You can take advantage of the annual $14,000 federal estate gift tax exemption (this number is indexed for inflation and is subject to change every year) by having your California probate and trust attorney help you set up what is called a “crummy trust” or irrevocable trust. An irrevocable trust is set up to buy […]
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Why You Should Transfer California Real Estate to a Trust
If you own California real estate, you should establish a living trust and transfer all your real estate and other assets to the trust. It will save your family a great deal of stress, a lot of time and thousands of dollars in legal costs at the time of your death, by avoiding probate. A […]
The California Small Estate Exemption has been Raised to $150,000
California Probate Code Section 13100 -13116 allows estates of persons who died after Jan 1, 2012, with assets valued at $150,000 or less to avoid a formal probate process. Beneficiaries and heirs are able to receive their inheritances quicker and with much lower expense. The $150,000 does not include anything that passes to your heirs […]
What are probate family allowances?
When a person who dies in California owning owned assets in their sole name at the time of the person’s death, the decedent’s heirs usually have to go through the California courts in a “probate proceeding,” to claim their loved one’s worldly goods. Sometimes it is necessary for the family to ask the court to […]
What do Trusts do?
Trusts are an essential part of a California resident’s estate planning. It is recommended that you set up a trust to avoid probate and to save estate taxes. Married couples can set up joint trusts. Also, trusts are private documents. Your assets and beneficiaries are not made public, because probate has been avoided. Keep in […]
What is an AB/Credit Shelter Trust?
During 2012, every U.S. citizen has a $5,120,000 estate tax exemption. This means that the first $5,120,000 of a decedent’s assets transfer to the decedent’s heirs without paying any federal estate tax. However, the $5,120,000 exemption is only in effect through December 31, 2012, and will be reduced to $1,000,000 as of January 1, 2013, […]
What is this $14,000 you can give away without paying gift taxes?
The US Tax Code lets you give a gift of money, stocks, bonds, real or personal property, gift tax free, up to $14,000 a year to anyone you want. This amount is indexed for inflation and may rise in the future. A married couple can give any one person up to $28,000/year tax free. Giving […]
If you want to avoid a Trust Contest or a Will Contest you shouldn’t name your second wife and your child from your first marriage as co-trustees
When choosing a trustee or co-trustee of your trust or executor of your will, you want to make sure that you choose someone that you trust who has the time to devote to administering the estate and is able to get along with the other heirs and beneficiaries. Most people choose a spouse, child, sibling […]
Probate – why does it take so long?
The California probate process follows a timeline set by the state probate laws and the local probate court rules. Once the original will is found it is filed by the court. This can be done by either a relative, the person named executor, or the attorney. It doesn’t matter if it’s a statutory form will, […]
The importance of giving the surviving spouse a special power of appointment for the marital trust to keep the children from giving her a bad time
A special power of appointment protects both your children and your spouse. The power guarantees that the asset will go to your children, but your surviving spouse has the power to chose which ones of them will inherit. This gives your surviving spouse an effective way of making sure that he/she has more decision making […]