We can’t always predict if an emergency or misfortune may strike, but that doesn’t mean we shouldn’t be prepared. In the event of a natural disaster or some family emergency, would you know what to grab and be able to grab it in a matter of a few minutes, or even seconds? Having all your documents and important information organized in an emergency binder, along with your Estate Planning Portfolio, in an accessible location may save a lot of time and avoid a lot of headaches and frustration later on.

• What should be included in an Emergency Binder:
• Vital records such as Birth Certificates, Marriage Certificate, Copies of your Driver’s Licenses, Social Security cards, Naturalization Documents, Passports, and Child Custody Documents.
• Insurance policies (ie. Homeowners, Renters, Auto, Life, and Health)
• Real Estate Deeds, Rental Agreements
• Car Title and Registration
• Copies of your Estate Planning Documents (ie. Trust, Wills, Powers of Attorneys, Health Care Directive)
• A family emergency plan that has contact information and meeting place

While the above list is not exhaustive of what you may need in an emergency binder, with a simple search on the Internet, you can find plenty of emergency document checklists that would cater to your circumstances.  Place your Emergency Binder in a safe but accessible location. Putting it in a fireproof safe may be secure, but consider the amount of time to open it or remembering the access code. Organizing the vital documents will give you peace of mind and protect your family in a time of crisis. 

It's the start of a new year, and I know for some people they have been putting off doing a Will or Trust, and their 2020 New Year's Resolution is to get it done! But for others, they already have their estate planning in place; they think it's all done and over with and don't need to revisit them ever.

However, in order for your estate planning documents to properly achieve the three objectives of an estate plan (1) distribution to the proper parties, 2) proper management until such distribution and preservation and 3) protection from probate fees and estate taxes) you should periodically review and update as appropriate or necessary.  We recommend that you review your entire estate plan a minimum of every 3 years.

If any of the events below occur, it’s a good idea to review them even sooner:

1. A change in the way you wish your property to be distributed, such as may result from changes in your relationship with or the needs of certain beneficiaries. 
2. A change in the persons you wish to serve as your representatives (trustee, executor, attorney in fact, etc.).
3. You get married or divorced. 
4. A beneficiary gets married or divorced.
5. Birth or death of a beneficiary or death of a representative. 
6. A significant change in your personal wealth or financial status, such as significant asset acquisitions or dispositions, investments in new business enterprises, retirement, employment, etc.
7. You receive an inheritance. 
8. You move to a permanent residence in another state.
9. Changes in your health or insurability. 
10. Significant changes in the laws regarding income, estate and gift taxes, or property, trusts and probate.

 
Should you require our assistance in reviewing and updating your estate plan, please give us a call.

​You may have heard that it’s best to avoid probate because it's expensive and time-consuming. If you don’t have a proper estate plan in place, such as having a living trust, your estate may end up in probate. It’s important to avoid probate to make sure your loved ones are provided for and not have to worry about their inheritance being tied up in court.
 
Probate in California is a court supervised process to wind up a person's legal and financial affairs after death and is usually overseen by probate lawyers.  In general, the greater the value of your probate assets, the higher probate will cost.  But how much does it cost to go through the probate process? 

First of all, both the attorney and the personal representative (called either the executor or administrator) are entitled to fees from your estate.  The fees are determined by state law and based on a percentage of the gross estate value. (There are no deductions on loans or set-offs). Then, there are other fees such as court costs, publication costs, accounting, appraisal fees, bond fees and other expenses. A typical estate may incur $1,000 to $3,000 in court costs alone and other mandated fees. After adding all the fees and costs, probate can cost anywhere from 3% to 8% of your assets that could have been included in your distribution to your beneficiaries. 

How much do the attorney and the personal representative get paid?
In California, the statutory fees for the attorneys and personal representative are broken down as follows: 

• 4% on the first $100,000 in assets
• 3% on the next $100,000 in assets
• 2% on the next $800,000 in assets
• 1% on the next $9,000,000 in assets
• 0.5% on the next $15,000,000 in assets
• A reasonable fee thereafter

Example #1: 
If your only asset in your estate is a $500,000 house, the statutory fee would be $13,000 based on the full $500,000: 

4% of the first $100,000 = $4,000
3% of the next $100,000 = $3,000
2% of the remaining $300,000 = $6,000
TOTAL: $13,000 
This total amount doubles to $26,000 if the estate has to pay both the attorney and the personal representative. 
 
Example #2: 
If the estate was worth $1 million, the statutory fee would be $23,000, doubled to $46,000(!) in total fees for the attorney and the personal representative: 

4% of the first $100,000 = $4,000
3% of the next $100,000 = $3,000
2% of the remaining $300,000 = $16,000
TOTAL: $23,000 (or $46,000 for both the attorney and personal representative)

Sometimes, the personal representative may waive his or her fees if it's usually a family member, but he or she may change their mind after they realize how much work and time is involved. And the fees are based on the gross value of the estate. So if there is a mortgage and the heir wishes to sell the property, the inheritance would be even less. 

On the other hand, a properly created and maintained living trust avoids probate. Your successor trustee winds up your financial matters, pay your last bills, and distributes your property according to your trust provisions without going to court and having to pay a significant amount in fees to the attorney and personal representative. 

The days are long, but the years are short. I know soon enough my children will be going off to college and although it’s something to look forward to, I don’t want it to happen just yet. Do you have a child going off to college already?

Having some estate planning documents in place before they head off to college is especially important even if you don’t think they need it.  You may think they’re too young or don’t really have any significant assets. However, when a child turns 18 years old, they are legally their own person. Parents of an adult child will no longer be able to control the health care decisions of their child or be able to manage their child’s financial affairs.

For example, if your child is going to an out-of-state college and is involved in an accident that leaves your child unable to make medical decisions, without a health care directive, the doctor may not release any information on your child’s medical condition or make any decisions unless there is a court order.

Or if your child is studying abroad in another country and needs immediate access to funds, you may need a power of attorney for your child to be able to talk to the financial institutions and help get money to your child overseas.
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Make sure to discuss what documents are needed for your children who are turning 18 or recently turned 18 years old. 

As we reflect during this time of Thanksgiving, we are grateful for all of our clients, partners, friends and family for everything they do to support us each and every year. 

We hope you have a wonderful and happy Thanksgiving with your family and loved ones!

One of the toughest decisions that I find people have is choosing who to be a guardian for their children. And because they can’t decide who to be the guardian for their kids, they put off naming someone or even put off doing their whole estate plan. 

A guardian is the person or people (if you name a couple) responsible for your kids’ physical, emotional and spiritual well-being. If you name a couple and one of the spouses pass away, ask yourself whether the surviving guardian spouse can care for your child alone or would you want to go to your next choice for a guardian. 

When nominating a guardian for your child, consider:

• Their parenting philosophy and if they will raise your kid with your values
• Their relationship with your child
• Age
• Location
• Personal Values
• Religion
• Discipline Style
•  Whether they can take up this huge responsibility of caring for the physical, emotional and spiritual needs of your kids

If this is still difficult for you, keep in mind that the other alternative is a Judge making the decision for you and who doesn't know you and your circumstances. ​