Just married? Ensure your assets and wishes are protected with these estate planning tips. Explore strategies for joint planning, beneficiary designations, and creating wills. To learn more, contact our office today and speak with our estate planning attorney!

As you embark on a new exciting journey together, it's crucial to think about your shared future, not just romantically but pragmatically.

Estate planning might not be the first thing that comes to mind, but it's a vital step in ensuring your assets and wishes are protected. An estate planning attorney in Los Angeles, CA can be an invaluable partner in this process.

Estate Planning Tips for Newlyweds

Estate planning involves more than just drafting a will. It's a comprehensive strategy that addresses various aspects of your life, both individually and as a couple. Here are some essential elements to consider:

• Establishing Life Insurance Policies - A life insurance policy is a fundamental component of estate planning. It provides financial security for your loved ones in case of unexpected events. Work with a knowledgeable estate planning attorney to determine the type and amount of coverage that suits your needs.
• Designating Beneficiaries for Retirement Accounts - Ensure that your retirement accounts have clear beneficiary designations. This step streamlines the distribution of these assets and avoids potential conflicts or delays.
• Create Comprehensive Estate Plans - Work with an experienced attorney to create a well-drafted estate plan. This includes legal documents such as wills, living wills, and powers of attorney. These documents outline your wishes regarding medical and financial decisions, ensuring your desires are honored, even if you're unable to express them.
• Addressing Ownership of Property - For newlyweds, discussions about joint ownership of property are crucial. Consider whether joint ownership aligns with your goals and consult with a legal professional to navigate the intricacies of property ownership.

Navigate Life's Unknowns with Professional Guidance

Life is unpredictable, and estate planning provides a structured way to navigate the unknown. An estate planning attorney can offer personalized guidance based on your unique circumstances.

Whether you have questions about safeguarding the financial future of your minor children or want to explore options for supporting charitable causes, legal advice ensures your estate plan aligns with your aspirations.

Plan for the Unexpected: Powers of Attorney and Living Wills

In addition to addressing financial aspects, estate planning encompasses decisions about life and healthcare. Powers of attorney empower trusted individuals to make financial and medical decisions on your behalf if you're unable to do so.

Living will express your preferences regarding medical care, providing clarity during challenging times.

Secure the Future for Your Loved Ones

One of the primary goals of estate planning is to secure the future for your loved ones. This includes providing for the financial well-being of your spouse, children, and any dependents.

Discuss your estate planning goals openly, addressing potential scenarios and ensuring your attorney has a comprehensive understanding of your family dynamics.

Consult an Experienced Attorney: Your Personal Family Lawyer

When it comes to estate planning, having a Personal Family Lawyer can make a significant difference. This legal professional becomes your trusted advisor, guiding you through the intricacies of estate planning tasks.

From answering questions about life insurance to offering insights into creating a well-drafted will, their expertise ensures your estate plan reflects your unique needs and objectives.

Open Communication and Shared Decision-Making

Estate planning is a collaborative process. As a married couple, open communication is key. Discuss your wishes, concerns, and questions about estate planning with your spouse. Transparency strengthens your shared decision-making, ensuring that both partners actively participate in creating a secure and comprehensive estate plan.

Protect Your Loved Ones: Plan for Unforeseen Circumstances

When contemplating estate planning as newlyweds, consider the following aspects:

Anticipate Unfortunate Circumstances: Life Insurance for Financial Security

Life insurance plays a crucial role in providing financial security for your spouse and dependents in the event of your unexpected passing. An experienced attorney can guide you in selecting the right policy and ensuring it aligns with your overall estate planning strategy.

Care for Minor Children: Appoint Guardianship

For couples with minor children, appointing guardianship is a critical decision. This ensures that, in the event of both parents' incapacity or passing, there's a designated caregiver to provide love, support, and care for the children.

Address Special Needs: Tailor Plans for Unique Situations

If you have a special needs child, estate planning becomes even more intricate. Work closely with your attorney to create a plan that addresses the unique financial and caregiving needs of your child, ensuring their well-being in the long term.

Craft Joint Wills: Unify Your Estate Planning Goals

Some couples choose to create joint wills, expressing their mutual estate planning goals. While joint wills can simplify the process, it's essential to understand the implications. Seek guidance from a Los Angeles estate planning attorney to determine if this option aligns with your objectives.

Review Beneficiaries and Legal Documents Regularly

Life is dynamic, and so should be your estate plan. Regularly review beneficiary designations, legal documents, and overall estate planning goals.

Changes in life, such as the birth of children, acquisition of new assets, or changes in financial circumstances, may necessitate adjustments to your plan.

Navigate the Complexities: Legal Counsel for Newlyweds

Newlyweds often face the challenge of blending financial lives and planning for the unknown. An experienced estate planning lawyer can provide clarity on various legal aspects, including:

Manage Joint Financial Accounts: Legal Advice for a Secure Future

Understanding the legal implications of joint financial accounts is crucial. Your attorney can guide you on the best practices for managing joint accounts and ensuring financial security for both spouses.

Strategic Charitable Giving: Incorporate Philanthropy into Your Plan

For couples with philanthropic intentions, estate planning offers opportunities for strategic charitable giving. Discuss your goals with your attorney to explore charitable giving options that align with your values and estate planning objectives.

Building a Legacy Together with Thomas McKenzie Legal & Financial

As you embark on this exciting chapter of life together, estate planning becomes a means of building a lasting legacy. Beyond the legalities, it's a reflection of your shared values, dreams, and commitments.

Collaborate with an estate planning attorney to navigate the complexities, make informed decisions, and build a comprehensive plan that stands the test of time.

Remember, estate planning is a continual process that evolves with your journey. Regularly consult with our attorney at 562-526-6941 to ensure your plan remains relevant, addressing the changing dynamics of your life.

With careful consideration and professional guidance, you can navigate the complexities of estate planning and build a secure future for both you and your loved ones.

Ensure the security of your estate plans by asking essential questions. Clarify your will, trust, and beneficiaries' details to guarantee your assets are handled according to your wishes. To learn more, call our team now!

Estate planning is a vital aspect of managing your financial future and ensuring that your loved ones are well taken care of when you're no longer around. To make sure your estate plan is on track and up to date, it's important to ask the right questions to your estate planning attorney in Los Angeles. Here are the essential questions you should ask regarding the current state of your estate plans.

What Are the Key Components of Estate Planning?

Before diving into the specific questions, let's examine what your estate plan should consist of. Estate planning encompasses a range of legal documents and strategies, including:

1. Will and Testament - Have you drafted a will outlining how your assets should be distributed upon your passing?
2. Living Trust - Have you established a living trust to avoid probate and manage your assets efficiently?
3. Powers of Attorney - Do you have powers of attorney in place to designate individuals who can make financial and medical decisions on your behalf if you're unable to do so?
4. Advance Directives - Have you documented your medical directives and preferences for end-of-life medical treatment?
5. Beneficiary Designations - Are your beneficiary designations for life insurance policies and retirement accounts up-to-date?

Questions to Ask Your Los Angeles Estate Planning Attorney

Whether you've already set up your estate plan or are considering doing so, it's essential to periodically review its status and make necessary adjustments. Check your estate plans' status with these questions to help you.

Is My Estate Plan Up to Date?

Before delving into specific details, it's essential to determine whether your estate plan is current. Have you recently gotten married or divorced? Welcomed a new child into the family? Have you experienced a significant change in your financial situation? Any of these events could necessitate updates to your estate planning documents.

Have I Named the Right Executor?

Your executor plays a crucial role in managing your estate after your passing. This individual is responsible for carrying out your wishes, including distributing assets, paying debts, and handling legal matters. It's important to ensure that the person you've chosen is still the right fit for the job. 

Are My Beneficiary Designations Current?

Assets such as life insurance policies, retirement accounts, and financial accounts often pass directly to beneficiaries named in the account documents, bypassing the probate process. Review these beneficiary designations regularly to confirm they align with your current intentions.

Do My documents Reflect My Current Wishes?

Your estate planning documents, including your will, living trust, and powers of attorney, should accurately reflect your current wishes and intentions. Ensuring that your documents are up-to-date is crucial to avoiding potential conflicts and ensuring your assets are distributed as you desire.

Have I Considered Minor Children?

If you have minor children, it's vital to address their well-being in your estate plan. Have you named a guardian who will care for them if something happens to you and the other parent? Review this designation periodically to confirm it's still suitable, especially if circumstances change.

Am I Prepared for Medical Decisions?

Estate planning also includes making provisions for your healthcare decisions. Have you created medical directives, such as a living will or a durable power of attorney for healthcare? Ensure these documents are both in place and reflect your current preferences.

Is My Estate Plan Comprehensive?

A comprehensive estate plan addresses various legal affairs, such as trust administration and potential trust litigation. If you've established a living trust, do you fully understand how it operates? Have you consulted with an experienced estate planning attorney to review the finer points of your plan and ensure it covers all necessary aspects of your estate?

Have I Thought About My Financial Affairs?

Do you have a clear plan in place for financial decisions if you become incapacitated? Have you discussed your wishes and preferences with your chosen powers of attorney for financial matters? Review these aspects to ensure that your financial interests are protected.

What About My Life Insurance and Retirement Accounts?

Life insurance policies and retirement accounts are often substantial components of an estate. Have you reviewed the beneficiaries listed on these policies and accounts recently? Keep in mind that these designations supersede the instructions in your will or trust. Make certain they align with your current intentions and family circumstances.

Have I Created an Advance Directive?

An advance directive, which includes your preferences for end-of-life care and medical treatment, is a critical document in your estate plan. It guides your loved ones and medical professionals to make decisions on your behalf when you cannot. Have you created this document, and does it reflect your current views on medical treatment and end-of-life care?

Why Reviewing Your Estate Plan Matters

Life is dynamic, and circumstances change. What was once a well-thought-out plan may no longer align with your goals or your family's needs. Here are a few reasons why you should regularly assess your estate plan:

• Legal Updates - Laws governing estate planning are subject to change. An experienced Los Angeles estate planning lawyer can help you stay current with any legal modifications that may affect your plan.
• Financial Adjustments - Your financial situation evolves over time. Changes in income, investments, real estate, and debts can necessitate adjustments to your estate plan.
• Assets Protection - A well-reviewed estate plan ensures your assets are distributed according to your wishes, minimizing the risk of disputes among your heirs.
• Provide for Your Loved Ones - It allows you to provide financial security for your family and loved ones, including minor children.
• Avoid Probate - Proper planning can help your estate avoid probate, which is a lengthy and costly process.
• Minimize Taxes - Estate planning can help reduce the tax burden on your estate, leaving more for your beneficiaries.

Trust McKenzie Legal & Financial for Your Estate Planning Needs

Having a trusted partner on your side is crucial in estate planning. McKenzie Legal & Financial is your go-to choice for expert guidance and support. Our office is experienced in financial and estate planning services in California. We can make sure that your assets are protected, your wishes are honored, and your loved ones are cared for.

Put an end to your estate plan worries; take control now. McKenzie Legal & Financial is here to assist you in every step of the estate planning process, offering you peace of mind and confidence in your financial future. Schedule a free consultation with us to ensure your legacy is protected. Call us today at 562-594-4200.

Explore the benefits of charitable giving through estate planning in California. Learn how to support your favorite causes while optimizing your estate for tax efficiency and legacy preservation. Call us today!

When it comes to estate planning, it's not just about securing your family's future; it's also an opportunity to leave a lasting legacy by supporting causes that matter deeply to you. Charitable giving through estate planning, guided by a skilled Los Angeles estate planning attorney, allows you to make a positive impact on society while preserving your financial legacy.

In California, a state known for its philanthropic spirit, integrating charitable giving into your estate plan is a noble endeavor.

The Power of Charitable Giving

Charitable gifts are at the heart of this endeavor. They are the means through which you can support charitable organizations and causes that align with your values.

Whether you have a specific nonprofit in mind or a particular cause close to your heart, your estate plan can be a powerful tool for contributing to the betterment of society.

Estate Taxes and Charitable Deductions

Estate planning involves addressing various financial aspects, including estate taxes. Understanding the impact of estate taxes on your estate plan is crucial. Fortunately, charitable giving can play a significant role in reducing your estate tax liability.

One way to achieve this is through the estate tax charitable deduction. When you make a charitable donation through your estate plan, the value of that donation is deducted from your taxable estate. This deduction can lead to substantial tax savings, ultimately benefiting both your beneficiaries and your chosen charitable organizations.

Effective Charitable Giving Strategies

There are several effective strategies for incorporating charitable giving into your estate plan:

• Gifts to Charity - You can designate specific assets or a portion of your estate to go to charity. Charitable bequests, for example, allow you to specify in your will or trust which assets or a percentage of your estate should be donated to your chosen charitable organizations.
• Public Charities Vs. Private Foundations - When planning charitable donations, consider whether you want to support public charities or establish a private foundation. Public charities often have a broader reach, while private foundations provide more control over how your charitable funds are managed.

Ensure Legal Compliance

Navigating the legal landscape of charitable giving requires expert guidance. Seek the counsel of a knowledgeable estate planning attorney in Los Angeles, CA who specializes in charitable estate planning. They can ensure that your charitable contributions align with the law and fulfill your intentions.

Take Action: Charitable Giving Through Estate Planning

Charitable giving through estate planning is not just a financial transaction; it's a testament to your values and a reflection of what matters most to you. As you embark on this journey, consider the following steps to ensure your charitable intentions are carried out effectively:

1. Identify Your Philanthropic Goals - Begin by identifying the causes and organizations that resonate with you. Whether it's supporting education, healthcare, environmental conservation, or any other cause, clarity on your philanthropic goals is essential.
2. Consult a Knowledgeable Los Angeles Estate Planning Attorney - Estate planning, especially when it involves charitable giving, can be complex. Seek the guidance of a skilled Los Angeles estate planning attorney who specializes in charitable estate planning. Their expertise can help you navigate the legal intricacies and ensure your charitable contributions align with your estate plan.
3. Review Your Assets - Take stock of your assets and consider which ones you can allocate to charitable giving. This could include cash, stocks, real estate, or other valuable assets. Your attorney can provide insights into tax-efficient ways to structure your donations.
4. Choose the Right Charitable Vehicle - Decide on the most suitable charitable vehicle for your contributions. Common options include charitable trusts, donor-advised funds, and private foundations. Each has its unique advantages, and your choice should align with your philanthropic goals and financial situation.
5. Create a Charitable Estate Plan - Work with your estate planning attorney to integrate charitable giving seamlessly into your estate plan. This involves drafting or amending your will or trust documents to specify your charitable beneficiaries and the assets allocated to them.
6. Maximize Tax Benefits - Understand the tax implications of your charitable giving. Charitable contributions can provide substantial deductions in income and estate taxes. By optimizing your giving strategy, you can maximize tax benefits both for your estate and your chosen charitable organizations.
7. Involve Your Family - If you wish to involve your family in your philanthropic endeavors, consider creating a family philanthropy plan. This can be a meaningful way to pass down your values and engage future generations in charitable giving.
8. Communicate Your Intentions - Clearly communicate your charitable intentions with your loved ones and the charitable organizations you wish to support. This ensures that your wishes are known and can be executed as intended.
9. Regularly Review and Update Your Plan - Estate plans, including charitable provisions, should not be static. Life circumstances and financial situations may change. Regularly review and update your estate plan to reflect these changes and ensure your charitable giving remains aligned with your goals.
10. Seek Professional Guidance for Ongoing Management - Charitable vehicles like private foundations require ongoing management and compliance with regulations. Consider engaging professionals or organizations experienced in philanthropic management to ensure the effective administration of your charitable contributions.

Incorporating charitable giving into your estate plan is a profound way to leave a legacy that extends beyond financial wealth. It reflects your values, passions, and commitment to making a positive impact on the world.

With the support of a skilled Los Angeles estate planning lawyer, you can embark on this meaningful journey with confidence, knowing that your charitable intentions will endure for generations to come.

Benefits to Charity and Your Legacy

Your charitable contributions can have a profound impact on nonprofit organizations. Your support can aid their initiatives, fund critical projects, and make a difference in the lives of those they serve. By naming a nonprofit organization as a beneficiary in your estate plan, you contribute to the continuity of their vital work.

Charitable giving through estate planning offers a meaningful way to leave a lasting legacy. It allows you to support the causes you are passionate about while securing your family's future. By consulting with an experienced Los Angeles estate planning attorney, you can navigate the complexities of charitable estate planning effectively. Begin the journey of making a positive impact today by incorporating charitable giving into your estate plan.

Empower Your Legacy with Charitable Giving with McKenzie Legal & Financial

Our team of highly experienced estate planning attorneys in Los Angeles is dedicated to helping individuals like you craft estate plans that go beyond securing your family's future–they empower you to leave a meaningful and lasting legacy through charitable giving.

With our guidance, you can explore the vast possibilities of incorporating charitable donations into your estate plan, ensuring your financial resources serve not only your loved ones but also the causes dear to your heart.

Contact us today at 562-594-4200 to embark on this transformative journey, where your legacy becomes a force for positive change, while still safeguarding your family's future. Together, we'll navigate the intricate landscape of charitable estate planning and build a legacy that truly matters.

Estate planning is recommended for all people, no matter their income or family status. Most estate planning is straightforward, but some professions have unique factors to consider. Military personnel, for instance, have inherently dangerous jobs and so have different criteria. An experienced estate planning attorney in Los Angeles, CA, ensures that veterans and those in service have a will that clearly states their final wishes.

Estate Plans for the Military

While estate planning differs for military members compared to civilians, it still has many of the same components.

The Similarities

These two components are similar, to a point.

Life Insurance

Life insurance is crucial because it provides your loved ones with financial security while your estate goes through the probate process. However, insurance companies typically charge higher premiums for people in high-risk jobs, which definitely includes active duty military service.

Fortunately, there are insurance providers who specialize in life insurance for military personnel. These include:

• Servicemembers' Group Life Insurance (SGLI), which can include traumatic injury protection (TSGLI), and a disability extension.
• American Armed Forces Mutual Aid Association (AAFMAA)
• Veterans' Group Life Insurance (VGLI)
• Service-Disabled Veterans' Life Insurance (S-DVI)

You must include any life insurance policies you have in your estate planning, not only so that your lawyer has a complete view of your assets but also so they have a complete view of your beneficiaries.

This is important because the designated beneficiaries for your life insurance supersede those named in your will. Your estate planning lawyer will help you keep track of the details of your estate so you can change them if necessary.

Wills and Trusts

Wills are what people usually think of when it comes to estate planning. They specify your final wishes regarding your burial and the distribution of your estate and include essential details about your children's legal guardians.

Trusts are different. They are spaces where you can transfer assets, which are then held and managed according to your wishes; for example, after five years, the capital amount and interest are to be divided between your three children.

Your specialist Los Angeles estate planning lawyer will help you draw up your will or set up a trust according to what is most beneficial to you and your loved ones.

The Differences

This is where the elements diverge.

Veteran Benefits

Military veterans can be eligible for a variety of benefits issued by the Department of Veteran Affairs. In some instances, the benefits carry over to military families and must be included in estate planning. Some benefits, however, cease when the veteran dies.

Read: Estate Planning for Veterans Benefits – Aid and Attendance

For example:

There is a benefit called the VA Pension, which has three levels. It's not a pension in the strictest sense because it's available while you're still alive. The majority of veterans and their spouses are eligible for at least some of the benefits, although many aren't aware that the VA Pension applies to them.

California provides a number of additional benefits for veterans, including:

• Tuition assistance is available for veterans' children who attend college within the California State University system.
• Property tax exemptions for disabled veterans
• Preferred mortgage rates
• Refinancing from the VA home loan program

There are also Survivor Benefit Plans (SBP), which are monthly payments for your spouse and children.

All of which you must discuss with your estate planning attorneys in Los Angeles so they can make provisions for them in your estate plan.

Traditional Will vs. Military Will

Wills have to meet certain requirements for them to be valid.

According to the requirements of a traditional will, you must:

• Be an adult of sound mind
• Confirm that the will is indeed yours (no coercion)
• Sign and date the document before at least two witnesses

Due to the high-risk nature of the job, wills for military personnel have more lenient requirements.

According to the requirements of a military will:

• You can be a minor.
• You needn't be of entirely sound mind and body.
• It doesn't matter if the will is written or oral.
• You only need one witness, depending on the situation.
• It includes only your personal estate and not real estate.

What Goes Into a Military Will?

We've seen what a military will doesn't need, but what should it include? Your Los Angeles estate planning attorney will give you the details, but in essence, they should include:

Two Powers of Attorney, one to make financial decisions (a durable power of attorney) if you're incapacitated and one 

to make health care decisions. Your designated Power of Attorney for health care must know your wishes for various scenarios and be able to carry them out, even if they are difficult.

For example, respect your wishes for a do-not-resuscitate order. It's called a living will or advance health care directive and must be a legally valid document to prove to your loved ones that this is what you really want.

Other Elements to Consider Include:

The following elements don't have to be in your will, but you should at least have considered most of them.

• Legal guardians for minor children or children you support financially, including those with special needs
• Funeral and burial arrangements. Keep in mind that you might be eligible for a military funeral and burial, including military accolades.
• Organ donation
• Family care plans
• Estate taxes (which differ by state)
• Estate administration, which includes probate. Remember, a military lawyer isn't allowed to represent you in court, but your estate attorney can.
• Distribution of assets or naming beneficiaries

Read: How to Plan for an Aging Parent’s Needs

McKenzie Legal & Financial Keeps Your Military Estate Planning In Order

The last element in the process of estate planning is to store it somewhere safe. Many people think that the best place for important legal documents is a safe deposit box. Some states have laws against opening safe deposit boxes after the owner's death. The best place to keep your documents safe is with your estate planning attorney in Los Angeles, CA.

McKenzie Legal & Financial provides all the military estate planning services you need, including secure storage and protection of the documents until you need them - preferably when you check in and update the file every few years.

Gain peace of mind by trusting your California estate planning documents to our experienced estate lawyer in Los Angeles.  Call 562-594-4200 or complete the contact form on our website to book a free consultation.

Estate planning is essential, but it's also unpleasant to consider. This is one of the reasons fewer than 46% of adults in the U.S. have a will. The majority are dying intestate. According to California's intestate succession laws, your closest relatives receive their assets. You need to work with an estate planning attorney in Los Angeles if you want your last wishes honored, 

More young people ages 18 to 34 are creating wills and trusts than those in the older age groups of 35 to 54. The trend has been attributed to the COVID pandemic, which confronted a lot of youngsters with their mortality.

What they need to realize is that one visit to a trust lawyer in Los Angeles isn't enough. They need to regularly review their estate plans to ensure they're up-to-date with major life events.

The Top Reasons to Review Your Estate Plan in California

There are many reasons to review your life plan, including the following:

Family Changes

A 20-year-old woman's life is nothing like one in her early 30s. Her estate plan is probably simple. For instance, she might have a car that she leaves to her brother and a gaming console and games that she leaves to her young cousin.

Her circumstances change as she gets older. She might buy an apartment, get married, and start an emergency savings account. Her estate must change to reflect her new life circumstances.

Within the next three years, she and her husband adopted two children, and her brother passed away. Again, her estate plan must be reviewed with these major events in mind.

Beneficiary Updates

This includes things like life insurance policies, retirement accounts, and investments. They are separate from your estate and avoid probate. More importantly, the beneficiaries named are also separate from your estate assets.

For example, you leave your retirement account to your granddaughter in your will, but you never remove your ex-husband as the designated beneficiary. The RA will go to your ex-husband.

You must regularly review your entire estate plan to ensure the right people are designated beneficiaries.

State Law and Tax

Estate planning laws differ from state to state, so your estate planning attorney in Los Angeles, CA, needs to fully understand estate laws in California.

Estate taxes are also subject to change. For example, changes to the estate tax exemption can affect the tax benefits of irrevocable trusts and family and charitable trusts. Your estate planner must be familiar with tax law so you can reap the maximum tax benefits. 

Gift taxation also changes. When the gift tax exemption amount is high, your estate planner might recommend that you make a lifetime wealth transfer to a beneficiary. It's a good idea to talk to a tax consultant to ensure you're within state laws. 

Location Changes

As estate planning laws differ from state to state, you must inform your Los Angeles estate planning attorney if you plan to move. They'll make the changes necessary to ensure your will complies with the new laws.

Consult your estate planner before you move to find out how the differences affect your estate. For example, it may have different requirements for powers of attorney and revocable living trusts. It might also be mandatory for your spouse to inherit a portion of your estate. Even if you have a fractious relationship with your spouse, you can't leave your entire estate to your children.

A no-contest clause could potentially allow you to leave all assets of significance to your children and only the barest minimum to your spouse. However, the clause doesn't completely prevent unhappy beneficiaries from contesting the will in court. In California, beneficiaries or anyone disinherited can contest the will if they have probable cause.

This is not a risk-free move. If they lose the case, they lose everything that they inherited. In California, however, cases with reasonable cause protect the disgruntled beneficiary's inheritance even if they lose.

Assets Change

The number and types of assets you have change. You could buy a life insurance policy or a real estate property for rental purposes. You could sell an asset, like a motorcycle you left to your biker daughter. Your estate plan must be adjusted to reflect the changes.

Is It Time to Review Your Estate Plan?

You must review your estate plan if any of the above reasons apply to your life situation. It's best to adjust your will when the changes occur rather than wait for your next scheduled review, which could be in two years' time.

Why You Should Update Your Will and Estate Plan?

You must update your will and estate plan to ensure your assets are distributed according to your wishes. If you don't update your will, it won't include any assets you've purchased, which could lead to bitter family disputes.

As relationships change, you might want to change your child's legal guardian or your estate's executor. The change becomes necessary if your chosen guardian passes away. You don't want to leave your minor children with an uncertain future.

How Often Should You Review and Update Your Estate Plan?

Provided there haven't been any significant changes in your family, assets, or address, you should review your estate planning in California every two to three years.

The Risks of Neglecting Your Estate Plan

Neglecting your estate plan can seriously impact all aspects of your will.

• Without updating your power of attorney, you lose control over who makes medical and financial decisions if you become incapacitated.
• The courts will make decisions about your children's future if you don't update your will regarding their guardians.
• An old estate plan subjects your entire estate to probate. The probate process can be expensive, especially if it drags on for two years or more. 
• An old will doesn't take the deaths of beneficiaries into account. This will affect asset distribution in ways you didn't intend.

Work with an Estate Planning Attorney to Ensure Your Last Will Is Honored

McKenzie Legal & Financial specializes in all aspects of estate planning. Our Los Angeles-based estate planning lawyers ensure your estate planning documents comply with state and federal laws.

You can rest assured that we'll work with you to make your wishes clear and protect your beneficiaries from disputes. For a free consultation to evaluate your estate plans, contact us at 562-594-4200 at Thomas McKenzie & Financial today!

A deceased person's last will is not ironclad. Beneficiaries can contest the provisions made in the will if they feel that they've been cheated out of their fair share of the estate. To avoid this, testators might put the bulk of their estate in trust and use a no-contest clause to prevent contestation. However, as any estate planning attorney in Los Angeles will tell you, the clause is not always a deterrent.

What is a No Contest Clause?

In its most basic form, a no-contest clause means that if a beneficiary challenges the terms of the trust or will in court and loses, they will also lose whatever inheritance they had. They disinherit themselves.

The idea is that beneficiaries are less likely to contest the terms of a will or trust if there's a risk that they'll lose everything. Not only will they lose it all, but they'll also be left with hefty legal fees, which can run into tens of thousands of dollars. In some cases, legal fees can even run into the hundreds of thousands of dollars.

That's not to say that a trust beneficiary should never contest a will or trust. If you think you have a case, discuss the matter with a trust lawyer in Los Angeles. They give you legal advice about the strength of your case and whether the potential challenge is worth taking to court.

Beneficiaries Who Have Nothing To Lose

What the will or trust creator may not have considered is the determination of someone who has nothing to lose. For example, if all they inherited was a grandfather clock they never wanted, it might be worth contesting the will in court.

Someone who was left out of the will entirely also has nothing to lose in estate litigation, except a Los Angeles estate planning lawyer's fees.

Why Use a No Contest Clause?

A no-contest clause is often used when testators make last-minute changes to their will. The decision is usually based on new information or circumstances that change their outlook.

For example, you may have removed your ex-husband from your will when you divorced 10 years ago, but then you find out that he's struggling financially. In a final act of goodwill, you leave him 15% of your estate. To do so, you take 3% from your two children. Their relationship with their father is tattered, and despite the enormous risk, they decide to contest the change.

It could also go the other way around. Your ex-husband believes he deserves a significant share of your estate, despite the rocky nature of your relationship. He might feel cheated when he gets only 5%, and then, because his risk is low, he contests your will to get a larger share.

Discuss Changes With Your Heirs

Discuss any changes to your estate plan with your most significant beneficiaries, usually your children. They are more likely to understand your thinking and less likely to dispute the change if you are open and honest with them.

This gives them the chance to raise objections and perhaps settle arguments before they die, so there is no acrimony when they pass.

When Does a No Contest Clause Apply?

The aim of a no-contest clause is to prevent challenges and arguments over the terms in a will or trust. In fact, it's often added to keep the peace between beneficiaries. However, beneficiaries don't always see it that way.

The clause applies when testators make clear their wishes that a very specific part of their will be honored. They foresee potential problems down the line and want to circumvent them.

In this instance, discretion is the better part of valor, so instead of completely disinheriting a family member, an estate attorney might suggest that it's worthwhile to leave them something that has some value at least. Sometimes all they want is to be recognized, and the token suffices.

Other times, they might decide that it's actually not worth the time or money to challenge the will.

Once again, talking about your options with an experienced estate planning attorney in Los Angeles is a good idea. They might recommend a meeting with those concerned to thrash out the details of your estate documents.

A Californian lawyer will also be able to explain how the state deals with no-contest clauses in estate planning. The laws differ from state to state, so you need to ensure that your will, and clauses, comply with Californian law.

How Does a No Contest Clause Work in a Will or Trust in California?

Generally, no-contest clauses are tricky to enforce in California. The revised contest law favors challenges, especially if they involve minor children or the challenger has reasonable (probable) cause to contest the will.

One of the situations that enforces no-contest clauses, according to Probate Code Section 21311, is a direct contest without probable cause. This includes contestation that alleges invalidity based on grounds that include:

• Forgery
• Lack of due execution
• Lack of capacity
• Menace, duress, fraud, or undue influence
• Revocation of a will under certain sections
• Beneficiary disqualification under certain sections

Probable cause is at the court's discretion. If the court decides that the challenge was based on reasonable grounds, even if they were erroneous, they won't lose any assets they may have inherited.

Attorneys Specialize in Wills and Trusts and No Content Clauses

Your last will and testament is your lasting legacy, and as such, it's important for you to draw up an estate planning document that is legally sound, with or without a no-contest clause. 

McKenzie Legal & Financial has a department of estate planning attorneys in Los Angeles, CA, who can ensure your will complies with California's no-contest laws while upholding your wishes.

For a free consultation to discuss your will and the distribution of your estate, complete the online form on our website or contact us at 562-594-4200 and we’ll get back to you today!

It's hard enough when elderly parents die without adding will contestation by siblings. The best way to avoid a conflict is to have a concise will that specifically details the deceased's final wishes. An estate planning attorney in Los Angeles manages the process, from drawing up the will to carrying out the instructions.

All the estate planning in the world won't prevent determined adult siblings from disputing a will. This is why it's important to know how a will can be contested and under what conditions.

How to Contest a Will and When You Should

Contesting a will is a long, expensive process and there is very little chance of success. Studies show that only 0.5% to 3% of contested wills favor the plaintiff. You must be very confident in your claim before challenging a will's legitimacy. 

The first thing to do is decide if you're going to hire an estate planning lawyer in Los Angeles or if you're going to DIY. Contesting a will is tricky with laws and jargon that an attorney easily slices through. Your attorney ensures you have the right to contest the will.

You can only contest a will if you meet at least one of these criteria:

1. You were a recipient of a previous will.
2. You are a recipient of the current will.
3. You are a recipient of a will made after the current will.
4. If not for will and intestacy law, you would be a recipient.

When Can You Challenge a Will?

There are four circumstances under which you can contest a will.

1. Cognitive Impairment

This is the 'sound mind' or mental capacity element of a will. Testators must know their assets and the assets' value. They know who their natural heirs are and how their assets are divided. You can dispute the will if you believe that at the time of signing, at least one of these criteria was not met. 

2. Fraud, Duress, or Forgery

You must be able to prove that the testator was in some way forced or deceived to create the will. You also need proof if you believe fraud or forgery was involved.

Your claim has good grounds if the r suddenly changes their will, especially if the change was out of character and at odds with the original estate plan.

3. More than One Will

In some instances, there could be two or more wills that contain different wishes. It can be difficult to prove which estate planning documents are legally binding. Probate litigation may be the only way to solve the issue.

4. State Laws

States have different laws regarding estate planning, including what makes a will valid and what negates its contents. For example, you can't decide that you like the Californian probate process and then arrange for the reading to be in the same state.

This is because the state laws in which the deceased lived apply. If he made the will in California but lived in Maine, Maine laws would apply.

How Do You Contest a Will?

If the requirements of all of the above are met, you can contest the will. Note that there is a statute of limitations on disputing a will, and the average time is two years.

Start by filing a petition in the state probate court where the will is being probated. If the will is in Maine, you can't file a petition in California.

The forms required to file a petition vary by state. You must ensure that you have the legal documents you need to submit a challenge. 

Your Los Angeles estate planning lawyer acts as your personal representative and must be an accomplished practitioner in all aspects of estate planning, including family inheritance disputes.

What Happens When a Will is Contested?

The first thing your Los Angeles estate planning lawyer will do is suggest mediation so you and your sibling can resolve the issue amicably. This is the best way to settle sibling disagreements over the legitimacy of a will.

If mediation fails there is no choice but to take the probate dispute to civil court. A presiding judge hears the evidence from both parties and makes a ruling that either upholds or dismisses the case. 

How to Ensure Your Estate and Loved Ones are Protected?

Estate planning with a specialist lawyer is the best way to ensure your estate is distributed in a way that protects the interests of your loved ones.

Here are five steps you can take to keep your estate protected for your family.

1. Create a will - It sounds obvious but only around 30% of Americans have a will. It doesn't matter how small you think your estate is, a will is necessary.
2. Choose a power of attorney - This is someone who will act on your behalf if you are incapacitated and ensure the terms of your will are carried out according to your wishes. You can designate someone else to be your medical power of attorney to make medical decisions that uphold your wishes. 
3. Get life insurance - Life insurance is necessary if you have financial dependents who will continue to need support after your death. It's also a way to give your loved ones a chance to reach a financial goal, like buying a car.
4. Update beneficiaries - Life circumstances change and you must update your will accordingly. For example, if you get divorced, you need to ensure your insurance policies and retirement investments no longer name them your beneficiary.
5. Keep it in a safe place - The safest place to store your original will is with your attorney. Make an official digital version and entrust it to your estate planning lawyer in Los Angeles in case of an unforeseen disaster.

Speak with an Estate Planning Attorney in Los Angeles

Estate planning is crucial if you want to secure your estate and ensure your assets are managed according to your wishes.

One of the reasons you need to consult an estate planning attorney in Los Angeles, CA, is to prevent possible disputes between family members, especially disputes among siblings.

Our lawyer, Thomas L. McKenziespecializes in estate planning. You can be sure that your last will and testament are in safe hands. To book a free consultation to discuss an estate plan that considers your family dynamic, complete our onsite form or call us at 562-594-4200 at McKenzie Legal & Financial today!

Inflation in California has had a major impact on families in 2022. According to the California Department of Industrial Relations, the Los Angeles and Orange Country area is experiencing an 8.6% increase in the consumer price index from the last year. If you want to preserve your retirement fund, an estate planning attorney in Los Angeles can help.

Anyone who is concerned about inflation and tax planning should speak to an expert who can help them make the most of their savings. Having an expert handle your estate matters can help you adapt to rising inflation and the higher cost of living.

Estate Planning to Safeguard Retirement Assets in a Tough Economy

Traditional estate planning allows you to safeguard your assets, including retirement accounts and trusts. Estate planning attorneys help their clients make the most of their assets. Retirement accounts have many tax benefits and unique features that make them appealing as part of estate planning. They can reduce estate taxes, keep liquid assets safe, and more.

Estate tax planning can save your loved ones significant money. Living trusts are a popular way to transfer assets to beneficiaries and avoid probate. An attorney can provide trust administration services, including post-death administration to protect your minor beneficiaries.

Retirement accounts can also bypass the frustration and expense of probate law. Creating a retirement trust is one of the most effective ways to keep your assets safe. It can also be an important part of your business planning strategy.

For example, if you put the real estate, bank accounts, and other important assets into your retirement plan trust, it will be safe regardless of any other financial strife you are experiencing. In an uncertain world, this kind of security can put your mind at ease.

A trust and estates attorney can draft a private retirement trust that includes clear, valid documentation that will hold up in court. It will make it clear that your trust is intended to serve as a retirement plan.

Estate planning is an excellent investment not just for your beneficiaries, but also for your post-retirement. Many law offices specialize in maximizing retirement plans. Working with a legal professional is an investment that can improve your retirement life in the long run.

What is Exemption Planning?

Exemption planning is an essential part of estate planning that includes finding legal exemptions for the assets in your estate. This allows you to maintain your wealth and ensure a comfortable retirement.

Finding application exemptions means you can keep certain assets untouchable to creditors. That means even if you experience significant financial hardship, your hard-won assets will be safe. This type of planning is especially useful for business entities.

An estate lawyer from a trusted law firm can help you make full use of the laws that are in place to protect assets from probate litigation, lawsuits, and more.

High-net-worth individuals can especially benefit from this type of planning. By planning ahead with a trusts and estates lawyer, you will safeguard your assets and ensure that even a bad run of luck won't decimate your savings and leave you in a tough place in your twilight years.

An Overview of the California Code of Civil Procedure Section 704.115(b)

Section 704.115(b) states that private retirement plans are exempt from creditors. This means that all assets held in a private retirement plan are safe and can be relied upon regardless of the economic climate. This exemption is also available to U.S. residents who aren't citizens.

Private retirement plans include union plans, profit-sharing retirement plans, and certain self-employed retirement plans. These plans must be designed expressly for retirement purposes in order to fall under this part of the California civil code.

The California Supreme Court has set the precedent that this section of code is interpreted in such a way that generally favors debtors in both state and federal courts.

An estate planning lawyer can help you determine if your retirement plan fits into this category. If it doesn't, they can help you get one that does qualify as part of their estate planning services. They can draft documents that will serve as documentation in case you ever go to court over debt.

How Private Retirement Plans Can Serve as a Retirement Asset Protection?

In a tough, unpredictable economy, retirement plans can ensure that you have a high quality of life as a senior citizen. Private retirement plans are reliable and offer a broad range of benefits, particularly asset protection.

Asset protection keeps your trust property safe from civil suits and bankruptcy issues. This is especially valuable for owners of limited liability companies and other public figures who are more at risk of lawsuits and bankruptcy.

For example, your Los Angeles trust lawyer can write up a trust that includes your most vital assets. If you are involved in a personal injury lawsuit, or if you must declare bankruptcy, those assets will be left completely untouched. They will only be able to reach your liquid assets, which may even serve as a deterrent for litigious bad actors.

Using a trust to protect your assets also reduces the likelihood of estate litigation and other issues that can prevent beneficiaries from receiving their assets in a timely manner. An estate planning attorney can offer insight into the unique benefits of trusts and draft estate plans that take full advantage of them.

Establish a Secure Retirement Plan with a Trusted Estate Planning Attorney Los Angeles

Your retirement fund is an essential part of any estate plan. With the right law firm, you can ensure a comfortable life and independence from family members. A qualified estate planning attorney in Los Angeles can be your greatest ally.

At McKenzie Legal & Financial, we provide financial and legal services to protect your finances from the potentially devastating effects of inflation in Southern California. We specialize in Los Angeles estate law.

Our attorney will provide personalized advice for any legal issue you encounter. He also has years of experience providing financial advice, making him uniquely qualified to handle your estate planning needs. To request a free consultation, contact us at 562-594-4200 at McKenzie Legal & Financial today!

Have you thought about including your foreign assets in your estate plan? Having foreign assets can complicate your finances and require legal advice from a qualified estate planning attorney in Los Angeles.

Full disclosure of your assets is essential, or you could be setting up yourself or your beneficiaries for unpleasant, costly consequences. Experienced estate planning attorneys will help you adhere to the law and save as much money as possible while doing so.

Here, we'll discuss how foreign assets affect estate planning and how to make the most of the situation.

Estate Taxes on All Assets

United States citizens are subject to federal gift and estate taxes, regardless of where they reside and where their assets are located. As a result, including your foreign assets is a vital part of estate planning.

US citizens include people who were born in the US and anyone with at least one parent who was a US citizen at the time of their birth. These tax laws may also apply to those who have a domicile in the US. If you aren't sure whether or not this includes you, an estate planning lawyer can help you find out.

Some people forget to mention their foreign assets during the estate planning process, or else they don't think they need to include them in the process of estate tax planning. This isn't true, however.

Professional estate administration ensures that your estate is handled in a manner that will reduce taxes and fees upon your assets.

Ways to Protect Your Foreign Assets in Estate Planning

There are several ways to protect your foreign assets from the numerous fees and taxes they would otherwise be subject to. The estate planning process provides many opportunities to reduce your tax burden.

A Los Angeles estate lawyer can help you understand your options and provide a plan that caters to local law and local probate courts.

Here are some options that will help you make the most of your assets and avoid estate litigation.

Consult with an Estate Planning Attorney

When taxes and fees are involved, you need a great attorney with a broad range of experience. Estate matters are complex, and they require a specialist who will help you access all the tax breaks you can.

Gift tax planning will help you keep your reduced estate taxes and allow future generations to enjoy family wealth as seamlessly as possible. It can also help with business planning.

For example, if you have a bank account in the United Kingdom because you had business abroad or held a job there, you may be at a loss on how to integrate it with your US estate plan. A law firm that specializes in those areas can handle it smoothly.

It's also important to make sure your financial and legal services understand the specific laws in place in Los Angeles, California. Someone who knows local requirements and regulations will handle trust administration and other legal matters with the skill they require.

Full Disclosure is Crucial 

Hiding your assets, whether intentionally or not, is never a good strategy. In order for your estate planning lawyer to provide the best legal services possible, you must give them all of the relevant information.

This allows them to figure out how to pass on foreign assets to your family members and explain how those assets will affect your taxes.

For example, if you own property in Italy, it is essential to mention it during estate planning services. Otherwise, your estate plan will be left with a major gap that could render it ineffective.

Consider Having Multiple Wills

If your financial situation is complex, sometimes having more than one will can actually simplify probate matters. You may choose to have one US will and another that controls your foreign assets.

If you take this approach, make sure to have your legal representation in both countries get in touch. They will make sure the two wills do not conflict with each other. They'll also make sure each will is optimized for local probate law and fast processing by the courts.

Look Out for Double Taxation

Since US citizens are subject to gift and estate taxes, there is always the risk of double taxation. However, you may qualify for a foreign tax credit. For example, anyone with significant assets in another country may be subject to taxes in that country and also from the US government. Tax credits can lessen the burden.

A Los Angeles trust lawyer can help you navigate the bureaucratic system and ensure you get the tax credits you are entitled to.

Always Plan Ahead

Estate planning lawyers from a trusted law firm are experts in finding potential tax credits, creating trusts, and finding other ways to protect your assets. When you plan ahead and give them the time to do their job to the fullest, you can reap the benefits.

Planning ahead ensures that you are prepared for any situation and that you aren't hit by any surprises or penalties. It's never too early to have an expert handle your estate planning needs, and you'll likely find ways to save money in the future and make life easier for your beneficiaries!

Protect Your Foreign Assets with McKenzie Legal & Financial

Estate planning is a complex task, especially when you introduce foreign liquid assets into the mix. McKenzie Legal & Financial can help. We specialize in trusts and estates in the Los Angeles area,

Our estate planning attorney in Los Angeles has decades of experience working with high-net-worth individuals. He is a member of the California state bar and a registered financial consultant, giving him unique insight into income tax planning and other financial services.

Schedule a free consultation today to learn how we can integrate foreign assets into your estate plan and reduce the applicable taxes and fees. Download our complementary asset planning guide or contact us at 562-594-4200 at McKenzie Legal & Financial today!

Estate planning is one of the most important forms of financial planning, but it is often overlooked as people make plans for other aspects of their life. The cost of education is at an all-time high, and saving for it should be a priority for all families. You can save and invest money for education with the help of an estate planning attorney in Los Angeles.

Creating a detailed trust ensures that your child will have the funds to go to college no matter what. Here's how estate planning lawyers can help you give your child the gift of an education.

Valuing Education by Planning Ahead

The average cost of a college education is well into the five figures. According to the Education Data Initiative, the average cost of one year in college is $35,551 per student. That figure is about $10,000 lower for in-state public school tuition, and about $20,000 higher for private schools.

That cost can be overwhelming to a young adult without financial support. When you plan ahead with a living trust, you can make sure that a college degree is within reach. A qualified estate planning attorney will help you make the most of that money and even reduce estate taxes.

Estate planning allows you to set aside money and keep it safe for your children, such as in an irrevocable living trust. Estate matters become more complex for families that own property and have substantial liquid assets.

Trusts and Saving for College

Trust funds are an excellent way to keep assets safe and even allow for growth. An estate planning lawyer can guide you through the many types of trusts available and find one that fits your needs.

One of the main benefits of a trust is that they allow you to avoid probate. They also allow for smooth, immediate transfer of assets to family members and make gift tax planning simpler. When you work with a trust administration expert, they can simply maintain the assets or invest them to increase their value, depending on your preferences.

Trusts are also flexible. They allow you to make changes to the terms over time in order to get the most benefits from them. For example, if you discover that adding more assets to a trust helps with your income tax planning, you can proceed to make additions or change its terms.

Another example is, if you have another child, you can add that child as a beneficiary. You can also create a new trust just for them. Expert financial and legal services provide a personalized solution to your unique estate planning needs.

What is the 529 College Savings Plan?

The Internal Revenue Code 529 allows parents to invest in their children's education with several tax advantages. It's an essential part of any parent's estate plan.

There are two types of 529 plans, such as prepaid tuition plans and college saving plans. The former allows you to lock in current prices, avoiding increases. However, they don't offer investment opportunities like college saving plans.

The 529 plans offer numerous benefits, including:

• No age or income limit to participating in this program
• Plan contribution limits are high
• If you make a qualified withdrawal, you won't have to pay taxes on your trust fund earnings.

This college savings option can be an excellent form of estate tax planning. It allows you to contribute $15,000 a year per beneficiary without gift taxes. However, it is unique because it allows for a lump-sum contribution of $75,000 in the first five years of opening the plan.

Putting money in this savings plan reduces your taxable estate. Making good use of your 529 plan allows high-net-worth families to lower their federal estate taxes.

Los Angeles estate planning attorneys can help you set up a savings plan for your minor beneficiaries and weigh the pros and cons of different options.

Benefits of Planning for Educational Savings with Estate Planning Attorney Los Angeles

Education is likely one of the biggest, most significant costs your child will face in early adulthood. Saving for your child's education benefits both of you and leaves you prepared to handle the high costs of college tuition.

Lets You Provide Your Child with a Good Life

An education will provide your child with the foundation for a good career and financial stability. People with college degrees earn significantly higher salaries than those without, and degrees have become ubiquitous in the professional world.

If you want your child to have a better chance of earning a high salary and working an engaging job with good benefits—supporting their education is a great way to do so. A Los Angeles trust lawyer can help you set up a trust fund tailored to your financial situation.

It Lessens the Financial Pressure on Your Children

When your child has to fund their own education and take out loans, it can lead to years of financial strain and hold back their financial progress.

When you start saving ahead of time, you can build up a solid college fund that covers a significant portion of tuition fees. That means your child can avoid loans and attend school without stressing about finances.

Allows You to Plan for Other Important Things

One of the benefits of careful financial planning is that you can plan ahead for a broad range of important expenses.

Knowing that your child will be taken care of means you can make sure you are saving for retirement, a new home, or any other financial goals.

Are You Ready to Plan for Your Children’s College Education?

With tuition fees higher than ever, it makes sense to factor tuition into estate plans. You can reduce your taxes, compound savings, and more.

Working with an estate planning attorney in Los Angeles will help you handle all your questions about trusts and estates. McKenzie Legal & Financial can help you give your children a quality education, setting them on the path to a good career and comfortable lifestyle.

Our attorney is a state bar member and a financial consultant. He has spent many years serving Los Angeles county and understands local law intimately. To schedule your free consultation, contact us at 562-594-4200 at McKenzie Legal & Financial today!

Los Angeles Estate Planning Attorney To Help You With Your Retirement Plan

After years of logging hours on the job, you are finally nearing the treasured time of retirement. You’ve worked hard and deserve to finally relax during those golden years. Before you can sit back and enjoy the fruits of your labor, make sure to meet with your estate planning attorney in Los Angeles to go over the best options for your estate plan.

If you don’t already have an estate plan on file, it is vital that you get one now. Having the right steps in place will ensure that you can retire with the serenity that your affairs are in order.

Here are some tips to ensure your finances can continue to work for your in retirement:

Double Check Your Will and Trusts

As you get into retirement, you may want to change your focus. Many estate plans exist to maximize the value of the estate. Instead of working only to increase your assets, you may need to use funds towards your cost of living, medical bills, or more.

This is a great time to consider setting up a trust and will. Your estate planning and living trust attorney can help make sure this is done correctly.

The difference between a will and a trust comes down to how the beneficiary uses your assets or property. In a will, the recipient gets full ownership and can do with that property however he or she sees fit. A trust allows you to designate a trustee to manage your estate according to your instructions. That means you could delay when a young family member takes ownership of the property until he or she is more mature.

You can also leave instructions for your trustee to pay your medical expenses or insurance premiums out of the trust until you pass. Your Los Angeles estate planning lawyer can help with the specifics, so don’t be afraid to ask if a trust is for you.

Purchase Long-Term Care and Life Insurance

You might have purchased life insurance in your younger years so that your family would have financial assistance for day-to-day expenses if something happened to you. As you near retirement, you may find that the focus of your insurance shifts as well.

Life insurance can instead be used in your estate plan to help offset taxes in your estate after you pass. For example, if your house is bequeathed to a family member, that person will have to pay inheritance tax on the house upon acquiring it. Your life insurance policy payout can instead cover the taxes they’ll pay.

Meanwhile, if life insurance helps your loved-ones after you pass, long-term care insurance is meant to help you and your estate. If you pay for assisted living or hospital confinements out of your own pocket, you’ll go through your nest egg rather quickly. Long-term care insurance helps provide for these costs and allows your estate to remain intact.

It’s worth noting that it’s a good idea to purchasing long-term care at a younger age, as this means paying a lower premium.

Maximize Your Retirement

If you are still working and contribute to any kind of retirement account, make sure to max out what you can throw in the pot. This could mean opening new accounts, like a Roth IRA or 401(k), depending on what you currently have.

Current tax laws have certain limits that you can put into retirement accounts. Typically, you can contribute $5,500 per year into a traditional Roth IRA or up to $18,500 in a 401(k) before you are 50 years old. After hitting 50, you can go up to $6,500 in an IRA. You can also make catch-up contributions up to $6,000 in a 401(k), 403(b), SARSEP, or Governmental 457(b).

Plan For Disability

While no one plans on becoming disabled before or during retirement, you also don’t want to be caught empty-handed if something happens. If you become disabled, you’ll want to have the right safeguards in place.

Power of Attorney

Your power of attorney (POA) is a document that gives someone of your choosing the right to act on your behalf regarding financial matters. If something happens to you, your agent can step in and take care of your finances while you recover.

Living Will

A living will allows you to put your wishes in writing in regards to end-of-life care. If you don’t have one of these documents, your family could soon find themselves in conflict with one another over your medical decisions. Depending on how long you end up staying in the hospital, that could drain your estate.

Health Care Proxy

Similar to a POA, a health care proxy can make medical decisions on your behalf. This can ensure that someone you trust is in charge in the case you are no longer able to speak for yourself. Make sure you go over your wishes across different scenarios with your agent to ensure that you’re in good hands.

Review Social Security Options

The amount of your social security benefits depends mostly on your lifetime earnings and the age you start to receive benefits. This payout can add some much-needed assistance to your monthly income.

It’s wise to look at the different amounts you’ll receive based on when you start collecting. There could be a big difference if you wait a little while to collect, but you might also be in a position where you’ll need extra money earlier on. Make sure to consider all of the options and not just start collecting the minute you hit the appropriate age.

Give a Gift

If you make gifts to beneficiaries, you can avoid an estate tax later on. You can currently gift up to $15,000 per person each year before you would have to pay a gift tax. In some cases, the money you gift to another person can be used to help pay your medical or long-term care needs. In other cases, you can enjoy seeing your loved one put the money to good use while you’re still able.

Regardless of your situation, you don’t want to make costly mistakes. If you haven’t already, make sure to set up a meeting with a Los Angeles estate planning attorney and go over your options. You’ve worked hard to build your estate. Now it’s time to protect that investment so you can reap the rewards during retirement.

Planning for the end of your life or potential incapacitation may not be one of the most enticing activities in the world, but it is an important endeavor. Without planning, important decisions about your health and property could end up in the hands of the wrong people. And in the absence of an appropriate estate plan, a California probate court decides who gets to make decisions on your behalf.

Durable Power of Attorney And Living Will for Medical Decisions

That’s why it’s crucial to meet with an estate planning attorney in Los Angeles and create the appropriate living wills and health care power of attorney. These two primary documents allow you to set your wishes for medical care to ensure that important decisions are in the hands of someone you can trust.

The Most Important Health Care Documents

Two primary documents help you make known your wishes for medical care: a durable healthcare power of attorney and a living will. In some states, these two documents are combined to create what is known as an advanced directive.

Powers of Attorney for Health Care

When creating a health care power of attorney, you’ll appoint a trusted person to be your attorney-in-fact for healthcare. This person is often also called a health care agent, health care proxy, or surrogate. He or she makes health care decisions on your behalf and ensure that your medical providers give the kind of care you would want.

Living Will

A written statement detailing the type of care you do or do not want if you become incapacitated is known as a living will. This is not the same thing as a typical will that designates who gets certain assets or pieces of property. A living will contain as much or as little as you’d like.

Read More: Wills, Durable Powers of Attorney and Advance Health Care Directives

When Do Health Care Documents Kick In?

When your doctor determines that you lack the ability to make decisions for yourself, your healthcare documents take effect. A doctor makes this determination if you are unable to understand the nature and consequences of available choices.

For example, if you are suffering from severe dementia, you may not be able to make sound decisions for yourself. Your doctor may also decide that you lack the capacity to make health care decisions if you are unable to communicate your wishes orally, in writing, or through gestures.

There are times when it is clear that a patient lacks the appropriate capacity to make decisions. A major incident, like a stroke, leaves no question. In these cases, your health care directives take effect immediately. In other cases, there may be some question as to your capacity. If there is uncertainty about your ability to understand the consequences of your choices or you are unable to communicate your wishes, your doctor can make the call.

Even if you have directives that give an agent the ability to manage your healthcare, that person cannot override your wishes. So long as you have the ability to communicate, and a doctor believes you have the capacity to understand the situation, your decisions are the only ones that matter. Your healthcare agent must also always act in your best interest and attempt to follow any directions you’ve left behind. Learn more about orange county will and trust attorney.

Do Healthcare Documents End?

Once you create a living will and appoint a healthcare power of attorney, your directives do not expire or go away on your own. You can make changes at any time, so long as you still have the appropriate capacity to do so. There are, however, a few instances that can impact your directives.

You Revoke Them

Just like you can make changes to your healthcare directives at any time, you can also wholly revoke them. In some cases, you may want to make enough changes that the best option is to revoke them and start over.

If you are receiving some kind of medical treatment, it’s imperative that you let your providers know if you want to make changes to your directives, so there isn’t any confusion.

Your Directives Are Invalidated

If your healthcare decisions are being disputed, a court could step in. While a courtroom isn’t the best place to make these kinds of decisions, situations do arise that require legal involvement. If your directives were not properly completed, for example, there could be issues later on. This helps exemplify why working with a skilled Los Angeles estate planning attorney is so essential.

Your directives could also be challenged if someone doubts you had the appropriate mental capacity to create healthcare documents.

Your Agent Is Revoked

If someone, including doctors, believes that your agent is not acting in your best interest, they can request the court to do an investigation. If the court finds your agent is working against your interests, your alternative takes over. In the case there is no alternative, the court decides who steps in and becomes your next agent.

After A Divorce

While getting a divorce will not automatically change your directives, there are a few states that will remove your former spouse’s authority. Since it’s common for significant life changes, like a divorce, to impact your estate plan, it’s vital to make the necessary changes as soon as possible.

After Your Death

Most of your healthcare directives are no longer relevant after your death. In some states, your agent still oversees what happens to your body, organ donation, autopsy, and more. Everything regarding your estate will be dealt with by other parts of your estate plan.

Read More: Pre- and Post-Death Planning in Los Angeles and Orange County

Who Should I Choose?

Because your healthcare agent will make important decisions about your care, you want to pick someone who you trust immensely. This intimate friend or relative should know you and your wishes.

Make sure to talk to this person before naming him or her as your agent. This discussion will let you know if that person is up for the task. Choosing someone who is not prepared for the responsibility could lead to disputes, or even revocation of your agent and the court stepping in anyway..

At the end of the day, someone you know and trust will always give you more peace of mind rather than allowing the court to select a stranger.

To learn more about advance directive, health care documents, and estate planning, ask our living trust attorney in Orange County and Los Angeles.

How Can a Los Angeles Estate Planning Attorney Help You?

While it may seem like something only those nearing retirement or end of life should consider, every adult can benefit from having an estate plan. Every situation is different, but having a plan ensures that your Los Angeles estate and finances are in good hands.

The process of planning your estate involves a lot of work. You’ll need to create legal documents, including wills, trusts, letters of attorney, and more. While it might be possible to do some of these things on your own, you’ll always benefit from hiring a Los Angeles estate planning attorney.

What is an Estate Planning Attorney?

An estate planning lawyer is simply an attorney who specializes in handling estate planning matters. While there are no specific or required certifications to take on this focus, most estate planning lawyers acquire this specialization through years of experience dealing with related issues.

The ultimate goal of an estate planning attorney in Los Angeles, CA is to assist clients in preparing for the end of life and the financial legacy that they’ll leave. Most notably, these kinds of lawyers are known for helping draft wills and setting up trusts. Your lawyer can also help minimize estate and inheritance taxes, transferring your assets to your beneficiaries, and helping to navigate probate if necessary.

An estate planning attorney also helps to ensure that you’re prepared for end-of-life scenarios, especially in the case where you are no longer able to make decisions for yourself. These attorneys can help set up living wills, advance directives, and healthcare letter of attorney documents.

With ever-changing laws and tax codes, you must work with a professional. There are a variety of templates available online so that people can write their own wills, but the challenge is that these documents are not one-size-fits-all. Because your situation is unique, you don’t want to trust a cookie-cutter legal document. Moreover, if you make a mistake, it could result in your final wishes not being followed or putting a loved one in a complicated situation after you pass on.

Why You Need An Estate Planning Attorney

Estate planning involves more than a will

People often confuse estate plans with wills. While these two terms are closely related, they are two very different things. An estate plan is a set of legal documents that prepare for your death or disability. A will is one of the legal materials included in an estate plan. This plan also includes things like health care or financial letters of attorney, disposition of personal property and final remains, and more.

Save time, energy, and money

While you may feel like planning your estate is more of a DIY project, there is a great deal of time involved. You might spend countless hours finding the proper forms, learning the appropriate laws, and making sure everything is in order. Even finding and adapting online templates takes time. An estate planning attorney Los Angeles professional  is already abreast with ever-changing laws, which forms to use, and how to move through the process seamlessly.

Beyond saving time and energy, working with a professional will save you money over the long haul. While it may seem counter intuitive to pay for help to save money, estate lawyers can reduce your long-term fees. If you attempt an entire estate plan on your own and make a mistake, it can end up costing a great deal later on. Estate planning lawyers in Los Angeles California also know how to navigate complex tax codes, which can amount to a great deal in savings.

Objectivity

Since estate planning attorneys are separate parties from your life, they can offer objectivity that you can’t afford to yourself. Your lawyer can act as a new voice of reason regarding current and future estate planning needs. There may also be options outside what you are currently considering. Perhaps leaving your entire estate to a child isn’t the most financially sound plan, and setting up a trust would be better. Being able to look at your situation with a fresh set of objective eyes is a huge help.

What Goes into an Estate Plan?

1. Your will

A will is probably the primary document that comes to mind when planning your estate. Your will lays out who you want to take over your assets after you pass away. It also helps ensure that your assets are distributed according to your wishes. If you have children under eighteen, your will also states who will become their guardian. You can distribute your property to a single person, multiple people, or a charity. You are not required to leave anything to family members if you don’t want to. How your assets are handled is entirely up to you.

If you do not have a will, decisions about your assets, property, and minor children are made by a local court. Even if you’ve given verbal instructions to a close personal friend or family member about how you’d like your estate handled, a court makes the final decision absent of an official will.

2. Trusts

Trusts are primarily arrangements that hold assets on behalf of a beneficiary. There are a variety of kinds of trusts, so it’s essential to work with a qualified estate planning lawyer in Los Angeles to ensure they are set up correctly. Some trusts, called revocable trusts, can help your estate avoid probate. Other trusts, known as irrevocable trusts, help to limit exposure to estate taxes. Of course, there are pros and cons to each kind of trust. The best step is to talk to a professional who can help you determine if a trust is right for you and which type will best accomplish your goals.

3. Powers of Attorney and Living Will

A durable power of attorney provides someone of your choosing the legal authority to act on your behalf. The person you select should be someone that you trust to work in your best interest if you are incapable of doing so yourself. If you do not appoint an agent or attorney-in-fact, the judge will either appoint one for you or will make the necessary decisions in court.

4. Letter of Intent

Beyond the legal documents and beneficiary designations, you should also consider drafting a letter of intent. While this document will not supersede a will and doesn’t carry any real legal weight, it helps your loved ones cope after your passing. A good letter of intent contains account numbers, passwords, PINs, and more. Typically, a copy of your message would go to the executor of your estate as well as your spouse or trusted family member.

The Bottom Line

Planning your estate involves countless, complex decisions. Hiring a Los Angeles estate planning attorney is the best way to make sure your plans are complete, legal, and followed after you’re gone. Working with a professional means knowing that you won’t have to worry about what happens to your estate and assets. While it may not be pleasant to consider your own end, there is no better time  than now to start planning for the future of your loved ones.