Rudy Aguirre Professional Law CorpRudy Aguirre Professional Law Corp2024-03-18T15:10:25Zhttps://www.testamentoparami.com/feed/atom/WordPress/wp-content/uploads/sites/1201607/2021/07/cropped-favicon-32x32.jpgOn Behalf of Rudy Aguirre Professional Law Corphttps://www.testamentoparami.com/?p=467452024-03-18T15:10:25Z2024-03-18T15:10:25ZNot having an estate plan
The biggest mistake is not having an estate plan at all. Some people think they do not have enough assets to need one, or they just put it off for later. But without a plan, the state decides what happens to your assets, and it might not be what you would have wanted. Starting the estate planning process early and updating your plan as things change in your life is key.
Forgetting to update your plan
Life changes, like marriage, divorce, the birth of children, or the death of a family member, can affect your estate plan. It is important to review and update your documents regularly to reflect these changes. An outdated plan can lead to unwanted outcomes and cause your assets to go to the wrong people or be distributed improperly.
Not planning for disability
Estate planning is not just about what happens after you die. It is also about what happens if you become unable to make decisions for yourself. Include a durable power of attorney and a healthcare directive in your plan. These documents allow someone you trust to manage your affairs and make healthcare decisions if you cannot.
Choosing the wrong executor
The executor of your will is responsible for carrying out your wishes. Picking someone who is not up for the job can cause problems. Make sure the person you choose is responsible, trustworthy, and capable of handling the tasks. Also, it is a good idea to talk to them first to make sure they are willing and able to take on the role.
Avoiding these mistakes can help make sure your estate plan does what you want. It can protect your assets, provide for your loved ones, and give you peace of mind.]]>On Behalf of Rudy Aguirre Professional Law Corphttps://www.testamentoparami.com/?p=467432024-03-04T05:04:14Z2024-03-04T05:04:14ZEstate planning for singles
Estate planning can be more complex for single individuals than for married couples, as they lack a partner to rely on for support with important life events. Single individuals must determine who will make financial decisions if they cannot and who will settle their affairs after their passing.
However, the reality is that estate planning is crucial for everyone, regardless of marital status. It's a fundamental aspect of financial planning that everyone should engage in to ensure their wishes are carried out and their assets are protected.
Leave clear instructions
If a single person fails to make an estate plan, the state will determine the distribution of their possessions after their passing. This can cause unnecessary stress for surviving family members as they cope with the loss. In California, assets get distributed according to succession laws when a person dies. If no relative claims the property, the state receives the assets.
Long-term care
Most people will likely require some form of long-term care as they age. As part of estate planning, it's important to create advance medical directives, durable power of attorneys and living wills. These documents are designed to outline your preferences for medical treatment if you become ill or injured to the point where you can no longer care for yourself. They also address end-of-life decisions. Creating a durable power of attorney or a living will can alleviate stress for friends and family members and ensure your wishes will be respected.
Estate planning is as much for your benefit as it is for those you leave behind. Ensuring that your financial assets are distributed according to your wishes and that your end-of-life preferences are clearly communicated can bring you peace of mind. Additionally, it provides peace of mind to your loved ones.]]>On Behalf of Rudy Aguirre Professional Law Corphttps://www.testamentoparami.com/?p=467412024-02-14T07:53:39Z2024-02-14T07:53:39ZEstate plans and life insurance
Estate planners interested in purchasing a life insurance policy may choose a term policy or a permanent policy. The amount the policy pays will vary, and the estate planner might choose an appropriate amount that covers expenses that beneficiaries might face. Some may need to pay inheritance taxes or cover business expenses from inherited companies.
There are various reasons why someone might buy a life insurance policy. An estate planner may intend to cover college tuition costs for a young person unable to afford the expenses. Beneficiaries with a disability may be unable to work and rely on an insurance policy to pay for essential living expenses.
Other notes about life insurance
A life insurance policy may factor into estate planning when the planner does not have a substantial estate. The settlement from the life insurance policy could be the only funds that beneficiaries receive, but the amount might be significant. Also, since life insurance policies do not go through probate, beneficiaries might receive their funds quickly.
An estate planner might have concerns about how well beneficiaries will manage their life insurance settlement. Persons with such concerns may place the policy inside a trust, allowing the funds to be managed per the planner’s wishes. Some may prefer to pay the settlement from the trust incrementally, for example.
Life insurance could play an important role in your California estate plan. Because everyone's financial situation is different, there are a number of factors to consider.]]>On Behalf of Rudy Aguirre Professional Law Corphttps://www.testamentoparami.com/?p=467392024-02-02T05:22:28Z2024-02-02T05:22:28ZExemption amounts as of 2026
In 2026, exemption amounts could be as little as $7.5 million per person and $14.5 million for married couples. The exact amount will depend on inflation rates over the next two years. This also assumes that the Tax Cuts and Jobs Act that created the temporary estate planning flexibility is not renewed or restored at some point in the future. It's also possible that exemption limits will begin to increase again as they will be indexed for inflation after 2026.
How to prepare for potential changes
There are a number of steps that you can take today to prepare for changes to estate tax laws. For instance, you can reduce the value of your estate by making gifts prior to your passing. You can also put assets into a trust, which would not be considered a part of your estate for tax purposes. Finally, you can consider putting a portion of your exemption into a trust for the benefit of children, grandchildren or other potential heirs.
Ideally, you will review your estate plan once a year to determine if it still meets your needs. It may be a good idea to do so more frequently after major life events such as a birth or death in the family. Changes to the tax code should also trigger a review to ensure that an existing trust, gifting strategy or other plan components are sufficient to meet your needs.]]>On Behalf of Rudy Aguirre Professional Law Corphttps://www.testamentoparami.com/?p=467372024-01-19T17:39:58Z2024-01-19T17:39:58ZName a guardian
Including your pets in your estate planning documents means first choosing a guardian. This person will be their caretaker once you pass away or become incapacitated and can no longer care for them yourself. Make sure you choose someone responsible and who has a good relationship with your pet.
Create a pet trust
You’ll also have to decide on how to leave funds for your pet’s care. You can’t name a pet as a beneficiary, which means you have to take different avenues to do this. One option is to leave money to your chosen pet guardian by stating a specific amount in your will or a living trust. However, an even better way to secure funding for your pet’s care is to create a special pet trust. You can name a trustee to handle things and include details about how your pet should be cared for and what should happen with the funds if your pet passes away.
Legacy arrangements
If you can't find someone to take your pet after you're gone, there are other options available. Some programs can take your pets and find them caregivers. These include animal rescue organizations, SPCA programs and veterinary programs. If you make such arrangements, these groups can ensure that your pets end up with the perfect loving family.
Many people consider their pets their children. As such, it’s only natural to prepare for the future to ensure they will be well-cared for; estate planning can give you peace of mind that your pets will be protected and loved even after you’re gone.]]>On Behalf of Rudy Aguirre Professional Law Corphttps://www.testamentoparami.com/?p=467362024-01-07T19:55:55Z2024-01-07T19:55:55ZWhat is an attorney-in-fact?
An attorney-in-fact is a person with an important role in estate planning. When you create documents that focus on your future medical care or how your finances are handled, this person is there to make important decisions on your behalf. They may also ensure that your wishes are upheld in certain situations. Your attorney-in-fact is your agent for financial and healthcare powers of attorney. This role carries a huge responsibility, so it’s crucial to choose the right person to handle things.
Choosing an attorney-in-fact
There are certain things to consider when choosing an attorney-in-fact. Many people go with a family member or even a close friend, but you should always select someone you fully trust. At the same time, your attorney-in-fact should be someone who can handle heavy matters such as your healthcare if you’re incapacitated in the future and can’t voice your wishes. It should also be someone practical and responsible with money.
Location is another important factor when choosing an attorney-in-fact. In some cases, this means picking someone who lives close to you. However, if this is not a factor and you’re choosing someone to handle only financial matters, you can choose an attorney-in-fact you trust regardless of their location.
Another thing to consider is that your first choice may be unable to serve in the future. That means choosing an alternate attorney-in-fact in case your first choice changes their mind, becomes ill or dies.]]>On Behalf of Rudy Aguirre Professional Law Corphttps://www.testamentoparami.com/?p=467342023-12-21T05:12:17Z2023-12-21T05:12:17ZTry non-traditional methods
When it comes to bequeathing family heirlooms, loved ones may want everything to get divided in half. Unfortunately, some things can’t be divided. For instance, paintings and collections can’t be divided evenly. That’s where non-traditional methods come into the picture.
Individuals can take several non-traditional methods to divide family heirlooms. One way is to take a round-robin approach where each family member chooses something they want. Or, individuals can make a list of the heirlooms and then family members can take turns drawing item names out of a hat.
Work towards equal value
It’s not always easy to divide heirlooms evenly, especially when it comes to determining their value. When individuals struggle to create an even distribution by value, it may be necessary to take a different approach.
One way is to add cash or other items when two heirlooms don’t match in value. Documenting the total value of each bequeathment can help avoid hard feelings. This process also helps with bookkeeping efforts when creating an estate plan.
Document final wishes
Once an individual bequeaths family heirlooms, it’s a good idea to document those wishes. Those wishes can be documented in a will or an estate plan. Documenting final bequeathal wishes helps to reduce family conflict. It also helps provide a clear path for transferring heirlooms after an individual dies.
Bequeathing family heirlooms doesn’t need to be stressful or emotional. Careful planning can help create a smooth transfer of heirlooms to family members.]]>On Behalf of Rudy Aguirre Professional Law Corphttps://www.testamentoparami.com/?p=467322023-12-11T07:05:48Z2023-12-11T07:05:48ZCharitable remainder trusts
Charitable remainder trusts distribute assets to noncharitable entities annually for a preset period of time. These trusts are commonly structured to distribute assets for 10 years, but individuals can choose longer or shorter periods if they wish. The annual distributions must account for between 5% and 50% of the fair market value of the trust’s total assets, and any assets remaining after the last distribution has been made are donated as a lump sum to a charitable beneficiary. This charitable beneficiary can be one or more charities, a donor-advised fund or a family foundation. This kind of trust does not eliminate all estate taxes, but it does provide a sizeable charitable deduction.
Charitable lead trusts
The assets in a charitable lead trust are distributed to one or more charitable beneficiaries annually. Like charitable remainder trusts, charitable lead trusts are structured to distribute assets for a designated period of time. When all of the distributions have been made, any assets remaining in this type of charitable trust are distributed to a noncharitable beneficiary as a lump sum. This type of trust can provide a 100% charitable deduction for estate taxes.
Estate planning
A carefully constructed estate plan can prevent disputes between heirs and ensure that the testator’s wishes are respected. Charitable trusts are versatile estate planning tools that can be used to distribute assets to charities or other beneficiaries and reduce estate taxes. Charitable trusts are particularly useful in states like California where asset values often exceed the federal estate tax exemption.]]>On Behalf of Rudy Aguirre Professional Law Corphttps://www.testamentoparami.com/?p=467302023-11-27T20:28:55Z2023-11-27T20:28:55ZThe fate of incomplete transfers in California
All incomplete gifts will go back to the transferor's estate. As mentioned before, courts consider incomplete gifts void with no legal effect. In that case, the regular probate process will take priority over the intended gift. Consequently, the estate distributor will allocate the property in accordance with California's intestacy laws, as it is likely that the deceased giver did not include it in their will. It is important to note, however, that there are exceptions to this rule.
Exceptions to the rule
If the transferor (giver) has a "donative promise" with someone unrelated by blood or marriage, then that person may have a right to claim the property even if it was an incomplete gift. Their only task would be to provide a written and signed statement by the giver that they intend to give away the asset in question.
If that does not apply to your situation, then you must present evidence to the court demonstrating the existence of the promise through actions or things you did in reliance on it. For example, if the giver promised to transfer their property to you in exchange for taking care of them in their old age, then you may have a valid claim to the property during estate administration.
It helps to avoid being in a situation where you have an incomplete gift. Therefore, if someone promises to transfer their property to you, request that they execute a deed or complete the transfer during their lifetime to avoid any confusion. However, if, unfortunately, you do end up in this situation, it's important to understand the exceptions and take appropriate action to try and claim the property.]]>On Behalf of Rudy Aguirre Professional Law Corphttps://www.testamentoparami.com/?p=467282023-11-09T01:23:11Z2023-11-09T01:23:11ZPlacing assets
The purpose of a trust is to provide asset protection. Therefore, you'll need assets to place in your trust. What people place in trusts varies but typically includes cash, stocks, business interests, homes and other types of investments. Some individuals place all assets into one trust or split it among various types of trusts.
Choosing beneficiaries
The next step for proper estate planning through trusts is choosing beneficiaries. Some prefer to designate family members, including spouses, children, siblings or parents as a trust's beneficiaries. People aren't the only parties qualifying as beneficiaries. Certain individuals leave the assets in a trust to a company or charitable organization.
Selecting a trustee
You'll also need a trustee to manage your trust after you pass away or become incapacitated. Typically, people name a reliable person they know as a trust's trustee. If that's not an option, you can hire a professional trustee or have your financial institution manage your trust.
There's no rule stating that a trustee has to be one person or a close relative. If you have no family or strained familial relationships, a professional trustee can manage your trust. One advantage to this option is that a professional has no emotional ties to family members or beneficiaries and can't be pressured into making decisions contrary to your intentions.
Setting up a trust takes time and the ability to make sometimes difficult decisions. However, a trust is a reliable way to ensure that your loved ones are provided for after you die.]]>