Factors to Consider When Naming a Trustee for Your Estate
Naming a trustee is a crucial step in estate planning. This individual or entity will be responsible for managing your assets and distributing them according to your wishes after you pass away. In the state of California, there are specific considerations and guidelines to keep in mind when selecting a trustee. Following is essential information about naming a trustee for your estate in California. Understanding the Role of a Trustee A trustee is an individual or institution appointed to administer a trust on behalf of the grantor (the person who creates the trust) and the beneficiaries. The trustee has fiduciary ... Read More
Benefits of an Irrevocable Life Insurance Trust
An irrevocable life insurance trust (ILLIT) is an estate planning tool that owns and controls a permanent life insurance policy or policies while the insured is alive. The parties in an ILIT are the grantor, trustees, and beneficiaries. The grantor is the individual that sets up the trust and is responsible for funding the trust. Unlike the revocable trust, he or she cannot make any changes to the irrevocable trust once it’s been set up. The trustee is responsible for the distribution of proceeds and management of the trust while the beneficiary is the person legally designed to receive those ... Read More
New Year’s Resolution: Make or Update Your Estate Plan
It's the New Year and everyone has begun to make New Year’s resolutions. The origin of making New Year's resolutions rests with the Babylonians, which goes back over 4,000 years. During that time, the ancient Babylonians made promises to their gods at the beginning of each year to plant crops, return objects they borrowed and pay off their debts. Today, New Year’s resolutions are generally personal goals for self-improvement. Although diet, exercise, and travel usually top most people’s resolutions, many forget forming an estate plan is equally as important. An estate plan is an investment in your peace of mind ... Read More
Pitfalls of Do-It-Yourself (DIY) Estate Planning
In an age where almost anything can be accomplished online, “do it yourself” estate planning websites have recently increased in popularity. Unfortunately, many people who choose to replace proper professional advice with do-it-yourself (DIY) estate planning disregard the potential consequences of their actions. What is a “DIY” Estate Plan? Well, in simplest terms, an estate plan is a plan you create for the future in the event you are deceased or become too incapacitated to make critical decisions regarding your finances or healthcare. When you choose the “DIY” route, you utilize an online “do it yourself” document creator and neglect ... Read More
How to Choose the Right Guardian for Your Children In Case of Death
A parent’s first responsibility is to secure the health and wellness of their children. Still, many parents delay the decision to appoint a legal guardian for their kids in case of incapacitation or death. While death, illness, and other situations are cumbersome topics that many people avoid, they are important to consider. Passing away and leaving behind minor children is something no one wants to consider. However, the consequences of not making guardianship plans can have long-term, devastating consequences. For example, your child may be sent into foster care and have an uncertain future. Planning for the care of their ... Read More
Estate Planning and Divorce
Divorce can be one of the most stressful and emotional situations an individual can go through. Unfortunately, divorce is common in the United States. In fact, according to the Centers for Disease Control and Prevention (CDC), the divorce rate is 2.3 per 1,000 total population. If you are facing a divorce in the state of California, you may find yourself overwhelmed with questions about the process and worried about what will happen. You may also have many tasks to take care of. While decisions addressing your ex-spouse and family members are the priority, it’s imperative to add one more task ... Read More
A Guide to Estate Planning for Singles Versus Married Couples
Many people believe that estate planning is only for people who are married or have children. However, that is a harmful myth. Whether you have never been married, are divorced, or are currently married, planning is vitally important to ensure that your wishes are carried out. If you’re single and pass away without determining your heirs, the court will inevitably make that decision. That’s why it’s imperative for single people to make a will or living trust that states who should receive their assets. According to an estate planning survey, approximately 26.7% of singles (who’ve never married) had a will ... Read More
Non-traditional Families & Their Estate Plan
Estate planning practices are changing as family structures change. As recently as thirty years ago, a traditional family comprised a husband and wife who married young, purchased a home, had children, and worked toward financial stability and security. In 1949, 79.8% of American households were married couples, but in 2021 that number declined to 47.3%. This sudden shift means that non-traditional families must be better prepared. The rise of blended families, cohabitating couples, artificial reproductive technology, same-sex marriages, and other trends mean only one-third of American households are “traditional” families. The other two-thirds are non-traditional families experiencing unique needs that ... Read More
Estate Planning Checklist: 5 Ways to Prepare
Nobody wants to think about becoming sick or passing away at a young age. However, accidents can happen to anyone at any time. Life can be unexpected. Unfortunately, many people have denied estate planning over the years. Some believe it’s not necessary while others don’t feel comfortable discussing the idea of death. However, a comprehensive estate plan should consider what happens in the event you become disabled or pass away. It is about making sure that your loved ones are taken care of after you die and that your assets are distributed how you wish. By planning ahead, you can ... Read More
Six Common Estate Planning Mistakes
Estate planning can be one of the most daunting and unpleasant tasks for an individual. No one really likes to contemplate their death, so it can be unsettling to develop a comprehensive estate plan. Although it’s something many people choose to avoid, creating an effective estate plan is essential if you want to ensure your assets are distributed in the manner you desire after passing away. Leaving a comprehensive estate plan with clear instructions for your heirs is one of the best decisions you can make. To help make the process easier, here are six common estate planning pitfalls that ... Read More
Three Dangers About Making Your Own Estate Plan
Can I make my own estate plan? Here’s the short answer, don’t do it. This is a common question, and while it is possible to make your own estate plan, it is very complex, and there will be holes. You could Google "how to write a will" but whatever blog article comes up, it won't be a proper will and it won't help your estate plan. But isn’t it possible to create an estate plan from scratch in a matter of minutes? What about a transfer-on-death deed for my land or adding my kids to my bank account? Again, you can, although ... Read More
The HJTA Responds to Prop 19 with an Initiative to Repeal the Death Tax
Many Californians are already feeling the effects of newly passed Proposition 19, also entitled the “Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.” The Act essentially amended the California Constitution and dramatically changed the property tax reassessment landscape in the State. Although some do support the terms and conditions of Prop 19, there is an effort to repeal the newly passed legislation completely by certain organizations. One of these includes the Howard Jarvis Taxpayers Association (HJTA), which is a California-based nonprofit lobbying and policy organization that advocates for taxpayers and protections for Proposition ... Read More
