family, whereas on the other hand, one parent’s children may feel put out by the addition of a new step-parent, step-sibling, or half-sibling when their mother or father remarries.

In a blended family, you work hard to navigate these complexities to keep the family unified and happy. But what you might not know is that our laws for what happens if you become incapacitated or die are still very much based on the traditional family model, which means that your blended family will likely end up in court and conflict without planning for them in advance.

What Estate Law Says About Blended Families

Every state has different provisions for what happens when you become incapacitated or die, and the laws of the state where you become incapacitated or die may or may not match your wishes. What’s more, even though you may see your step-family members the same way as your blood relatives, the law does not.

For example, in Colorado, if you’re survived by a spouse, your surviving spouse would only receive a part of your estate if you have living children (or parents!), and your living children or parents would receive the rest. And the amount your spouse receives is variable based on the number and ages of your children.

In contrast, in California, all community property assets would go to your surviving spouse, and separate property assets would be distributed partially to a surviving spouse and partially to children, if living, in amounts depending on the number of surviving children.

In Texas, it can get very complex, depending on whether your assets are separate or community, and whether you have children from the marriage, no children from the marriage, or living parents or siblings.

As you can see, what’s true for what happens when you die may not result in the outcome you want for your loved ones, especially in a blended family situation. That’s why it’s so important to create an estate plan for your blended family well in advance, and I encourage you to discuss your plan with the members of your family to avoid hurt feelings, confusion, or pain in the future.

Avoid Conflict in Your Blended Family Through Open Communication

Estate planning is often seen as a highly private affair, but it doesn’t have to be, and oftentimes, shouldn’t be. In the case of a blended family, having open conversations with your loved ones about your estate plan and your goals for the family can save them from hurt feelings and even court battles in the future.

Like all families, how you plan for your blended family will depend entirely on your family dynamics, your family members’ situations, and your own personal values for how an inheritance should (or shouldn’t) be received and what kind of legacy you want to leave behind.

Maybe you have step-kids and biological kids but want all of your children to inherit an equal share from you and your spouse. Maybe there’s a large age gap between your step-kids and biological child, so you want to make sure that your youngest has the financial support they’ll need if something happens to you, whereas the older children are able to support themselves.

Maybe you have a step-parent or step-sibling that you would want to gift a special item of yours like a watch or necklace. Well, for better or worse, a person you have a step-relationship with has no right to inherit from you under the law, unless you put your plan in writing. 

You don’t need to give away every detail of your will or trust, or tell everyone who you named to make decisions for you if you’re incapacitated. Instead, start by having an open conversation about the general goal of your estate plan, such as wanting everyone to have an equal share, or that you want to provide more for your biological children because your step-children will already receive a full inheritance from their other parent.

By taking the mystery out of your estate plan goals, your stepchildren will feel included in the discussion and feel like they’re knowledgeable about your plan, rather than feeling hoodwinked or hurt if they find out later that your plan doesn’t align with the expectations they created for it in their minds.

Most importantly, let the people in your life know you value and love them, and that no matter how they’re related to you, you care about them and want them to inherit not just material things from you, but also your values, stories, and legacy.

Create More Than a Plan, Create a Family Legacy

To make sure your wishes for your blended family are followed in the event of your death or incapacity, it’s essential to have a well-crafted estate plan created by an attorney experienced in serving blended families. I know all too well the importance of planning for blended families and can help you navigate your options and desires for your family’s plan.

But what really sets me apart from other estate planning lawyers is that I know that your material possessions are only a small part of a successful estate plan. What will really matter to your family members, no matter how they became your family, is your legacy.

Instead of leaving your family a mess to be battled over in court, leave your family an example of financial wellness, of a plan filled with personal values and family history.

To do this, I include what I like to call a Family Legacy Interview with all of my estate plans. During this interview, I give you the opportunity to leave your most important assets – your values, stories, and heart – to your family in a meaningful way that they’ll cherish for years after you’re gone.

For a blended family, the Family Legacy Interview can be even more valuable, because it gives you the opportunity to really speak to your loved ones about the plan you created for them and how much you value the place they hold in your heart.

If you want to protect your blended family from a court battle and emotional conflict, give me a call today at (858) 427-0539 to schedule a Family Wealth Planning Session. During the session, I take the time to really get to know you and your family’s unique situation and educate you about what exactly will happen to your family under the law if something happened to you right now, so you can make confident decisions about what’s right for your family. Even more, I welcome you to invite the members of your blended family to be a part of the conversation.

Schedule your session today.

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