The generation skipping tax (GST) is a federal tax that applies when someone transfers assets directly to a beneficiary who is at least two generations younger, such as a grandchild. This tax aims to prevent wealthy families from avoiding estate taxes by skipping an...
Year: 2024
Why you should update your will after getting an inheritance
Receiving an inheritance can bring significant financial changes to your life. Along with the potential to improve your financial situation, though, an inheritance also brings the responsibility to ensure that you properly manage and distribute it. One of the most...
The difference between conservatorship and guardianship
Conservatorship and guardianship are legal tools used to protect people who can’t manage their own affairs. While they are sometimes confused, these two roles are different and serve separate purposes. Knowing the difference helps you understand which one fits a...
How do new Medi-Cal eligibility rules affect living trusts?
Recent changes to Medi-Cal eligibility rules are affecting how people plan their estates and use living trusts in California. These changes can change how people organize their assets to qualify for benefits and protect their loved ones. It is important to understand...
How do special needs trusts affect taxes?
Understanding the tax responsibilities of special needs trusts is crucial for effective financial planning. Special needs trusts can be either first-party or third-party, and each type has different tax implications. Knowing how taxes work with these trusts helps...
How can new California high-earners benefit from pour-over wills?
As your wealth grows in California's dynamic economy, you'll want to secure your assets and ensure they get distributed according to your wishes after you're gone. One option to consider in your estate planning is a pour-over will. Understanding how this tool works...
Should you include your grandchildren in your estate plans?
Including your grandchildren in your estate plans can be a wonderful way to leave a legacy for the next generation. It can help provide for their future, assist with education costs, or simply show them how much you care. Before making this decision, it’s important to...
What should affluent Californians consider in estate planning?
For wealthy individuals and families in California, estate planning is more than just splitting up assets. It is a way to protect wealth, avoid problems, and create a lasting legacy. Here are three important things wealthy Californians should consider when planning...
How do pet trusts work, and why might you consider one?
Pets are part of the family, and many people want to make sure their pets are cared for after they're gone. A pet trust offers peace of mind by providing for a pet's care if the owner passes away or becomes unable to care for them. This legal arrangement ensures pets...
Holographic wills: Are they valid in California?
When planning for the future, many people think about writing a will. Some may consider writing it by hand in the hopes that it will save time and effort. One name for a handwritten will is a "holographic will." While California does recognize holographic wills, they...