There are a number of life events that can have a major bearing on estate planning. Getting a divorce is one of those events. How may a settlement affect the planning that you already have in place, and how can you make sure that any changes to your estate are properly handled?
The Effects of Divorce on an Estate Plan
There are several elements of your estate planning that may be affected. Here are a few examples:
- Retirement Accounts – Because the beneficiary on a retirement account receives the money directly without it going through probate, you may need to change your beneficiary to avoid the money transferring to your ex.
- Trusts – Some property or other assets may have been part of a revocable living trust. However, if those assets were shared or had to be liquidated as a part of the divorce settlement, you will have to update the trust accordingly.
- Shared Accounts – Shared bank accounts transfer automatically on death, so you will need to close these accounts if they have not already been closed as a part of the settlement and open new bank
You may also need to make arrangements if you get remarried so that children from the previous marriage still receive any assets you wish for them to inherit. Otherwise, many things that may be put in your new mate’s name might pass directly without going through probate. This new spouse may feel no attachment to your children from another mate once you are gone, so you can’t leave it to chance.
Help in Arranging Complicated Estate Planning
Estate planning may at times be complicated, but it doesn’t have to be difficult. The patient estate planning attorneys at Petrov Law Firm can walk you through the process so that you can be confident your wishes will be carried out. To learn more, contact our San Diego, California attorneys at 619-344-0360.Read More
You may be looking for a way to leave your assets to heirs without the added time and expenses involved in probate. If so, a living trust could be exactly what you have been searching for. But does this mean that you are turning over control of your assets to a trustee?
If you set up a revocable living trust, then you are the trustee while you are still living. This gives you complete control over the trust. You can add assets or remove them from the trust at any time. It is a great way to leave property and other assets to your heirs and have them avoid probate without giving up control during your life.
However, when you pass away, your revocable living trust becomes irrevocable. At this point, a successor trustee will take over. He or she will then carry out your wishes for the trust in accord with any instructions that you have left behind. This makes it important to determine in advance what you want a successor trustee to do.
Providing Instructions for Your Successor Trustee
If you are a California resident in the San Diego area, Petrov Law Firm is your source for the best estate planning lawyers to help you leave instructions for your successor trustee that ensure your wishes are carried out when you are no longer here to do so yourself.
To learn more about how to set up a revocable living trust with a successor trustee in order to avoid having your estate go into probate, contact Petrov Law Firm at 619-344-0360. Our attorneys will be happy to help you get your affairs in order, regardless of how large or small your estate may be.Read More
When a person passes away, his or her retirement accounts do not go through probate. Instead, retirement accounts are automatically paid out to a beneficiary who is selected by the account holder. What are the different types of retirement accounts that a person may have? Why should you periodically check to see who your beneficiaries are?
Which Retirement Accounts Have Beneficiaries?
If you have a savings account, this can be left in trust. Or you may have another person’s name on the account. However, retirement accounts like IRAs and 401(k)s are different. These should have a beneficiary listed on the policy. If you live in California and have an IRA or a Roth IRA, your spouse will be the beneficiary. The only way to designate someone else is to have your spouse provide written consent allowing you to designate another beneficiary. The same is true with a 401(k). Thus, unless your current mate has signed a waiver and you have designated someone else, he or she is the beneficiary.
Why Maintain Your Beneficiary List?
You should check on your beneficiaries periodically, especially if you experience a change in life circumstances. For example, if you get divorced, you will likely want to change the beneficiary on your retirement accounts.
Of course, your retirement accounts may not be the only thing that needs changing. You may have to update the beneficiary on a life insurance policy, amend a will, adjust a trust, and so on. For help with all of your estate planning needs, contact the estate planning lawyers at Petrov Law Firm. We can help you keep all of your records in good order so that your wishes are carried out properly. To learn more, call 619-344-0360 today.Read More
If you determine that the best way to leave your assets to beneficiaries is via a trust that will help keep matters out of probate, there is still something vital to consider. What is the relationship between your heirs and the person (or persons) you are appointing as a trustee? Obviously, a better relationship will make things easier on those who are to inherit your estate.
What Does a Trustee Do?
When the trustor passes away, the trustee is in charge of keeping the trust safe and making appropriate distributions to any beneficiaries. So there are a few things to consider when appointing a trustee:
- Is this person trustworthy enough to carry out your wishes?
- Does the trustee have sufficient ability to handle this responsibility?
- Will the trustee’s relationship with the beneficiary help or hinder the proper distribution of the trust?
Of course, planning your trust properly can also help the process along, even if there is some disputing between the trustee and beneficiary. However, you can minimize how much of the trust ends up going toward administration costs by selecting the right person – someone who has the ability to care for the trust and the desire to do what is best for the beneficiary.
Help for Creating Trusteeships in San Diego, California
If you live in California and need advice or help in creating a trust, the estate planning attorneys at Petrov Law Firm will be happy to assist you. To learn more, call our San Diego and Chula Vista attorneys at 619-344-0360.Read More
There are a number of different ways to save for your golden years. Some types of retirement accounts are:
- IRA – Contributions are tax deductible and taxes must be paid when the funds are withdrawn.
- Roth IRA – Contributions are taxed in advance instead of at the time of withdrawal.
- 401(k) – Contributions are made pre-tax, and therefore are subject to taxes when withdrawn. In addition, a penalty is imposed if funds are withdrawn earlier than age 59 and 6 months.
The question arises, however: what if you pass ways with money in a retirement account? Who gets it?
Where Your Retirement Accounts Go
The normal process when setting up a retirement account is to designate someone who would serve as a beneficiary and inherit any remaining funds. If you do designate a beneficiary on a retirement account, this will supersede your will. For example, if your retirement account beneficiary is your mate, but you later divorce and leave everything to your kids in your will, you will have to change the beneficiary on the retirement account as well, or your ex will still get that money.
In other words, a retirement account is not a probate asset, so your executor will have no say in what happens to it. You have to make that decision now by keeping your beneficiary up to date.
Having the Proper Estate Planning Attorney on Your Side
In order to ensure that all of your wishes will be carried out, you want the advice of an estate planning attorney who can help you to understand how these little details work. The experienced estate lawyers at Petrov Law Firm can help you plan for the future of your heirs. To learn more, call 619-344-0360 today.Read More
A living trust is a great way to simplify matters for your heirs and avoid probate. Since assets that are a part of a trust are passed on differently than those in a will, your heirs may receive their inheritance faster and with fewer legal fees. The difference is in the way the trust is funded. Only a correctly implemented trust will save time and money and avoid lengthy court proceedings.
Why Executing the Trust Properly Is Vital
A 2012 case in El Dorado, California brought this topic to the fore. In the case, an older woman had executed a trust leaving her home to her daughter. Three years later, she changed her trust to make her son the heir but failed to change the deed on the house. Thus, the conflict was whether or not the house should be left to the son or daughter.
In the end, the son received the house due to California law allowing for the transfer of the property to the new trust. However, it took 5 years longer than it should have for the son to get the home. So it still drives home the point of properly executing a trust in order to avoid long legal battles.
Help in Executing Your Living Trust in Sand Diego, California
San Diego, California residents can trust the experienced attorneys at Petrov Law Firm to help execute your living trust properly. This will make for a smooth transition in the future when your heirs receive their inheritance. To learn more and to start planning for the future today, call 619-344-0360.Read More
Trust administration refers to the management of a trust by a trustee who has been appointed to distribute the property or funds. The trustor provides the trustee with instructions that are to be carried out. The trustee then applies these wishes in accord with state laws and in the best interest of the beneficiaries. How does California state law affect how trustees carry out this responsibility?
California Laws on Trust Administration
California law dictates how trustees handle their responsibilities in a number of ways including:
- Guidelines that keep a trustee from taking action that does not benefit the heirs or trust
- Requirements to perform certain duties in connection with the trust
- A designated line of succession in case a trustee dies at the same time as or before the trustor or is otherwise unable to carry out responsibilities
The Responsibility Placed on a Trustee in California Trustees are expected to comply with the instructions outlined in the trust as well as with all applicable state and federal regulations. They are expected to handle the estate in a manner that is financially responsible, preserving it for the beneficiaries. The trustee may be in charge of financial records, debts, and taxes. Beneficiaries can request financial statements from trustees to ensure things are being handled properly.
Trusts and Other Estate Planning in San Diego, California
If you are setting up a trust or doing any other kind of estate planning in California, the estate planning attorneys at Petrov Law Firm can provide you with the assistance you need to execute all of the paperwork properly. This will help to ensure that beneficiaries get what they deserve and that your wishes are carried out properly. Call 619-344-0360 to get started today.Read More
Effective the first of the year in 2016, California introduced a deed that can automatically transfer property upon a person’s death. While this may seem advantageous as opposed to hiring a lawyer for estate planning purposes, there are several extreme flaws in the law. Here’s what you need to know before preparing a TOD Deed.
Why a Transfer on Death Deed Isn’t Foolproof
There are two major reasons that the Transfer on Death laws don’t provide as much benefit as trusts and other forms of estate planning.
- You Cannot Set the Transfer Conditions – With a trust, you can set the age at which a benefactor inherits the property. You can also have a contingency plan for inheritance should the primary benefactor die before or at the same time as you. When it comes to a deed, there are no additional conditions. The property simply passes to the named person when the deedholder dies.
- The “Restitution Demand” Clause – An estate representative can demand the return of a property within a set period of time from the death of the owner – 3 years. This could leave the Transfer on Death recipient homeless. Or if the property has already been sold, the beneficiary would have to pay back the value of the home, perhaps even more than it was sold for. This gives the executor of the estate true power over the property for the first 3 years.
A Better Way to Avoid Probate when Leaving Property to Heirs
Setting up a trust is a far superior way to leave property to heirs without having to worry about probate. While estate planning with an attorney may cost more than getting a Transfer on Death Deed issued, the benefits far outweigh any inconvenience. To take advantage of affordable estate planning with an experienced attorney, contact Petrov Law Firm today at 619-344-0360.Read More
Estate planning is subject to different laws by state, so it is important to know how things such as Wills, Trusts, and Probate work in your home state. An estate planning attorney can be of great assistance in this regard, but here are 3 things to help you get started.
If You Have a Will, Your Estate Still Goes Through Probate
Some people are under the misconception that as long as they execute a Will, heirs automatically receive the inheritance. The fact is that even if you have a Will, you have to determine an executor who will take care of the probate process and help to ensure that your desires are carried out. How long the process will take depends on numerous factors.
Trustees Can Only Be Removed in Superior Court
That is where the probate division of court matters is handled. Some states will allow a person to utilize the civil court system to take action against a Trustee or to take care of other Trust matters. In California, civil suits cannot be filed for estate matters.
What Happens if You Die Without a Will or Other Estate Planning?
Intestacy law is a division of law that constitutes the state’s rules of inheritance. In California, the order of inheritance is: spouse, direct descendants (children, grandchildren, etc.), parents, siblings, grandparents. However, other factors may complicate this succession.
Taking Control of Your Estate Planning
Petrov Law Firm can help you to take control of your estate planning and navigate the many state and federal statutes that are involved. Call 619-344-0360 to get started on your plans.Read More
This is a commonly asked question when it comes to estate planning. The short answer, if you have executed a will, is yes. In the state of California, the person assigned to handle your affairs when you die is your executor.
What Is the Job of the Executor?
If you die with only a will, then your estate will go through probate. At that time, your executor will be in charge of accounting for all of your assets and distributing them to your heirs as declared in the will. The will gets filed with the probate court. The executor is also in charge of paying off debts or creditors, so these individuals need to be informed of the death. The executor is also in charge of paying the taxes due on the estate and will appear in court on behalf of the estate as necessary.
Avoiding Probate with a Living Trust
A living trust or revocable trust is a great way to avoid probate and the need for an executor. This is a common practice in California, but it can still be confusing to know which option is best for you and how to execute it properly. That’s what the Petrov Law Firm is here for.
Our estate planning attorneys know how to maximize the benefits for your heirs when you are no longer here to take care of them yourself. Call 619-344-0360 to set up a consultation with one of our estate planners today.Read More