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What the One Big Beautiful Bill Act Means for Your Estate Plan

Thu, 23 Oct 2025 16:15:00 GMT

Estate planning is about more than drafting a will or naming beneficiaries. It is about preserving your legacy, protecting your loved ones, and ensuring that your assets transfer according to your wishes. With the recent passage of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, new opportunities have arisen for individuals and families to revise their estate-planning strategies. The Law Office of Patricia L. Andel is committed to helping clients understand how these changes impact their plans and to take thoughtful action.

What Is the One Big Beautiful Bill Act (OBBBA)?

The OBBBA is a sweeping federal legislative package that reforms various tax provisions, including the estate, gift, and generation-skipping transfer (GST) taxes. Under prior law, many of the elevated estate and gift tax exemptions were scheduled to revert to significantly lower levels after December 31, 2025. The OBBBA not only prevents that reversion but raises the exemptions and makes the increase permanent (Arnold & Porter ).

The New Estate & Gift Tax Exemption

Effective January 1, 2026, the federal estate and gift tax exemption will rise to $15 million per individual , with the exemption for a married couple effectively reaching $30 million , and will continue to be indexed for inflation in future years ( Loeb ). What does this mean in practice? For estates that previously might have triggered federal estate tax liability under lower thresholds, there is now significantly more “tax-safe” transfer capacity. For example, individuals whose total estates (after deductions and credits) fall under the new threshold will not owe federal estate tax at death.

Estate Planning Implications for You

With these changes in place, clients of the Law Office of Patricia L. Andel should consider the following strategic implications:

1. Review Existing Plans:
If you already have a trust, will, gifting strategy or other estate-plan documents, it is prudent to review them in light of the higher exemption. The increased threshold may change your decision-making regarding lifetime gifts, trust structuring, and beneficiary designations.

2. Rethink Gifting Strategy:
Because the gift tax exemption aligns with the estate tax exemption under the OBBBA, the increased threshold means you may have more flexibility to make lifetime gifts without triggering gift tax. However, gifting still uses part of your unified credit, so coordination with your overall plan is essential.

3. Trust Design Revisited:
If you have established or are considering irrevocable trusts (such as generation-skipping trusts, family limited partnerships, or grantor retained annuity trusts), the increased exemption may alter the calculus of when to implement such vehicles. While they remain valuable tools, you now have greater breathing room before federal estate tax becomes a concern.

4. State Tax Considerations Remain:
While the federal exemption has increased significantly, states may have their own estate or inheritance tax rules that differ. Clients in California or with property in other states should still consider how state-level tax rules affect their plan. The Law Office of Patricia L. Andel can coordinate multi-state considerations into your strategy.

5. The Value of Flexibility:
Although the OBBBA makes the exemption increase "permanent" in legal language, future Congresses may alter tax rules. It remains wise to build flexibility into your estate plan so that adjustments can be made if tax laws change.

Practical Steps to Take Now

Contact the Law Office of Patricia L. Andel to schedule a comprehensive estate-planning review that incorporates the effects of the OBBBA.
Update your list of assets, beneficiaries, and trustee/executor nominations to ensure your documents remain current and aligned with your wishes.
Evaluate whether lifetime gifting remains the right approach for you, especially given the increased exemption threshold.
Examine whether trusts you already have remain optimal under current law, or whether modifications or new instruments may bring additional benefits.
Consider how state and local tax rules interface with the federal changes, especially for clients owning property in multiple states.

Why Work with the Law Office of Patricia L. Andel?

The one-size-fits-all approach does not work when tax laws shift significantly. With the enactment of the OBBBA, estate planning requires fresh analysis and tailored advice. The Law Office of Patricia L. Andel brings detailed knowledge of tax law changes, practical experience with estate-planning tools, and a client-focused approach that ensures your plan both protects your assets and reflects your values.

We guide clients not just to stay compliant but to seize opportunities created by new legislation—such as the increased exemption under the OBBBA—while building in the flexibility needed for a changing landscape.

Conclusion

The One Big Beautiful Bill Act represents a major moment in estate-planning law and offers significant benefits for clients who act strategically. With the federal estate and gift tax exemption now permanently increased and indexed for inflation, the time is ripe to revisit your plan, reconsider your options, and refine your strategy for transferring wealth thoughtfully. The Law Office of Patricia L. Andel stands ready to assist you with confidence, clarity, and care.

Estate Planning with Purpose: Charitable Giving Tips

Thu, 25 Sep 2025 15:00:10 GMT

Planning your estate is not just about deciding who gets what—it is also about how you want to make a difference. Charitable giving in estate planning lets you leave a legacy, support causes you care about, and gain potential tax benefits for you and your heirs. At the Law Office of Patricia L. Andel, we help clients design estate plans that reflect their values while maximizing financial and tax advantages.

Ways to Include Charitable Giving in Your Estate Plan

Here are several proven strategies to incorporate philanthropy into your estate planning:

Bequests in Your Will or Trust
You can leave a specific dollar amount, a percentage of your estate, or particular assets (like real estate, stocks, or personal property) to a qualified charity. This is straightforward and can reduce the size of your taxable estate.
Charitable Trusts (Lead or Remainder Trusts)
A Charitable Remainder Trust (CRT) allows you (or designated beneficiaries) to receive income from the trust for a period, after which the remainder goes to charity. A Charitable Lead Trust (CLT) works in the reverse: the charity gets income for a set term, and then the rest goes to your heirs. These are more complex but powerful tools.

Donor-Advised Funds (DAFs)
If you would like flexibility in when and how to make gifts to eligible charities, a donor-advised fund can let you make a contribution now (getting immediate tax benefits) and later recommend grants to charities over time.
Gifting Appreciated Assets
Donating stocks, real estate, or other assets that have increased in value can allow you to avoid or reduce capital gains tax and still get a charitable deduction.
Naming Charities as Beneficiaries
You can designate a charity to receive proceeds from life insurance policies, retirement accounts (IRAs, 401(k)s), or other beneficiary designations. These gifts often avoid probate and may reduce estate tax. Additionally, if a charity is named as a beneficiary on a qualified account (tax-deferred), it does not pay income taxes on the account value.

Key Aspects to Consider

While charitable giving offers many benefits, you will want to make sure your plan is done correctly. Some things to watch out for:

Ensure the charity is a qualified organization under IRS rules.
Understand limitations, there are AGI limits for deductions, and some gifts may need to be spread over several years. Hannah Law, PC+1
Be clear about how the giving is structured (trusts, wills, beneficiary designations).
Include flexibility: you may want to change charities or amounts as your situation or values evolve.
Work with legal and tax professionals to ensure your estate plan aligns with both your goals and tax law.

How the Law Office of Patricia L. Andel Can Help

You do not have to figure this out on your own. At Patricia L. Andel’s firm, we assist clients with:

Drafting wills & trusts that include charitable bequests
Setting up charitable remainder or lead trusts
Choosing and structuring gifts of appreciated assets
Beneficiary designations and other estate documents
Ensuring everything is legally sound and tax-efficient

Leaving a Legacy with Peace of Mind

Charitable giving is not only about taxes—it is about what you believe in and how you want to be remembered. Incorporating philanthropy into your estate plan helps you leave something meaningful for the causes you care about, while also supporting your heirs and reducing tax burdens. With the right planning and professional help, you can make a generous legacy part of your estate with confidence and clarity.

The 2026 Medi-Cal Asset Limit Reinstatement: What You Need to Know

Fri, 29 Aug 2025 20:36:55 GMT

California’s Medi-Cal program is once again shifting course. Starting January 1, 2026 , the state will reinstate asset limits for most older adults and individuals with disabilities seeking long-term care or other non-MAGI (non-Modified Adjusted Gross Income) Medi-Cal benefits. This change marks a return to rules lifted just a few years earlier, creating uncertainty and concern for many California residents.

Here’s a look at the history, what’s changing, and what you should do to prepare.

A Brief History: From Asset Limits to Expansion and Back Again

For decades, Medi-Cal eligibility for older adults and individuals with disabilities included strict asset tests . Applicants had to keep countable assets below $2,000 for an individual or $3,000 for a couple , excluding certain exempt assets like a primary residence and one vehicle.

But that changed in 2022 , when California began phasing out the asset test:

July 1, 2022 : The asset limit increased significantly to $130,000 per individual .
January 1, 2024 : The asset test was eliminated entirely for most non-MAGI Medi-Cal applicants, allowing people to qualify regardless of how much money or property they held—so long as their income met the program’s thresholds.

Under a recent state budget agreement, the asset test is returning in 2026 , reversing the recent reforms and reverting to a more traditional eligibility framework.

What Are the New Medi-Cal Asset Limits in 2026?

Starting January 1, 2026 , California will reinstate asset limits for non-MAGI Medi-Cal eligibility. The limits are higher than they were decades ago, but the reintroduction still represents a significant change:

$130,000 for an individual
$130,000 for an institutionalized spouse (in a nursing home), plus $157,920 for the community (at-home) spouse
SSI-linked Medi-Cal beneficiaries will continue to be subject to much lower limits

Who Will Be Affected?

New Applicants After January 1, 2026
Anyone applying for non-MAGI Medi-Cal after this date must disclose their assets and stay within the new limits.
Current Medi-Cal Beneficiaries
Beneficiaries already receiving Medi-Cal will be required to report their assets during their annual redetermination process starting in 2026.
People Who Transferred Assets During the No-Limit Period
Those who gave away assets in 2024 or 2025 may face unexpected scrutiny. It remains unclear whether such transfers will trigger penalties under the reinstated rules or if they’ll be exempt because the asset test wasn’t in place at the time of transfer.

What Assets Count Toward the Limit?

The definition of countable vs. exempt assets is not changing. Here’s a summary:

Exempt Assets (Not Counted):

Primary residence (if you or your spouse live there)
One vehicle
Household goods and personal effects
Jewelry (within reasonable limits)
Retirement accounts in payout status
The $130,000 individual property reserve

Countable Assets:

Cash, checking, and savings accounts
Investment accounts (stocks, bonds, mutual funds)
Real property other than your home
Second vehicles
Business interests (in some cases)

What If You Gave Away Assets in 2025?

One of the most significant unresolved issues concerns asset transfers made during the no-limit period (2022–2025). For example, if someone gifted $50,000 to a child in 2025 while legally eligible for Medi-Cal, will that gift now trigger a transfer penalty in 2026?

So far, California’s Department of Health Care Services (DHCS) has not clarified its position. This uncertainty leaves families wondering whether their previously legal actions will now jeopardize future eligibility.

What You Should Do Now

If you or a loved one receives Medi-Cal or plans to apply in the future, you should begin preparing for the 2026 changes now:

Inventory your assets : Identify what is countable vs. exempt.
Avoid last-minute gifts or transfers : These may not be protected once the new rules take effect.
Talk to an elder law or estate planning attorney : Legal professionals can help you:
Restructure or protect assets through legal strategies
Set up irrevocable trusts or other tools
Avoid transfer penalties
Navigate your renewal and reporting obligations

Proper planning could allow many current beneficiaries to maintain coverage with minimal disruption.

Final Thoughts

The reinstatement of Medi-Cal asset limits in 2026 marks a dramatic policy shift, one that rolls back recent progress toward expanded access and simplicity. While the new limits are more generous than in the past, they still demand close attention and proactive planning.

For those who qualified during the no-asset-test period, now is the time to review your financial position and prepare for annual reporting . And for those approaching eligibility, consulting with a knowledgeable attorney could make the difference between approval and denial.

If you have questions about how these changes might affect your situation, contact our office for guidance . We can help protect your eligibility, your family, and your future.

The Importance of Updating Your Estate Plan Regularly

Mon, 12 Aug 2024 19:14:53 GMT

Estate planning is crucial in ensuring that your assets are distributed according to your wishes and that your loved ones are taken care of after you're gone. However, an estate plan is not a set-it-and-forget-it document. Regularly updating your estate plan is essential to reflect changes in your life, family, and the law. Here’s why it’s necessary and when you should consider making updates.

Why You Need to Update Your Estate Plan

Reflect Current Wishes and Circumstances
Life is dynamic, and your estate plan should be too. Changes in your personal or financial situation may affect your initial decisions. Updating your plan ensures it accurately reflects your current wishes and circumstances.
Accommodate New Family Members
Births, adoptions, and marriages bring new members into your family who may need to be included in your estate plan. Ensuring these individuals are considered can help prevent disputes and ensure everyone is provided for according to your wishes.
Account for Deaths and Divorces
Unfortunately, deaths and divorces are part of life’s changes. If a beneficiary or appointed executor passes away or if you get divorced, it’s crucial to update your estate plan to reflect these changes and avoid unintended consequences.
Adjust to Changes in Law
Estate planning laws can change, potentially affecting the distribution of your assets. Regular updates ensure your estate plan remains compliant with current laws and takes advantage of any new benefits.
Incorporate Changes in Assets
Over time, you may acquire new assets or dispose of existing ones. Your estate plan should be updated to include new assets and remove those you no longer own, ensuring accurate and intended distribution.

When to Update Your Estate Plan

After Major Life Events
Marriage or Divorce: When you get married or divorced, your estate plan should be updated to reflect your new marital status and any changes in your wishes regarding asset distribution and guardianship.
Birth or Adoption of a Child: New children or adopted children should be included in your estate plan, with considerations for guardianship and financial provisions.
Death of a Beneficiary or Executor: If someone in your estate plan dies, you must update your plan to appoint new beneficiaries or fiduciaries.
Significant Financial Changes
Acquisition or Sale of Assets: Buying or selling significant assets, such as a home or business, requires updating your estate plan to reflect these changes.
Changes in Financial Status: Increases or decreases in wealth can impact your estate planning strategy, including how much each beneficiary receives and potential tax implications.
Changes in Relationships
Estrangement or Reconciliation: If relationships with beneficiaries change, such as becoming estranged or reconciling, your estate plan should be updated to reflect these new dynamics.
Health Changes
Diagnosis of a Serious Illness: A severe health diagnosis may prompt you to review and update your estate plan to ensure that all healthcare directives, powers of attorney, and end-of-life wishes are current. Moreover, if one of your fiduciaries or beneficiaries suffers from health concerns, you may need to adjust your estate plan.
Changes in the Law
New Estate Planning Laws: Periodic reviews with an estate planning attorney can help you stay abreast of any legal changes that might affect your estate plan or estate tax situation.

Conclusion

Regularly updating your estate plan is critical to ensure that your final wishes are honored and your loved ones are protected. It is crucial to revisit your estate plan after significant life events, financial changes, relationship shifts, health issues, and legal updates. Consulting with an estate planning attorney can provide guidance to navigate these updates and maintain an accurate estate plan.

An outdated estate plan can lead to unintended consequences, legal challenges, and family disputes. Keep your estate plan current to ensure peace of mind for you and your loved ones.

Planning for Incapacity: Essential Steps to Protect Your Future

Fri, 21 Jun 2024 17:46:32 GMT

No one likes to think about the possibility of becoming incapacitated due to illness, injury, or old age. Planning for incapacity, however, is a critical aspect of estate planning that ensures your wishes are respected and that your affairs are taken care of if you cannot do so yourself. This blog post outlines the essential steps to prepare for this possibility, helping you maintain control over your financial, legal, and health care decisions.

Understanding Incapacity

Incapacity means being unable to make decisions for yourself due to mental or physical impairments. This could be temporary, due to an injury or illness, or permanent, as with advanced age or chronic conditions. Planning can help prevent court-appointed conservatorship, which might not align with your personal preferences, and can save your loved ones significant financial burdens, stress, and confusion.

Legal Documents to Prepare

Effective planning for incapacity involves setting up several key legal documents:

Durable Power of Attorney For Finance: This document allows you to appoint someone you trust to manage your financial affairs if you become incapacitated. Unlike a general power of attorney, a durable power of attorney remains in effect if you lose mental capacity.
Advanced Health Care Directive: This health care power of attorney allows you to designate a person to make healthcare decisions on your behalf if you cannot do so. This document should be accompanied by discussing your medical preferences with the appointed individual. In this document, you outline your wishes regarding medical treatment if you are incapacitated and unable to communicate. This can include instructions on life support, resuscitation, and pain management.
Revocable Living Trust: A trust allows you to maintain control over your assets while alive, even if incapacitated, and simplifies management and transfer after your death. You can appoint a successor trustee who will manage the trust’s assets if you can no longer do so.
HIPAA Release: This document authorizes your doctor to write a letter of incapacity -or capacity, as the case may be- so that your successor can step into your shoes.

Choosing the Right People

Selecting individuals to act on your behalf is crucial to planning for incapacity. Consider the following when making your choices:

Trust and Responsibility: Choose individuals who are trustworthy and capable of handling the responsibility, whether they are family members, friends, or professionals.
Willingness to Serve: Confirm that the people you designate can act in these roles when needed.
Understanding Your Wishes: Ensure that the designated individuals fully understand your preferences and are prepared to advocate on your behalf.

Communicating Your Plans

Once your documents are in place, it is important to communicate your plans clearly:

Inform Key Individuals: Make sure that anyone named in your documents and close family members know about the plans and where the documents are stored.
Obtain Legal Advice: Consult with an estate planning attorney to ensure that all documents are legally sound and reflect your current wishes.
Update Your Wishes: Review and update your documents regularly, especially after major life changes such as divorce, the death of a designated individual, or significant changes in your health.

Conclusion

Planning for incapacity is a proactive step that protects you and eases the burden on your loved ones. By establishing clear, legally sound documents and communicating your wishes, you can ensure that your preferences are honored and your affairs are well-managed, no matter what the future holds.

Call to Action

If you have yet to plan for potential incapacity, or if your current plans need updating, consider contacting an estate planning attorney today. Protecting your future starts now, and we are here to help guide you through every step of the process. Contact us to learn more about how we can assist you in securing your peace of mind.

Estate Planning for Blended Families: Navigating The Complexities

Wed, 08 May 2024 19:43:45 GMT

The definition of family has broadened significantly, with blended families becoming increasingly common. These families, consisting of spouses, their children from previous relationships, and any children they might have together face unique challenges—especially regarding estate planning. Proper estate planning is crucial to prevent disputes and ensure that all family members are treated fairly and according to the estate holder's wishes.

The Unique Challenges of Blended Families

Blended families often face complex dynamics that can complicate estate planning. Issues such as previous marital agreements, children from prior relationships, and varying financial situations can create potential conflicts. Without a clear estate plan, there's a risk that certain family members may feel overlooked or unfairly treated, leading to disputes that can strain family relationships.

Key Components of an Effective Estate Plan

For those navigating estate planning within a blended family, several key components should be considered:

Wills: A will is essential. It specifies how assets should be distributed and can help ensure that no family member is unintentionally disinherited. It's important to address any promises made to children from previous relationships.
Trusts: Trusts can offer a flexible way to manage assets. For example, a bypass trust can ensure that the surviving spouse is cared for during their lifetime, with remaining assets then passed to children from a previous marriage.
Guardianship: It’s vital to make guardianship arrangements for any minor children, particularly if they are from a previous relationship and their other biological parent is not the chosen guardian.
Life Insurance: Life insurance can provide specifically designated funds for certain family members or help cover estate taxes, thus not depleting other assets intended for different parts of the family.
Retirement Accounts and Beneficiaries: Updating beneficiary designations on retirement accounts is crucial, as these assets typically pass outside of a will and can be a significant source of contention if not carefully allocated.

Legal Considerations

Neglecting estate planning in a blended family can have serious legal ramifications. Without a clear directive through legal documents, state laws will determine how assets are divided, often not reflecting the deceased’s wishes or the family's needs. Engaging with an attorney skilled in blended family estate planning is essential to navigate these waters smoothly.

Tips for Open Family Communication

Open communication is perhaps the most critical component in estate planning within blended families. Here are a few tips:

Hold Family Meetings: Regularly discuss estate plans with the entire family present. This can help manage expectations and reduce misunderstandings.
Be Transparent: Honesty and transparency about what each family member should expect can prevent feelings of resentment.
Encourage Questions: Allow family members to express their concerns and ask questions to ensure they feel heard and valued.

Conclusion

Estate planning in blended families is about distributing assets and caring for loved ones after you're gone. It’s also about ensuring that all family members are provided for in a way that supports your overall family dynamics and respects your relationships.

Don’t wait until it’s too late. If you’re part of a blended family, consider speaking to an estate planning attorney to create a plan that affirms your wishes and protects your family’s future. For more information or to start your estate planning, contact us today .

Navigating the New Era of Medi-Cal: Asset Tests Eliminated and Estate Planning Empowered

Wed, 20 Mar 2024 16:38:47 GMT

In a landmark shift that promises to reshape the landscape of healthcare eligibility in California, Governor Gavin Newsom signed Assembly Bill 133 into law on July 27, 2021. This transformative legislation heralds a two-phased approach toward a more inclusive Medi-Cal program, specifically targeting Non-Modified Adjusted Gross Income (Non-MAGI) Medi-Cal programs, encompassing Long-Term Care and Medicare Savings Programs. The essence of this law is the elimination of the asset test, a move that aims to make healthcare access more equitable and less cumbersome for applicants.

The Journey to Change

The path to this significant change wasn't immediate. It involved careful planning and the federal Centers for Medicare and Medicaid Services (CMS) approval. On July 14, 2023, CMS gave its nod to the California Department of Health Care Services' (DHCS) State Plan Amendment, effectively giving the green light to do away with the asset test for determining eligibility. As of January 1, 2024, the way Medi-Cal evaluates eligibility has fundamentally shifted: an applicant's assets will no longer weigh in the balance. Instead, the focus shifts entirely to the applicant's and their spouse's income to determine the share of cost - or the monthly out-of-pocket expense for the applicant.

What This Means for Applicants

This change is monumental, especially for those with substantial assets. Previously, many individuals found themselves ineligible for Medi-Cal benefits that would subsidize their long-term care costs due to the asset test. Now, the doors to essential healthcare support are wider, allowing more Californians to qualify for benefits irrespective of their asset holdings.

However, while the asset test for eligibility is now a thing of the past, Medi-Cal's stance on asset recovery remains intact. Medi-Cal will continue to seek recovery from assets that pass through probate upon the death of a beneficiary. This is crucial for Medi-Cal recipients and their families to understand, as it underscores the importance of informed estate planning.

The Importance of Estate Planning

With the elimination of the asset test, individuals who benefit from Medi-Cal for their long-term care will likely possess more substantial assets. This change brings to light the critical role of estate planning. These assets should not be subject to probate to shield assets from Medi-Cal estate recovery claims after the beneficiary's death. One effective strategy to achieve this is by holding the individual's assets in a Trust.

Estate planning, particularly in the context of this new Medi-Cal landscape, is more vital than ever. It ensures that beneficiaries can enjoy the full scope of their benefits without the looming threat of asset recovery. It secures a legacy for future generations, safeguarding assets within the family.

Looking Ahead

The enactment of Assembly Bill 133 and the subsequent approval of DHCS' State Plan Amendment marks a pivotal moment in California's healthcare policy. It reflects a shift towards a more inclusive and equitable system, where financial assets are not a barrier to essential healthcare services. This change offers Medi-Cal applicants and recipients a new opportunity to secure their health and financial well-being.

As we navigate this new era, the importance of comprehensive estate planning comes into sharp focus. By taking proactive steps to manage assets effectively, Californians can ensure that they and their loved ones can fully benefit from the Medi-Cal program without jeopardizing their financial legacy.

In summary, eliminating the Medi-Cal asset test is significant in making healthcare access more equitable. It underscores the need for diligent estate planning to protect assets from recovery claims, ensuring beneficiaries enjoy peace of mind and security in their later years.

Understanding the Beneficial Ownership Information Reporting Rule (BOIR Rule) Under the Corporate Transparency Act

Tue, 27 Feb 2024 21:51:44 GMT

In 2024, the Corporate Transparency Act (CTA) ushered in a significant change in the landscape of corporate regulations in the United States. One of the key provisions of this act is the Beneficial Ownership Information Reporting Rule (BOIR Rule), which aims to enhance transparency in corporate structures and prevent illicit financial activities. Understanding the BOIR Rule is crucial for businesses and individuals, as compliance is now mandatory. Let's delve deeper into what this rule entails and its implications.

What is the BOIR Rule?

The BOIR Rule requires certain businesses to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Beneficial owners are individuals who directly or indirectly own or control a significant portion of the business. This rule aims to curb illicit financial activities, such as money laundering, terrorism financing, and tax evasion, by providing law enforcement agencies access to crucial ownership information.

Who is Affected?

The BOIR Rule applies to a broad spectrum of legal entities, including corporations, limited liability companies (LLCs), and other similar entities formed under state law. Specifically, entities created or registered after the rule's effective date are subject to reporting requirements. Even entities formed before the act must comply with reporting obligations during specific triggering events, such as ownership or corporate structure changes.

What Information Needs to be Reported?

Businesses covered under the BOIR Rule must report detailed information about their beneficial owners to FinCEN. This includes the owner's full legal name, date of birth, current residential or business address, and a unique identifying number from an acceptable identification document, such as a driver's license or passport. Furthermore, entities are required to provide updates to this information within a specified time frame following any changes or upon request by FinCEN.

Benefits of the BOIR Rule:

Enhanced Transparency: By requiring businesses to disclose information about their beneficial owners, the BOIR Rule promotes transparency in corporate structures, making it more difficult for individuals to hide illicit activities behind complex ownership arrangements.
Improved Law Enforcement: Access to accurate and up-to-date beneficial ownership information empowers law enforcement agencies to investigate and prosecute financial crimes more effectively, including money laundering, fraud, and terrorism financing.
Leveling the Playing Field: The BOIR Rule helps level the playing field for businesses by ensuring that all entities, regardless of size or industry, adhere to the same reporting standards. This fosters a fairer business environment and reduces the risk of illicit actors gaining unfair advantages.

Reporting Timeline:

The Beneficial Ownership Information Reporting Rule (“BOIR RULE”) under the Corporate Transparency Act (“CTA”) became effective January 1, 2024, implemented primarily through a rule published by the Financial Crimes Enforcement Network (“FinCEN”) on September 30, 2022. This rule triggered beneficial ownership reporting requirements for millions of businesses and entities (unless exempt).

If the business was established before January 1, 2024, the initial report is due by January 1, 2025. This provides existing entities with a grace period to gather and submit the required information to FinCEN.
If the business was established after January 1, 2024, but before January 1, 2025, the initial report is due 90 calendar days after it was established. This timeline ensures that newly established entities promptly comply with reporting requirements.
For businesses established after January 1, 2025, the initial report is due 30 calendar days after it is established. This tight deadline emphasizes the importance of immediate compliance for newly formed entities.

It is important to note that failure to comply with the reporting timeline and requirements outlined by the BOIR Rule can result in hefty penalties. Noncompliance may subject businesses to fines, sanctions, or other enforcement actions imposed by FinCEN. Therefore, businesses must understand their reporting obligations and adhere to the specified timelines to avoid potential penalties.

Challenges and Concerns:

While the BOIR Rule offers numerous benefits, its implementation may pose challenges for businesses. Compliance with reporting requirements can be time-consuming and resource-intensive, particularly for small and medium-sized enterprises with limited administrative capacity. Moreover, there are concerns about the privacy and security of the information provided and the potential for misuse or unauthorized access by third parties.

Conclusion:

The BOIR Rule introduced under the CTA represents a significant step forward in combating financial crimes and promoting transparency in corporate ownership structures. By requiring businesses to disclose information about their beneficial owners, the rule aims to deter illicit activities while leveling the playing field for businesses of all sizes.

IRS Sounds the Alarm on NICDS Trusts

Wed, 23 Aug 2023 20:49:41 GMT

A Warning from the IRS on Dubious Tax Claims

The IRS is stepping up its game against misinformation in the realm of tax planning. On August 9, 2023, the IRS issued a Chief Counsel Memorandum (CCM) – AM 2023-006 to warn taxpayers about misleading information regarding NICDS trusts – non-grantor, irrevocable, complex, discretionary, spendthrift trusts.

What are NICDS Trusts?

NICDS trusts, by their inherent nature, are intricate instruments. The nomenclature alone — non-grantor, irrevocable, complex, discretionary, spendthrift — speaks to the level of complexity involved. Such trusts have been traditionally used as part of estate planning strategies, with the aim to provide, among other things, tax efficiencies and protection from creditors.

The Proliferation of Misinformation

In recent times, however, the IRS has grown concerned about the manner in which information about these trusts is being disseminated. A significant number of professionals, including attorneys, accountants, enrolled agents, as well as unlicensed tax advisors, are actively promoting these trusts on social media. But rather than offer clear, factual guidance, many are making dubious claims about the tax and creditor protection benefits of these trusts.

The IRS, in its memorandum, is of the opinion that many of these professionals "mistakenly" interpret the rules governing these trusts. This is alarming, as such misinformation not only jeopardizes the financial well-being of individuals who set up these trusts based on false pretenses but also puts at risk those professionals who may be inadvertently providing inaccurate advice.

What Does This Mean for Taxpayers and Professionals?

Taxpayers should exercise caution. Just because information is readily available on social media doesn't make it accurate. If you're considering establishing a NICDS trust, or any trust for that matter, ensure you're receiving advice from a reputable source with a deep understanding of the current tax laws and regulations.

Professionals, on the other hand, need to be diligent in their research and interpretations. Misleading clients, even unintentionally, can have significant legal repercussions.

Audit Recommendation: A Call to Scrutiny

The IRS/CCM's recommendation to audit these trusts is a testament to the severity with which the agency views this issue. An audit means thorough scrutiny of the structure, funding, and operations of the trusts to ensure compliance with tax laws.

This is a clear signal to both taxpayers and professionals that the IRS is serious about curbing the dissemination of false information and ensuring that the rules related to NICDS trusts are properly adhered to.

In Conclusion

In this era of easy access to information, the challenge isn’t finding advice, but rather sifting through it to determine its validity. Taxpayers and professionals alike must prioritize accurate, fact-based guidance when navigating the intricate world of tax planning and trusts. The recent memorandum from the IRS serves as a stark reminder that when it comes to financial planning, cutting corners or relying on dubious sources can lead to unwelcome consequences.

Coronavirus leads to surge in wills: 'Everyone is thinking about their mortality'

Tue, 28 Apr 2020 16:15:51 GMT

Below is a great article about the coronavirus and updating or writing your will.

https://abcnews.go.com/Health/coronavirus-leads-surge-wills-thinking-mortality/story?id=69874540

Special Needs Trust For Disabled Family Members

patricia@andellaw.com (Patricia Andel) — Fri, 18 Aug 2017 16:51:50 GMT

There are two types of special needs trusts (“SNTs”). A third-party SNT is by far the most common type of SNT, and this article presents a general overview of such trusts. A third-party SNT is a specialized trust that allows a family to provide support to a disabled child or other family member without jeopardizing the disabled person from qualifying for public assistance. These trusts are established and funded by someone other than the disabled person--typically, parents, grandparents, or siblings. Such trusts generally are funded upon the death of the donor, and the trust typically is drafted as part of a will or a living trust, although a stand-alone trust document can be drafted and structured to receive gifts from several donors.

If properly structured, the SNT will allow the disabled family member to inherit money without being disqualified from various federal and state public benefit programs. Assets that can be owned by the SNT include real property, personal property, cash, stocks, and bonds. Moreover, the SNT can be named as a beneficiary of life insurance policies. The trustee of the SNT will have full discretion to determine how to best utilize the funds in the trust to supplement the basic benefits provided from government public assistance agencies, thus enhancing the beneficiary’s quality of life without jeopardizing the receipt of valuable public assistance. This specialized trust is drafted so that the inherited funds will not be considered as belonging to the beneficiary in determining the beneficiary’s eligibility for “needs-based” or “means-tested” public benefits; rather, the trust itself holds title to the property for the benefit of the disabled beneficiary. “Needs-based” public benefits include SSI (supplemental security income), Medi-Cal/Medicaid, IHSS (in-home support services), and Section 8 housing. The SNT is not necessary to protect regular social security, such as SSA and SSDI.

“Special needs” are defined broadly and include anything necessary to maintain the beneficiary’s health, safety, and well-being when such benefits are not provided by public assistance agencies. These needs may include rehabilitation and training programs, educational expenses, entertainment, recreation, social outings, vacations, home repairs and improvements (including modifications for handicapped use), cleaning and laundry services, telephone, television, and internet services, audio, video, computer, and adaptive equipment, companion services and home health aides, personal hygiene (hair and nail care), furniture, clothing, bedding, toys, musical instruments, cigarettes, transportation expenses (including gas, purchase of a car or van, modification, insurance, and maintenance costs), legal advice, burial expenses, and other items that will enhance the beneficiary’s quality of life. Even certain medical needs can be met by the SNT, such as annual check ups, newer and more effective medications or more sophisticated medical treatments and procedures that are not covered under Medi-Cal/Medicaid, dental expenses, physical therapy, and vision care. Food (including restaurant meals) and shelter (including rent, purchase of a home, property insurance, property taxes, and utilities) also can be paid from the SNT, but some governmental benefits may be reduced if the funds are used in this way; however, the beneficiary’s quality of life can be improved greatly by additional funds, so it is best to give the trustee the discretion to supplant public aid where appropriate.

Proper estate planning with the SNT will balance family resources with those available from public agencies, thus making a significant difference in a disabled person’s quality of life. The SNT also can alleviate the caretaking responsibilities of the disabled person’s other family members, such as siblings. If you are considering the SNT as a way of supplementing the basic needs of a disabled family member without disqualifying that person from public assistance, it is essential to contact an attorney with expertise in this area, as SNTs are highly sophisticated and receive a high level of scrutiny from Social Security and Medi-Cal/Medicaid.

The Law Office of Patricia L. Andel can properly draft SNTs for your disabled loved ones. Contact us for more information.

*The information contained herein is not to be construed as "legal advice." If legal advice is required, you should seek the services of a competent estate planning attorney.

Estate Planning For Digital Assets

patricia@andellaw.com (Patricia Andel) — Thu, 10 Aug 2017 00:00:00 GMT

In this virtual world and paperless era, almost everyone has acquired digital assets. Digital assets are a form of intangible personal property and consist of on-line banking accounts, on-line vendor accounts, e-mail accounts, websites, blogs, domain names, digital music libraries, digital photo, video, and movie libraries, e-books, applications (“apps”) and games to be used on your digital hardware, calendars, contact lists, records created in accounting programs (e.g., QuickBooks™ or Quicken™), electronic tax returns, scanned documents stored digitally, and any other digital files stored on your computer, smart phone, cell phone, tablet, flash drives, CDs, DVDs, external hard drives, or on the “cloud.” If you have accounts with a Google™, Facebook™, LinkedIn™, Twitter™, MySpace™, Flickr™, SnapFish™, Drop Box™, Carbonite™, Mozy™, iTunes™, PayPal™, etc., you have digital assets. Many of these assets can have sentimental or monetary value.

The disposition of digital assets is often overlooked in estate planning. It is important that your estate planning documents, such as your will, living trust, and durable power of attorney, contain specific language granting your executor, trustee and agent (in the event of your incapacity) the power to access, use, control, distribute, and dispose of your digital assets, including the closing of your digital accounts. Moreover, you should keep an up-to-date inventory of all of your digital assets, including user names, passwords, and security questions for each digital account. It is a good idea to keep this inventory safely locked up with your estate plan so that your executor, trustee and agent can gain control over thee accounts as soon as possible after your death or incapacity.

*The information contained herein is not to be construed as "legal advice." If legal advice is required, you should seek the services of a competent estate planning attorney.

When To Review & Update Your Estate Plan

patricia@andellaw.com (Patricia Andel) — Wed, 02 Aug 2017 00:00:00 GMT

While there is no magic timeline for reviewing or updating your estate plan, it is prudent to periodically review all of your estate planning documents. A good rule of thumb is to review these documents with your attorney every three years to determine whether amendments need to be made.

Basically, there are four types of key events that should prompt you to review your estate plan.

1. Changes in Family Relationships (relating to you or your beneficiaries)

Birth
Adoption
Marriage
Divorce or separation
Death of spouse, beneficiary, or fiduciary
Attitude change of beneficiary or fiduciary toward you

2. Changes in Personal Conditions

Serious illness, deterioration in health, or disability (you, beneficiaries, or fiduciaries)
Change of residence to another state
Unemployment
Retirement
Change in insurability (life insurance)
Financial irresponsibility of beneficiaries or fiduciaries

3. Changes in Economic Conditions

Increase or decrease in assets
New business interests (partnership, corporation, LLC)
Acquisition of new real estate
Acquisition of property in another state
Inheritance

4. Changes in the Law

State income tax, estate & gift tax, & probate laws
Federal income tax, estate & gift tax laws

*The information contained herein is not to be construed as "legal advice." If legal advice is required, you should seek the services of a competent estate planning attorney.

Estate Planning With Divorce, Annulment, or Legal Separation

patricia@andellaw.com (Patricia Andel) — Fri, 28 Jul 2017 00:00:00 GMT

The disposition of property between married couples is greatly affected by both death and termination of the marital relationship. Estate planning and divorce, annulment, or legal separation are integrally related, but many going through the alteration of their marital status put on blinders and fail to consider the estate panning consequences as they relate to an estranged or former spouse. The interval between filing the family law petition and final judgment of all of the family law issues can be lengthy, depending on the complexity of your case. At a minimum, the marital relationship cannot be terminated earlier than six months from the date the respondent is served with the petition. Therefore, advance planning is advisable in the event you should die in the interim. Below are some tips to consider, depending upon the timeline into which your situation falls.

IF YOU ARE PLANNING ON GETTING DIVORCED/LEGALLY SEPARATED

Once you file or are served with a petition for dissolution or legal separation, standard family law restraining orders prohibit you from transferring property interests in a way that would interfere with the court’s ability to equitably divide the marital property. Such orders prohibit the following actions without notice to the other party and without consent from either the other party or the court, depending on the property interest:

Modifying or revoking a revocable living trust;
Eliminating a right of survivorship in the other spouse under property held as joint tenancy or community property with right of survivorship;
Changing beneficiaries of life insurance policies, pension plans, employee benefit plans, IRAs, or other types of retirement contracts.

Therefore, you should consider taking such actions prior to a family law petition being filed. If property issues are complex in your case, you should consider bifurcating the marital status and property issues, so that the marital status is finally adjudicated after six months and the restraining orders applicable to estate planning will no longer apply.

You are not prohibited, however, from doing the following and need not give notice to the other party or seek court approval:

Create, amend, or revoke a will;
Create a revocable living trust (but you cannot fund it yet);
Create, amend, or revoke a durable power of attorney or advance health care directive.

See the discussion below for the items you should consider in preparing these documents.

IF YOU ARE RECENTLY DIVORCED

Once your divorce is final, certain rights your spouse previously would have had are revoked by operation of law; however, this is not true in the case of a legal separation, as the marital status has not technically been terminated. Therefore, it is crucial that you review your estate planning documents to ensure that your current wishes are protected.

Review your executor, guardianship, and beneficiary designations in your will.
-the executor under your will should mirror the trustee of your trust
-a natural parent who is not deemed unfit will always have priority as guardian of a minor’s person
-the guardian of a minor’s estate under your will, however, does not need to be the natural parent and should mirror the trustee of your trust
-make sure you name alternate executors and guardians, as well
-review your property disposition upon your death and make sure you also name contingent beneficiaries
Review your trustee and beneficiary designations in your revocable living trust.
-the guardian of a minor’s estate under your will should mirror the trustee of your trust
-you should expressly prohibit an ex-spouse from serving as trustee on behalf of a minor’s estate (unless you desire otherwise) and from -having the power to remove a trustee on behalf of a minor
-make sure you name alternate trustees, as well
-review your property disposition upon your death and make sure you also name contingent beneficiaries
Review your agent designations in your durable power of attorney and advance health care directive.
-make sure you name alternate agents, as well
Review beneficiary designations in your life insurance policies, annuities, Roth IRAs, and retirement accounts.
-request change of beneficiary forms from your life insurance companies and your plan administrators.
Review P.O.D. (“pay-on-death”) & T.O.D. (“transfer-on-death”) beneficiary designations on your bank and brokerage accounts, stock certificates, and bonds.

As you should now realize by reading the information in this article, it is advisable that you consult both a family law attorney and an estate planning attorney if you are going or have gone through a change in your marital status.

*The information contained herein is not to be construed as "legal advice." If legal advice is required, you should seek the services of a competent estate planning attorney.

Intestate Succession

patricia@andellaw.com (Patricia Andel) — Thu, 20 Jul 2017 00:00:00 GMT

If you do not have a Will or Trust in place at the time of your death (which is called dying "intestate"), your assets will be distributed under your state's "statutes of descent and distribution" through the probate process. For most people, this statutory distribution scheme is not what they would choose.

California's "default will" is set forth in the California Probate Code and gives a priority ranking to your heirs based on their relationship to you and the characterization of your property. This article presents the general rules of intestate succession. Note that there are many ancillary rules and exceptions to these rules based on various circumstances.

Intestate Share of Surviving Spouse or Domestic Partner

As to your community or quasi-community property, your surviving spouse will succeed to your entire one-half interest (in addition to already owning his or her one-half interest).

As to your separate property, the intestate share of your surviving spouse or domestic partner depends upon who else survives you:

If you are not survived by children, grandchildren, parents, siblings, or nieces/nephews, your surviving spouse or domestic partner gets all of your separate property;
If you are survived by only one child or the issue of a deceased child (your grandchild), or if you have no issue, but are survived by parents or their issue (your siblings, or if deceased siblings, your nieces/nephews), your surviving spouse or domestic partner gets one-half of your separate property;
If you are survived by more than one child, one child and the issue of one or more deceased children, or the issue of two or more deceased children, your surviving spouse or domestic partner gets one-third of your separate property.

Intestate Share of Other Heirs

The portion of your intestate estate not passing to your surviving spouse or domestic partner (or if you have no surviving spouse or domestic partner, the entire estate), will pass to your heirs in the following order of priority, with heirs in each category taking equally and to the exclusion of all heirs in subsequent categories:

your issue (your children, or if deceased, your grandchildren)
your parents
the issue of your parents (your siblings, or if deceased, your nieces/nephews)
your grandparents, or if deceased, the issue of your grandparents (your aunts/uncles, or if deceased, your cousins)
the issue of a predeceased spouse (your step-children)
your next of kin (based on degree of relationship)
your predeceased spouse's next of kin
the State of California

Priority of Personal Representative

If you die intestate, the state statutes also give a priority ranking to who will serve as your personal representative in the probate court. Again, many people would not agree with this statutory order of priority.

your surviving spouse or domestic partner
your children
your grandchildren
your parents
your siblings
your nieces/nephews
your grandparents
your aunts/uncles, or if deceased, your cousins
the issue of a predeceased spouse or domestic partner (your step-children)
your next of kin (based on degree of relationship)
your predeceased spouse's/domestic partner's next of kin
a public administrator appointed by the court

Moreover, your administrator will have to post a bond commensurate with the size of your estate and will be subject to stringent court supervision. If you have a Will, you typically waive the bond requirement and give your executor authority to administer your estate under the California Independent Administration of Estates Act, thus minimizing court intervention.

Remember the old adage: "If you fail to plan, you plan to fail." You can avoid the state's intestate succession statutes by consulting an attorney and having your wishes clearly drafted in a Will or Trust.

*The information contained herein is not to be construed as "legal advice." If legal advice is required, you should seek the services of a competent estate planning attorney.

"Funding" Your Trust

patricia@andellaw.com (Patricia Andel) — Fri, 14 Jul 2017 00:00:00 GMT

If you have a living trust, congratulations! You are on the right track to avoiding probate, while providing an orderly disposition of your estate according to your wishes. But a trust is “empty” and will not avoid probate if it is not “funded.” Simply, what “funding” means is that the trust obtains legal title to your property. In other words, you transfer title from you as an individual to you as trustee of your trust. Having an unfunded trust is analogous to having a bank account with no money in it. You may have checks sitting on your desk that you intend to deposit into your bank account, but they are not in your account until you actually do so. Similarly, merely listing those assets you intend to hold in your trust (typically, this is done on Schedule “A” attached to your trust) does not suffice. This is only a declaration of intent and does not constitute funding the trust.

Most importantly, you must retitle your real estate. This can be done by executing Trust Transfer Deeds, Quitclaim Deeds, or Grant Deeds that transfer your real property from you as an individual to you as trustee of your trust. These deeds must be recorded with the County Recorder’s offices in the counties where each piece of real estate is located. While there is a nominal recording fee for each deed, there will be no reassessment of your real estate for tax purposes, as a transfer into a living revocable trust is not deemed a “change in ownership.” Nor will there be any documentary transfer tax, as this transfer is not deemed a “sale.”

Moreover, you should change the vesting on all bank accounts, Certificates of Deposit, stocks, bonds, and brokerage accounts going into the trust. For bank accounts, this will require you to sign new signature cards as trustee of your trust. Note that some banks and brokerage firms have their own Certification of Trust form that you must complete for transferring title to your trust, and if stocks are involved with your brokerage account, you will likely be asked to get a Medallion Guarantee of your signature.

Tangible personal property without written title can be transferred to the trust by simply executing an assignment frequently called a “Transfer of Personal Effects.” This will give the trustee of your trust the authority to distribute all personal assets according to your written wishes.

Do not forget about “intangible” property rights when funding your trust. For example, if you are the owner of a copyright or patent or are entitled to royalties under any other type of contract, such property rights can be quite valuable and should be assigned to the trust. Similarly, business interests under partnerships, LLCs, or other entities should be assigned to the trust.

Some people desire to retitle their vehicles and vessels into the trust. This is not necessary for most vehicles due to their minimal value. If you choose to retitle your vehicle ownership, simply endorse your pink slip and indicate that this transfer is a “gift” to you as trustee of your trust. Mail the pink slip to the DMV with the proper fee, and you will receive a new pink slip changing title to you as trustee of your trust. If you choose not to retitle your vehicle or vessel, upon your death, your trustee will complete an “Affidavit for Transfer Without Probate” available from the DMV to transfer title to any California-titled vehicle or vessel.

It is not advisable that you transfer qualified accounts to your trust, or you could experience serious tax consequences. These accounts should have named beneficiaries who will take directly from that account upon your death without the necessity of probate. While it is permissible and sometimes desirable to name the trust as beneficiary of such accounts, it is not always advisable due to tax and other financial consequences. Therefore, it is important that you consult with your financial planner or CPA to discuss the advisability of such action.

Similarly, the ownership of life insurance policies and annuities does not need to be retitled into the trust, as these policies also have named beneficiaries and will pass outside of probate. Unlike qualified accounts, however, you can freely name the trust as primary or contingent beneficiary of these policies. If you wish to change the beneficiaries of your life insurance policies or annuities, request a Change of Beneficiary form from your life insurance carrier.

To summarize, having a living trust prepared is an important first step to avoiding the costs and time delays that would result if your estate were subjected to the probate process. Properly funding your trust is an important second step to ensure that your estate will, in fact, avoid probate.*

*The information contained herein is not to be construed as "legal advice." If legal advice is required, you should seek the services of a competent estate planning attorney.

Disinheriting Spouses & Children

patricia@andellaw.com (Patricia Andel) — Thu, 06 Jul 2017 00:00:00 GMT

In California, it is possible to disinherit your spouse and/or children; however, this must be done through a properly drafted testamentary instrument, such as a will or trust. If you die "intestate" (without a valid will or trust), your spouse and children will inherit under California's intestate succession laws, which is a subject not covered in this blog.

The California Probate Code has "family protection" statutes protecting a spouse and children from unintentional omission from a decedent's will or trust. Therefore, if you intend not to provide for your spouse/children, you must fit within one of three categories, or the presumption against such omission will control:

A. OMITTED SPOUSE

(1) Your intent to fail to provide for your spouse must appear in your will/trust;

To ensure that your intention is for your spouse not to take under your testamentary documents, you should make a specific statement to that effect in your will/trust. A subsequent marriage after you have executed your will/trust does not fit within this category. It is imperative that if you marry subsequent to executing your estate plan, you execute a codicil to your will and/or an amendment to your trust setting forth your intention that your spouse does not take under these documents.

(2) You provide for your spouse by transferring assets to your spouse outside of your will/trust and your intention that such transfer be in lieu of taking under your will/trust is clear by sufficient evidence;

Examples of transfers outside of your testamentary documents include titling assets with your spouse in joint tenancy or community property with right of survivorship, and designating your spouse as beneficiary to life insurance policies, annuities, retirement plans, or bank accounts. To ensure that your intention is for your spouse to take under such transfers in lieu of taking under your testamentary documents, it is advisable to make a specific statement to that effect in your will/trust.

(3) Your spouse made an agreement waiving the right to share in your estate.

This can be done through a properly drafted prenuptial or marital agreement.

B. OMITTED CHILD

(1) Your intent to fail to provide for your child/children must appear in your will/trust;

To ensure that your intention is for your child/children not to take under your testamentary documents, you should make a specific statement to that effect in your will/trust. The subsequent birth or adoption of children after you have executed your will/trust does not fit within this category. It is imperative that if you have children subsequent to executing your estate plan, you execute a codicil to your will and/or an amendment to your trust setting forth your intention that your child/children do not take under these documents.

(2) You provide for your child/children by transferring assets to them outside of your will/trust and your intention that such transfer be in lieu of taking under your will/trust is clear by sufficient evidence;

Examples of transfers outside of your testamentary documents include titling assets with your child in joint tenancy, and designating your child as beneficiary to life insurance policies, annuities, retirement plans, or bank accounts. To ensure that your intention is for your child to take under these transfers in lieu of taking under your testamentary documents, it is advisable to make a specific statement to that effect in your will/trust.

(3) You have one or more children and devise or give substantially all of your estate to the other parent of the omitted child/children.

The legislative presumption here is that the other parent will use your estate to care for your mutual children.

If you do not fit within one of the statutory requirements for intentionally failing to provide for your spouse/children as set forth above, the legislative presumption under the "family protection" statutes is that you mistakenly failed to provide for them. In such case, your spouse/children will take their intestate share of your estate (except a spouse cannot receive more than one-half of your separate property).

*The information contained herein is not to be construed as "legal advice." If legal advice is required, you should seek the services of a competent estate planning attorney.

Baby Boomers Avoid Making Living Wills & Health Care Directives

patricia@andellaw.com (Patricia Andel) — Fri, 30 Jun 2017 00:00:00 GMT

According to the Associated Press, 64% of persons born between 1946 and 1964 ("baby boomers") do not have a health care directive or living will. The likely reason is that they feel healthy and young in their middle-age years and do not want to dwell on death. A health care directive is something everyone should have, whether old or young, healthy or unhealthy. This simple document can spare families a painful, expensive legal fight and costly medical bills and can ensure that persons receive the medical treatment they wish to receive (or not to receive) should they end up in a situation where they cannot speak for themselves.

Under the California Health Care Decisions Law (California Probate Code §§ 4600 to 4947) an advance health care directive (formerly known as a durable power of attorney for health care which merges the “living will” under former Health & Safety Code §§ 7185 et seq.) memorializes a person’s wishes for medical care and guides medical decision-making if the person is unable to communicate with his or her health care providers. An advance health care directive allows a person to select an individual he or she trusts to make decisions about medical care should the person become incapacitated and addresses serious issues such as life support, artificial nutrition and hydration, organ donations, wishes regarding an autopsy, and final arrangements, such as funeral, burial, or cremation arrangements.

High-profile cases, such as the recent Florida case of Terri Schiavo, the Missouri case of Nancy Cruzan, and the New Jersey case of Karen Ann Quinlan, show why it is imperative for everyone to have an advance health care directive. All of these cases involved years of legal battles involving dozens of judges in numerous jurisdictions, with appeals all the way to the U.S. Supreme Court, and ultimately, legislation enacted in
every state.

The Law Firm of Patricia L. Andel, A.P.C. can protect California residents and their loved ones with advance health care directives. Contact us for more information.

*The information contained herein is not to be construed as "legal advice." If legal advice is required, you should seek the services of a competent estate planning attorney.

andellaw

What the One Big Beautiful Bill Act Means for Your Estate Plan

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The New Estate & Gift Tax Exemption

Estate Planning Implications for You

Practical Steps to Take Now

Why Work with the Law Office of Patricia L. Andel?

Conclusion

Estate Planning with Purpose: Charitable Giving Tips

Ways to Include Charitable Giving in Your Estate Plan

Key Aspects to Consider ﻿

How the Law Office of Patricia L. Andel Can Help

Leaving a Legacy with Peace of Mind

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A Brief History: From Asset Limits to Expansion and Back Again

What Are the New Medi-Cal Asset Limits in 2026?

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What Assets Count Toward the Limit?

Exempt Assets (Not Counted):

Countable Assets:

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What You Should Do Now

Final Thoughts

The Importance of Updating Your Estate Plan Regularly

Why You Need to Update Your Estate Plan

When to Update Your Estate Plan

Conclusion

Planning for Incapacity: Essential Steps to Protect Your Future

Understanding Incapacity

Legal Documents to Prepare

Choosing the Right People

Communicating Your Plans

Conclusion

Call to Action

Estate Planning for Blended Families: Navigating The Complexities

The Unique Challenges of Blended Families

Key Components of an Effective Estate Plan

Legal Considerations

Tips for Open Family Communication

Conclusion

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The Journey to Change

What This Means for Applicants

The Importance of Estate Planning

Looking Ahead

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Who is Affected?

What Information Needs to be Reported?

Benefits of the BOIR Rule:

Reporting Timeline:

Challenges and Concerns:

Conclusion:

IRS Sounds the Alarm on NICDS Trusts

A Warning from the IRS on Dubious Tax Claims

What are NICDS Trusts?

The Proliferation of Misinformation

What Does This Mean for Taxpayers and Professionals?

Audit Recommendation: A Call to Scrutiny

In Conclusion

Coronavirus leads to surge in wills: 'Everyone is thinking about their mortality'

Below is a great article about the coronavirus and updating or writing your will.

Special Needs Trust For Disabled Family Members

Estate Planning For Digital Assets

When To Review & Update Your Estate Plan

Estate Planning With Divorce, Annulment, or Legal Separation

Intestate Succession

"Funding" Your Trust

Disinheriting Spouses & Children

Baby Boomers Avoid Making Living Wills & Health Care Directives

Key Aspects to Consider