ESTATE PLANNING

Published on: July 8, 2008

Adoption for Gay and Lesbian Couples in San Diego County

Now that the California Supreme Court has validated same sex marriages in California, we may see an increase in such couples having children or adopting them.

The Gay Lesbian Times reports that more than half of gay men and 41 percent of lesbians want to have children and an estimated two million gay or lesbian people are interested in adoption. More than 16,000 adopted children are living with lesbian and gay parents in California, the highest number in the country according to a study done by the Williams Institute on Sexual Orientation and Public Policy at UCLA.

If you are a gay or lesbian couple contemplating adoption, Human Rights Campaign Family Project has information on the various types of adoption such as open adoption, private adoption, or international adoption. At the law firm of Law Office of Scott C. Soady, A Professional Corporation we can assist you with completing the adoption process. Call us or e mail us for a complimentary consultation about adoption or any family law or estate planning issue.

Published on: July 6, 2008

Life Insurance as part of your Estate Plan

by Scott C. Soady

Many individuals in San Diego are considering purchasing life insurance. Most people do not know that a properly drafted irrevocable life insurance trust, known as an ILIT, can be used to reduce estate taxes or to provide substantial money for your heirs. They also bypass the probate process. For some, they can be an important part of your estate plan.

One of the ways you can create an ILIT is by transferring a life insurance policy already in existence into your newly created ILIT. Another way is to create an ILIT and have the trustee of the ILIT apply for a new policy and transfer money to the trust annually to pay the insurance premiums. You also may be able to finance the insurance premiums with no out of pocket expense to you through a premium financed life insurance program.

The purpose of an irrevocable life insurance trust is to remove life insurance proceeds from one’s taxable estate. The trust must be irrevocable meaning that you cannot have any control or ownership of the policy. Someone other than yourself will be the trustee. Since you are not the owner of the insurance policy nor do you have any control over it, the proceeds at your death are not part of your taxable estate. The life insurance proceeds go to your beneficiaries according to the terms of your trust.

Published on: July 4, 2008

Charitable Giving can only be done with an Estate Plan

by Scott C. Soady

There are many people in San Diego that want to support the charities and causes they care about. If you want to leave a legacy after you pass away and want to give money, property, or other assets to charitable organizations, you need to have an estate plan which includes charitable giving.

A recent example in San Diego occurred when a woman died without a will or trust. She was very active in the community and handicapped herself, always intended to leave her handicapped accessible home to an appropriate charity that would see that the home was utilized by persons with disabilities. She never got around to consulting an estate planning lawyer to make a will or trust. Having died without an estate plan, her home will have to go through probate with the rest of her assets and her heirs will sell the home and distribute the proceeds. Her dream to leave her home to charity will not be realized.

The lessons of this example are twofold: 1. Don’t postpone making an estate plan, especially if you wish to give something to charity. 2. If you do want to leave assets to a charitable organization, specify your wishes in a will or trust. You can make a specific charitable bequest of cash or property. You can also create a charitable remainder trust, or a charitable lead trust. You can read about the various ways you can accomplish charitable giving on our website. At Law Office of Scott C. Soady, A Professional Corporation, we can assist you with an estate plan that will include the charities and causes that are important to you. Call us or e mail us for a personal, confidential, and complimentary consultation.

Published on: July 2, 2008

How Will the Presidential Election Affect the Federal Estate Tax Exemption for Citizens of San Diego?

by Scott C. Soady

In San Diego the cost of housing is one of the highest in the nation. For many of us, our home is the primary asset in our estate. One of the issues in the upcoming presidential campaign is the repeal or modification of the federal estate tax exemption. The outcome of the election may have an effect on whether your estate will be subject to estate taxes. As discussed below however, regardless of the election, you should not postpone creating an estate plan, the central document of which would be a revocable living trust.

The Estate Tax, often called the death tax, is a tax on the estates of the deceased in the United States. Tax-cut legislation enacted in 2001 provided for 10 years of increasing exemptions. Current law is that those with taxable estates over $2 million will be subject to estate taxes. If the estate is more then $2 million, the remainder is taxed at 45%. In 2009 an estate over $3.5 million will be taxed. Unless Congress acts to repeal or change the current law, the tax will be completely eliminated in 2010 but will be reinstated in 2011 to tax estates over $1 million with a top rate of 55%.

The repeal or elimination of this tax entirely has been suggested by many fiscal conservatives, primarily Republicans. Where do the Presidential candidates in the upcoming election stand?

Published on: June 25, 2008

Who Gets Grandma’s Ring in Rancho Sante Fe?

by Scott C. Soady

Estates are comprised of many different assets including homes, bank accounts [Bank of America, Union Bank and others], life insurance [Farmers, State Farm and others], and personal property such as jewelry, artwork, cars, and boats. Sometimes what causes the most squabbles among family members after a death is not the real property or cash but such things as jewelry, collectibles, or other items of strictly sentimental value such as grandma’s ring or grandpa’s gun.

Unless you have left specific instructions as to your personal property in your will or trust, usually it will be divided equally among your beneficiaries. But what is equally? How do you value a family heirloom? As an example, Rosa Parks (who you may remember started the civil rights movement in 1955 when she refused to surrender her seat on a bus to a white rider) had in her estate china that was used when she dined with then President Clinton. How does one determine the value of that particular piece of Wedgwood china? What about Grandma’s ring? Something that may be priceless to a beneficiary because of its sentimental value may be worthless in terms of its appraised value. What if two or more beneficiaries want the same item and won’t budge?

If you have specific items of personal property that you want to give to particular people upon your death, you can make specific bequests in your will or trust. Usually however, people have too many items of personal property to list them all in their will or trust. Or they may acquire other personal property after they execute their will or trust or want to change their mind at some point about certain gifts.

Published on: June 19, 2008

Parents of high school graduates in San Diego – is your child now 18?

by Scott C. Soady

If your child is now 18, there is valuable information for you and your now “adult” child available for free. There is a publication entitled “When You Become 18: A Survival guide for Teenagers” published by The State Bar of California. This pamphlet can be ordered in print form or downloaded from the bar website and answers such questions as what happens if my 18 year old commits a crime? As parents, are we responsible if our 18 year old injures someone with the family car?

One document every adult child should have is an Advance Health Care Directive to appoint someone to make health care decisions in the event of an incapacity. Once a child turns 18, the parents can’t make medical decisions for their child. If the parents are divorced or separated and disagree on medical treatment, how is it resolved?

Similar to the Terry Schiavo case, there recently was reported the story of a 25 year old single woman who was brain damaged as a result of a dirt bike accident. She had no living will or power of attorney for heath care. Her divorced parents are arguing over a DNR order (do not resusitate order) signed by her mother and whether the mother or the father should be appointed her temporary guardian to make those end of live decisions.

Published on: June 17, 2008

San Diego: Same Sex Estate Planning

by Scott C. Soady

In San Diego, the law changed on June 16, 2008 in regards to marriage ceremony and the issuing of State of California marriage licenses to same sex couples. The law which applied to opposite sex couples is unchanged. In San Diego, both same sex and opposite sex couples will go to the San Diego Superior Court for their marriage.

A recent California Supreme Court Case has taken effect and issues a Writ of Mandamus for all California State officials to perform marriages in accordance with the new ruling which does not define marriage as between a “man and woman”.

As such, our law firm of Law Office of Scott C. Soady, A Professional Corporation, LLP is offering the same estate planning services for same sex spouses as for opposite sex spouses. No attorney can guarantee that the state of the law will remain the same. In fact, already there is the proposal for an amendment to the California State Constitution to make same sex marriages unconstitutional.

Published on: June 9, 2008

San Diego: Senior Citizens and Memory

by Scott C. Soady

In San Diego, we have many senior citizens. One article explains that talking frequently improves memory. An estate plan includes provisions for a conservatorship if necessary and our firm’s hope is that you never need this and that by good health [both mental and physical] a conservatorship will never be necessary. However, if it ever is, please e mail our firm.

An article at SeniorJournal reports a study done at the University of Michigan Institute for Social Research. One of the researchers was a psychologist at University of California in San Diego. This study tested people as old as 96 and found that a ten minute conversation was just as effective as crossword puzzles or other “solo” intellectual activities for preventing loss of memory. So instead of sitting home alone doing puzzles to keep your brain sharp, invite someone over for a conversation.

As we grow older, we face not only issues of memory loss but also issues relating to estate planning, long term health care, planning for incapacity and other issues in the area of elder law.

Published on: May 28, 2008

San Diego: Beneficiaries

by Scott C. Soady

In San Diego, many residents will pass away. When they do, their husbands, wives, sons, daughters, grandchildren and other relatives will receive their property either through the probate process or through trust administration or other legal procedures for distribution of assets post death of the trustor. In San Diego, there are two court houses which hear probate cases. One court house is in San Diego and the other court house is in Vista.

In a recent article in the Sacramento Bee, the issue of the importance of naming beneficiaries is discussed as part of the estate plan. The article discusses the distribution to contingent beneficiaries of a life insurance policy rather than the living trust as the beneficiaries.

Our law firm of Law Office of Scott C. Soady, A Professional Corporation, LLP would be pleased to give you advice on the advantages and disadvantages of all estate planning strategies. This is complimentary and confidential. Please feel free to e mail or call our firm.

Published on: May 19, 2008

San Diego Marriage: Estate Planning

by Scott C. Soady

In San Diego, California, we are governed by the laws of the United States and these are interpreted at the highest level by the California Supreme Court and the United States Supreme Court. In San Diego, for the State Courts, the law is interpreted by the San Diego Superior Court.

Estate planning has long utilized the marital status as part of the estate plan. Our office has prepared thousands of revocable living trusts and many of these are for married couples. Until last week, this was only for men and women and was controlled by Family Law Code 308.5 which is entitled California Defense of Marriage Act and was approved under Proposition 22 on March 7, 2000. The recent Supreme Court decision has ordered that this Code is no longer the law and this will have a significant effect on estate planning for the future if this law is not overturned by the United States Supreme Court.

Our law firm of Law Office of Scott C. Soady, A Professional Corporation, LLP can assist in analyzing your unique and individual estate planning needs. Please e mail or call us for your complimentary consultation.