Is a residuary clause necessary in a will or trust? Yes, both a will and a trust should always contain a residuary clause in addition to any specific bequest clauses. The bulk of a decedent’s estate, if not all of it, typically passes according to the terms of the decedent’s testamentary residuary clause. Let […]
posted on: January 26, 2015
Read MoreAn Individual Retirement Account (“IRA”) that is inherited by a designated death beneficiary will not be treated as a retirement account exempt from the beneficiary’s creditors inside a bankruptcy. So decided the US Supreme Court on June 12, 2014, in Clark et ux v. Rameker. Let us review the benefits of retirement accounts and what […]
posted on: January 26, 2015
Read MoreThe income tax concept of “basis” figures prominently in estate planning. On the sale (or final disposition) of an asset, the seller’s basis is used to calculate whether the seller has a gain or loss for income taxes. A capital gains tax occurs when an asset is sold or more than its […]
posted on: January 26, 2015
Read MoreUnder the Affordable Care Act (“ACA”), low income persons under age sixty-five (65) may enroll in the expanded Medi-Cal in order to meet the federal requirement that everyone have health care insurance. At age 65, Medi-care covers doctor visits, hospital visits, and some prescription drugs. Medi-Cal, however, remains relevant for long term residential custodial […]
posted on: January 26, 2015
Read MoreMedi-Cal and VA “needs based” benefits planning confronts both front end eligibility issues and back-end estate recovery issues. Medi-Cal and VA benefit rules differ. Planning for both together, when relevant, requires satisfying two different sets of rules. Such planning often involves transfers of real and personal property by the person […]
posted on: January 26, 2015
Read MoreUnder California law every person is presumed to be competent to make his or her own personal care decisions unless otherwise determined incompetent by a court. Nonetheless capacity decisions are made all the time by others that affect one’s rights. Seniors may be especially concerned about others taking away their decision making […]
posted on: January 26, 2015
Read MoreIn the recent Frank Aragona Trust case, 142 T.C. No. 9 (2014), the US Tax Court reached a taxpayer favorable decision, one that benefits trusts that materially participate in real estate business activities. For years, the IRS has steadfastly refused to allow trusts to deduct net operating losses related to real estate […]
posted on: January 26, 2015
Read MoreOn January 1, 2014, California amended its statutory definition of “Undue Influence” in section 15610.70 of the Welfare and Institutions Code. This new definition of “Undue Influence” applies both to “financial elder abuse” that affects the victim while alive and also to undue influence that affect the victim’s “testamentary dispositions” after death. […]
posted on: January 26, 2015
Read MoreIn the digital, virtual, online world we live in, account passwords both protect and frustrate our access to valuable intangible assets. As more of our valuables consist of intangible digital assets and accounts stored online, the troublesome issue of access these intangible assets is one of ever growing importance. Let us consider what […]
posted on: January 26, 2015
Read MoreIn California married persons owe each other, “a duty of the highest good faith and fair dealing” (section 721 of California’s Family Code). This duty of “good faith and fair dealing” is likened to a trustee’s duty to a beneficiary. How does that lofty duty apply to the conduct of married persons? […]
posted on: January 26, 2015
Read More© 2024 Dennis A. Fordham All Rights Reserved
Follow Us