If I die in CA in 2014, how much can I own without paying death taxes?
Due to inflation adjustments, assuming no previous taxable gifts, we can now own $5,340,000 without paying any death taxes. This is up $90,000 from 2013
If an attorney is serving as a trustee, can she receive compensation?
Under the terms of some California trusts, an attorney may be appointed a successor trustee after the settlor passes away or becomes incapacitated. This attorney might also be serving as the attorney for the trust administration in some circumstances. Understandably, this could create concern that the attorney-trustee is receiving an excessive amount of compensation for her services. If you are a beneficiary or a co-trustee of a trust with an attorney-trustee, consider the following guidelines that apply to the trustee’s right to receive compensation:
The attorney-trustee can only receive compensation in one capacity, whether that is as the trustee or as the attorney. He cannot receive compensation for both unless approval is first obtained from the probate court.
To receive court approval, the attorney-trustee must provide notice to all interested parties.
Law partners of the attorney-trustee are similarly not entitled to receive compensation for legal services as a trust administrator without prior court approval.
Even if a trust beneficiary is willing to waive the above requirements, the attorney-trustee must still abide by these rules.
Naming a successor trustee who is also an attorney may be a wise choice in many circumstances. The trustee will likely have more knowledge and experience with the administration of a California trust than a loved one or friend of the settlor. To learn more about administering a trust in California and understanding the guidelines surrounding trustee compensation, contact our office of experienced Anaheim trust attorneys today. Call us at (714) 282-7488 for a consultation.
I want to update my Anaheim estate plan to account for my digital assets. Which types of information and accounts should I include?
Recognizing the need for an Anaheim estate plan update to accommodate your digital assets is an important first step. Once you have realized that your substantial digital assets need to be accounted for in your estate plan, it is important to create a list of your entire digital estate. This is a broad term that may appear overwhelming at first glance. Fortunately, an experienced Anaheim estate planning lawyer can help you to identify your digital assets and draft provisions into your estate planning documents to ensure those assets are handled according to your wishes.
What assets should be listed when documenting your digital estate? These assets may include:
Hardware that contains your digital information. This may include computers, hard drives, zip drives, DVDs, or CDs.
Software, such as Microsoft Word and Excel documents and financial data contained in Quicken or Quickbooks.
Email accounts, including personal accounts, business accounts, and social media accounts.
Social media pages, such as Facebook, Twitter, Instagram, or Google+.
Online digital storage accounts, such as mozy, carbonite, flickr, picasa, or dropbox.
Online accounts, such as eBay, Amazon, GoDaddy, or bank or other financial accounts.
For more information about modifying an estate plan in California, view our free guide, The Ten Things You Must Know Before Creating or Amending Your Will or Trust. Our office of experienced Anaheim estate planning attorneys is well versed in the unique issues that surround digital assets and information. Call our office today at (714) 282-7488 for a consultation.
I think my wife and I have an A-B-C Trust. Do the new 2013 Estate Tax laws affect us? Our assets are significantly below $5,250,000.
If your trust is in fact still an ABC trust, this is probably not the current best strategy for you because it was set up before the exemption amount has stabilized at $5,250,000. Your estate plan (if modified) will be cheaper and easier to implement at the death of one of you if you don’t have the ABC trust. I recommend that you and your wife have your trust reviewed for free to give you the peace of mind that your trust is current.
I know my wife and I need to write wills. She wants to hire an attorney, but I’m more of a do-it-yourself kind of guy. Can’t we just write wills ourselves?
Well, you could…but you would do so at a great risk!
With do-it-yourself forms available online and in retail stores, it’s tempting to try to knock out your own estate plan. But, this is a situation where you get what you pay for. While you can’t hire an attorney to draft an estate plan for $19.95, you may decide the added value is worth the added expense.
When you hire a wills and trusts attorney, an experienced professional will review the entirety of your situation. An attorney doesn’t just guide you through a series of yes/no questions. Instead, an attorney knows which detailed questions to ask you and what to do with your answers! The attorney will approach the situation from a broader, more comprehensive “estate plan” perspective, rather than focusing on the narrow task of drafting a will. That way, the attorney can help you create and fund a living trust as well as draft advance medical directives and other necessary documents. Fill-in-the-blank forms simply cannot compete.
Attorneys also know how to get the details right. Drafting a will is a complicated process. There are many I’s to dot and T’s to cross. When you use a do-it-yourself program, you may encounter systematic errors, such as when the program fails to account for changes to the laws. You may also make mistakes yourself, such as filling in a blank incorrectly (or worse, not filling it in at all). Finally, a do-it-yourself program may not adequately explain the formalities you must observe, such as signing the will in front of witnesses.
Please contact our Orange estate planning attorneys for help with drafting your will
If you would like our estate planning attorneys in Orange County to help you draft a will or create an estate plan, contact us. You may call us at (714) 282-7488 or fill out an online contact form.