Law Office of Barbara J. DibbleFullerton Estate Planning Attorney | Probate, Wills & Trusts2023-02-24T09:46:35Zhttps://www.bdibblelaw.com/feed/atom/WordPressOn Behalf of Law Office of Barbara J. Dibblehttps://www.bdibblelaw.com/?p=481192021-12-14T15:04:59Z2021-12-14T15:04:59Zfail to create an estate plan because of their misconceptions do not see the confusion and disorder they leave behind for their loved ones. Many families have fallen into disagreements and disunity that their loved ones could have prevented with a simple estate plan.
A versatile tool
If you believe some of the common misconceptions about estate planning, the first step is to get to the truth so you can begin creating a solid plan that will not only provide for your family but also offer you some protection too. An estate plan can be quite flexible and structured to meet the needs of those in almost every circumstance.
Like many, you might believe you are too young or that you don’t have sufficient wealth to justify an estate plan. However, you might be surprised at what your estate plan can do, including the following:
Designate trusted agents to carry out your final wishes
Establish a plan for your own health care needs in case you should ever become incapacitated and unable to speak for yourself
Protect your financial and legal matters if you should become ill or otherwise unable to handle them yourself
Memorialize your wishes for the end of your life, your funeral arrangements and related matters
An estate plan offers many more options than just a will, and it can also function in ways beyond simply distributing your belongings after you die.
Once your plan is in place
Those who take the noble step and establish an estate plan sometimes believe their work is over. This is another myth. Your will, trust and other documents will need periodic reviews to ensure they remain relevant and that they continue to express your wishes. If you experience significant life changes, such as getting married or divorced, gaining or losing assets, or simply having a change of heart about your bequests, you can always revisit your plan to update it.]]>On Behalf of Law Office of Barbara J. Dibblehttps://www.bdibblelaw.com/?p=481142021-10-08T20:45:49Z2021-10-08T20:45:49ZAfter a loved one dies, the estate goes through a process called probate. The probate process can seem mysterious, and many of its steps occur behind the scenes, so the heirs and beneficiaries may receive little information about what is going on. In many cases, the deceased or the court appoints an executor to handle these issues, and the heirs simply trust that probate is going along as expected.One way to know if this is true regarding your loved one’s probateis to understand how the process works. It is wise to keep apprised of how probate is going and remain in contact with the executor so you can be alert to issues that may seem questionable. This is especially true if you have a great deal at stake.
The duties of the executor
The court must first authenticate the will, if one exists. If you are a named beneficiary, you will be part of the validation hearing and will have the opportunity to object if you question the validity or contents of the document. If the hearing goes smoothly, the executor will take over the following responsibilities:
Locating the assets of the deceased, which often means searching for hidden assets
Keeping the assets safe until probate is over and protecting them from depreciation
Determining the value of certain assets, which may require hiring an appraiser or locating documentation for valuation
Continuing to pay important bills, such as the mortgage, vehicle payments, utilities and others
Notifying creditors that your loved one has passed and allowing time for creditors to file claims for outstanding debts
Paying lingering debts and bills, including tax returns, which sometimes requires the liquidation of some assets
When the executor has met all these and other obligations to the court’s satisfaction, the executor can then distribute the remaining assets as stipulated in the estate plan or, if no plan exists, according to California law.
Guidance through probate
The probate process can take anywhere from six months to a year, but if someone contests the will or file other disputes, you should expect indefinite delays. For example, you or another heir might doubt the mental capacity of your loved one at the execution of the will, or you might question the decisions of the executor. These are serious matters that involve complex legal issues, and you may want professional assistance instead of trying to handle them alone.]]>On Behalf of Law Office of Barbara J. Dibblehttps://www.bdibblelaw.com/?p=481102021-08-07T20:52:49Z2021-08-07T20:52:49ZLife insurance policies have a way of drifting into the back of one’s mind. You pay the premiums and never think about it until the next one is due. Perhaps you opened your retirement account years ago when you started a new job. It is possible that the only consideration you give to your investments is the bottom line.Unfortunately, ignoring these and other important accounts can lead to serious complications for your loved ones. You may think you have protected them with a comprehensive estate plan, but if your beneficiary designations on life insurance and other accounts do not match, your plans may not go as you expect.
A cautionary tale
What many do not understand is that a will cannot override the beneficiary designations on insurance policies, annuities, 401(k) plans, IRAs and other investments. Your life insurance policy and other similar assets legally bind the insurer to pay the benefits to the beneficiary you have named, even if your will says otherwise. If you do not name a beneficiary, the assets go to whomever you name in your will or to the heirs designated by state law.On the other hand, neglecting to update your beneficiaries may result in your assets going to someone other than you intend. For example, if your original life insurance beneficiary designation was your spouse but you have since divorced and remarried, failing to change the beneficiary designation on your account means your ex could inherit funds you meant for your new spouse. These oversights can be especially tragic when children are involved.
Be proactive
One suggestion for keeping your designations current is to create a master list of all your accounts and policies, the beneficiaries listed for each and the date of the last time you updated the accounts. If you need to change your designation, you can request the appropriate forms from the company. Additionally, it is wise to name a contingent beneficiary for your accounts. This way, if your beneficiary should pass away before you, the contingent you choose will receive the assets.At the very least, failing to update and keep current the beneficiaries of your insurance policies and investments could leave your loved ones with years of costly administrative confusion as they try to disperse the assets and avoid the tax ramifications. At the worst, your loved ones may face confusion and financial struggle when they do not receive the inheritance they were counting on. The lesson is to set aside regular time to review your estate plan and all your accounts to ensure they are up to date.]]>On Behalf of Law Office of Barbara J. Dibblehttps://www.bdibblelaw.com/?p=480912021-07-19T15:43:16Z2021-07-19T15:43:16Zplan for these assets can have quite significant consequences, as there is no bank administration or legal avenue to gain access without a key in the case of cryptocurrency. Here are some things that California cryptoasset owners should do in order to secure the transition of their holdings after they pass away:
Document the location of the assets, as well as the passwords or “private keys.” Knowing the private key and location of cryptoassets is essential in order for the assets to be accessed -- even by the owners themselves. There is no alternative way to access cryptocurrency holdings without the key, so this information is extremely important to make available to an executor.
Pick a trustworthy executor or trustee and communicate with them. It is important that the person responsible for accessing the cryptoassets not only have the password and location, but that they understand how cryptocurrency works enough to properly manage the assets. It can prove invaluable to have a trustworthy and knowledgeable person in this position when these types of assets are in play. In some cases, it might be worthwhile to have a separate trustee for digital assets specifically.
Ensure estate planning documents clearly state who can access this information and what oversight will be provided. Digital assets can be tricky to deal with in estate planning, so it is important that documents clearly communicate one’s intention for a certain trustee or executor to have these details. This can keep things smooth during the estate administration process.
Cryptocurrencies are increasingly valuable assets. When it comes to estate planning, these holdings present some significant complications that other assets do not, especially in terms of how they can be found and accessed. As such, cryptocurrency owners would be well-advised to speak with an estate planning attorney to ensure everything is in place to transition these assets as easily as possible when they pass away.]]>On Behalf of Law Office of Barbara J. Dibblehttps://www.bdibblelaw.com/?p=480872021-07-12T21:12:47Z2021-07-12T21:12:47ZWhen preparing estate plans, it is important to think carefully about who will be named as the executor. This person will be responsible for managing affairs after death, so picking the right person is a must. For some, the decision is easy, but many California adults struggle with this decision, especially when it comes to picking someone who will take care of the estate after a spouse has passed away. Here are some questions to ask oneself when selecting someone for this important role:
Are they considered trustworthy? Planners should pick someone who they know to be honest and able to follow the rules. They should also make sure the beneficiaries of the estate are trust this person, as suspicions of the executor can be a major sore point in estate administration.
Are they diplomatic and able to remain objective? Estate administration can be emotional and beneficiaries will want to know that the executor will not act against their best interests. So, for example, a remarried person with children from both partnerships may not want to pick any of their children in case they might seem biased to the other family.
Do they have the necessary skills and experience? For simple wills, just picking someone who can do math and manage accounts may suffice. But, some estates may require a more refined skillset -- for example, if dividing a business is involved, it might be wise to consider an executor with corporate experience.
Do they live nearby? When the executor is in a different state, or even country, things can become legally complicated. The cost of travel to care for estate matters is also something worth avoiding. A local executor is usually the best choice for this reason.
An executor can be a family member, friend or even a professional. Professional executors can be a good choice for those who do not have an obvious choice for an impartial, convenient, skilled person in their inner circle. For help making this decision and information on an executor’s role, it can help to speak to a California attorney.]]>On Behalf of Law Office of Barbara J. Dibblehttps://www.bdibblelaw.com/?p=480832021-07-08T21:37:40Z2021-07-08T21:37:40ZMany bank accounts have a “transfer on death” (TOD) option, which allows a beneficiary to take ownership of the account without going through probate. These can be great estate planning tools, allowing for assets to be quickly transitioned without administrative hassle or cost. However, for all the incredibly positive aspects of these accounts, there are some issues that may arise if they are not used or maintained properly. Here are some of the ways California estate planners can prevent issues with TOD accounts:
Review the named beneficiary regularly, particularly during a life change: Marriage and divorce are important times to review any estate planning documents, including accounts with beneficiary designations. If an ex-spouse is named on the account, he or she will receive the funds upon their former partner’s death – even if that was not what the person would have wanted at the time they died. This can lead to confusion and litigation, so keeping these accounts up-to-date is a must.
Make sure the designation matches other estate planning documents: Imagine having three accounts for each child, invested differently, with the transfer on death for each pointing to one child. Over time, these accounts could have vastly different amounts. If a will suggests assets should be divided evenly, then there could be a discrepancy between intentions and the TOD accounts, leading to significant administrative issues to untangle.
Ensure there are some non-TOD accounts available to estate administration costs: If all assets are in accounts that transfer upon death, it can leave people with no easy way to pay bills like funeral costs, executor payments and so on. A living trust may be a more flexible option for those looking for a way to work around probate issues without leaving no money for these essentials
Of course, TOD accounts can be a very helpful part of an estate plan, especially in cases where a surviving spouse or dependent needs to quickly receive funds needed to live. However, these accounts should be well-considered and only be one part of a fully considered estate plan. Those facing issues with TOD accounts, either in the planning or administration process, should speak with a California estate attorney. ]]>On Behalf of Law Office of Barbara J. Dibblehttps://www.bdibblelaw.com/?p=480782021-06-21T14:52:29Z2021-06-28T14:51:42Zbeing an executor. In California, there are few factors that might impact how much an executor is paid:
Information within the will: If a will is left, it might have some information about how the deceased would like the executor to be compensated. Those who detail this in their wills may provide for a flat fee, a percentage of the estate, or the following of state law standards in determining the reimbursement.
State law: Those without a will, or those who instruct the following of state law, will need to consider the state Probate Code. This is typically a percentage of the estate that decreases incrementally as the value of the estate goes up. Probate Court may also get involved.
Extraordinary services: Some executor tasks can go beyond just rounding up assets and distributing them. For example, they may need to oversee a real estate sale or deal with litigation. In these cases, probate law may grant them an additional fee.
Shared duties: On the other hand, some people may share the work of executing an estate with a co-executor. Typically, this means dividing the compensation equally. Other times, people will record their hours and divvy up the fee accordingly. This can be a tricky matter overall.
As with most things in estate administration, more detail within the will can typically make for an easier process when it comes to compensating an executor. State law is a good starting point for determining how much an executor should be paid. Those who have questions about how this compensation might work, including typical amounts and timing of payments, should speak with a California estate planning lawyer.]]>On Behalf of Law Office of Barbara J. Dibblehttps://www.bdibblelaw.com/?p=480762021-06-21T14:49:54Z2021-06-21T14:49:54Zprocess of determining the validity of a will is defined by California’s “last will and testament” laws. Here are some of the criteria that must be met:
The will must be made by someone over the age of 18: The exception to this rule would be a will created by an emancipated minor.
The will must be made by someone with “testamentary capacity.”: This means, in short, that the person creating the will must be of sound mind. Different states define this slightly differently, so if this is in question it is important to discuss the specifics with a divorce lawyer.
Two witnesses must sign the will: The witnesses must be “disinterested,” meaning they are not beneficiaries and have no stake in what the will proclaims.
Most wills are fairly easy to determine as valid, especially if they were created in a legal setting with all proper checks and balances met. Wills that may be called into question may include those that are handwritten, those where the instructions may differ from what is legally possible (for example, an attempt to disinherit a spouse), or those where the testator could have been under duress or otherwise incapacitated. Those who are executing a will, or who are looking to question the validity of a will, can benefit from knowing a court will consider under that law in order to determine the document’s validity.]]>On Behalf of Law Office of Barbara J. Dibblehttps://www.bdibblelaw.com/?p=480742021-06-15T15:02:13Z2021-06-15T15:02:13Zthe estate planning process: the password list.
Digital estate planning is a new consideration for many, but it can be deeply important. Even less tech-savvy people may have online points accounts, email, social media or simply a password-protected computer. The fate of these accounts after passing away can depend largely upon the information and instructions left to the executor.
When building a password list, be sure to think about the following accounts:
Email accounts
Website memberships
Social media accounts
Financial or point-collecting accounts
The benefits of making a list of passwords are similar to the benefits of any planning. Simply put, it saves grieving loved ones from unnecessary hassle or stress when dealing with affairs after death. Another reason specific to digital assets is that, without a password, it may be difficult or even impossible to retrieve emotionally or financially valuable assets or content. Different websites have different policies on what happens after a user passes away, which can make this a particularly challenging area to manage without a list of passwords.
Those who are concerned about making a list with such sensitive information do have options. High-security password managers are one option. Another is a spreadsheet protected by a password that is provided in a will.
A California estate planning lawyer can help individuals explore which options may work best for them, with regard to this and all other planning documents.]]>On Behalf of Law Office of Barbara J. Dibblehttps://www.bdibblelaw.com/?p=480722021-06-09T18:05:53Z2021-06-09T18:05:53Zthese tips in mind:
Remind everyone that the central goal is comfort and peace of mind: Estate planning can involve difficult conversations about issues that are typically kept quite private. When the process becomes uncomfortable, it can help to remind everyone involved that it will be worth working through things now for future peace of mind. After all, these issues will eventually need to be dealt with, and they are far easier to address when all parties are present and can express what they truly want.
Stay open-minded: Pre-existing conflict or difference of opinion can make people tentative about working on estate plans with loved ones. However, unless that conflict was directly about the assets in an estate, many people are pleasantly surprised that their loved ones may be able to put issues aside for this important discussion. This is especially true if the estate planner has an idea of what they want going into the conversation. Although it is reasonable to consider the personalities in play when addressing these issues, the benefit of the doubt can go a long way.
Ask questions about probate and taxes: Deciding on beneficiary designations is about more than “who gets what.” There are significant tax and probate implications for how an estate plan is set up and what mechanisms are used. Transfer on death designations, trusts and other tools are important to fully understand and consider when creating a sensible estate plan.
It is important to remember that, even though communication with others is key in estate planning, the decisions ultimately come down to individual values, goals and dreams. Balancing the desire to keep everyone informed and comfortable with these individual wants can often be easier than people think, but challenges do exist. Involving a California divorce lawyer early on, and asking them which conversations are most important to include others in, is an important step.]]>