Hindsight is 20/20 they say... well it seems that many of us fall victim to the unfortunate: "I didn't know I needed this?" or "If I only knew" statement. Well, here we go folks, here is the time for us to share and empower one another.
Everyone needs an estate plan. EVERYONE. Especially you with children, with a home, with a business, with any interest in REAL PROPERTY. Almost every Californian needs an estate plan.
What is an estate plan? It's a set of legal documents that expresses what you want to happen when you either can't make those decisions or when you are not here to make those decisions. It is your voice in writing or I should say sealed with your signature and that of witnesses and/or a notary. This "plan" ideally keeps you out of the court system - potentially avoiding conservatorships, guardianships, and probate proceedings. Trust me, you are going to want to avoid having to go through these processes and an estate plan can help you do just this.
SO, what's should an estate plan have or look like? Let me first start by clarifying that a plan depends on you and your circumstances so there is never really one set plan for everyone - atleast that is not what we provide for our clients at Phancao & Shaffer, LLP (The PS Team). For purposes of this blog.... we are going to pretend we are talking to a happily married couple :) with minor children who live in the OC and have a home. Based on these facts in a very generalized overview, this families' estate plan should have all of the following:
1) Marital Trust
2) Pour-Over Will (One for Husband/H and one for Wife/W)
3) Guardianship Designation (for the minor children)
4) Power of Attorney for Finances (H&W sets)
5) Personal Property Agreements
6) Community Property Agreements
7) Certificate of Trust
8) Healthcare Power of Attorney (H&W sets)
9) HIPAA docs (H&W sets)
10) Living Will (H&W sets - for life support wishes)
11) Funeral Memorandum
12) Personal Property Memorandum
13) Funding (transfering of assets into the Trust/Estate Plan)
Ok, so this is more or less what this married couples' estate plan should have. Now, so as not to bore you with an over lengthy blog... stay tuned for more "talk" on why these documents are important and what else is needed to truly protect yourself, your family, and all you have worked hard for throughout the years.....
From our family to yours - Shadi A. Shaffer from the Law Offices of Phancao & Shaffer where your family is not only business but personal! (It's Wednesday "hump" day; may the rest of your week go fast so that you can enjoy the weekend! - shadi)
Saturday, January 16, 2010
Putting Children on Title
One of the biggest mistakes I find clients and people doing today is putting their children or other family members on title to their property.
While in some cases there may be a good and valid need for putting a family member on title, typically people make this decision without realizing the consequences. To many its just a simple document that adds their son or daughter on title and many times the parent or parents think they are protecting them self by doing this when in fact they are not.
First and foremost, putting a family member on title may create a huge tax problem - gift tax and/or capital gains tax. Second, it creates some potential legal problems and creditor problems...
Does this family member have a judgment against them? Do they have debt? Tax liens? Child Support Owed? This is just a few of the problems that occur when putting others on title without the advice of an attorney or professional.
Another thing that is missed by many is that every person that holds title should have estate documents in place. Once you put a child or family member on title you now have some potentially huge legal problems if or when that family member becomes incapacitated or dies. Do they have an estate plan? A Will? Trust? Power of Attorney for Finances? If they don't have some or all of these documents; your property may become victim to the court system through a conservatorship or probate case.
Last, if you have not specifically set forth whose property it is or what percentage interest each person on title has, this can create some HUGE family problems. If you put your son on title, do you intend that he live in the home after you have passed? Do you intend that he share the home with other siblings? Who is to pay the expenses and costs? How is the home to be divided? Is it to be sold or rented?
Many clients come to me and tell me that they were worried they were getting old or were concerned regarding Medicare expenses or not being Medicare eligible. The problem here is that without the right guidance and legal advice from the beginning, actions such as transferring assets (in this case real property) to family members can become a huge problem - much worse than what caused the original concern.
Parents, Grandparents, Kids, Families, please do not change title on your real property until you have sought legal guidance and advice. You may create a bigger problem than the one you are trying to solve! As the saying goes: Hindsights 20/20. I hope this blog helps one person from making Real Property Title Mistakes - many happy blessings to you and your family.
Shadi Shaffer, Your Personal Family Lawyer
While in some cases there may be a good and valid need for putting a family member on title, typically people make this decision without realizing the consequences. To many its just a simple document that adds their son or daughter on title and many times the parent or parents think they are protecting them self by doing this when in fact they are not.
First and foremost, putting a family member on title may create a huge tax problem - gift tax and/or capital gains tax. Second, it creates some potential legal problems and creditor problems...
Does this family member have a judgment against them? Do they have debt? Tax liens? Child Support Owed? This is just a few of the problems that occur when putting others on title without the advice of an attorney or professional.
Another thing that is missed by many is that every person that holds title should have estate documents in place. Once you put a child or family member on title you now have some potentially huge legal problems if or when that family member becomes incapacitated or dies. Do they have an estate plan? A Will? Trust? Power of Attorney for Finances? If they don't have some or all of these documents; your property may become victim to the court system through a conservatorship or probate case.
Last, if you have not specifically set forth whose property it is or what percentage interest each person on title has, this can create some HUGE family problems. If you put your son on title, do you intend that he live in the home after you have passed? Do you intend that he share the home with other siblings? Who is to pay the expenses and costs? How is the home to be divided? Is it to be sold or rented?
Many clients come to me and tell me that they were worried they were getting old or were concerned regarding Medicare expenses or not being Medicare eligible. The problem here is that without the right guidance and legal advice from the beginning, actions such as transferring assets (in this case real property) to family members can become a huge problem - much worse than what caused the original concern.
Parents, Grandparents, Kids, Families, please do not change title on your real property until you have sought legal guidance and advice. You may create a bigger problem than the one you are trying to solve! As the saying goes: Hindsights 20/20. I hope this blog helps one person from making Real Property Title Mistakes - many happy blessings to you and your family.
Shadi Shaffer, Your Personal Family Lawyer
Sunday, January 3, 2010
Got Trust in New Year?
Hello Friends. Hope you are as excited as I am for the New Year. SO, I guess as an Estate Planning Attorney its easy for me to sit here and tell you to put "Reviewing or Creating Your Estate Plan" on your 2010 list of to do's. What was not easy for me to do was get my BUTT into the gym (which I did), update my social media accounts, WRITE THIS BLOG!, and alas for something VERY PERSONAL... sign up for on-line dating (which I did; believe it or not).
I decided that this was a year for ACTION. Not action SOMETIME in 2010 but action as soon as humanly or reasonably possible. SO, here we are. If you are walking around as my business partner Patrick Phancao would say "Legally Naked" then why not put some legal clothes on and get your estate, family, business, and financial plans in order.
I decided that this was a year for ACTION. Not action SOMETIME in 2010 but action as soon as humanly or reasonably possible. SO, here we are. If you are walking around as my business partner Patrick Phancao would say "Legally Naked" then why not put some legal clothes on and get your estate, family, business, and financial plans in order.
- I mean, if you have kids you have left them with NO PROTECTION whatsoever if you or your spouse become incapacitated or die.
- If you have any real property in California and no Trust; good luck as your family will have no choice but to deal with the Probate Court and if you love them you would never put them through such grief and expense!
- If you have a business, a business partner, or even worse employees... and no business plan, buy-sell agreement, or personal estate plan that provides guidance as to what your business partner, spouse, children, or family aught to do when you are unable to do things or not around to manage your business then you have just left them all helpless and quite frankly a bit screwy.
- What about your health? Who gets to make medical decisions for you? To decide to stop life support? Or are you going to end up like a Terri Schiavo (the Florida woman whose parents and ex-spouse had a huge legal battle over her right to die or not die?)
- Do you want to be cremated or have a traditional burial? Guess what, if it is not in writing you might body might end up stuck in a funeral home until a court or some miracle occurs whereby you can produce a legally valid document to the funeral home that provides specific directions on what you want them to do with you.
Well, I don't mean to be somber really, in fact, I am an optimist and am very happy and excited about the New Year. But I am an Estate Planning Attorney and unlike you, I am the one that gets the calls, emails, and texts about how life unexpectedly took a loved one and now they are in dire need of legal help. So, my point? While you are making your list of Resolutions and Goals for 2010 why not spend some time offensively in protecting yourself, your kids, your family, and your business? The calls, emails, and texts I would like to get are the ones where the families, friends, and business partners are thanking me for protecting you and making sure than in difficult times your loved ones are not dealing with more burden, chaos, expense, and confusion as a result of you not having an Estate Plan or any plan for that matter.
If you don't have an Estate Plan than please make sure you get one in 2010. If you do, make sure you get yours reviewed as life changes daily and we want to make sure your plan continues to meet your needs and life's changes. Make it a great 2010 and make sure you start your Goals now and not just sometime in 2010! The first steps are tough I know but once you get started its easy.
To start off 2010 the Law Offices of Phancao & Shaffer, LLP will provide their $750.00 Wealth and Estate Planning Consultation for free when you mention this blog! To sign up for our monthly newsletter go to http://www.pslawyers.com/, for an appointment call us at 714-966-2646.
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