The most basic definition of estate is everything you own. This includes tangible items like a house, car, boat and furnishings. It also includes intangible items like investments, bank accounts, 401K’s and IRA’s. When defining your estate for planning purposes there are two categories of assets. They are probate and non probate. Probate assets are assets that come under the jurisdiction of the court at the time Read More
Estate Planning for Pets
In some households pets are key members of the family and any estate plan that doesn't address their needs would be found incomplete. An important first step in this process is to discuss your desires with the person you wish to care for your animals after you are gone. There are several questions you should ask yourself and discuss with the potential caregiver. Will you care for my pets? Is there a limit on Read More
Overview of Trusts
A trust is a separate legal entity created for a defined purpose. In estate planning that purpose is often to reduce a taxable estate or to care for loved ones who are unable to manage their finances. Trusts can be a great tool to accomplish your goals. The person who creates the trust is called the grantor or settler. The trust is created as either a revocable or irrevocable trust. If a trust is revocable the Read More
Difference Between Community Property and Separate Property
What is separate property? Separate property is property acquired before marriage. It is also property acquired during marriage by gift, devise, or descent; and recovery for personal injuries by a spouse during marriage except for recovery for loss of earning capacity during marriage. Property received by devise or descent is property received from the estate of a person who has died. For example, if a relative Read More
What Happens When You Die Without a Will?
As discussed previously a properly drafted will answers four key questions. Who will manage your estate? Where will your property go? Who will care for your dependents? Have your unique needs been met? To help understand the impact of failing to have a will we review these questions looking from the perspective of the Jones family. The Joneses decided the kids were old enough to leave with Grandma while they Read More
Issues to Consider When Forming a Limited Liability Company
When you create an LLC you are creating an entity that is completely separate from the owners who are called members. The LLC will continue to exist until dissolved. The LLC combines many of the strengths of both corporations and partnerships. The members have liability protections similar to a corporation. They are shielded from liability for the LLC’s debts, obligations and liabilities. However, they have the Read More
Frequently Asked Questions About Estate Planning
What happens if someone dies without a Will? When someone dies without a will the courts look to the probate code which are statutes addressing the estate of those who have passed both with and without a will. The state statutes define who will be considered as an executor absent a will. The statutes define who will inherit and include a complex formula for addressing both community and separate property and the Read More
What Can Happen to Children if Their Parents Die Without a Properly Drafted Will?
Many of us embrace the do it yourself (DIY) lifestyle. Why pay someone to do something you are fully capable of doing yourself? In many cases this is wise money management but it can be a disaster in the making. Consider the plight of Jane’s children. Jane received a medical diagnosis that ensured her premature death. She left behind four children (4, 8, 12, 15), a life insurance policy and a modest estate. She Read More
Small Business Owners Should Plan for the Three D’s
You form a partnership with a business colleague. Everything is going well, business is growing and life can’t get any better. Then your business partner’s husband asks for a divorce. Does your partnership agreement address the issues relating to the divorce of a partner? What if your partner is your spouse and they have asked for a divorce? You are running a successful business as a sole proprietor. Driving Read More
Issues to Consider When Forming a Partnership
Selecting your business structure is one of the most important decisions you will make. You should take the time to consider all of your options before selecting a business structure. There are several types of partnerships available to business owners. A partnership is created anytime two or more people come together to conduct business for profit. Partnerships are governed by partnership agreements and each Read More
