On January 1, 2013, the 3.8% Medicare surtax, passed by Congress in 2010 to help pay for Obamacare, takes effect. The 3.8% surtax is in addition to any income tax owed and applies to both individuals and trusts and estates. Let us examine how the 3.8% surtax will apply in 2013 to individuals and to […]
posted on: January 26, 2015
Read MoreWhen an individual or a couple, as settlor(s), establishes a revocable living trust they are usually the initial trustee(s) and beneficiary(ies). This gives them complete control to do as they please with their trust assets. Does this freedom change, however, if someone other than the settlor is trustee while the settlor is alive? Let […]
posted on: January 26, 2015
Read MoreA gift of a particular piece of real or personal property is a specific gift. If made in the context of a will or a living trust, such gifts typically take effect at the donor’s death. Meanwhile the donor (i.e., maker of the gift) still owns the property. Events may upset […]
posted on: January 26, 2015
Read MoreWhen parents no longer adequately provide for the wellbeing of their children, it is grandparents who are often the ones to take charge as guardians of their underage grandchildren. Without their caring intervention, their grandchildren might otherwise be placed with a foster family. Let us examine how such guardianships can […]
posted on: January 26, 2015
Read MoreCalifornia’s “Putative Spouse Doctrine” treats a so-called “putative spouse” like a surviving spouse with legal standing to sue for wrongful death of a deceased spouse and to claim a surviving spouse’s inheritance rights. A putative spouse is someone who is found by a court to have genuinely believed that […]
posted on: January 26, 2015
Read MoreFinancing the purchase of one’s home and refinancing one’s mortgage can each create estate planning traps for the unwary. The traps created may be due to the name on the title or the manner in which title is held. Let us consider two scenarios involving title that can create major problems once someone dies […]
posted on: January 26, 2015
Read MoreA living trust is meant to provide a comprehensive solution to the needs of the settlor(s) and subsequent beneficiaries. During the settlor(s)’ lifetime(s), assets are held in the “Settlors Trust” for the benefit of the settlor(s) and their dependents. When the settlor(s) die, different beneficiaries, purposes and priorities come into play. Not surprisingly, additional […]
posted on: January 26, 2015
Read MoreA trust beneficiary with a future right to part or all of the remaining balance of a trust estate provided they survive the current beneficiary is called a contingent remainder beneficiary. Before the remainder beneficiary’s future rights in the trust can vest, however, he or she must first survive the current […]
posted on: January 26, 2015
Read MoreCalifornia statutory law requires a trustee to account annually to current trust beneficiaries, i.e., those who are currently entitled to receive distributions of income and principal during the accounting period. Any trustee, other than the settlor(s) who established the trust, has a duty to account. Let us discuss some basic concepts regarding the trustee’s […]
posted on: January 26, 2015
Read MoreOn January 1, 2013, amendments to California’s statutory law regarding revocation of trusts take effect. The purpose is to allow a surviving spouse to revoke – i.e., takes back – some or all the assets held in a joint trust established while the couple were both alive that remained revocable after […]
posted on: January 26, 2015
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