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How to be the Trustee of a Trust Workshop

December 2, 2020December 2, 2020bfiorito

How to be the Trustee of a Trust: Attend Our Workshop – Even without foreclosures and limited information online that are experiencing these days, the probate court process can be confusing. The need for clean and concise information on California probate courts grow increasingly more important in times of uncertainty, and certainly 2020 falls in that category.

And of course, the fact that your heirs are in court at all dealing with your estate means that the choices you make for your estate representatives, will
make all the difference.

Do your loved ones know what to do with your estate plan in case of a sudden death or emergency? If not, then education and information are the keys for your family.

The Hayes Law Firm’s one-of-a-kind, How to Be a Trustee workshop will make sure that those people in whom you have placed your confidence to deal with your estate, have a clear sense of what is involved.

The workshop is designed for you, your family, and anyone involved with the administration of your estate plan, such as Successor Trustees, Executors, and Power of Attorney (POA) agents.

Everyone should have a foundational understanding of how your estate plan works. Attendees will learn about the tools for administering your estate plan the roles that various people will play, when they need to act, what they will need to do, and what information they will need.

The workshop will cover tips on how to prepare for your future. Simply having an estate plan is not enough, if the people in charge don’t know what they’re supposed to do.

Our free webinar on How to Be a Trustee or Power of Attorney Representative, together with a free curriculum of written materials and a live Q&A private chat session will prove invaluable for the proper handling of your estate plan.

Workshop attendees will undoubtedly gain a fuller understanding of their role in the administration of your affairs.

lawyer attorney consultation estate planning

Attorney William K. Hayes is a noted speaker on the subjects of Living Trusts, Wills, and Long-Term Care Planning. His newspaper columns on estate planning topics have been syndicated throughout Southern California. The Hayes Law Firm has been cited as a resource for estate planning answers by NBC, CBS, ABC and FOX. Mr. Hayes is also an active member of the American Academy of Estate Planning Attorneys which is highly recommended by Consumer Reports, Money Magazine, and Suze Orman, as a top resource for locating highly qualified estate planning attorneys.

Did you enjoy reading, How to be the Trustee of a Trust: Attend Our Workshop? Interested in learning more about this subject? Attend an upcoming webinar!

Join us for a free Trustee and Power of Attorney Training School Webinar, Medi-Cal Webinar, and/or Probate Webinar. Get registered today!

This website is not intended to be a source of solicitation or legal advice. General information is made available for educational purposes only. The information on this blog is not an invitation for an attorney-client relationship, and website should not be used to substitute for obtaining legal advice from a licensed professional attorney in your state.

Will Your Estate Plan Still Work if You Move?

August 17, 2020September 16, 2020bfiorito

Written by Attorney Wiliam Hayes

Will Your Estate Plan Still Work If You Move? Before the pandemic, Americans were more mobile than ever. In the prior decade, millions of Americans moved each year. Here’s a link for more information on moving in America. When you move, you have to change your address, your voter registration, and all sorts of other things. But, do you need to revise your estate planning documents? Like with many things in law, it depends on your situation.

Often, people wonder, “What happens to my estate plan if I move?” Well, it depends. If you move within the same state, your documents are valid and the planning will still be intact, as well. If you move from one state to another, your primary dispositive plan may still be valid, but some aspects might not work as well in your new state.

Let’s look at an example. John and Mary went to an attorney in State A. A couple of years later, they moved to State B. There are so many things to do when you move, they didn’t update their estate plan when they moved to the new state. This caused issues because the laws in State B were somewhat different. John had a stroke and when Mary went to use the Healthcare Power of Attorney, the hospital gave resistance because they’d never before seen a document like the one John and Mary had which was similar to that typically used in State A. The form used in State A didn’t have many of the choices the hospital staff in State B typically saw. Eventually, Mary was able to use the Power of Attorney, but the hospital’s resistance caused by not having a document familiar to them added stress when Mary was already near the breaking point. Later, after John died, Mary went to an attorney to settle things. The attorney opined that, while their estate plan made sense for State A, it didn’t do the tax planning which would have been wise to do in State B. You see, State B had a separate estate tax, while State A did not.

After John’s death, the bills from his final illness and funeral came in. Mary sold some stock to pay for the bills. When it came time to prepare her taxes for the year, her accountant asked her if the stocks had been community property before John died. When Mary told him they hadn’t been, he said “That’s a shame.” She’d owe tax on her gains. If the stocks had been community property at John’s death, even Mary’s part of the community property would have gotten a “step-up” in basis to fair market value. In other words, all the gain up until John’s death would have been wiped out.

If John and Mary had visited an estate planning attorney regarding their estate plan upon their move to the new state, they could have made plans more appropriate for the new state. This could have saved income tax on the stock sale after John’s death. Mary would not have encountered difficulty using the Power of Attorney. Mary could have saved money at her later death.

Whenever you have a significant life change, including a move to a different state, it’s best to check with an estate planning attorney to see if your estate plan should be updated or if you should make any other changes to take advantage of the laws of your new state of residence. That is the case whenever you move to a different state—even if it’s only across a river or state line.

Interested in reading more blog posts? Find our Blog here.

For more information about The Hayes Law Firm, visit our Google My Business page.

Managing Risk in Estate Planning

February 13, 2014September 16, 2020bfiorito

Written by William Hayes

Managing Risk in Estate Planning – Risk management should be a part of any long-term estate plan, especially when a plan is expected to cover several generations. Multigenerational clients tend to be more concerned with preserving wealth than taking risk on the upside of markets. They look at risk management from a portfolio construction standpoint — to reduce liability and have the right insurances and protections in place.

What’s involved? A solid risk management plan does a 360-degree assessment of the risks to be minimized or mitigated. Risk management smooths the path to true wealth transfer.

To execute your plan with as few risk issues as possible, you need to consider the following issues:

Possible exposure to litigation and claims. Once a claim has been made, some asset protection strategies are subject to attacks and reversal by a judge or jury because such transfers could be deemed as fraudulent conveyances. Various strategies can help protect your beneficiaries from their inherited assets being pulled into a lawsuit. Trust planning keeps assets within the family in the event of a divorce or the death of a child.
Quantitative analysis. As defined by Investopedia, QA “is a technique that uses mathematical and statistical modeling, measurement, and research to understand behavior.” This proposes to take some of the financial guesswork out of planning. Instead of thinking of and allocating your wealth as a single portfolio, you disaggregate it according to its intended uses to assist your family in planning. Many advisors will use the Monte Carlo simulation. This is a system that presents a wide range of outcomes in a particular situation to help pick the best strategy.
The potential for family argument. Is anyone being left out of a will who expected to be in it? Who may be aggrieved enough to start a lawsuit and challenge a will or trust? A combination of explanation in advance and well-worded will and trust documents can help avoid this. Attorneys and financial experts can point out potential “danger spots” in an estate plan.

You will also need to work with your advisors to set up a risk profile. This is basically how much risk you’re willing to accept to meet your goals. In brief, how upset are you when the market goes down? Many advisors start with a questionnaire that will help them see how upset you’d be if you lost a certain percentage of your portfolio in a given year. When there’s a loss, is your first inclination to start putting your money into safer alternatives?

Along with the risk you feel comfortable with, your advisor will work with you on the risk you are actually able to accept. For example, you may be able to take greater risk with an investment portfolio for the long term if you know you’ll be able to count on a pension. Be sure to consult with your estate planner for further advice and ideas.

Interested in reading more blog posts? Find our Blog here.

For more information about The Hayes Law Firm, visit our Google My Business page.

Generational Wealth is Key to Leveling the Playing Field

February 13, 2014November 27, 2020bfiorito

Generational Wealth is Key to Leveling the Playing Field – Even a little bit of a headstart can be extremely helpful in life. Those who start with little economic wealth, including many minorities and recent immigrants, face obstacles in obtaining a good education and building a business or a solid career. Those who have a headstart in life have an easier path to success and happiness. It doesn’t mean they will have everything handed to them on a silver platter. It just means they won’t start at the bottom of society’s ladder. The biggest factor in the wealth gap between minorities and non-minorities is inheritances, according to a report by the Brookings Institution. This generational wealth is key to leveling the playing field so your children, grandchildren, and descendants can have a better life. The American dream is to work hard and provide your descendants with a chance for a better life than you had.

How do you provide a headstart in life for your loved ones? First, you can provide them with funds to give them a leg up. These funds could allow:

A home to provide a solid footing
A good education to allow a more rapid ascent up the career ladder
Funds for starting a business
Economic security

Second, you can leave those assets to them in a manner that protects those assets.

You can protect those assets from the beneficiary’s mismanagement prior to when they have gained maturity
You can protect the assets from the beneficiary’s creditors
You can protect the assets from the beneficiary’s misuse of the assets

You can achieve all of this by using a trust. Let’s look at an example. Jayden and Alyssa have worked hard all their lives. Through their hard work (and a little good fortune) they have been able to build a tidy nest egg. They have two children, Jasmine and Isaiah (Ike). They want all the best for their children, as we all do, and they want them to be able to have an easier start than they did.

Jasmine is level-headed and is a straight-A student. They have greater concerns about Ike, who isn’t as studious as Jasmine. After speaking with their estate planning attorney, Jayden and Alyssa decide upon a plan tailored to their family’s unique needs. Upon the death of the survivor of them, their assets will be split into shares for their two children. Both trusts will have Alyssa’s trusted sister, Janet, as the trustee. Janet will be the trustee of Jasmine’s half until Jasmine is of a suitable age, which they think will be 35. At that age, Jasmine will be the trustee of her own share. Prior to that time, Janet will distribute for Jasmine’s education, support, and other needs. Thus, the assets will provide Jasmine a headstart in life while the assets are protected from misuse and unwise investments in her early adulthood. Then Jasmine can pay it forward to her children when she has them.

Ike is not as studious as Jasmine. In fact, Jayden and Alyssa have some concerns about Ike. Ike has been irresponsible. Ike had an accident while driving under the influence. Luckily, Ike wasn’t hurt, but the passengers in his car and the occupants of the other vehicle involved were injured and received judgments against him. Because of this, they’re giving Janet greater latitude as trustee for Ike’s share. Ike’s share provides distributions to him only in Janet’s discretion. This provides protection from Ike’s creditors. Janet can still make distributions for Ike’s benefit as she sees fit so he can still get a good start in life by getting an education, etc. This ensures the assets will be there for Ike’s benefit and won’t be wasted by Ike or seized by his creditors.

Jayden and Alyssa have worked hard and saved all their lives. They want their children to have an easier start than they did. So, they consulted with an estate planning attorney. After they are gone, they’re leaving their assets for their children in trusts with protection tailored to Jasmine and Ike’s needs. They built their family. They built their nest egg. Now they’ve consulted an estate planning attorney and built a unique plan tailored for their family which will pass on their nest egg to provide a headstart and protections for their family.

Interested in reading more blog posts? Find our Blog here.

Written by William Hayes, AAEPA

For more information about The Hayes Law Firm, visit our Google My Business page.