by Bezaire, Ledwitz & Associates, APC | Last updated Feb 22, 2023 | Estate Administration, Estate Planning, Living Trusts, Press, Probate, Trusts, Wills
Our firm frequently comes into contact with prospective clients who want to know why they should pay attorneys’ fees for an Estate Plan when they can produce “the same product,” for a fraction of the cost, by filling out a form online. Unfortunately, the pitfalls of being a DIY Estate Plan owner are common, as evidenced by a story in this month’s ABA Journal. In the article, Ann Aldrich used an “E-Z Form” to create a will which left all of her property to her sister, and then to her brother if her sister had already passed away. It seems simple enough, doesn’t it? The client had simple wishes—why should she pay an attorney to memorialize something that only amounts to two lines of text? The answer is that even if the wishes are simple, drafting a document to ensure those wishes are followed can be complex. Ms. Aldrich didn’t know that a will should include a residuary clause, which directs how assets not specifically named in the will should be handled. Because the E-Z Form that Ms. Aldrich used did not contain this clause, a considerable amount of property was subject to disposition by the provisions of the law: not Ms. Aldrich’s wishes. When property isn’t mentioned in a will, it is disposed of according to the legal rules of intestacy applicable to that state, treating it as if Ms. Aldrich didn’t have a will at all when it comes to that property. The end result of this oversight was that the daughters of one of Ms. Aldrich’s brothers (who was long dead by the time of her... by Bezaire, Ledwitz & Associates, APC | Last updated Feb 22, 2023 | Advance Health Care Directive, Children's Trusts, Estate Planning, HIPAA, Living Trusts, Trusts, Wills
Most people near the age of majority do not have large estates (money or property) and many families assume that this means an estate plan is completely unnecessary. This is simply not true. A comprehensive estate plan does much more than protecting property from probate and directing the disposition of assets—estate plans also tell medical and financial institutions who is authorized to make decisions on your behalf. Without current, effective documents, these institutions may refuse to release medical information and will likely not allow family members to make healthcare decisions.
by Bezaire, Ledwitz & Associates, APC | Last updated Feb 22, 2023 | Estate Planning, Same Sex Estate Planning, Trusts
Recently the United States Supreme Court ruled on United States vs. Windsor—a case that argued the constitutionality of the Defense of Marriage Act (DOMA). DOMA’s Section 3 controversially defined a “marriage,” for federal tax law and benefits, as only between one man and one woman, and defined “spouse” as a person only of the opposite sex. Section 2 of DOMA also stated that states that did not allow same-sex marriages did not have to recognize those marriages from other jurisdictions. The Windsor court struck down Section 3 as unconstitutional—removing it from the statute as though it had never existed. Section 2 was not ruled on, leaving some gray area when it comes to states’ recognition of out-of-state same sex marriages. The IRS, following the decision, was decidedly less equivocal—issuing Revenue Ruling 2013-17, stating that same-sex couples, legally married in a state or foreign jurisdiction that authorizes the marriage, will be treated as married for all federal tax purposes. In California, Hollingsworth v. Perry held that Proposition 8, which banned same-sex marriages in the state, was also unconstitutional—allowing California same-sex couples to join into IRS-recognized valid marriages. Notably, this does not apply to civil unions, registered domestic partnerships, or other non-marital relationships, regardless of what rights or privileges are bestowed upon those types of unions by states. So what does this decision mean for same-sex couples in an Estate Planning context? Prior to the Windsor decision, same-sex couples historically faced challenges to planning their estates, including: Persistent need to define property rights by contract. High chance of Will contests. Difficulty enforcing inheritance rights of adopted children. Simply, the IRS ruling... by Bezaire, Ledwitz & Associates, APC | Last updated Feb 22, 2023 | Estate Planning, Newsletter, Taxes, Trusts
Portability Explained Preserving Estate Tax Exemptions for Married Couples.
You’ve Been Named Successor Trustee – What Does That Mean?
FREE SEMINAR – SUCCESSOR TRUSTEE DUTIES – Wednesday April 9, 2014 at 2:00 p.m 970 W. 190TH STREET, TORRANCE, CA 90502
Spotlight: Accident Law, The Most Important Thing You Can Do Before Your Accident By James L. Pocrass, Esq. Pocrass & De Los Reyes LLP
WHEN WAS THE LAST TIME YOU REVIEWED YOUR TRUST? WE OFFER FREE THREE YEAR REVIEWS!
by Bezaire, Ledwitz & Associates, APC | Last updated Aug 11, 2020 | Estate Planning, Taxes, Trusts
A 1035 exchange is a provision in the tax code that most people have not heard about. It allows for the direct exchange of accumulated funds in a life insurance policy or annuity for another life insurance policy or annuity without creating a taxable event.
by Bezaire, Ledwitz & Associates, APC | Last updated Feb 22, 2023 | Advanced Estate Planning, Estate Planning
Estate Planning is the area of the law which deals with putting property to the best possible use for your benefit during your lifetime, and for the benefit of your “beneficiaries” after your death. If the estate has been well planned, your asses should be distributed according to your wishes at a minimum of time and expense. Poor planning may lead to lengthy probate, probate fees and taxes. Unfortunately, most people do not take the time to become aware of the difference between good estate planning and poor estate planning. Many people believe that if they have a valid will, their estate will not have to go through probate. This is simply not true. Wills, by their very nature must go through probate. The fastest and best way to avoid probate is the Revocable Living Trust the very cornerstone of our practice at Bezaire, Ledwitz, and Associates. The advantages of living trusts are significant. Under a will, an estate must be settled in probate court. Lawyer’s fees and court costs can be significant (see chart below). Additionally there may be exasperating delays, and the proceedings are a matter of public record. In sharp contrast, a living trust is settled without court proceedings. A successor trustee simply distributes assets according to the trust’s instructions, under the guidance of an accountant, notary public or lawyer to ensure titles are transferred properly. The process is cheaper, faster, and can save on estate taxes. Gross Estate Value Attorney and Executor Fees $100,000 $4,000 $200,000 $7,000 $300,000 $9,000 $400,000 $11,000 $500,000 $13,000 $600,000 $15,000 $700,000 $17,000 $800,000 $19,000 $900,000 $21,000 $1,000,000 $23,000 $1,500,000 $28,000...