I look forward to seeing you at Estate Planning Meeting #1! Please be sure to upload the following documents to Clio at least two days prior to our meeting. 

• Any gift tax returns – Form 709​
• Last two years of filed IRS Form 1040
• Divorce settlement agreement or order (if applicable)
• Bank statements for the last month – to show balance and account numbers
• Life insurance documents showing beneficiaries, account numbers and amount - this may be comprised of different documents. Screenshots also work.
• Corporate/LLC/LLP/Partnership “Binders” for any businesses you have an ownership interest in.  I’ll need to borrow your binders for a bit.
• Property deeds for any real property.  I can also pull the records if you don’t have them.
• Documents showing the estimated worth of any jewelry
• Any estate plan for which you are a beneficiary
• Most recent estate plan

Most recent of the following:

• Brokerage account statements
• Bank statements (personal and for any businesses you own)
• Individual stock account statements
• Any promissory notes from anyone who may owe you money
• Jointly owned property – statements or deeds
• Annuity statements
• Retirement/IRA statements

 
If you have any other investment or business interests that may not be triggered by any of the above requests, please let me know.

Please register on the REGISTRATION PAGE.

For a long time, avoiding the federal estate tax was a big concern; however, given that the threshold for the federal estate tax is currently very high, the likelihood of most of us ever being liable for federal estate tax is quite low.  This, of course, does not mean that estate planning isn’t beneficial.  Estate planning is still a great way to avoid probate, and to have your affairs in order and organized.
 
What is the current tax rate?
In 2019, the current federal estate tax is 40%.  This is quite high; however, so is the exemption.  The current exemption is $11,400,000.  Thus, is a person passes in the year 2019, s/he receives a tax “coupon” of $11,400,000. 
 
This amount is subject to annual change.  The Tax Act, which sets forth the gift and estate tax rate, and exemption, is subject to sunset January 1, 2026.  As of 2026, the exemption reverting back to $5,000,000 unless further action is taken by Congress.  There is much debate about whether Congress will take any other action.  Time will tell.
 
What is the gross estate?
The gross estate includes all real and personal property in which the decedent had an interest.  It also includes things such as annuities, the value of the decedent’s share of a joint estate, and life insurance proceeds (even though payable directly to the beneficiaries).   
 
What is the adjusted gross estate?
After the value of the estate’s gross estate is determined, its value is adjusted for deductions such as funeral expenses, and expenses incurred in the administration of the estate. 
 
The federal exemption or “coupon” of $11,400,000 is then applied.  So, for most of us, our taxable gross estate will be 0. 
 
Despite this, estate planning is an important tool for a lot of other reasons such as avoiding probate, ensuring your assets go where you would like them to, and ease the burden for loved ones.
 
Let me know if I can assist you in any aspect of your estate planning. I am happy to schedule a complimentary 15 minute consultation with you. 
 

What are digital assets?

The term sounds really quite sophisticated.  But, digital assets are commonplace.  A digital asset in an electronic asset that is associated with the right to use, usually in the form of a username and password.  
Given their medium, digital assets are slightly different than most assets.  They are highly regulated by state and federal law.  Without proper planning, those regulations can cause problems when it comes time to administer an estate.

How common are digital assets? Very! Common examples include:

• Social media: Facebook, Twitter
• Digital photos, images and videos (such as the photos stored on your iCloud account)
• Email: Gmail and Yahoo
• Bank accounts and other financial accounts
• Airline miles


Less common but still run-of-the mill for many of us who have our own businesses, include certain income-generating digital assets: 

• Monetized YouTube channel, blog
• Social media influencer accounts
• Income generating blogs
• Intellectual property (patents, copyrights, trademarks)
• Domain name and websites
• Client lists

Often loved ones left in the wake of a death need to take pragmatic steps such as paying bills, or even accessing emails to invite friends to their relative’s funeral.  Problems arise when loved ones lack  login credentials or consent to access these accounts.

Having a digital asset plan in place can really assist loved ones in taking these steps.  It’s a best practice to include a list of digital assets, along with username and password information.  For a list of CNET’s best password managers, click here. 

Digital asset custodians are absolute sticklers when it comes to protecting these accounts because of the many federal and state laws at play.  Federal law prohibits service providers from releasing the content of digital assets without the account holder’s prior consent.  A person who has passed away is obviously unable to give that consent anymore. So, without proof of that consent, a loved one may have to request a court order to gain access.  

For example, should a relative pass away you may want to simply shut down their email accounts or iCloud accounts.  Hackers prey on inactive accounts.  So, it’s a best practice to place an account into inactive status, or the equivalent. 

Or, perhaps you simply want to access family photos that are stored on the iCloud.  The language included in an estate plan in which a deceased person has granted express consent to a particular person may be all that is needed for a loved one to access the deceased person’s email or iCloud account.  

With some estate planning, digital assets can be accessed by loved ones.  It’s one more piece to the estate planning puzzle that is not discussed often enough, and impacts all of us.

How To Protect Your Digital Assets

There are some simple steps that certain providers offer their users.   Certain providers such as Facebook and Google offer legacy plans which allow specific individuals, designated by you, the ability to manage and /or memorialize the account of a deceased person.  

As great as the option is; however, even the legacy planning provides some limitations.  After the death of a loved one, you may be able to memorialize an account, but the provider may not allow you access the content of those accounts. And, of course, these plans are only offered by a limited number of providers.  

To read more about Facebook’s legacy planner, click here: 

To read more about Google’s legacy planner, click here: 

​Please contact me for a complimentary consultation to discuss your options with regard to this aspect of estate planning.

Unfortunately, there are instances when people are simply unable to make decisions for themselves as a result of incapacity.  This incapacity could be because of old age or a medical condition. 
 
Advance Health Care Directive (also sometimes referred to as a “living will”) – This document allows you to designate a loved one to act on your behalf with regard to medical decisions.  This document may also contain information regarding your end-of-life care.
 
You do not need an attorney to create an advance health care directive.  There are many forms available.  My preferred form is published by The Regents of the University of California, and can be found here: https://prepareforyourcare.org/advance-directive-state/ca.
 
There are a couple of other documents that are related to advanced health care directives such as a do-not-resuscitate form (“DNR”) and a Physician Orders for Life-Sustaining Treatment (“POLST”).  A DNR informs medical providers that a patient does not wish to receive CPR if there is a medical emergency.  A POLST, is an order which specifies specific medical wishes as to: 1) CPR; 2) use of a ventilator; or 3) artificial nutrition.  In general, these documents are not typically recommended for young, healthy people.
 
Durable Power Of Attorney For Property Management/Finances – Similarly to the above, this document allows you to designate a loved one to act on your behalf with regard to management of your finances and property. 
 
This document is useful even when a person is temporarily incapacitated such as in the event of a hospital stay.  As your agent, your loved one will be empowered to write checks on your behalf, and manage your assets for you.  Typically, your agent will be empowered to do things such as: filing and paying your taxes, transferring property into a trust, managing your investments, and filing legal actions on your behalf. 
 
​You can set forth your wishes as to when this power will take effect – either upon signing or upon an event springing the document into effect like incapacity.  You can speak to your attorney about what is best for you.
 
Drop a line if you are interested in learning more about how I can assist you with this aspect of estate planning.

Your beneficiary designations are critical to a good estate plan.  But, they are often overlooked!  Combined with the right estate plan, these two factors can really organize your financial affairs.

Also, the good news is that you don’t even need an attorney to designate your beneficiaries or payable on death (“POD”) designations.  All you need to do is contact your financial institutions so that your account will simply pass to your designated beneficiary or POD designation.

So, for instance let’s say you have been married for a while.  But, maybe you haven’t had a chance to update the beneficiary on your life insurance.  So, it still names your sister and brother as beneficiaries.  Let’s also say you recently had a baby.  And, maybe that life insurance beneficiary is still set to your brother and sister.  
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If you pass, your spouse and young child will not receive those benefits.  They will pass directly to your sister and brother.  Well, that’s probably not what you planned.  That's probably not even what your sister or brother would want either. 

Let’s say that instead, you list your beneficiaries like this:

• First beneficiary: Your spouse
• Second (successor or contingent) beneficiary: Your child
• Third (successor or contingent) beneficiary: Your trust

This way, your life insurance proceeds will pass directly to your spouse.  If s/he isn’t around, then it will go directly to your child.  The last case scenario, passing those benefits to your trust, would apply if neither of those options are available.  

Your trust is available to guide your loved ones as to your wishes. In this example, without this plan and a trust, your loved ones will not have any guidance, and may have to seek court guidance. 

​Court guidance = attorneys, attorney’s fees, paperwork and waiting.  We want to avoid that.  A trust will help you to avoid that. 

This is just one example of how the right beneficiary designations and estate plan can work together to keep as much coin in the family bucket, so to speak. 

Interested in seeing how an estate plan can help you or your family? Please contact me for a complimentary consultation to discuss your options.  

So what is in an estate plan anyway? This post will discuss two important documents that you have likely heard of but may not be completely familiar with: wills and trusts.

Will –The most important goals of a will are to leave property to beneficiaries, and to nominate guardians for your children.  In addition, you will nominate an executor to carry out your intentions. Each person will get their own will, even if they have a joint trust with a spouse. So, if you and your spouse have a joint trust, you each will have a separate will.


If you have an estate worth less than $150,000, typically you will just need a will.   There are some drawback to having only a will. Even if you have a will, your loved ones may find themselves navigating through the probate process, if you have more than $150,00 in assets.  Get more information on what Probate Court is in the blog post “What Is Probate Court And Why Do I Want To Avoid It?”  You can also check out my free resource library if you want to use a quick  form offered by the California State Bar - Free Estate Planning Resources.

In addition, as opposed to a trust, which is a private document, a will will be filed in probate court once the testator (will creator) passes.  Thus, since a will will become public record, a will might not be the best choice if you highly value privacy. 
 
Trust – A trust is a document whose main purpose is to avoid probate.  By properly transferring your assets into the trust, there is no need to go through the probate process.  It is a private document that does not need to be filed with the court (unlike a will).  You transfer your biggest assets into the trust, allowing a personal representative to manage the assets in the event of death or incapacitation. 

Think of a trust like a recipe.  It lists all the ingredients, or your assets, and tells the personal representative what to do with them.  It is highly customizable to your own needs, and can be set up to handle a variety of assets.  As opposed to a will, a trust is better suited for homeowners, blended families, families with special needs children, and families with Assisted Reproductive Technology (or “ART”) issues.  Wills are not designed to handle these complexities.  

Please contact me for a complimentary consultation to discuss your options with regard to this aspect of estate planning.

I really believe in the importance of estate planning.  Whether you hire my firm, or not, I hope you will put something in place.  In fact, I believe in this so much that I have created a living library of free estate planning resources.  I will update it from time to time when I come across a free resource of value worth sharing. 

Please note that I have not analyzed these documents and that they may not be sufficient to meet your estate planning goals.
Drop a line if you are interested in learning more about how I can assist your estate planning.  
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Enjoy!

- Click here to access the California State Bar's Free Will form.
- Click here to access the California State Bar’s Publication – “Do I Need A Estate Planning?”  Spoiler alert – you do!
- Click here to access the California Attorney General's  Advanced Healthcare Directive form. 

Please contact me for a complimentary consultation to discuss planning your estate. 

Through an estate plan, you can avoid guardianship proceedings.  Through a will, you can nominate a friend or relative to be the guardian responsible for your minor-children. 

If a guardian is not selected by a child’s parents, the court will decide. 

My mentor told me a cautionary story which demonstrates the importance of this aspect of estate planning.  A family was involved in an auto accident.  A child was the only survivor.  The relatives of the parents battled over who would be the best guardians for the children in court. The process lasted for years.  This battle was probably quite stressful for all parties involved, including the children. 

​As parents we want the best for our kids!  It is simply critical that we put our intentions into a will for which trusted friend or relative should be responsible for our children if we cannot be. 

Please contact me for a complimentary consultation to discuss your options with regard to this aspect of estate planning.
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