Estate Planning

The recent catastrophic fires in California and record flooding in Texas and Florida call attention to the importance of preserving our original documents.  If your original will is destroyed by a natural disaster, it could have implications for your estate plan and your heirs.  Our San Ramon, California wills and trusts attorneys at Horizon Elder Law & Estate Planning, Inc., discuss how you can protect your original will and what could happen if it is lost or destroyed below.  

What estate planning topics should I discuss with my loved ones?

Broaching the topic of estate planning can be difficult.  Most of us are loathe to discuss death or finances, two of the primary concerns of an estate plan.  Even though it can be tough, it is vital that you set aside the time to have an informed conversation with your family about your estate plan.  After all, far more important than finances are your family relationships.  Our Read more . . .

Americans have used “offshore” or foreign asset protection trusts for decades as a vehicle to shield their wealth from creditors. Courts have invalidated offshore APTs by applying American law to these assets.
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How can I protect my assets after my death?

Philip Seymour Hoffman was a celebrated actor who starred in such famous movies as The Hunger Games and Charlie Wilson’s War.  Hoffman’s talent on the big screen did not, however, equate to skill in estate planning.  Hoffman passed away in 2014 and was survived by his girlfriend and three young children.  He died with only a will drafted by his CPA in place that left his $35 million in assets to his girlfriend, who was to provide for his children.  His lack of an estate plan resulted in the loss of approximately $12 million in taxes.
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Both aging parents and their adult children are often reluctant to talk about the parents’ finances. The parents may feel money is a taboo topic, particularly with one’s children. The adult children do not want to be considered greedy or intrusive. So many people procrastinate until it is too late.

But it can cause significant problems if adult children do not have the financial talk with their parents.
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What might happen if I fail to update my beneficiary designations on my life insurance policies, bank accounts, and more?

While most of us put off estate planning, failing to take some basic steps towards preparing for your eventual death could come at a significant cost for your loved ones and your legacy.  One of the most important things you can do is take the time to designate a beneficiary on your insurance policies, bank accounts, and retirement accounts, or update your beneficiary as your life evolves.
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How could the Spousal Fiduciary Duty impact estate planning in California?

When you say “I do” in California, you not only dedicate yourself to your spouse in sickness and in health, but you also become bound by the Spousal Fiduciary Duty.  In California, the law imposes a legal duty on all married people to act with the upmost honesty and fairness towards his or her spouse.  The Family Code specifically states that marriage imposes the duty of highest good faith and fair dealing, preventing either spouse from taking unfair advantage of the other.  Married Californians should be aware of the Spousal Fiduciary Duty as it can impact your Read more . . .

What will happen to my estate if I die without a will in California?

Less than half of all Americans, 44 percent, have a will in place that describes how their estate should be handled after their death, according to the latest Gallup poll.  Many people share the view that a will is unnecessary unless they have a large estate.  However, a will is one of the most vital estate planning tools available to Californians.  Everyone in California, regardless of their age or estate size, should have a will.  Below is a look at what will happen if you die intestate or without a will in California.

Federal estate taxes are very high. How high you ask? A whopping 40 percent high. This means that if the value of your estate is above the federal exemption, the federal government will claim 40 percent of what is in excess. That’s 40 percent of your estate taken away from your spouse, children, grandchildren and other relatives. Thankfully, with the Read more . . .

Should I postpone making my estate plan until the federal estate tax is repealed?

President Trump has proposed completely eliminating the federal estate tax.  This controversial tax currently remains at 40 percent, but with a Republican House and Senate, it is possible that the tax will soon be reduced or erased.  However, in February, California Senator Scott Weiner introduced a ballot measure that would create a California estate tax in the event the federal estate tax is repealed.  Californians who have been holding out on estate planning till the repeal of the federal estate tax should delay no longer because taxes may just get higher in the state.  

What is the Estate Tax?

The federal estate tax is a tax levied on the net value of the estate of a deceased individual prior to distribution of funds to the heirs.
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You’ve probably heard this before, “You should definitely avoid probate.” Ever wondered what is probate and what makes it so bad you should avoid it at all costs? We’ll tell you why, but first...

What is probate?

Probate is the legal process by which the estate of a deceased person is distributed according to his/her will or according to law.
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