Beneficiary Designations for Real Property

Real Property Beneficiary Designations in California

The California State Assembly unanimously passed legislation that will allow homeowners to put beneficiaries on their real property (AB 139 will now move to the State Senate for consideration). Upon the death of the property owner, the property will pass to the named beneficiaries without the need for probate if the Senate also passes the bill.  

I think the article, linked below, is a great resource on this topic. However, I disagree with the title, "Huge Win for the Middle Class." A beneficiary designation for real property is a huge win for everyone because it helps avoid probate, saves taxpayer money, and provides some relief to our overburdened courts.   

Despite being a huge win for everyone, I would not recommend planning an estate by only using beneficiary designations. A comprehensive estate plan that utilizes a revocable living trust is the best way to protect property during illness, avoid probate, and distribute property to beneficiaries. Beneficiary designations cannot protect a persons's property during a long term illness. Without a comprehensive estate plan, a person's property could be in limbo as to how the property is to be used and managed during a long term illness.  

A revocable trust is the best tool for managing property for the benefit of the owner during a period of illness thereby planning for a period of time between health and death. As a result, beneficiary designations on real property should only be viewed as a tool for estate planning, not a substitute.       

http://californianewswire.com/2015/04/09/huge-win-for-middle-class-californians-as-probate-simplification-legislation-passes-state-assembly-ab139-CNW24745_103734.php/

Top Ten Estate Planning Mistakes

Visit Our Website and Request our Free Brochure 

Get our free brochure that identifies the ten most common estate planning mistakes by visiting our website at the link below.

Contact me today for a free consultation.

Email: tim@santabarbaraestateplanner.com
Phone: (805) 669-7009

For more information about our firm, visit our website at
https://santabarbaraestateplanner.com/

We Have Preferred Estate Planning Rates for Teachers

Annually, We Provide a Limited Number of Estate Plans to Teachers at Reduced Rates  

Before I became an attorney, I was an elementary school teacher for ten years.  I taught public school in Lansing, Boston, and New Orleans.  Throughout law school, I promised myself that I would give back in some way to my fellow teachers.

As a way to give back, I offer my estate planning services at a preferred rate to a limited number of teachers and retired teachers. If you would like to see if I have any remaining preferred rate plans available, please contact me for a free consultation.    

In addition, if your school is willing to host me, I can give a forty-five minute presentation on the basics of estate planning at no cost if at least four members of your staff are willing to attend.  If your school is unable to host me, I can give a forty-five minute presentation to you and some of your colleagues at my office.

Contact me today to inquire about our reduced estate planning rate for teachers.
Email: tim@santabarbaraestateplanner.com
Phone: (805) 669-7009

For more information about our firm, visit our website at https://santabarbaraestateplanner.com/

Great Article that Explains the Impact of the Supreme Court's Decision on Same-Sex Estate Planning

Estate Planning for Same-sex Couples
 After Obergefell v. Hodges

By: Matthew T. McClintock, JD 

Vice President, Education and Supplemental Legal Content 

This article was posted in Wealth Counsel's Legal Education Blog and was authored by Matthew T. McClintock. The link to this article is below.  Mr. McClintock concisely sums up current estate planning needs for same-sex couples after the Supreme Court's recent ruling.

http://info.wealthcounsel.com/blog/estate-planning-for-same-sex-couples-after-obergefell-v.-hodges

When Should I have my Estate Plan Reviewed?

How Often Should I have my Estate Plan Reviewed?

You should have your estate plan reviewed every two to five years and after major life events. Your estate plan is like a car. An estate plan will not keep running without regular maintenance because laws change, people and relationships change, and assets are sold and acquired after an estate is planned.  

Our firm reviews existing estate plans. We will review your existing estate plan and provide counseling in light of your concerns and goals. We believe the attorney that drafted your estate is the best person to review your estate plan, but we understand that is not always possible.

We suggest a review of an estate plan:

• every two to five years;
• if the estate plan was drafted prior to 2012;
• prior to a divorce and post-divorce;
• after an addition to your family through birth, adoption, or marriage;
• if a spouse or a family member has died, become ill, or is incapacitated;
• if your spouse, parent(s), or other family member has become dependent on you;
• if you anticipate a substantial change in the value of an asset;
• if you would like to change a beneficiary, successor trustee, or agent;
• if you would like to change how your property is distributed;
• if you have received a substantial inheritance or you believe you will inherit a substantial amount of money or property;
• if your child has become disabled or has a handicap and will need lifelong support; or
• you are retiring.

If you have questions or you would like an estate plan review, contact us at tim@santabarbaraestateplanner.com or (805) 669-7009.  

For more information about our firm visit our website at https://santabarbaraestateplanner.com/

Where Should I Keep my Estate Planning Documents?

Safekeeping Your Estate Planning Documents

Now that you have finished planning your estate, you may be wondering, "Where do I keep all of these papers?"

The best place to keep your original documents is in a secure location. Your agent(s) and successor trustee(s) should know where the originals are, and they should have access to the documents.

A safety deposit box is a great location for storing original documents. If you have an estate planning binder, you should place the originals in your safety deposit box while leaving copies of the originals in the binder.

If you choose to store the documents in a safety deposit box, please make sure that your agent or trustee has access to the safety deposit box. A problem can occur when the documents that empower your agent to have access are locked inside the safety deposit box. This problem is usually resolved by obtaining a court order which is counterproductive to your estate plan and an unnecessary expensive.  As an alternative to a court order, your agent may be able to ask the financial institution to conduct a "will search" which may give your agent access to your documents, but only upon your death.

A home safe is also a great location for storing originals, and most home safes also provide some sort of fire protection. You should show your agent and trustee where the safe is located and provide them with the combination.

I do not recommend storing the original documents with your attorney even if the attorney recommends it. Attorneys are people and businesses.  People move, die, and can be hard to find. Businesses change their names, are bought and sold, relocate, and go out of business. Your agent or trustee should be able to easily locate a safety deposit box, or your home safe, after you have provided them with access.     

Pet Trusts are Enforceable in California

​Pet Trusts are Enforceable in California

Traditionally, Pet Trusts were referred to as Honorary Trusts because Pet Trusts were not enforceable.  In essence, the person entrusted with assets to be held for the welfare of a pet was only on their honor to obey the terms of the trust.  There was no legal way to enforce the terms of the Pet Trust ​to make sure the pet was cared for and make sure assets were not squandered.

However, a new California law recognizes the special relationship between pets and their owners. Now, a California pet owner can create a legally enforceable trust to provide for the care of his or her pet animals. Under this new law, Pet Trusts are presumed to be valid as long as certain legal requirements are met. Generally, these requirements ensure that all of the money left in trust for the pets is actually used for the benefit of those pets. 

At Timothy Follett, Attorney at Law, we are experienced in drafting Pet Trusts.  If you have questions and would like to know more about Pet Trusts, please contact us at tim@santabarbaraestateplanner.com or (805) 669-7009.  For more information about our firm visit our website at https://santabarbaraestateplanner.com/