Calabasas estate planning

Calabasas Estate Planning Lawyers: How Prenuptial Planning Offers Protection Against Life’s “What-Ifs”

by Estate Planning

Now that vaccinations have started and “normal” life is within our grasp, many couples are starting to resume their wedding plans. Those who have had to postpone their big day or got engaged during the pandemic are once again starting to put deposits on venues, purchasing gowns, and even planning honeymoons. However, Calabasas estate planning lawyers want everyone to know that estate planning and prenuptial agreements should be part of the process along with selecting flowers and all the “fun stuff.”

All marriages celebrate the joining of two lives together, a union of family and finances. And while estate planning is not exactly romantic, it can create a feeling of being protected even if the worst happens. Likewise, creating a prenup before the marriage can offer each partner security and confidence that all of their bases are covered as they enter into the union. Essentially, it sets forth how all property, assets, childcare, and spousal support would work IF the marriage did not survive. The prenup’s contents depend on the unique needs of each couple and the document is designed to protect each partner if the marriage were ending.

Couples are encouraged to create an estate plan together, but each partner will need their own lawyer when creating a prenuptial agreement. The reason is simple; the prenup is meant to protect each partner separate from the other. It is also vital to select an attorney in the state where the couple plans to reside, as there may be different laws regarding support after a marriage ends.

Calabasas estate planning lawyers are quick to point out that a prenuptial agreement is often a process that keeps marriages from ending in divorce. Starting the marriage on a strong financial foundation can bind couples closer together. It gives them an open and honest place to discuss financial plans, ideas on fidelity, wishes for the future, and how each views the marriage before entering the contract.

If you or a loved one is getting married, please consider an estate plan and prenuptial agreement as part of the wedding plans. That way, as you walk down the aisle, you know that no matter what, your future is protected. Call one of our estate planning lawyers at 818-334-2805 to schedule a consultation.

Calaabasas estate planning attorney

Aid & Attendance Benefits for Wartime Veterans: How to Take Advantage of 2021 Pension Rate Increases to Pay for Long-Term Care

by Estate Planning

Many veterans and their families are unaware of the availability of the Aid and Attendance pension benefit for veterans over the age of 65 through the Department of Veterans Affairs. These benefits can be used to help offset long-term care costs for older veterans who served during a period of war, whether that’s at home or in a care facility.

What Is Aid and Attendance?

Wartime veterans and their spouses who require help performing tasks of everyday living (bathing, dressing, medication management, etc.) may be eligible to receive a non-service connected pension benefit through the VA to help pay for care in their home or a senior living facility. The A&A pension is available to veterans who were honorably discharged after at least 90 days of active duty as well as their surviving spouses.

New Pension Rates for 2021

In 2021, a veteran may receive up to $1,936 per month for themselves, up to $1,244 per month to a surviving spouse, or up to $2,295 per month for a couple. For two veterans who are married and qualify, the benefit amount may be up to $3071 per month.

How to Qualify for Aid and Attendance Benefits

To qualify for Aid and Attendance benefits, the veteran’s physician will need to certify that the individual requires assistance with daily living tasks such as dressing, bathing, cooking, and eating. These are also referred to as ADLs or Activities of Daily Living.

The location or type of care is based primarily upon the need for assistance with ADLs. This assistance can be provided in the individual’s home or a care facility including a nursing home or assisted living facility. An individual living in an independent living situation may also qualify if they need onsite assistance. If the person providing the care is a family member, VA benefits would not apply unless the applicant is paying the family member the same way they would pay a caregiver who is not a relative. The relative caregiver would be responsible for claiming the income on their taxes.

Likewise, there are income and asset limitations that a veteran and/or spouse must meet in order to receive benefits. If the veteran does not initially qualify, an elder law attorney can help the veteran legally reallocate their funds to fall within the government’s guidelines.

If an application for A&A benefits is denied, a reason for the denial will be provided. Rather than appealing the denial, the applicant will need to file a form that allows them to provide additional information. Also, remember that nobody is allowed, under the law, to charge a veteran or their spouse fees for completing or expediting the application or other documents for VA pensions.

More information about the A&A pension, including a benefits calculator, can be found at VeteransAid.org. If you need assistance accessing such benefits for yourself or an older loved one, contact our estate and elder law firm at 818-334-2805.

North LA County trust attorneys

North LA County Trust Attorneys: Will a Revocable Living Trust Protect My Assets?

by Estate Planning

Trusts are an excellent tool for estate planning and asset protection purposes. The most common type of trust is a Revocable Living Trust, which holds your assets and helps avoid the probate process when you pass away. However, Revocable Living Trusts do not help much when it comes to asset protection planning.

What Can I Do with a Revocable Living Trust?

As stated above, a Revocable Living Trust is an essential tool for avoiding probate. If you own enough assets to qualify for a full probate proceeding when you pass away, then you will most likely benefit from a Revocable Living Trust. Assets placed in the trust, such as a home and financial accounts, can pass to your beneficiaries without going through the probate process. This saves your loved ones time and money and provides a level of privacy for your personal affairs. A successor trustee of your choosing can also manage any finances you place in your Revocable Living Trust if you ever become incapacitated, or even if you just do not care to handle your own financial affairs anymore.

Will a Revocable Living Trust Protect My Assets?

Revocable Living Trusts do not protect assets from financial predators. If you owe money to creditors, then those creditors may take assets from your trust, even though the trust is technically the legal owner of the assets. Your Revocable Living Trust is not suitable for asset protection purposes because you are still considered the owner of the assets if you are the trustee because you have complete control over the trust. There are no restrictions on how you can spend the assets in the Revocable Living Trust, and you can revoke the trust at any time. Revoking the trust means the assets will revert to your direct ownership, putting them back under your control. In addition, all assets in the Revocable Living Trust are reported to the IRS for tax purposes under your Social Security number, meaning there is even less separation between you as an individual and the Revocable Living Trust. This is different from Irrevocable Trusts, which have their own tax identification numbers.

If you are interested in learning more about how certain Irrevocable Trusts can be used for asset protection purposes, or if you’d like to learn more about estate planning with a Revocable Living Trust, please contact our North LA County trust attorneys at 818-334-2805 to set up a consultation.

Calabasas estate planning lawyers

Calabasas Estate Planning Lawyers: Considerations Before You Add Your Child’s Name to Your Assets

by Estate Planning

It is well known that probate in California is not only costly but has the potential to be very time-consuming. Many look for loopholes in the system as an attempt to shorten or eliminate the probate process. Some believe that adding their child’s name to their bank accounts or even placing their child’s name on their property deed can help speed the process along. While this strategy might give your child quicker access to money and could potentially help transfer ownership of your property faster after you pass, Calabasas estate planning lawyers warn that it is likely to cause headaches in the long run. Here are just a few things to consider before taking this action.

1.     Your Child Has a Say in Important Decisions

By adding your child’s name to your deed, you have named them as a joint owner of the property. This creates a need for both parties to be in agreement regarding the sale or refinance of said property while you are still alive. The potential for intense family conflict exists if you and your child are not on the same page.  

2.     Sharing Creditors

Before deciding to add your child to your assets as joint owner, you must have a comprehensive understanding of your child’s credit situation. If they are in financial trouble, you could be at risk if you add him or her to your accounts. That’s because when you share ownership of assets, your child’s creditors could come after your assets for payment. Or, if your child is sued or gets a divorce, half of your assets could be up for the taking!

3.     Your final wishes may not be honored.

Having your child named as joint owner of your assets makes them the sole owner when you pass. Regardless of any verbal agreement with your child as to how you want your assets distributed, he or she will have complete authority over such decisions. This could be a problem if you have other children or you have specific wishes about how you want your assets split up when you are gone. Legally, your child who becomes the sole owner of your property does not have to share a penny with anyone else.

The good news is that there are safer and more efficient ways to help your children avoid probate without encountering some of the drawbacks and problems detailed above.  Consider talking to an estate planning lawyer before taking the step of adding your child’s name to your assets. We can help you get started. Contact our Calabasas estate planning lawyers at 818-334-2805 to set up a consultation.

San Fernando Valley Estate Planning Lawyers

San Fernando Valley Estate Planning Lawyers: How to Plan When You are Chronically Ill

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More than half of Americans now have at least one chronic health condition, mental disorder, or substance abuse issue. That is a staggering statistic that San Fernando Valley estate planning lawyers who work with sick and disabled clients confront every day.

 There are varying definitions of what it means to be “chronically ill.” One definition is having a disease that a person will live with for many years. These types of illnesses include diabetes, cardiovascular disease, lupus, multiple sclerosis, hepatitis c, and asthma. Alternatively, some define chronic illness as an inability to perform at least two activities of daily living such as eating, toileting, transferring, bathing, and dressing. Or, the patient may require constant supervision by someone else for health or safety issues.

 Regardless of how “chronic illness” is defined, every adult living with a long-term diagnosis should have a few basic legal documents in place to ensure that their wishes are honored and that they are legally and financially positioned to receive the best care possible in the least restrictive environment as possible.

 For example, an experienced San Fernando Valley estate planning lawyer can help create legal documents such as Powers of Attorney forms or Healthcare Directives that appoint someone you trust to pay your bills, access bank accounts, and make medical decisions for you if you are incapacitated or otherwise unable.

 Additionally, a San Fernando Valley estate planning lawyer can help you utilize tools such as trusts to protect hard-earned assets from nursing homes, creditors, or predators. A living trust also offers control, as you can set rules and parameters as to how your assets are to be used and managed by a trustee who is overseeing your affairs. A trust can also help pass down your assets outside of probate, which can be a long and expensive process that most California residents would prefer to avoid.

 The bottom line is this: Do not assume that because you are suffering from a chronic illness that it is too late to take steps to better your financial situation or safeguard your family. Even if you (or a loved one) are currently in a nursing home, there may still be options! The first step is to simply contact our office. We will schedule a planning session with you and walk through all of the avenues of protection that could work best for your family. 

LA County estate planning attorney

Make Your Medical Wishes Known for National Healthcare Decisions Day

by Estate Planning

National Healthcare Decisions Day is on April 16th, and it’s an important reminder for every adult to begin having conversations with loved ones about their most private wishes for medical and end-of-life care.

Far too many people assume that their families would make the choices they would want in an emergency. Yet every day we hear stories of adult children, siblings, or other relatives battling during a healthcare crisis over “what their loved one would have wanted” in that situation.

Incapacity Can Happen at Any Age

The coronavirus pandemic has been a reminder to all of us that illness and even incapacity can happen at any age. Over the past year, many adults, for the first time ever, expressed their thoughts about being placed on a ventilator and/or receiving experimental medication should they become seriously ill with COVID-19.

But planning must go beyond an initial discussion. You must also clearly and legally document your preferences, as well as choose an “Agent” whom you trust to make such decisions if you are unable to speak for yourself.

Documenting Your Wishes Takes Pressure Off of Loved Ones

Remember, emotions can run high during a healthcare crisis, and it might be hard for your loved ones to stop life support, for example, when they desperately want you around. Having your wishes spelled out in writing helps provide guidance during a stressful time and makes these types of decisions easier for your loved ones, especially in cases when other family members don’t agree.

How to Start “Tough Conversations” About Medical Care

In honor of National Healthcare Decisions Day, set aside time this month to have conversations with loved ones about your personal preferences for medical or long-term care. Here are some important issues to consider:

·      Whom do you trust to make medical decisions on your behalf?

·      How do you feel about feeding tubes, life support, and other artificial life-saving devices?

·      Is there any type of medical care you would NEVER want?

·      If you were permanently disabled or incapacitated, what would contribute or take away from your “quality of life?”


·      What are your thoughts on nursing home vs. in-home healthcare?

·      How would you like your family to pay for the care you may need if co-pays become excessive or insurance does not cover your treatment?

A Final Consideration About Your Choice of Healthcare Agent

One final point to consider when documenting your wishes and choosing a healthcare agent that will ultimately carry them out is that the person you nominate should want to have this responsibility. There are people who do not want or cannot handle making medical decisions– even for their own spouse.

Remember, if the time comes that the healthcare directive needs to be used, it is going to be a very stressful and emotional time for this person. Are they up for the job? Do they want the job? Take the time to have an additional conversation with whomever you are considering ensuring that they can, and are willing to, make the decisions that you would want in a crisis situation.

Calabasas Will lawyers

All You Need to Know About Leaving Money to Minor Children | Calabasas Will Lawyer

by Estate Planning

If you plan on leaving money to minor children in your Last Will and Testament, you’ll have an important issue to consider: Who will be in charge of managing the inheritance and keeping the child’s money safe from being lost or squandered if the parents pass away?

Estate planning is often easier for married couples in this situation. One spouse leaves everything to the other spouse, and the surviving parent will take care of the children. But what happens if something happens to both parents, either at the same time or within a short span of time?

Unfortunately, a Calabasas Will lawyer can tell you that there is no easy answer. Young beneficiaries usually require someone else to be named to manage their inheritance because they are legally unable (as in the case of a minor) or too immature to manage the inheritance themselves.

Parents often will ask the people named as guardians to also take responsibility for their children’s money and property. However, if you do not name anyone to manage finances for your children, the probate court will do it for you by appointing someone – oftentimes a complete stranger – to serve as the children’s financial guardian. The financial guardian selected by the probate court must report frequently and has limited authority to make decisions.

It’s also important to note that, unless a trust is utilized, children who are 18 or older will have complete control of the property and money left to them. That being said, you should consider raising the age at which your child gains financial responsibility to age 25 or older. This reduces the risk of your child’s inheritance being mismanaged or lost.

A Revocable Living Trust is the best way to manage your children’s inheritance so that they do not receive a lump sum of money before they are mature enough to handle it. A Revocable Living Trust allows you to raise the age or lay out key milestones in which the children receive their money. It also allows you to specify a trustee who oversees the distribution of funds to your children according to your wishes for their future and how their inheritance is to be spent.

If you have any questions about naming a person to manage a minor child’s finances, or if you are interested in learning more about setting up a Revocable Living Trust, please give our Calabasas Will lawyers a call 818-334-2805 for a consultation.

Calabasas estate attorney

The Future of the Federal Estate Tax- 2021 and Beyond

by Estate Planning

The IRS recently announced the 2021 federal estate tax rate limits, which are $11.7 million for individuals and $23.4 million for married couples. This is increased from $11.58 million and $23.16 million respectively in 2020. 

 Under this new guidance, wealthy Americans will be able to leave up to $23.4 million to their heirs without being subject to federal estate tax rates, which top out at 40%. The federal gift tax exemption will remain at $15,000 annually, meaning gifts made up to that amount will not be taxed by the federal government.

 Will There Be Changes Under the Biden Administration?

 While estate tax rates have stayed fairly consistent over the past few years, estate planning attorneys across the country are being asked by their clients how the presidential election may affect future federal tax limits.

 During the campaign season, the Biden/Harris team proposed reducing the estate tax exemption to $3.5 million for estates and $1 million for gifts. The ability to pass such measures, however, appears to be a long shot, considering the current makeup of the Senate. The Democratic party now holds a very slim majority and lowering the estate tax threshold is not particularly popular on the Republican side. It would be difficult, if not impossible, at this point to get a majority of Senators to agree to such legislation.

 Complicating matters further is the coronavirus pandemic. It’s anticipated that Congress will spend the next few months working on financial relief packages for individuals and businesses impacted by COVID-19. As such, major overhauls to the estate tax are anticipated to take a backseat in 20201 in favor of more pressing matters.

 However, when it comes to the whims of Congress, estate planning lawyers “never say never.” That’s why we are continuing to keep a watchful eye on Congress should support begin to emerge for estate tax reform in 2021 and beyond. For real-time updates, be sure to follow our estate planning blog, or subscribe to our newsletter. Finally, if you have specific questions about the federal estate tax or how to avoid “death taxes” on your estate when you are gone, please contact us at (818) 334-2805 to schedule an appointment. 

San Fernando Valley will and trust lawyer

Estate Planning and Divorce: What to Know | San Fernando Valley Will and Trust Lawyer

by Estate Planning

Estate planning offers legal protection for families and individuals through all of life’s transitions. Using tools such as wills, trusts, powers of attorney, and healthcare directives, estate planning helps individuals protect their wishes, safeguard their assets, and ensure provision and care for their loved ones following their death or incapacity.  

What Does My Estate Plan Have to Do with My Divorce?

 Your estate plan can be impacted greatly if it’s not updated after a divorce. For example, if your ex-spouse has been named as a beneficiary on your life insurance policy, he or she may still be able to collect the proceeds if you suddenly pass away without updating your documents. Your ex-spouse may also retain authority roles as your power of attorney or healthcare agent unless you revoke such power. As a single adult, you must also name the people you now want to act on your behalf or manage your affairs in an emergency once the role is no longer filled by your ex-spouse.

 Won’t a Divorce Automatically Stop My Ex-Spouse from Having Such Power?

 Again, not necessarily. In many states, a divorce does not nullify the beneficiaries named on accounts, nor will it prevent an ex-spouse from serving in authority roles where he or she may retain the ability to make life or death medical decisions or manage the ex-spouse’s money during incapacity. That is why you must update your documents after a divorce to be certain that your ex no longer has this power.

 What Documents Should I Update?

 While everyone’s estate plan is different, the following are the most common documents that should be updated after a divorce: 

·      Will

·      Trust

·      Power of Attorney

·      Healthcare Directive

·      Beneficiary Designations on Life Insurance Policies

·      Beneficiary Designations on Retirement Plans

·      Beneficiaries on any accounts with Transfer on Death Provisions

 Getting Help

 Each state has laws that dictate when documents can be updated or altered as you move through the divorce proceedings. It’s important to speak with an experienced San Fernando Valley will and trust lawyer before you make any changes, as any unapproved transfers or changes to your documents could be considered fraudulent. If you need help getting started, we are here to assist you with your planning. Contact our office by calling (818) 334-2805 to schedule an appointment. 

Calabasas estate planning

Calabasas Estate Planning: How to Help Your Older Loved Ones Avoid Fraud and Victimization- Part 2

by Estate Planning

In part one of this series, we provided a general overview of the ways that seniors are preyed upon by scammers and those who would seek to gain control of the elderly person’s finances for their own benefit. However, in order to stop fraud, it’s important to know the specifics. The following post will walk you through questions to ask your loved one in order to discover if fraud or exploitation is occurring. 

1. Ask older loved ones about suspicious phone calls.

Swindlers often cold-call seniors to get personal information. Here are a few common scams your loved ones should be aware of:

·       Sweepstakes scams: An elder receives a call that they have “won” a sweepstakes and must provide bank account information for a direct deposit or send a check to pay taxes on their “winnings.”

·       Grandchild scams: An elder receives a call saying something like, “Grandma, it’s me… please don’t tell my parents.” The caller then claims they are out of town and need to be wired money to make bail, pay for travel expenses, etc.

·       Voter registration scams: Someone calls about registering the elder to vote, asking for their address, birthday, Social Security Number, or a password or PIN code.

·       Healthcare scams: An elder may get a call offering discounts on health insurance or a call from someone claiming they work for the government and need a Medicare number or Social Security Number to issue a new card.

Encourage your loved ones to never give out personal information to strangers (or even people claiming to be friends or loved ones) over the phone.

2. Talk with them about their finances.

It’s a wise idea to meet with the senior’s financial advisors, accountants, attorneys, and other advisors so those people know you and can potentially contact you if they believe something suspicious is going on.

But be careful: becoming too involved in a loved one’s financial life may create the appearance of undue influence. It is important to help keep loved ones from being exploited, but you also don’t want to find yourself the subject of a lawsuit claiming that you are the one committing financial exploitation.

3. Keep abreast of changes to their estate plan.

Check to see if a non-relative has been included as a representative or beneficiary, or if any relatives have been cut out of the estate plan since the last time you reviewed it. There may be perfectly reasonable explanations for these changes. However, they could also indicate that someone is trying to manipulate your loved one.

4. Ask about caretakers or sudden “best friends.”

Has a non-relative, long-time friend, or neighbor started spending a lot of time with your loved one? Do they suddenly have a new “best friend” or someone who takes care of them at home?

These developments could be a sign that someone is trying to work their way into an elder’s life in order to exploit them, financially or otherwise. It might seem innocent enough (and even generous!) for a new friend to “hang out” with an elder and to take care of their medical and financial needs. But because of the potential for abuse, our Calabasas estate planning attorneys recommend hiring only licensed caregivers. Obtain reviews and make sure they have the proper licensure and training.

Making new friends and meeting people is fine. The goal is simply to communicate with your loved one to make sure they are not giving un-vetted people undue control over their life.

5. Investigate sudden missing items or extravagant new purchases.

It is important to talk with your elderly loved ones about finances so that, if they consent, you can regularly review their statements and stay up to date on other financial developments.

Have there been any large cash transfers? Vehicles suddenly missing or new ones showing up unexpectedly? Heirloom household items have disappeared? Fancy or expensive new gadgets showing up that are out of character for your loved one? This can indicate that someone has convinced the elder to give them assets or that they have duped the elder into buying something they don’t need.

A strong estate plan can help prevent elder fraud.

Keep an open dialogue with neighbors, friends, and advisors connected to older relatives or other loved ones. The more people you have looking out for your loved one, the less likely it is that someone can take advantage of them without your knowing.

Finally, you should encourage your loved one to meet privately with an experienced Calabasas estate planning attorney to determine if they need a revocable living trust and/or durable power of attorney. Having a legal document in place naming a trusted advisor, or agent, to help handle finances can help protect them. An experienced estate planning attorney also knows what questions to ask and the warning signs to look for in suspected elder exploitation. If you would like help creating these documents or navigating your next steps, please call our Calabasas estate planning firm at (818) 334-2805 to schedule a consultation. Report this