LIVING TRUSTS

Published on: July 30, 2008

North San Diego County – Will and Trust Litigation

Even when a person dies with a will or a trust, there can be disputes that result in a will contest or trust litigation. An individual may feel he or she should have been a beneficiary under a will or a trust. Sometimes a will has been changed and beneficiaries under the original will feel there has some impropriety surrounding the execution of the subsequent will. Sometimes beneficiaries may be dissatisfied with the accounting of the assets in the estate. When these types of issues occur, it may become necessary to seek the assistance of the court to resolve these issues. Common grounds for contesting a will are such things as claims of undue influence, lack of mental capacity, fraud, or an invalid codicil (amendment).

With a trust, individuals who are beneficiaries or think they should be a beneficiary may dispute the trust. Issues can arise such as the validity of the trust or amendments, the administration of the trust, or conduct of the trustee. Sometimes trustees have to be removed for misconduct or impropriety or it may be the case that beneficiaries have to initiate litigation to receive a fair distribution.

Handling a will or trust litigation matter requires special experience. If you have concerns about a will or a trust or believe you should have inherited from one, the experienced estate planning lawyers at Law Office of Scott C. Soady, A Professional Corporation can assist you. Call or e mail us for a complimentary, confidential in-house consultation.

Published on: July 18, 2008

Trust Administration in San Diego

by Scott C. Soady

Once you create a revocable living trust your job as the creator (often called the Trustor or Settlor of the trust) is to properly fund the trust initially and thereafter see that all the assets that should be placed in your trust are properly titled.

Once you pass away, the job of administering the trust is in the hands of your successor trustee. Your trust continues in existence and certain actions are necessary to carry out the purpose of the trust. These duties are done by your successor trustee. If you are the successor trustee of a trust, it is important to understand you have certain duties. These duties are called Trust Administration and may involve some or all of the following : paying the decedent’s debts, making an inventory of the trust’s assets, creating sub trusts if called for by the trust agreement, filing tax returns, transferring ownership of real property, notifying certain parties of the death (such as the Social Security Administration, Medi-Cal, and named beneficiaries), paying estate taxes within 9 months, paying property taxes on real property, selling certain assets, and making other decisions about investments if the trust is to continue.

Trust administration does take some time and attention to details. It often requires the assistance of an attorney to advise the successor trustee and assist him or her with the duties the job involves. If you need an experienced attorney to assist you as a trustee (or as a named beneficiary), call us or e mail us at Law Office of Scott C. Soady, A Professional Corporation and we will be pleased to offer you a 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 30, 2008

North San Diego County – Have you designated a guardian for your minor children?

by Scott C. Soady

Unfortunately, it occasionally happens that both parents of a minor child die in a common event or accident. If both parents die without an estate plan, a probate judge will have to appoint a guardian. A guardian is responsible for taking care of their “ward” until the child turns 18. This includes such things as housing, food, medical bills, clothing, education, and other incidental expenses. Having the Probate Court choose a guardian for your children may not always result in a guardian that you would have selected.

If the parents have a will or trust designating a legal guardian for their children, the children will be taken care of. A will or a trust allows you to have a say in who takes care of your child upon your death. You are in the best position to know who that individual is. Who is best able to provide a stable and nurturing home for your child – your brother, sister, grandparent, a close friend?

Factors you should consider are:

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 12, 2008

San Diego: Pet Protection: Will or Trust?

by Scott C. Soady

San Diegans, have you provided for your pet in your will or trust? Our firm can assist and please feel free to e mail us. Please review our article regarding pets on our website.

You may remember last year when hotel and real estate magnate Leona Hemsley died, leaving 12 million dollars to her dog, a white Maltese named Trouble. You can view the story of her extraordinary gift in the Washington Post Newspaper. She apparently left two of her grandchildren nothing ‘for reasons known to them” but left millions to her beloved pet.

While the amount may have been extraordinary, it is becoming more commonplace for pet owners to provide for their pets in their will or trust. Even people of modest estates may set aside a certain sum of money to see that their pet is taken care of. $500 to $5000 may not be unrealistic for care of a beloved dog, cat, or horse. Horses may require even more money to maintain as they can often outlive their owners. It is not uncommon for horses to live to be 20 – 30 years old. Expenses for caring for a horse can be as much as $ 5000 – 10,000 per year for such items as food, boarding, vet care, and farrier services.

Published on: April 24, 2008

San Diego Trusts and Estates Section: State Bar of California

by Scott C. Soady

In San Diego, all of the attorneys are licensed by the State Bar of California. This is the professional organization which oversees attorneys. The State Bar of California, along with the Continuing Education of the Bar, offers many services for attorneys. There are also, however, services for the public which many persons in San Diego who are current clients or not current clients do not know about.

One of the sections for the public is in the Trusts and Estates Section of the State Bar website. This gives the public acess to the toll free senior information line of 1-888-460-7364. In addition, the public can view resources which the Speaker Bureau Attorneys can obtain directly from the State Bar. These include a statutory will form, an advance health care directive, estate planning brochures, and additional information including a senior information card.

At our firm of Law Office of Scott C. Soady, A Professional Corporation, LLP we offer a complimentary consultation as the different forms, pleadings and procedures can be very complicated. We also have a page on our website directly relating to living trusts. Please feel free to contact us directly by e mail or at our toll free number in Southern California of 1-877-435-7411 [1-877-HELP411] which is also our website address of www.help411.com.

Published on: June 15, 2005

San Diego: FDIC Insurance For Revocable Trusts

by Scott C. Soady

In San Diego, we have many FDIC insured banks. These include Washington Mutual, Union Bank, Bank of America and others. Our law firm of Law Office of Scott C. Soady, A Professional Corporation, LLP does not endorse or recommend any bank or other financial institution. We would be pleased to offer you a complimentary consultation on any estate planning issue. Our firm does not recommend or endorse any bank or financial institution. Please feel free to e mail or call us with any questions.

In 2004, the Federal Deposit Insurance Corporation (FDIC) put in place new rules for insurance coverage of living trust accounts in FDIC-insured institutions. A living trust, sometimes called a family trust, is a formal revocable trust. Its owner specifies who will receive the trust assets when the owner dies. During his or her lifetime, the owner, also known as a grantor or settlor, maintains control of the trust assets and has the power to make changes in the trust.

The owner of a living trust account is insured up to $100,000 per beneficiary if each of the following three requirements is met: