San Diego Estate Planning Lawyer Blog

Published on: January 7, 2013

Fiscal Cliff “Agreement” Reached: What It Means For Your Estate

As most people already know, Congress and the White House reached a deal this week to halt the implementation of the “fiscal cliff” changes related to tax increases and spending cuts. While the agreement was reached after the start of the new year, this is nothing more than a technicality as the actual facets of the cliff will be avoided.

The political wrangling surrounding the passage of the agreement was a bit of political theater. The Senate passed the bill on December 31st with broad bipartisan support. The details of the agreement were hashed out by Senate Republican leader Mitch McConnell and Vice President Joe Biden, and so with representatives from both parties involved it was easy to get sufficient support to pass the measure out of the Senate. The House of Representatives was a different matter, with the majority Republican caucus is disagreement about whether they would even allow a vote on the Senate bill. In the end, in a maneuver that surprised many, the legislation was called and some Republicans voted for the measure,

along with a majority of Democrats, to pass the bill.

Published on: December 26, 2012

The Importance of Advance Directives for Cancer Patients

by Scott C. Soady

There is no easy way to deal with the physical, mental, and emotional challenges of a battle against cancer. But being fully informed about the treatment options and legal ramifications of certain medical decisions is a good start. Unfortunately, there remains a great deal of confusion regarding cancer treatments, even among patients themselves. For example, a recent national study of 1,200 patients with aggressive cancers found that many patients were confused about whether the drugs they were receiving were intended to help them deal with the effects of the cancer or actually fight the cancer itself.

Specifically, 69% of patients with advanced cancer of the lung and 81% of patients with advanced cancer of the colon mistakenly “believe that the drugs could render them cancer-free.”

Doctors suggest that more assistance is needed to discuss the prognosis with cancer patients, including someone who can help patients cope with the transition and someone who can explain advance directives.

Published on: December 23, 2012

Update on Same-Sex Marriage & The Supreme Court

by Scott C. Soady

After many weeks of speculation and several false alarms, on Friday the Supreme Court of the United States (SCOTUS) officially agreed to hear two appeals of cases related to gay marriage. The Court’s decision to grant these two petitions mean that next year is set up to be an incredibly important one for the gay community. Same-sex couples in California will undoubtedly be paying close attention to these matters, as they will have implications on many different issues, including long-term planning.

The Two Cases

The first case the Court agreed to hear is Hollingsworth v. Perry, which stems from California’s Proposition 8 measure that passed in 2008. Plaintiffs in the case sued alleging that the Proposition violated the U.S. Constitution’s Equal Protection Clause. A district court agreed, striking down the ban. A panel of the 9th Circuit U.S. Court of Appeals agreed that the Proposition was unconstitutional. However,

Published on: December 21, 2012

When Your Gut Feelings Leave, Find Protection through Estate Planning

by Scott C. Soady

It is well known that senior citizens are more prone to fraud than younger individuals. Research indicates that seniors lose an estimated $2.9 billion to fraud each and every year. Now, MetLife’s Mature Market Institute may have found the reason why. They have conducted a study with the National Committee for the Prevention of Elder Abuse and the Center for Gerontology at Virginia Tech into physical brain differences in seniors and the results were astonishing.

The Brain Research

Shelley Taylor, a professor of psychology at the University of California Los Angeles, led the research project. She became interested in the topic when her father was tricked out of $17,000 by two men who convinced him to empty his bank account. Her aunt was also a victim of a fraudulent scheme when she agreed to buy diamond earrings via mail that turned out to be glass.

Published on: December 19, 2012

The Fiscal Cliff – What It Means For You and Your Planning

by Scott C. Soady

Political news for the rest of the month will be dominated by talk of one thing: the ominous “fiscal cliff.” So what exactly is it and how might it affect you?

The “cliff” refers to a series of mandatory spending cuts and tax increases that are set to take effect at the end of the year. They will be avoided only if Congress and the President reach an agreement on an alternative compromise plan. The cliff itself would cause about $600 billion in immediate spending cuts on top of $500 billion in annual tax increases. While this drastic action may help realign a budget in the red, it also has many worried that it could send the country into another recession. Few on either side of the aisle actually want the specific proposals in fiscal cliff to take effect, but they do not see eye to eye on the alternatives.

If the stalemate cannot be broken, what does that mean for you?

Published on: December 19, 2012

Insurance Scam Targets Elderly Californians

by Scott C. Soady

With all of the scams targeting the elderly today, the smartest investment that a one might make is in a visit to an attorney who works on elder law and estate planning issues. An experienced legal professional can provide sound advice to help you invest your savings safely for the future and protect your assets from predators. This protection is invaluable at a time when you have already saved a lifetime’s worth of income for you and your family.

Recent Financial Scams

Far too many San Diego residents continue to be taken advantage of by scammers and con artists.

Published on: November 30, 2012

Special Considerations for Same Sex Couple’s Estate Planning

by Scott C. Soady

Estate planning is important process for any couple, but same sex couples have an even heightened reason to ensure the protection of their union. While the recent election resulted in more states legalizing gay marriage, many states, including California and the federal government still do not recognize gay marriages as legal. While the U.S. Supreme Court’s ultimate decision on the Prop 8 case may again allow same-sex couples to marry in our state, those couples would still not receive full recognition of their union at the federal level.

This means that for same sex couples in California to fully protect their relationships, significant planning needs to be done. A lawyer well versed in trust and estate planning can be of great assistance in creating a comprehensive estate plan.

In an interview with CNBC, a financial consultant with Schwab noted that “The federal government does not treat [same-sex couples] as married couples and this creates financial and tax complications.”

Published on: November 14, 2012

How Advance Directives Can Help

by Scott C. Soady

Health is something that young people often take for granted. Usually it is only as we get older that we become concerned with our health and the costs associated with additional care. Some of us take steps to make sure that we have the proper health insurance and savings to pay for our health costs. But what happens if your health takes a turn for the worst and you cannot even express what type of care that you want? A possible solution to this problem is an advance directive. Even that National Institute of Health advises community members across the country that it is wise to use these legal tools. They note how you can have advance directives with a durable power of attorney, “a document that names your health care proxy. Your proxy is someone you trust to make health decisions if you are unable to do so.”

Feeding Tube Decisions

Since medical decisions are a matter of preference, there can be relief in knowing that your preferences have been chosen before a tragedy occurs. An example of a medical decision that should be made beforehand is whether or not you will want a feeding tube. A feeding tube is often used for patients who have irreversible dementia and have forgotten how to eat. This tube can also be used for patients with “a critical illness, such as Lou Gehrig’s disease, or recovering from stroke, cancer or anorexia.”

Published on: November 6, 2012

Is Life Insurance Enough?

by Scott C. Soady

Choosing the right life insurance policy can be tricky. However, sometimes even doing your research and paying a significant amount towards your life insurance does not mean that your beneficiaries will benefit in the end.

This lesson became a harsh reality for many beneficiaries of AIG’s life insurance policies in California.

An audit conducted by California Controller John Chiang reveals that AIG fails to “pay death benefits to the beneficiaries of life insurance policies, despite having access to federal records indicating that policyholders had died, or direct confirmation of relatives of the deceased.” AIG not only fails to pay these policies but also continues to collect the premium payments by “drawing down the policies’ cash reserves.” Once there are no more cash reserves to withdraw, AIG would cancel the policy unbeknownst to its beneficiaries.

Published on: November 5, 2012

Court Rules That Woman Must Give Up Inheritance of Kafka Papers

by Scott C. Soady

An international court ruled this week that a large amount of extremely valuable and historical papers be turned over to the Israeli national library. A recent New York Times article delved into the high-profile case. Of course, it is important to keep in mind that the way this international court ruled may not have been the same as an American court. Nevertheless, this case is a wake up call to all that without careful estate planning in relation to how an individual wants to handle his or her personal property that it could end up in a bitter and costly legal battle.

The Story

Franz Kafka was a famous and influential author in the early 20th century. His papers included tens of thousands of pages, written by Kafka and his long-time friend and journalist, Max Brod.