The Law Office of Jennifer L. Field

What is a Living Trust?

As you know, a living trust is a legal arrangement where a person, called the “grantor,” “trustor,” or “settlor,” places his assets into a trust during his lifetime. The trust is administered by a “trustee” for the benefit of the trust’s beneficiaries. The grantor may be a trustee and a beneficiary of the trust. Living trusts are a widely recognized and legitimate Estate Planning device. Because assets transferred to the trust are no longer owned by the grantor, at the grantor’s death, the assets are not part of the grantor’s estate and do not have to be probated. Accordingly, a living trust can avoid what could be a costly, lengthy process. Whether or not this is a major advantage varies by the size of the estate; for small estates, California has an informal probate process that minimizes cost and delay. Whether a living trust is an appropriate Estate Planning tool depends upon an individual’s circumstances and goals, and state laws.

Living Trust Scams

Misinformation and misunderstanding about probate and estate taxes provide a ripe environment for scam artists to prey on older consumers’ fears that their estates will be eaten up by costs, and that distribution of their assets to loved ones will be long delayed. Some unscrupulous businesses advertise seminars on living trusts or send postcards inviting consumers to call for in-home appointments, ostensibly to learn whether a living trust is right for them. A common practice is to greatly exaggerate the benefits of living trusts and falsely claim that locally licensed attorneys will prepare the documents. In some instances, consumers send money for living trust kits but receive nothing. In others, the offer of estate planning services is merely a ruse to gain access to consumers’ financial information and to sell them other financial products, such as insurance annuities. These practices may violate federal securities laws, as well as other laws.

Many state Attorneys General and other authorities, such as disciplinary or grievance committees of state or city bar associations, have taken enforcement actions against living trust scam artists. Some cases have been brought under state Unfair and Deceptive Acts and Practices laws. Others have been prosecuted as the unauthorized practice of law because the salespeople were not lawyers. Even in instances where there may be some attorney review, it may be insufficient to render the activity legal. The U.S. Securities and Exchange Commission also has prosecuted companies purporting to offer estate planning services, such as living trusts, for violating the securities laws through fraudulent investment schemes targeting senior citizens.

If you have any questions or concerns about your particular situation or any Living Trust Scams, please call me today so that together we can put those issues to rest.

Call For Your Free 45 Minute Consultation and Learn About Living Trust (909) 625-0220

Understanding some of the more common issues associated with living trusts will help dispel any confusion about the differences between a Living Will and a Living Trust.

A living trust may be the right choice for some consumers but it is not the right choice for all consumers.

Living Will and Living Trust

First of all, it should be understood that a living trust is not the same as living will. These are two different instruments and should not be confused with one another. A living trust is a legal document that ensures that a person’s property is dispersed according to his or her wishes upon death. It can also be used to include issues concerning minor children and who the deceased wishes to have as guardian for those children.

A living will, on the other hand, is a legal instrument that carefully details the types of medical treatment a person wishes to receive, or not receive, should that person become incapacitated through illness or injury. Today, living wills are incorporated within Advance Health Care Directives.

When you work with a living trust, you actually transfer ownership of your assets to the trust. You then appoint someone to act as the trustee and that person will administer the trust when you are no longer able to do so. The trustee may be a family member, attorney, friend, or even a business establishment such as a law firm.

By having a living trust, you can save your family and others some problems that might pop up later on after your death. The main issue that it can deal with is probate. A living trust does not have to go through probate court because your assets are technically no longer yours; they are owned by the trust. Only those items that are still in your name will be subject to probate. In order to keep your family from having to go through probate, however, you must make sure that all property has actually been transferred out of your name and into the trust. If you fail to do this, property may still go through probate.

If you are considering the use of a living trust, be very careful with whom you work with. There are companies out there who will happily take your money in exchange for what they call “do it yourself” kits that are all but worthless later on when they are needed. The best way to make a living trust is to do it through a reputable attorney. In fact, some states will not allow validity of any living trust that is not handled through a law professional.

You should also be aware of the fact that a poorly written living trust can actually cost your loved ones more money than they might be able to spend. It is very important that you take the time to have your living trust set up properly and that you transfer your assets into the trust as required. No one likes to think about their own demise, but no one wants to saddle those left behind with burdens either. This can be especially important if you have minor children who will need a guardian in case you are not around to take care of them.

If you have any questions or concerns about your Living Will and Living Trust or your particular situation, please call me today so that together we can put those issues to rest. 

For a Free 45 Minute Consultation (909) 625-0220

What is Estate Planning? What benefits does it provide to people?

Estate Planning is a method of arranging and considering alternatives that will satisfy specific wishes and goals to prepare for things that may happen to a person.

Estate Planning Basics: The Will

Estate Planning includes organizing properties and not just putting them in a simple Will. It also lessens the taxes and fees that may possibly be charged to these properties. Estate Planning also includes contingency preparation to ensure that one’s wishes regarding health care and medications will be followed.

An estate plan may be described as good if it financially coordinates with the future of the home, business, investments, insurance and other benefits when the person passes away. A good estate plan also sets directions to bring about personal wishes regarding health care in preparation for the when the person becomes disabled.

It is very important to identify the real definition of the term “estate” before someone can really perform estate planning. Estate means all the properties a person owns or controls. This is regardless whether if the property is solely named after him or is in managed in a partnership. This may include real properties, accounts, bonds and stocks, cash, buildings and establishments, jewelry, collections, all types of businesses and even retirement benefits.

Typically, those who really need to have an estate plan are parents who have minor children, people who have valuable properties or have sentimental values for them, and people who are concerned about their health care. However, people can still acquire an estate plan whether they fall into these categories or not; an estate plan can benefit nearly everyone.

Estate Plans may include wills, power of attorneys, advance health care directives, living trusts and other documents. When creating an estate plan, it is very important to make use of the services of a lawyer. Lawyers are the only certified people who practice these fields. They are also the only ones who can supply a person with all the legal requirements and advice needed in the estate plan. An attorney will be able to answer legal questions regarding the estate and they will also be able prepare the person on the cost of the estate plan.

Estate Planning involves sensitive decisions and legal matters. It is important that before a person will enter into estate planning, he should already have a strong understanding of the process so that things will not be difficult for those who will be left behind.

If you have any questions or concerns about Estate Planning Basics or your particular situation, please call me today so that together we can put those issues to rest.

Call Today for Your Free 45 Minute Estate Planning Consultation (909) 625-0220

Many people will go out of their way to avoid talking about illness, death, and money where their aging parents are concerned and do not take care of Elderly Estate Planning. The reality is we all get older and eventually need help from others. The more prepared you are today, the easier it will be later on. If you have not had these discussions with your parents it may be time to start laying the groundwork.

Elderly Estate Planning: What Important Estate Planning Documents Are Needed?

A Will and/or Trust – Decisions regarding your assets, how your estate will be managed, custody and care of minor children are some of the terms that need to be mapped out.

Medical Care Documents – You need to appoint someone who you want to make decisions if you are unable to do so. Similarly, you need to tell doctors your wishes regarding which medical or life support procedures you do or do not want.

Power of Attorney – You should designate someone in advance who can care for your finances if you cannot.

How Do I Start This Estate Planning?

It’s a good idea to know where your parents keep important documents. You will need to know locations for financial information, medical and life insurance policies, contact information for doctors, lawyers, and financial advisors, funeral and burial plans, real estate estate deeds, birth certificates, marriage licenses, and social security or social insurance cards.

Help The Estate Planning Along

Your goal should be helping your parents as much as they need and want to be helped. It can get very tricky if you overstep the boundaries – you do not want to take away their sense of independence and hurt their dignity. As always, you will want to approach them with respect and be sensitive to their concerns.  Try to put yourself in their shoes – after all, you will be there someday.

Checking Your Own Estate Planning

Equally important as having these conversations with your parents, is doing your own estate planning and documenting your own financial and medical care preferences. Make sure that when the time comes that you are prepared for a smooth transition of your legacy, which you have prepared through your estate planning.

If you have any questions or concerns about Elderly Estate Planning or your particular situation, please call me today so that together we can put those issues to rest.

Call Today For Your Free 45 Minute Estate Planning Consultation (909) 625-0220

If you are getting a divorce from your spouse, you have a lot of Divorce Estate Planning to do. You will need to name your own beneficiaries, organize your divided assets, and set up your individual estate.

It is important that you meet with a qualified attorney to discuss the specifics of planning your estate to ensure that your wishes are carried out as you desire. You need to be well versed in the most strategic methods of dividing your joint estate so that you do not end up paying all of the taxes while he or she enjoys the benefits of your assets.

I have outlined some important information for you to be aware of when planning your estate after your divorce. Please keep in mind that divorces lend themselves to new structures for individuals. You will want to meet with a qualified attorney to discuss how to best protect your new estate.

Divorce Estate Planning: Assigning Your Beneficiary

During your marriage, chances are your spouse was the sole or major beneficiary of your estate. After your divorce, it is important that you designate a new beneficiary on all of your documents and for all of your accounts.

The federal law called ERISA pre-empts state laws that automatically remove an ex-spouse as the beneficiary of retirement plans. Therefore, it is important that you remove the ex-spouse as the beneficiary unless you wish for him or her to remain as your designated beneficiary.

Please note: Once you re-name your beneficiary, it is possible that your ex-spouse will still retain the rights to part of your retirement benefits that you accrued during the time of your marriage. I recommend consulting with a qualified estate planning attorney to determine just how much of your benefits and estate will be designated to your ex-spouse after your divorce.

Dividing Your Assets

During the course of your divorce, you and your ex-spouse determine how your joint estate will be divided. Take a minute to review a few assets that you will need to divide including,

1) Appreciated assets, such as mutual funds, and stocks;

2) Real Estate, including investments, repairs, insurances and mortgages;

3) Personal Property, such as jewelry, artwork and clothes;

4) Retirement Plans, such as qualified plans and IRA’s; and

5) Your home, which can be divided in different ways to meet both parties’ financial needs.

Establishing a Trust

Many people will create a Trust to ensure that a designated Trustee will have control over funds after death. There are three Trusts that you can explore when planning your estate:

1. The Revocable Living Trust helps you avoid probate by allowing your Trustee to distribute your assets according to the instructions that you have outlined.

2. The Children’s Trust allows you to designate funds that your child will use later in his life to pay for his education, home, etc.

3. The Irrevocable Life Insurance Trust, otherwise known as “ILIT”, allows you to distribute the death benefit estate tax-free when and how you want, even long after you’re gone.

Divorce is never easy. It is typically a very long and arduous process as both parties work to get their portions of the shared assets. If you are going through a divorce it is important to speak with a qualified attorney who can walk you through all of the tax and asset considerations that you need to be aware of to ensure that you receive the best possible settlement.

If you have any questions or concerns about Divorce Estate Planning or your particular situation, please call me today so that together we can put those issues to rest.

Call Today For Your Free 45 Minute Consultation About Divorce Estate Planning (909) 625-0220

Even though planning your estate is not the most enjoyable job, it is necessary to avoid any estate planning mistakes so that you can efficiently and successfully transfer all of your assets to those you leave behind. With a bit of careful planning, your heirs can avoid having to pay estate taxes and federal taxes on your assets. Additionally, a well-planned estate avoids confusion for your loved ones during a very difficult time in their lives.

Still, with all the advantages of estate planning, many people make a great many estate planning mistakes in the process. The most common mistake when it comes to estate planning is not getting around to doing it at all. Make sure that you take the time to plan at least the financial portion of your estate so that you leave your loved ones behind with some amount of security. The following mistakes often put families into great difficulty after a loved one’s passing.

6 Common Estate Planning Mistakes

1. Do not fall into the trap of thinking that estate planning is just for the rich. This is completely false as planning your estate is essential for anyone who has any amount of assets to leave behind. Many people do not realize that their estate is as large as it really is, especially when they fail to take into account the assets from their home.

2. Remember to update your will and to review it at least once every two years. Factors that can change information about your beneficiaries include deaths, divorce, birth, and adoption.

3. Don’t assume that taxes paid on your assets are set in stone. Talk to your financial planner about ways that your beneficiaries can avoid paying taxes on your assets. There are several strategies for tax planning so that you can minimize taxes or avoid them altogether.

4. All of your financial papers should be in order so that it is easy for someone to find them. Make sure that one of your loved ones has information on where to find the papers necessary for planning after your death.

5. Ensure that you have a good plan in place for your children. Many people take a lot of time deciding what to do with their assets and forget that they need to appoint guardianship for their children. There are many details to take into consideration when it comes to guardianship.

6. If you do not have a financial advisor, get one. Financial Planners and Advisors are trained intimately in these matters and can provide asset protection well above whatever fees they may charge.

The above estate planning mistakes are common when people are planning their estate. Take the time to plan for your death even though you think that you have years before it becomes an issue. The key to successful estate planning is good preparation.

If you have any questions or concerns about Estate Planning Mistakes or your particular situation, please call me today so that together we can put those issues to rest.

Call Today For Your Free 45 Minute Consultation to Avoid Estate Planning Mistakes (909) 625-0220