Keeping the peace within a family is one of the greatest benefits of estate planning, likely more important than saving tax dollars.  Blended families, those families with have children from previous relationships, have an extra challenge, in keeping the peace.  Here are 3 ways to use estate planning to keep the peace in your blended family.

• Communicate

Let all of your children, as well as your spouse or partner, know that you love them and have provided for them in your estate plan.  Let them know who’s in charge, when, and why.  For example, if your spouse is going to make health care or financial decisions on your behalf if you are incapacitated, let your family know ahead of time what to expect.

If you are doing anything “unusual” in your estate plan, such as giving children different inheritances, deal with it now; don’t leave them to grapple with hurt feelings after your death.

• Put it on the Record

All of your estate planning wishes must be documented in writing to be legally effective.  Execute a comprehensive estate plan with the assistance of a qualified California estate planning attorney.  If your estate plan is not in writing, state law and the courts will determine what your estate plan is, not you and not your family.

• Provide for Your Children Immediately

Don’t make your children from a previous relationship, wait until your second spouse or partner dies to inherit.  A delay causes life-long resentment and competing interests.

If there are not enough assets to go around, consider purchasing life insurance.  If you are uninsurable or the insurance is unaffordable, be sure to provide for those who are financial dependent upon you during your lifetime and discuss the matter with all loved ones.

Whether you are passing financial assets or not, provide a special personal possession or family heirloom to each loved one, along with a love letter telling them how you feel.  These are cherished inheritances and a clear indication of your love; that’s the true purpose of estate planning for blended families.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

You must sign!!!  If you go to the effort of consulting with an estate planning attorney, thinking about your goals, making decisions, and designing an estate plan, keep your appointment  to review and sign your documents.  If you don’t sign your estate planning documents, they are not effective and, legally, it’s as if you don’t have an estate plan at all.

Document Review

Your signing meeting is not just a “sign here; sign there.”  It’s an educational meeting.

Your estate planning documents will be reviewed so that you have a basic understanding of how they work.  This is important for your plan to work, your peace of mind, and so you can explain your plan to your trusted helpers (i.e. executor, trustee, guardians of minor children, and power of attorney agents.)

Plus, you get to ask all of the questions you want during your signing meeting, at no additional fee.

Only Executed Documents have Legal Authority

Only those documents that are fully executed under California state law have legal authority.  If your documents are just sitting in your lawyer’s office, unsigned, they have no power; and, you and your family remain unprotected.

Promises to Change or Create Estate Planning Documents Have No Authority

Updating your estate plan is incredibly essential.  When life changes your estate plan must also change.

This means that if you are in a new relationship and you want that individual to be a part of your estate plan either as a beneficiary or as a trusted helper, you absolutely must put it in writing.

In general, it is wise to update your estate plan every three to five years to catch changes in the law, your life, and your estate planning attorney’s experience; but, if you have major life changes, update immediately.  Examples of life changes that mandate an update are:  new relationship, dissolution of relationship, divorce, marriage, new child, new business, and move to a new state.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

If you’ve attained the age of 18, this estate planning preparation test applies to you.  Why?  Because each and every adult needs an estate plan to protect himself or herself as well as the family.  If you don’t create your own estate plan, the courts and state law will create one for you; and, it likely won’t be what you’ve chosen yourself.

• I have a will, naming guardians and contingent guardians for my minor children.

Yes    No    Don’t Know

• I have stand-by guardianship authorization for my minor children.

Yes    No    Don’t Know

• I have a valid and up-to-date health care power of attorney so my chosen loved ones can make emergency medical care decisions for me if need be.

Yes    No    Don’t Know

• I have a valid HIPAA release so that my medical professionals are authorized to communicate with my health care agents.

Yes    No    Don’t Know

• I have a valid living will so that I am not hooked up to machines if I am in an irreversible coma or persistent vegetative state.

Yes    No    Don’t Know

• I have a valid and up-to-date financial power of attorney so my chosen loved ones can make emergency financial decisions and pay my bills for me if need be.

Yes    No    Don’t Know

• My revocable living trust is fully funded so probate will be avoided.

Yes    No    Don’t Know

• I have the appropriate amount of life insurance so my income will be replaced and last bills will be paid when I die.

Yes    No    Don’t Know

• I have planned to avoid unintentionally disinheriting my children.

Yes    No    Don’t Know

• I have protected my spouse’s and children’s inheritances from predators and creditors.

Yes    No    Don’t Know

• My family knows my wishes for my funeral and burial.

Yes    No    Don’t Know

Unless you can answer “yes” unequivocally to each and every statement, you likely need to have your estate plan updated.  Consult with a qualified estate planning attorney for a review and update.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Many people think of an estate plan as being the exclusive domain of older folks who have acquired considerable assets, but this is really not the case. There are a number of estate matters that young adults should address as well, and they are not all financial in nature. Of course the estate plan will inevitably will be revisited as circumstance change over the years, but it is important to have certain rudiments in place from early adulthood.

One of the things that young people should consider is how they feel about medical care in the unlikely event of their incapacitation. Accidents are a fact of life, and though nobody wakes up in the morning expecting to become a “statistic,” there are numerous serious accidents in America each and every day. Advance health care directives like living wills and medical powers of attorney express your wishes concerning medical procedures you will allow and who you empower to make health care decisions in your behalf.

Another matter that makes estate planning relevant to young parents is that of child guardianship. When you make out a will, one of things that you would want to include would be your choice of child guardian in the event of your passing. When you think about it you can immediately recognize how important it is to state your wishes in this regard. Not only do you want to make sure that you are the one to make this decision for the good of your children, but naming a guardian also eliminates the possibility of acrimony among your loved ones concerning who would be the best custodian.

Though young parents may not have had the time to amass a great deal of assets, they still have to consider the financial well being of their children. Part of a solid estate plan would include ample insurance to cover their needs and provide stability into the future. Other forms of long term financial planning can also begin as a part of an estate plan that is constructed with the future of the children in mind.

As you can see, estate planning is not just for affluent senior citizens. It is something that the young need to consider as well, and the peace of mind that you gain when you have a plan in place makes it well worth the effort.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

When it comes to the estate planning process, deciding which family members will receive your assets and property after you pass away is a very important task. Although most people who are planning the distribution of their estates choose to give a sizable proportion of their assets to their minor or adult children, this process may not be as simple or as problem-free as you might think.

Every family has its own unique history and dynamics, and as a result, distributing equal shares of the estate to each child might not be the best solution. Due to other financial, familial, or emotional circumstances, there may be a particular child or children who you might think deserves more or less than their siblings.

If you think that dividing your estate equally among your children is not the best plan for your family, there are many different solutions you can employ to distribute your assets and property however you see fit. By seeking the advice of a qualified estate planning attorney, you can ensure that the tools and strategies you are using are the best way to make the right choice in what could be a difficult situation.

For example, your estate planning attorney can help you decide whether – and how – to broach the subject of the unequal distribution of assets with your children or other family members who will be impacted by the decision. Although each family’s situation is unique, many estate planning experts recommend convening a family meeting to discuss the plan and provide a general overview of the distribution of assets well in advance. This strategy helps minimize the element of surprise and avoid the prospect of tension and conflict in the family after you pass away.

Still, in other scenarios, it may be more beneficial to avoid this type of meeting altogether, particularly if there is already resentment and animosity among the family ranks. Once you have determined the best strategy, your estate planning attorney can handle the steps that will need to be taken to make your plan legally binding.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

One of the most important parts of the estate planning process is creating a plan to distribute your property and assets in a way that ensures your surviving family members will be well provided for when you are gone. This objective is particularly important when you have a child or children that have not yet reached the age of 18.

Many parents leave the assets directly to their children however, when those children have not reached the age of legal majority, their ability to own and have access to significant assets and property can be limited.

In addition, a custodian, or conservator will need to be designated to oversee the assets until your children reach adulthood.

Here are a few more considerations to keep in mind in the process of willing property or assets to children under the age of 18.

• Use a trust to transfer property. These types of accounts can simplify the process of transferring property to minor children, but they still require the oversight of a third-party trustee.
• Comply with all clauses of your divorce and custody decrees. If you have been through a divorce, it is important to ensure that the property you transfer to your minor child is in keeping with the terms set forth in your divorce and custody documents.

Do you have more questions about when and how to will property and assets to minor children? Call our office to schedule a free consultation today.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

When it comes to estate planning, your chief concern should be developing a comprehensive strategy that will protect your assets, maximize the value of your property, limit tax burden as much as possible, and ensure a sense of security and stability for your surviving family members after you are gone.

Trusts have emerged as an increasingly popular estate planning tool in recent years. These special instruments or accounts offer a simple way to transfer assets or property to surviving family members or loved ones while minimizing tax liability and decreasing the chance that your estate will be held up in probate proceedings for months or even years at a time.

There are several different types of trust that can be used to transfer property to your surviving loved ones. Depending on the size and complexity of your estate, you may want to establish a single trust or multiple trusts of different types. A qualified estate planning attorney can explain the different types of trusts and walk you through several different options.

One particular type of trust that has gained prominence as a savvy estate planning tool is known as a pot trust. Sometimes referred to as a family pot trust, this type of trust is usually used as a means of transferring property to minor children.

Here are a few considerations to help you decide if a pot trust should be part of your estate planning strategy.

• A pot trust allows you to set up a single trust for multiple beneficiaries.
• A pot trust grants the trustee a great deal of flexibility in making spending decisions.
• A pot trust is usually dissolved when the youngest minor in the trust reaches the age of majority.

Is a pot trust right for you? Talk to a qualified estate planning attorney to see if this type of arrangement will benefit your family.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

It is natural to worry about who will take care of your children if something were to happen to you. And since the law does not allow minors any control over assets or property, you must designate someone to oversee their care in the event you pass away or become incapacitated. If you don’t make this designation, the court will appoint someone for you, and that may or may not be the person you would choose.

This person legally referred to as a guardian and in addition to ensuring that your kids have their basic needs attending to, there are a number of other responsibilities that a guardian would be expected to do.

Common Duties and Responsibilities of a Guardian/Conservator

A guardian nominated by you or appointed by the Court would mainly be responsible for:

• overseeing investments
• paying bills, taxes, mortgages, insurances, etc of the estate
• pay for health and education of the minor
• pay for maintenance including medical bills, summer camps, food, clothes etc for the minor
• pay for vacations

Income Tax Returns

A guardian or conservator would also need to file proper Income Tax returns and pay proper taxes. He would also decide where the minor would live – in the house of parents or with the guardian. The Court would, however, need to approve of this decision. The Court might also direct that certain improvements should be made in the house where the minors have to live.

Any major decisions that affect the assets to be inherited by the children – such as selling the family home for example – would need to be approved by the court.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.