tag:blogger.com,1999:blog-54054667835694082932024-03-08T07:34:03.817-08:00Musings on Estate PlanningAnonymoushttp://www.blogger.com/profile/09567949165046802812noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5405466783569408293.post-72269285963907320882015-05-19T21:19:00.001-07:002015-05-19T21:19:34.064-07:00Estate Plan? Me?<div align="center" class="MsoNormal" style="text-align: center;">
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<span style="font-family: Symbol; line-height: 115%; text-indent: -0.25in;"><span style="font-size: large;"><span style="font-family: 'Times New Roman'; font-stretch: normal; line-height: normal;"><br /></span></span></span></div>
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<span style="font-family: Symbol; line-height: 115%; text-indent: -0.25in;"><span style="font-size: large;"><span style="font-family: 'Times New Roman'; font-stretch: normal; line-height: normal;">*</span><span style="font-family: 'Times New Roman'; font-stretch: normal; line-height: normal;"> </span></span></span><span style="font-size: large; text-indent: -0.25in;"><span style="line-height: 115%; text-indent: -0.25in;">My
assets are really simple, and there are not that many of them.</span></span></div>
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<span style="font-size: large;"><span style="text-indent: -0.25in;"> * </span><span style="line-height: 115%; text-indent: -0.25in;">I’m
married; doesn’t everything go to my spouse, then my kids?</span><br /><span style="text-indent: -0.25in;"><span style="font-stretch: normal; line-height: 27.5999984741211px;"><span style="font-family: Symbol;">*</span></span><span style="font-family: 'Times New Roman'; font-stretch: normal; line-height: normal;"> </span></span><span style="line-height: 115%; text-indent: -0.25in;">I
have plenty of time to get this together.</span><br /><span style="text-indent: -0.25in;"><span style="font-stretch: normal; line-height: 27.5999984741211px;"><span style="font-family: Symbol;">*</span></span><span style="font-family: 'Times New Roman'; font-stretch: normal; line-height: normal;"> </span></span><span style="line-height: 115%; text-indent: -0.25in;">My
family gets along really well; they won’t have any problem dividing things up.</span><br /><span style="text-indent: -0.25in;"><span style="font-stretch: normal; line-height: 27.5999984741211px;"><span style="font-family: Symbol;">*</span></span><span style="font-family: 'Times New Roman'; font-stretch: normal; line-height: normal;"> </span></span><span style="line-height: 115%; text-indent: -0.25in;">After
I’m gone, why do I care?</span></span><!--[if !supportLists]--></div>
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<span style="font-size: 14.0pt; line-height: 115%;">These are among the many reasons I hear when I ask if someone
has taken care of putting together an estate plan. For many, “estate plan” sounds complicated
and entirely too sophisticated for what they view as their simple
circumstances. <o:p></o:p></span></div>
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<span style="font-size: 14.0pt; line-height: 115%;">But “estate plan” is an all-inclusive term to describe the
documents needed to adequately protect you and your family and loved ones in
situations of illness, incapacity and after death. An estate plan will address:<o:p></o:p></span></div>
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<span style="font-family: Symbol; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><span style="font-size: 14pt; line-height: 115%; text-indent: -0.25in;">Distribution
of assets</span><br /><span style="font-family: Symbol; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><span style="font-size: 14pt; line-height: 115%; text-indent: -0.25in;">Holding
assets in “trust” if needed for minor children or others not financially
capable.</span><br /><span style="font-family: Symbol; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><span style="font-size: 14pt; line-height: 115%; text-indent: -0.25in;">Directions
for health care if you are incapacitated, temporarily or permanently.</span><br /><span style="font-family: Symbol; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><span style="font-size: 14pt; line-height: 115%; text-indent: -0.25in;">Instructions
regarding end of life decisions</span><br /><span style="font-family: Symbol; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><span style="font-size: 14pt; line-height: 115%; text-indent: -0.25in;">Choosing
someone to make business and financial decisions if you cannot.</span><br /><span style="font-family: Symbol; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><span style="font-size: 14pt; line-height: 115%; text-indent: -0.25in;">Guardians
for minor children.</span><br /><span style="font-family: Symbol; font-size: 14pt; line-height: 115%; text-indent: -0.25in;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><span style="font-size: 14pt; line-height: 115%; text-indent: -0.25in;">Final
instructions re memorial services, gifts to charities, and disposition of your
body.</span><br /><!--[if !supportLists]--><br />
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<span style="font-size: 14.0pt; line-height: 115%;">An example of large scale unexpected death is the terrorist
attacks on September 11, 2001. Not only
was this a sad and tragic series of events because of the loss of life and the
change it wrought in our sense of security within our borders, it demonstrated
how unprepared most families are. <o:p></o:p></span></div>
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<span style="font-size: 14.0pt; line-height: 115%;">The buildings and airplanes involved in the attacks held
primarily people of working age, most in the prime of life. There were some children, some seniors, but
most were people going about their daily work routine, as were the hundreds of emergency
personnel who responded and also lost their lives. <o:p></o:p></span></div>
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<span style="font-size: 14.0pt; line-height: 115%;">Accountants, financial consultants, restaurant workers,
security personnel, building engineers, police, firefighters, military men and
women and yes, lawyers, did not have Wills or Trusts designating what would
happen to their assets. Lawyers were
among the most prevalent of those without plans. The shoemakers’ children go without
shoes. <o:p></o:p></span></div>
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<span style="font-size: 14.0pt; line-height: 115%;"> Not only did
approximately 70% not have written plans, most did not have adequate financial
coverage for families through life insurance or other means. 70% is the approximate national average of
those dying without an estate plan.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-indent: .5in;">
<span style="font-size: 14.0pt; line-height: 115%;">This is an extreme example, but just last month I heard from
a family whose loved one is critically ill and there are no instructions about
end of life care. I recently have been visited
by the adult children of a parent who told the kids everything was taken care
of but they cannot find any of the paperwork.
<o:p></o:p></span></div>
<div class="MsoNormal" style="text-indent: .5in;">
<span style="font-size: 14.0pt; line-height: 115%;">In my own extended family, there were emotional disputes
about what type of service a beloved sister wished to have. When a young couple was killed in a car
accident on a weekend get-away for their anniversary, their three young
children were the subject of turmoil among family factions, each of whom
thought he or she should be appointed guardian.<o:p></o:p></span></div>
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<span style="font-size: 14.0pt; line-height: 115%;">An estate plan is the kindest gift you can leave your family
and loved ones. Don’t make them guess
what you want. Have it written down and
let them know where the papers are. <o:p></o:p></span></div>
<span style="font-family: "Calibri",sans-serif; font-size: 14.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> I can help you reduce your wishes to writing and
can make it affordable to do so. Contact
Kathleen Wright at </span><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><a href="mailto:kathleen@kswrightlaw.com"><span style="font-size: 14.0pt; line-height: 115%;">kathleen@kswrightlaw.com</span></a></span>Anonymoushttp://www.blogger.com/profile/09567949165046802812noreply@blogger.com0tag:blogger.com,1999:blog-5405466783569408293.post-82933992089884837112015-03-30T08:02:00.000-07:002015-03-30T10:18:07.491-07:00<span style="font-family: Verdana, sans-serif;">NEW NOTARY REQUIREMENTS IN 2015</span><br />
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<span style="font-family: Verdana, sans-serif;">Effective January 1, 2015, each Notary Acknowledgement and Jurat (where a person is required "to be duly sworn to tell the truth") must now contain the following statement: </span><br />
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="color: blue; font-family: Verdana, sans-serif;">A notary public or other officer completing this certificate verifies only the identity of the individuals(s) who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.</span><br />
<span style="color: blue; font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">This language must be inserted in a box immediately preceding the caption which contains the State of California and the county in which the notary is performing the service.</span><br />
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">The California Legislature calls this language a "consumer disclosure" and stated that the purpose is to reduce fraud.</span><br />
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">The law was passed in August, 2014, and I was taken by surprise. Usually, there are many services and various continuing education classes which bring these types of changes to the attention of practitioners.</span><br />
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<span style="font-family: Verdana, sans-serif;">I learned the hard way. Clients delayed signing papers until January 5, 2015, and my standard Notary Acknowledgement from 2014 did not contain the new box. Back came the documents from the Recorder's Office. Clients had to sign again because there was no room to insert the box language before the Notary Acknowledgement - and the disclosure purpose to the consumer would not be accomplished.</span><br />
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">If you are preparing or signing documents which require a Notary Acknowledgement or Jurat here in California, check to be sure the new box is in place. Apparently there were people who relied on the Notary to tell them whether what they were signing was true or correct. The only purpose for the Acknowledgement is to verify the identity of someone. The Jurat is more formal and requires the Notary to "swear in" the signer by asking the individual to raise his or her right hand, and "swear that the statement he or she makes therein is the truth." Contact an attorney if there is a question about the accuracy, truth or validity of a document.</span><br />
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<br />Anonymoushttp://www.blogger.com/profile/09567949165046802812noreply@blogger.com0tag:blogger.com,1999:blog-5405466783569408293.post-62935863086953926942015-02-26T17:45:00.000-08:002015-02-26T17:45:29.959-08:002015 Federal Estate and Gift Tax Exemptions<span style="font-family: Verdana, sans-serif;">2015 arrived with a gift from the Internal Revenue Service to both individuals and professional advisers. Estate and gift tax exemptions increased or stayed the same. </span><br />
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;"><b>Estate Tax:</b> The estate of each individual who dies in 2015 may transfer up to $5,430,000 without paying estate tax ($90,000 more than the 2014 amount of $5,340,000). Generation Skipping Tax exemption also increased to $5,430,000.</span><br />
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;"><b>Portability:</b> A married couple may combine the individual exemptions to transfer $10,860,000 through a technique called "portability" with the filing of an estate tax return by the surviving spouse or estate executor. A box is checked on the return and that simple act reserves the right to transport the exemption and add it with the exemption of the second spouse to die. This is a much simpler process than the establishment of multiple trusts and segregation of assets which was necessary prior to portability. </span><br />
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;"><b>Gift Tax Exemption:</b> This remains the same as in 2014: $14,000 per year per person without impacting the lifetime estate tax exemption (currently set at $5,430,000 as described above). A married couple may transfer twice the exemption amount, $28,000, to a single recipient. There is no limit to the number of recipients. Neither the recipient or the giver pays a tax. Annual gifts are a method to reduce total estate value and can be very effective if undertaken systematically over many years.</span><br />
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<span style="font-family: Verdana, sans-serif;">At the current exemption amounts only an estimated 3,700 estates, 0.12% of the total number of decedent estates, will owe estate tax. Estate tax, also known as the "death tax", has become a non-issue for most residents and citizens of the United States. After years of uncertainty in Federal estate and gift tax and last hour Congressional votes and Presidential signings, the stability over the last 3 years is refreshing. There are so many other issues pending before Congress, it is unlikely estate and gift tax will be added to the mix, at least until a new President takes office in January, 2017.</span><br />
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">If you have questions about how any of these taxes and exemptions apply to your estate, please call attorney Kathleen Wright at 408.499.2159 or email kathleen@kswrightlaw.com</span>Anonymoushttp://www.blogger.com/profile/09567949165046802812noreply@blogger.com0tag:blogger.com,1999:blog-5405466783569408293.post-58621267881402270462014-10-21T19:16:00.000-07:002014-10-21T19:16:23.067-07:00Hello World!!This is our first blog post from the newly started KSWright.law practice. We intend to fill this space with interesting tidbits and and gotchas from all over the estate law world.<br />
<br />
We aim for once a month, starting in November. See you then!Anonymoushttp://www.blogger.com/profile/09567949165046802812noreply@blogger.com0