September « 2010 « Morgan Law Group

Archive for September, 2010

Momma always said “You get what you pay for”

Wednesday, September 29th, 2010

Would you be interested in paying $1000 for a stack of paper called the “Smith Family Living Trust?”

That’s what some law firms charge for a Trust and it sounds like a good deal. Or is it?

I’m here to tell you that estate planning is so much more than a stack of paper. Let me help you make sense of it.

First of all, not all lawyers are the same! Seems obvious, right?

There are some estate planning firms that are referred to as “trust mills.” This means they charge very low prices and rely on huge volume (ie. cranking out tons of trusts each month) in order to make their profit. This is a certain type of business model, and one that many estate planning firms employ.

There are many, many problems with this model, however, that directly impact the estate plan you receive and whether or not it will actually *work* in the long run. So if you are looking for the cheapest trust in town, here are some of the crucial issues you should consider first:

1. Lifetime relationship

Trust mill law firms cannot afford to stay in touch with you, on any sort of regular basis. Yet this is critically important!

There are a lot of things that occur in life that could impact your estate plan. A birth or death, a marriage or divorce, even changes in the law can mean that you need to update your plan. If your attorney hasn’t opened the door to you, who will you turn to when you have questions about your plan? Who will be in touch with you if a law changes that will impact your plan? If the attorney doesn’t have a plan to stay in touch with you, your $1000 stack of paper can become totally worthless.

2. Guidance on titling assets

If you have a living trust it is absolutely critical that your assets are titled correctly. If your assets are not owned in the right way, you plan is going to fail. What do I mean by that? By fail, I mean there is going to be either a probate or an unintended result. If the law firm offers no guidance on how you should title each and every one of your assets, just step away!

3. No tax planning; or, worse yet, mandatory, inflexible tax planning

Do you need tax planning? Do you know? Most attorneys don’t discuss this and just assume what is best for you and give you their template form document. Please don’t assume that you don’t need tax planning. And, don’t assume that the trust mill is going to accomplish this with the standard form templates that they use for your trust. I have reviewed many estate plans done by trust mills over the years and they either do not include any tax planning or they include mandatory, inflexible tax planning. Both can cause huge problems.

4. No Kids Protection Planning

Most law firms, but especially trust mills, do not plan correctly for families with minor kids. Most law firms do not plan from a parent’s perspective, so their planning is inadequate to protect your kids physically and financially. Most commonly, I see huge mistakes in how guardians are named and problems with the way money is left to the kids. Huge.

What this means for you is that your kids are at risk. Period. Is it highly unlikely that something will happen necessitating a comprehensive family emergency plan? Probably. But the “odds” don’t really matter if your family happens to be that “one in a million.” The results of improper planning can be devastating, on so many levels, not the least of which is that your kids could end up in Child Protective Services. That is not OK. And risking it is totally unnecessary.

5. Hourly billing with questions

Most trust mills will charge you their hourly rate if you have questions after they complete your estate plan. What this means is that you won’t call and ask the questions you have because you won’t risk getting a big bill in the mail. If you don’t call, your question won’t get answered. You’ll guess at what you’re supposed to do. Chances are, you’ll guess wrong (or it won’t get done at all) and you’ll have a hole in your estate plan, which would mean that there is a risk of not working when your family needs it the most.

6. Inadequate office support

Most trust mills save money on office staff by using trust templates. The “search & replace” and “copy and paste” trust creation means that they need fewer staff which is a great deal for them, but a big loss for you. Because of this, you won’t get a call back in a timely manner and it may even impact your estate plan’s integrity.

7. Experience: legal, technical and personal

Many attorneys in trust mills have very little or no experience, which results in a poor quality document that won’t likely work. If you are going to pay good money, you should at least get a quality, customized estate plan. The standard template trusts are like a “one size fits all” t-shirt that doesn’t really quite fit anyone all that well.

If an attorney can’t get a job, (or recently lost their job) estate planning is one of the first practice areas that attorneys will turn to. Every attorney learns basic “Trust Law” in law school. So they will hang out a shingle, grab a standard template trust, and start doing “search & replace/copy & paste” trusts. Their draw to get clients is to be the cheapest game in town. That’s all they have to offer.

So if all you want is a “search and replace” trust, then you don’t need an attorney for that; if you can type, then you can do this on your own and really get a cheap trust! (More on “Do it Yourself” planning in another post). But for myself, a “search and replace” trust was not good enough for my family, and I suspect you feel the same.

The scariest part of all of this is that the consumer really has no way of knowing if their trust is a good one or not. It is really critical that you do your homework and feel free to take this article and discuss each point with any attorney that you are thinking of working with

The Dirty Little Secret of Trust Attorneys

I’ve had many people ask me, “Why do trust mill attorneys practice this way?” Well, here’s the dirty little secret: Attorneys make a lot more money when an estate plan fails, then when it actually works properly. Because of that, an attorney stands to make a lot more money in the long run doing a cheap trust (as a “loss leader”) when the attorney knows that many years from now, when something actually happens, the family will pick up the estate planning documents and call the attorney whose name is listed there. If it’s a probate, a conservatorship, litigation from families fighting, all of those are very expensive. The person who benefits the most? The attorney who drafted the trust.

Here at Morgan Law Group we work diligently to educate the community about what good, effective estate planning should be. Take a look at the experience shared by one of my family’s …

Dear Darlynn,

First of all, my husband and I would like to thank you for your detailed review of our existing trust. You were extremely thorough and tailored your comments to our personal circumstances.

As a young family, your plan seems expensive. But we learned the hard way how much peace of mind is worth. Before we knew about Morgan Law Group, we chose the less expensive route of a legal assistance firm. It cost around $1000 to create our first trust. These are all the ways our confidence in the process was undermined:

We had to put money on the table before they would even talk to us.
They prepared the trust and we caught some errors (some pretty major ones) – and then manually helped them make the changes and reorder the document. We’re talking 80 pages here! And more time for my husband away from work.
As for advice, it was up to us to decide our fate – and the fate of our children after we die. We asked, “Do we need to put our bank account in the name of the trust?” The answer: “Only if you want to.” There was no guidance on how to fund the trust. Or how to list beneficiaries.
Now it’s three months after the date on our trust and it is not funded correctly. If I die tomorrow, the trust will not protect all our assets.

Now we know there is an alternative and that it’s worth every cent we’d pay to Morgan Law Group. We loved that we could call your office and your very knowledgeable staff walked us through the entire process.

We did not know how easy estate planning could be until we visited your office. We’ve already referred my parents to you. If something should happen to them, we would rather have you walk us through a difficult time than anyone else. Thank you for providing this valuable service. You made a very important difference in our lives. We wish you every success in helping others just like us and look forward to meeting with you again.

-Warren and Michele Whiteaker, Laguna Hills, CA

This is just one example we have from a family that experienced a $1000 trust. Luckily nothing happened to them before we had a chance to create a plan for them that will actually work. But, my fear is that there are a lot of other families in Orange County that have those $1000 stacks of paper and the false confidence that their plan will work as they want it to. If you know a family, or are a family has or is considering one, please contact me for a free Family Wealth Planning Session. I will explain in detail how estate planning should really be done.

Tags: estate planning, trust
Posted in California Estate Tax Lawyer, Orange County Estate Planning, Orange County Wills and Trusts | No Comments »

So You Want To Form an LLC: Tips from an Irvine Corporate Lawyer

Tuesday, September 28th, 2010

By Darlynn Morgan, Irvine Corporate Lawyer

As an Irvine corporate lawyer, I can say that when you decide to start a business, one of the first decisions you’ll make is how to actually structure the business.

Will you be a sole proprietor?

Will you form a partnership? A corporation?

Or will you opt for the popular Limited Liability Company (“LLC”) formation?

A Limited Liability Company or “LLC” is a business structure allowed by state statute. One reason for their popularity is the feature that limits the personal liability of the members for the debts and actions of the LLC.

Another reason for the LLC’s popularity is the relative ease of forming an LLC. In most states, you need only file Articles of Organization with the Secretary of State and draft an Operating Agreement. However, some states do require a few additional steps, such as publication of a notice of formation. Give us a call to discuss whether or not your state has any additional requirements for LLC formation.

Beyond the requirements for actually forming the LLC, there are a few other things to think about before you decide to make your business a Limited Liability Company. Here are a few pros and cons:

The Good News

The owners of the LLC are referred to as Members, not partners or shareholders. The number of members is unlimited, you can name as few as one Member (making your business a single member limited liability company), or any number you choose. Beyond flexibility of management structure and the limited liability of members, some of the other advantages of the LLC are:

Flexible Profit Distribution – A common partnership requires profits to be distributed equally among partners. An LLC does not require an equal distribution among the members.

No Corporate Minutes – If you form a corporation, you are required to keep formal minutes, have meetings, and any action of the corporation requires a formal resolution. While that may not sound like a big deal, you would be surprised how many corporations are lax in actually meeting these requirements, and that can lead to problems down the road. An LLC does not require minutes, meetings or resolutions which makes them much easier to operate and maintain.

Flow Through Taxation – Your business profits, losses and expenses flow through the LLC to the individual member or members. That way you avoid double taxation by paying corporate and individual taxes. As a general rule, this is a serious advantage. However, some of the IRS requirements pertaining to LLC’s have changed, particularly regarding the way Single Member Limited Liability Companies report, collect and pay employment taxes if they actually have employees. Call me, your neighborhood Irvine corporate lawyer, to talk about what you need to do to make sure you’re in compliance with the new IRS regulations that took effect on January 1, 2009.

The Not So Good News

Here are a few of the down sides of the LLC formation:

Your LLC May Not Live Forever – If you form a corporation, your business structure can survive your death or personal bankruptcy. However, if you form an LLC, it will be dissolved if you die or file bankruptcy, which means it isn’t a company you can leave to your heirs.

No Stock to Sell – If you plan to take your business public or issue shares at some point in the future, you don’t want to form an LLC. LLC’s do not issue shares and are privately held. If you have big plans for your business to be the next Microsoft, you would probably be better served by starting out with a corporate business structure.

Taxation Designation – When you start your LLC, if you have more than one member, you will have to file Form 8832 with the IRS and designate exactly how you want your LLC to be treated for taxation purposes. You can elect to be classified as a corporation or a partnership. A single member LLC can be classified as a corporation or a single member “disregarded entity”. Any of these classifications carries with it specific requirements and can make a big difference in the how your taxes are calculated and paid. Don’t make this designation without talking to us first.

One More Word To The Wise

If you are considering forming a single member LLC, you might want to reconsider and actually add another member. A recent Florida Supreme Court ruling and the actions of two different bankruptcy courts have used a flaw in the single member LLC structure to allow creditors to take over the LLC and liquidate it if the single member is sued personally. Since there are no other members’ investments or assets to protect, the protections that would normally apply to the member’s investment don’t apply to the single member LLC. If you are sued, and you’re the only member and it won’t affect anyone else, the assets of the LLC are fair game. If this is a concern for you, you should talk to an attorney about asset protection strategies and proper venues for your company that will lessen your exposure.

If you’ve given all these issues full consideration and you decide that a Limited Liability Company is the right choice for your new business, make sure you understand everything that is required of you and all the possible tax implications.

And just as with any other process with serious potential for legal issues down the line, always consult an Irvine corporate lawyer to determine what’s best for you. Call us at 949-260-1400 to schedule your comprehensive Foundation Audit today so we can identify the best course of action for you. Normally, this session is $1250, but if you mention this article and we still have room on our calendar this month, we will waive that fee.

Tags: irvine corporate lawyer, limited liability corporation, LLC
Posted in California Business Planning | No Comments »

Orange County Wills and Estates Lawyer Discusses How to Plan for Incapacity

Thursday, September 23rd, 2010

By Darlynn Morgan, Orange County Wills and Estates Lawyer

When most people think about estate planning, they envision meeting with an Orange County wills and estates lawyer to plan for their death. However, a good, comprehensive estate plan covers so much more than just planning for death, as it should also include provisions to protect your family, assets and wishes in the event of short or long-term incapacity.

Incapacity can be a result of an accident where you are no longer able to care for yourself or it can be the result of the natural aging process. Diseases like dementia and Alzheimer’s can come on quickly and often rob senior citizens of their ability to make decisions and care for themselves. And sadly, at that point, someone is forced into the position of taking over for the ill person, which is much more difficult if the person has passed the point where they can no longer manage their affairs.

In situations where a person has not put a plan for incapacity in place, it may be necessary to petition the court for guardianship and conservatorship of their estate. However, conservatorship and guardianship are only granted by the court when there are no less restrictive alternatives available and is really only considered a last resort. Plus, the burden of ‘proving’ incapacity often falls on the already over-burdened, over-worked, stressed-out and emotionally-drained caregiver, thus making it a painful road for all parties to travel.

My heart sinks when I get a call from someone who says that their mother or father is at the point where they need someone to take over their affairs. I’m further surprised by the number of people who only realize this after their loved one has been taken for lots of money by scammers who prey on vulnerable people.

Recently a client of mine and told me that her mother had been handling her own affairs – long passed when she should have. It seems that her mother had accidently written a check to the gardener for $800 instead of $80! Needless to say, by the time it was discovered, it was too late. The money was never returned from the gardener.

At any rate, once incapacity is discovered, it’s now up to the caregiver to gain access to their loved one’s bank accounts, investment accounts, and other sources of income—in addition to figuring out how to take care of them on a daily basis. Decisions like having the person live in a nursing home or whether to hire in-home care service is also incredibly difficult emotionally; especially if you’ve never discussed this with your loved and you have no idea what they would have chosen for themselves.

Yet as an Orange County wills and estates lawyer, I want you know that these situations are entirely avoidable. With a bit of advanced planning, you CAN put a hedge of protection around your assets and your loved ones so you aren’t taken by surprise if incapacity suddenly occurs. Simply mention this article and schedule your own Family Wealth Planning Session (normally $750) and I will show you how. I have room for 10 free consultations each month so call our office at (949) 260-1400 and make sure you get one of them.

Tags: estate plan, orange county wills and estates lawyer
Posted in Orange County Estate Planning, Orange County Wills and Trusts | No Comments »

Newport Beach Estate Planning Attorney Reveals 4 Big Reasons Young Professionals Might Need an Estate Plan

Wednesday, September 22nd, 2010

By Darlynn Morgan, Newport Beach Estate Planning Attorney

As a Newport Beach Estate Planning Attorney, I realize there are several misconceptions about estate planning floating around but there’s one that is particularly troublesome that I’d like to address. It’s something that I hear often. That is…

I’m a young professional planning for my future. Do I really need an estate plan?

Youth is not an excuse to put off doing an estate plan. This is because an estate plan is not just about planning for your death. It also prepares you in the event you experience an incapacitating injury and are unable to make your own financial or medical decisions. While the odds are certainly in your favor that you will not need to invoke your plan, you should still consider the four reasons below and make your own decision.

You need a plan in the event that you become disabled or incapacitated.
Just because you are young it doesn’t mean that something bad can’t happen to you. Unfortunately, tragedies happen every day. If something happens to you and you are no longer able to make decisions regarding your own financial, legal, and medical affairs, you’ll need basic documents in place such as a medical directive, power of attorney and HIPAA authorization to ensure someone has the ability to speak for you when you can’t.
You need to pass your assets.
I know what you are thinking. “What assets?” (Was I right?) Even if you do not yet own your own home, you need to consider IRAs, retirement accounts and life insurance accounts offered through your employer. You need to make sure that beneficiaries are named in the right way to make sure that the people you want to leave them to get maximum benefit.
You need to name guardians for your kids.
If you have children, you simply must name guardians. You should be the one who decides who will raise them if you are no longer around. You do not want this decision left to squabbling relatives or to a court system who doesn’t know you or your child.
You need to plan for your pets.
If you have a pet, chances are they are a big part of your life. They are totally devoted to you and also totally dependent on you. Have you stopped to think what might happen to them if something were to happen to you? If you want to make sure your companion is cared for if the unexpected happens, you could choose to put together a plan for their continued care. The plan may include directions about feeding, medical care and other needs along with funds necessary to provide for your pet’s support and to compensate the caretaker.

These are a just a few things to consider when deciding if you are ready to create your own estate plan. If you would like to talk to an experienced Newport Beach estate planning attorney who will give you the straight scoop on whether you should create a plan, contact our office at (949) 260-1400 to schedule your own Family Wealth Planning Session (normally $750). However, these appointments are limited to 10 per month so call today!

Tags: newport beach estate planning attorney
Posted in California Child Protection, Orange County Estate Planning, Orange County Wills and Trusts | No Comments »

Orange County Business Attorney Reveals Seven Things You Need to Know About Health Care Reform

Tuesday, September 21st, 2010

By Darlynn Morgan, Orange County Business Attorney

Health care reform was signed into law on March 30, 2010.

While many of the changes won’t take effect until 2013, as your Orange County business attorney, I’d say the time to start planning for these and other changes is now.

We’ve compiled a list of seven things you need to know about health care reform as a small business owner. Call us to find out how to prepare for these changes before they happen and make sure that you minimize the downside and optimize any benefits:

1. Tax Credits As Incentives To Provide Health Care Coverage

Beginning with this tax year, if you have 10 or fewer employees and average annual wages of less than $25,000 per year, you can get a credit of up to 35% of your health insurance premium costs each year through the year 2013. The tax credit will be phased out for larger companies. It will not exist at all for companies with more than 25 employees or average annual wages of $50,000 or more.

In 2014, each state will be required to establish a “health insurance exchange”. This exchange will be a marketplace where individuals, the self-employed and small businesses can buy health insurance. The exchanges will be regulated by the government and will offer policies with a wide range of coverage options and price tags to match. If your small business signs up with one of the health insurance exchanges you can receive a credit of up to 50% of your costs. However, this program will also be subject to the same work force size and annual income restrictions as the one mentioned above. And the tax credit will disappear after the year 2015.

2. Value of Health Care Benefits To Be Listed on W-2’s

Starting in 2011, businesses must list the value of health care benefits they provide to employees on the employees’ W-2’s. The value, however, is not treated as taxable income.

3. Effects On Medicare Part D Prescription Drug Coverage

If your business is getting a tax deduction for providing Medicare Part D prescription drug coverage to your retirees, and the federal government subsidizes that coverage, your deduction will be eliminated in 2013.

4. Health Care Flexible Spending Accounts

Effective in 2013, employees can contribute no more than $2,500 per year to a health care flexible spending account. Make sure your employees are made aware of the change and plan accordingly.

5. Medicare Tax

If you or any of your employees will earn $200,000 or more beginning in 2013, a 0.9% Medicare surtax will be applied to any money you earn over $200,000 (or $250,000 for a married couple). And a Medicare tax of 3.8% will be applied to the investment income of those earning above these income levels. The tax will be applied to their unearned income or the amount that their income exceeds the $200,000 or $250,000 thresholds. For purposes of this tax, unearned income is defined as interest, dividends, capital gains, annuities, royalties and rents. Any interest that is legally tax exempt or income from retirement accounts will not be included.

6. Tax On “Premium” Health Care Plans

Starting in 2018, high-cost or so-called “premium” health care plans will be subject to a 40% excise tax. The tax will be applied to the portion that is over $10,200 for individuals and $27,500 for families. This tax can be applied to not only employer provided plans but individual plans as well.

7. Fees For Failure To Offer Coverage

If your business has 50 or more employees and you fail to offer health care coverage, you will be subject to a non-deductible fee equal to $2,000 multiplied by the number of employees (less the first 30 employees).

The new health care reform law contains many new taxes and tax increases that could be landmines waiting for your small business. Don’t let an oversight cost you even more.

Call me, your neighborhood Orange County business attorney for a comprehensive LIFT™ (legal, insurance, financial and tax) Foundation Audit today so we can identify the best course of action for you. Normally, this session is $1250, but if you mention this article and we still have room on our calendar this month, we will waive that fee.

Tags: health care insurance exchange, medicare part d, orange county business attorney
Posted in California Business Planning | 2 Comments »

Orange County Estate Tax Lawyer Asks, ‘Are You Ready for the 2011 Tax Changes?’

Friday, September 17th, 2010

By Darlynn Morgan, Orange County Estate Tax Lawyer

If ever there was a time to call your Orange County estate tax lawyer, now is that time.

The tax cuts instituted by the Bush administration in 2001 and 2003 are set to expire in 2011 unless Congress does something to stop it before the end of this year. There are many proposed bills up for discussion right now but it’s anyone’s guess which, if any, will be passed in time.

If you are a single person earning $200,000 or more per year, or a married couple with a combined income of $250,000 plus per year, your federal payroll tax will increase by 0.9 percent in 2013 and taxes on your investment income and gains will take an additional hit of 3.8 percent.

To minimize the hit you’ll take next year, now is the best time to plan. To give you an idea of what’s coming, here’s a brief list of the top 5 changes you’ll see after 2011:

1. Increased Income Taxes for Higher Earners

Right now, single people with a taxable income of more than $192,000 and married couples who file jointly and have a combined taxable income of $232,950 or more pay 33 percent and 35 percent in taxes, respectively. These taxes are going to increase to 36 percent. If you earn more than $375,700 (regardless of whether you’re single or a couple filing jointly), your taxes will go up to 39.6 percent. The general consensus is that the Bush tax cuts will probably become permanent for earners with incomes less than $200,000.

If you are looking at a higher tax rate in 2011, you need to look for ways to take advantage of the lower 2010 taxes now. One possibility is conversion of a traditional IRA to a Roth IRA. But don’t do this without talking to us first. It needs to be done a certain way or it’s pointless.

2. Higher Taxes on Investment Gains

If you’ve been enjoying a 15 percent maximum rate on long-term capital gains and qualified dividends, expect to see that increase. If Congress takes no action, capital gains will be taxed at 20 percent and dividends will be treated as normal income (making rates as high as 39.6 percent a possibility). More than likely, action will be taken to fix that hike to 20 percent, but only for investors in the top two income brackets we talked about earlier. In 2013, that 20 percent rate will rise to 23.8 percent for the highest earners as part of the new excise tax for health care.

Don’t sell profitable stocks right now to qualify for a lower tax rate. Just take this opportunity to rebalance your taxable investment portfolio now when the taxes are lower. You should also take a look at your home equity situation and talk to us about actions you can take to lower your tax bill should you decide to sell and make a considerable profit.

3. The Estate Tax Cometh

Yes, the federal estate tax will be resurrected in 2011 and it will come back at levels we saw in 2000. The top tax rate will be 55 percent on estates worth $1 million to $10 million and 60 percent on estates worth more than $10 million. Congress has said that they will fix the estate tax debacle and make estates valued at less than $3.5 million ($7 million for couples) exempt from federal estate taxes, and set a maximum tax of 45 percent on assets over that. But no one is really sure how all this will play out.

Right now, we can only hope they take action soon. But in the meantime, talk to us about how to structure your estate to take advantage of these exemptions should they happen, and make sure that your estate plan is sound. For example, there are certain kinds of trusts that will essentially disinherit you if your spouse dies before the tax comes back. Call us to make sure you don’t have a potential nightmare on your hands.

4. You Could Be Losing Write-Offs

The 2011 budget will reinstate the phase-out of personal exemptions and itemized deductions for earners in the top two tax brackets. Another proposal is on the table that will cap the deduction rate for the top two tax brackets at 28 percent.

The itemized deduction is still in effect for 2010 so this is a good year to make sizable gifts to your favorite charities.

5. An Alternative Minimum Tax Quick Fix

If you’re a middle class taxpayer, you’re being hit every year by the Alternative Minimum Tax (“AMT”) because, although it was designed to make sure that rich taxpayers didn’t get out of paying taxes, it was never indexed for inflation. Every time Congress passes what they call a one year “patch” to spare some taxpayers, they raise the AMT exemption. A one year patch for 2010 is a given, and a permanent fix is possible in 2011 with an automatic annual inflation adjustment. The AMT may be a joke but it’s a very profitable one – it will account for $875 billion between 2009 and 2019, so it’s likely to be a joke we’ll be living with for a very long time.

If you’re a single person with an adjusted gross income of $46,700 or more in 2009 or a married couple with an adjusted gross income of $70,950 for the same year, you will have to look at the tax tables and the AMT and pay whichever is higher. This is really painful for couples with children in states where you’re also paying high income and property taxes (the deductions for these taxes are limited under the AMT).

These are only five of the changes that are coming in 2011. The ins and outs of dealing with the tax code are murky on a good day, but with the coming year and the expiration of old tax breaks, the new health care legislation and the outcome of any pending legislation, you need to make sure that your tax house is in order and you’re not paying more than you need to pay.

We can help you navigate your way through the changes.

Our Family Wealth Planning Session is normally $750, but this month I’ve made space for the next two people who mention this article to have a complete planning session with me, your neighborhood Orange County estate tax lawyer at no charge. Call today and mention this article.

Tags: bush tax cuts, higher taxes, orange county estate tax lawyer
Posted in California Estate Tax Lawyer | 1 Comment »

OC Probate Attorney Answers Discusses The Role of The Estate Administrator and Who Should You Choose?

Wednesday, September 15th, 2010

By Darlynn Morgan, OC Probate Attorney

As an OC probate attorney, I know that selecting the executor of your estate is one of the most critical decisions you will make while preparing your estate plan. Many people come in to my office thinking they already know who they want to serve in this role– and in most cases people choose a close relative. But, as I take the time to fully explain the roles and responsibilities of the executor, I find that most people wisely decide to change their plan.

Simply put, the executor of your estate will make sure that everything runs smoothly after your death.

However, the role of the executor is much more complex than it looks like on its surface. Some of the things that your executor will be responsible for include:

Collecting and inventorying your assets
Paying off your remaining debts
Paying your taxes and administrative expenses associated with your estate
Distributing the remaining assets to the beneficiaries that you named in your estate plan

The skills and personality of this person should also be considered. The executor of your estate should be extremely organized, have the ability to deal with the pressure of family members who may not be happy with how the estate was handled, and of course, be entirely honest.

Once you have identified the person that you want to name as executor of your estate, you should interview them in a sense, much as you would a job applicant. Make sure they completely understand the roles and responsibilities as well as any family issues that might arise during the process. You should actually get their permission before naming them as your executor.

If you need help deciding who should be your executor, feel free to call me, your neighborhood OC probate attorney, for a free Family Wealth Planning Session (normally $750). I will personally take the time to walk you through the process of selecting your executor as well as all of the other critical decisions that need to be made. Simply call (949) 260-1400 to get started!

Tags: oc probate attorney
Posted in California Probate, Orange County Estate Planning | No Comments »

Orange County Elder Lawyer Helps You Decide If Your Aging Loved One Needs Long Term Care

Thursday, September 9th, 2010

By Darlynn Morgan, Orange County Elder Lawyer

As an Orange County elder lawyer, I know it’s hard to think about, but imagine one of these scenarios…

Your mother falls, breaks her hip and requires hospitalization and long term follow up care…

Your spouse repeatedly wanders off and gets lost…

Your grandmother has lost an unusual amount of weight and refuses to leave home…

At some point, each of us will be faced with one of these issues in some form or fashion. The tipping point in deciding whether or not a loved one needs long term care can come at any time and in ways we never imagined.

If we’re smart we’ve planned for it, but in many cases making the decision to obtain long term care is done in response to an emergency situation. That makes the decision that much more difficult and can lead to making mistakes with serious consequences.

To help you plan ahead for any of these unsettling mishaps and make the decision quickly, carefully and in the best interest of your family, here are a few things to consider:

Warning Signs of the Need for Increased Care

If your loved one is exhibiting any of these warning signs, you need to start planning now for their care before you have a crisis on your hands:

Difficulty walking – unsteady on their feet – recent fall(s)
Poor grooming or personal hygiene – soiled clothing
Loss of appetite – changes in eating/cooking habits
Spoiled or outdated food in the refrigerator – little or no nutritious food in the home
Diminished driving skills – recent accidents – near misses
Loss of interest in activities they once enjoyed
Reluctance to socialize
Poor concentration or poor judgment
Memory loss, forgetfulness or confusion
Mishandled medications
Persistent fatigue and lack of energy
Changes in personality – irritability – sudden mood changes
Unopened mail, past due bills, mishandled finances
Poor housekeeping and home maintenance – unsafe conditions in the home

Deciding What Kind of Help Your Loved One Needs

While any of these warning signs means you need to pay closer attention to what’s going on with your loved one, some of them may be signs of a problem that’s correctable. They could be caused by drug interactions or side effects. Consumer Reports recommends that any new health problem in the elderly be considered to be drug induced until you can prove that it wasn’t. The elderly tend to take a variety of different medications, and any of them can interact poorly with the others if not monitored properly. Make sure that it’s not a correctable problem before you take drastic measures.

If you’ve taken the proper steps and precautions and your loved one’s problem cannot be easily corrected, you need to decide what type of living arrangement is best for them.

Can they remain in their own home? If so, do you know what kind of nursing assistance is available to them?

Is assisted living or nursing home care a better choice?

What specialized care will they need and how often?

Do you know what community resources are available to help you manage their care?

All of these questions need to be answered and the best course of action is to start gathering information now, before you’re in reactionary mode. Crisis management makes it far too easy to miss resources and care options that a good plan will have laid out.

And remember, each caregiving situation is unique. These are just the first steps in helping you manage it all. Without a sound plan in place, all the decisions and options can be overwhelming. And you have to remember to take care of yourself and your immediate family as well. We can’t say enough about how important a good plan is to making a difficult situation better for everyone involved.

Regardless of your current circumstances, if you have an elderly family member you could be looking at a crisis of care at a moment’s notice. Proper planning can make you feel much more confident that you’ve made the right decisions. Call me, your neighborhood Orange County elder lawyer at (949) 260-1400 to schedule your Family Wealth Planning Session today. We can explain your care options, assist with Medicaid planning, and help you use all the resources available to you for planning your loved one’s estate in a way that will help take care of the costs for long term care.

Our Family Wealth Planning Session is normally $750, but this month I’ve made space for the next two people who mention this article to have a complete planning session with me at no charge. Call today and mention this article.

Tags: Orange County Elder Lawyer
Posted in Orange County Estate Planning, Orange County Wills and Trusts | 1 Comment »

Orange County Probate Lawyer: Invest In The Protection of Your Family Before It’s Too Late!

Wednesday, September 8th, 2010

By Darlynn Morgan, Orange County Probate Lawyer

As an Orange County probate lawyer, I’ve literally been bursting at the seams to write this blog post after receiving an email that absolutely rocked my week.

Basically, an acquaintance of mine who was in her 40’s suddenly passed away last week. I had talked with her repeatedly about making a will and getting her affairs in order, but she thought she was too young and just wasn’t ready to take that next step.

“I’m not ready yet”. Have you also uttered those words as it relates to making sure your family, assets and wishes are protected should something happen to you?

Anyway, to make a long story short, her 20-year-old son contacted me for help after finding one of my e-zines in her inbox (if you’d like to get on that list, simply fill out the form at the top of the page). Of course my heart immediately sank knowing that he’ll be stuck cleaning up a legal and financial mess, when he should be taking it easy and going through the natural grieving process for his mother.

Not to mention, I’ve been there. As you may know, I lost my first husband to cancer at 36 years old. We also thought we were too young to plan (mind you—I was still a business lawyer at this time and didn’t realize the importance of estate planning until this happened), and by the time we attempted to get our affairs in order, it was too late.

So like this young boy, at a time when I should have been grieving for my husband, I was also stuck cleaning up a legal and financial mess as I became the owner of his business–much to mine and his partner’s dismay!

Fortunately, all of this is so preventable just by planning ahead. Yes, there is a small investment to get your will, trust or other estate planning documents done, but it will save your family THOUSANDS of dollars and YEARS of headaches in the long-run should the unexpected happen.

And if you have kids, own any assets or you are currently in an alternative relationship (life partnership, same-sex relationship, etc), the words “I’m not ready yet” should not even be in your vocabulary. Too much is at stake if you should suddenly die or become incapacitated without a plan in place.

Fortunately, we’ve made the process of getting your affairs in order easier than ever by offering 10 free Family Wealth Planning Sessions each month to California residents. During this session, we’ll review your assets, wishes and current financial situation to determine EXACTLY what would happen to your family if you were incapacitated or suddenly passed away. You can schedule that appointment with me now, your Orange County probate lawyer, by calling (949) 260-1400. Remember, these sessions are limited to 10 per month, so call today!

Tags: orange county probate lawyer
Posted in California Probate | No Comments »

Wills Lawyer Orange County Asks, What Happens To My “Tweets” When I Die?

Tuesday, September 7th, 2010

By Darlynn Morgan, Wills Lawyer Orange County

If you are a regular reader of my blog, you know that my focus as a wills lawyer Orange County is to preserve not just your financial wealth, but your legacy as well. That often means going beyond your financial assets covered by “traditional” estate planning methods, and delving deep into your human assets such as family values, traditions, and memories.

More and more people are using social media sites such as Twitter and Facebook to record important memories such as the birth of a baby, a child’s graduation, a wedding and so much more. You will find commentary not just from the owner of the social media account, but also from friends and family as well. Social media accounts serve as a cache for photos and videos – all of which incredibly valuable to your family.

Clearly in today’s tech-savvy world, social media is quickly becoming the family’s most important depository for their memories. Doesn’t it make sense, then, that you include a plan to preserve the memories hosted on your social media accounts along with the rest of your family’s legacy?

Even though we are still at the dawn of what social media will become, the major social media platforms are already beginning to address the issue of how to handle social media accounts when the owner passes away. Here are a few examples:

Twitter

Twitter recently adopted a policy to handle ownership of a deceased user’s account. Twitter requires the following information:

1.     Your full name, contact information (including e-mail address), and your relationship to the deceased user.
2.     The username of the Twitter account, or a link to the profile page of the Twitter account.
3.     A link to a public obituary or news article.

Once you provide Twitter with these three things, you can either request that the deceased user’s account be deleted or receive an archive of all of the deceased user’s tweets offline.

Facebook

Facebook has a unique feature where they will memorialize the profile of a deceased account holder. When a profile is memorialized, only current “friends” will be able to see it. It is however, still active so that friends can leave messages on the wall in remembrance.

To have someone’s profile memorialized, just click this link and you’ll be able to submit a request. You can also request that the decedent’s account be deleted using this form.

LinkedIn has a simple Verification of Death form which is easy to complete. You can find this form and the information required to close the account on the LinkedIn Customer Support Center. You can opt to submit the form either online or via fax. You will need to know the account holder’s email address used on the account. This is what is used to verify the person’s identity.

As with all other aspects of estate planning, it is important to discuss what should happen to your online profiles with your wills lawyer Orange County and document your wishes in your will or trust. If you would like to discuss this with an estate planning attorney who understands the importance of preserving a real legacy for your family, call us today at (949) 260-1400 to schedule your own Family Wealth Planning Session (normally $750). However, these appointments are limited to 10 per month, so call today!

Tags: wills lawyer orange county
Posted in Orange County Wills and Trusts | 1 Comment »

Get Free Bi-Weekly Advice From Darlynn

Pages

Archives

Categories