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What Is Legal Guardianship and How Does It Work in California?

In California, guardianship is a legal process that gives custody or authority over a child (or other person) to someone other than the child’s parents. Guardianship may include full custody and control of the child’s property if needed.

A formal petition must be filed and approved by the California court to become a guardian legally. In most guardianships, the responsibilities of the guardian could include:

• Full guardianship of a special needs person or a child.
• A guardianship over the person or the child’s “estate.”
• Or complete control over the person and their estate or holdings.

If you petition the court and it appoints you as a guardian for a child, you will then take over all the essential duties and obligations that caring for the person or child requires.

Admittedly, this is a crucial and dire responsibility, and it is essential that you clearly understand your duties and responsibilities as the child’s or person’s guardian. Any questions you may have should be directed to a skilled, experienced, and empathetic estate planning lawyer who is well-qualified to advise you in these matters legally.

That said, in California, as parents, you can nominate a guardian for your minor children (or special needs person or child) in a will or using an estate plan or a standalone legal document. By nominating the guardian, you have a chance to express your preference for who should take over the care of your children if they die or otherwise become incapacitated and unable to care for them properly. You should note that the Californian court typically honors the parents’ wishes as expressed in their will, etc. This is, of course, that the person nominated as guardian is willing, able, and deemed to be in the children’s best interest.

Under California law, two main types of guardianship can be addressed in an estate plan or will, these are:

• Guardianship of the person – This legal guardianship concerns the child’s physical well-being. The guardian usually has full custody of the child (or special needs person) and is responsible for their care, protection, health, education, etc.
• Guardianship of the estate—If a minor child or special needs person inherits property or assets and cannot manage them, a guardian may be appointed to manage these assets until the child reaches adulthood or for the person’s lifetime.

This can be the same person as the guardian of the person, or another more qualified person is necessary. The “guardian of the estate” is fully responsible for managing all the assets in the child’s or person’s best interest. This could include managing investments, property, and any income involved.

What Are Some Of the Legalities in Choosing a Guardian?

As stated, with the proper professional help, In California, you can nominate guardians for your children in your will. This nomination is a general guide to the court but is not always binding. As the child’s parents, the court will consider your nomination very seriously, but the court will decide what is ultimately in your child’s best interests.

Additionally, while naming a guardian, most parents consider establishing a special trust to manage any inheritance, assets, etc., their child may inherit or hold. A well-drafted trust can specify how the assets are distributed, under what circumstances, and when this will occur.

If you want a more focused approach to this issue, California law allows you, as the parents, to make a standalone guardianship nomination. This approach can be beneficial if you want to update or change your nomination without altering your whole will, etc.

This legal process is also helpful if you need to appoint a temporary guardian while undergoing a severe medical procedure or traveling without the child.

Just note that California guardianship laws can be complex, and whatever type of guardianship you are considering, the skilled, passionate, and knowledgeable help of an Elk Grove estate planning lawyer is mandatory.

What Could Happen If I Don’t Have a Guardian in Place?

In California, if you die or become incapacitated without a guardianship plan in place, the court will intervene, and they will appoint a guardian for your children. This legal process is usually lengthy, expensive, uncertain, and rarely the situation you would have wanted.

You can avoid this usually undesirable process by creating a guardianship plan that designates a family member or other trusted individual to care for your children that will ensure your wishes are honored and provide clarity for all involved parties, including the court.

Without clear instructions regarding who should care for your child, disagreements among family members almost always arise. This usually leads to potential disputes and legal battles and can even split family ties.

However, a well-drafted professional guardianship plan will minimize the risk of conflict and protect your child’s best interests.

How Can A Trust Attorney Help Me Through This Critical Legal Process?

Due to the vital importance of this legal issue, the help of a knowledgeable, compassionate, and experienced guardianship lawyer is critical in navigating the complexities of guardianship planning.

Your lawyers’ specialized knowledge and experience in estate and family law allow them to be invaluable advisors when drafting a guardianship that meets the legal requirements of California law and the highly personal wishes of you as the parents.

Some areas of the guardianship process that your lawyer will advise you on are:

• Full legal compliance – Your thorough, trusted guardianship lawyer will ensure the guardianship arrangement complies with all applicable California laws. This includes drafting all the necessary legal documents, filing court petitions, and representing your family during all the legal proceedings.
• Clearly articulating your parental wishes – This is critical to guardianship planning. It involves documenting your wishes regarding who should care for your children and how they should be raised. Your experienced guardianship lawyer will draft precise instructions within wills, estate plans, or standalone guardianship declarations to reflect these preferences accurately and succinctly.
• Preparing and vetting the guardian – This is no small task; electing a suitable guardian is paramount to your child’s future. Your lawyer will conduct due diligence on potential guardians, ensuring they are willing, honorable, and capable of carrying out this essential responsibility.
• Financial planning for your child’s future -The first task is immediate concern for your child’s physical, emotional, and educational well-being, but guardianship also encompasses financial stewardship. Your trust and guardianship lawyer has the expertise and knowledge to establish the proper financial tools to ensure your child’s economic future is sound.

Guardianship of your children is one of the most important decisions you must make; under complex California laws, you must have the best professional advice, guidance, and knowledge to make the wisest and most prudent decision possible.

I Need More Information On the Guardianship Of My Child; How Should I Proceed?

As a parent, the well-being and security of your children in unforeseen circumstances are one of your major concerns. In California, establishing guardianship for minor children is a critical step in this process, allowing you to designate a trusted family member, loved one, or other individual to look after your children if you cannot do so yourself.

However, you never want to leave your children’s future to mere chance. A qualified, compassionate, and experienced guardianship and special needs lawyer is necessary when establishing a guardianship plan that offers peace of mind and secures your children’s well-being.

The Elk Grove estate and special needs planning lawyers at Cava & Faulkner are well-versed, highly trained, and empathetic. They will always draft a sound plan and give your loved ones the care and support they need.

Call 916-831-7565 today for a free consultation. They will compassionately and expertly advise you on this critical decision.

What Is Revocable and Irrevocable Trust?

A revocable trust is also called a living trust or family trust. It is a more adaptable and flexible trust document that allows you to manage and control your assets while alive and then distribute them, per your wishes, after your death.

If you are the “grantor” (the person who creates the trust), you can modify, change, or revoke the trust at any time in your life if you are mentally competent.

Some of the critical parts of a revocable trust are:

• You have complete control – During your life, you have full control of your trust assets and can manage them in any way you wish.
• It usually avoids probate – When you die, the trust will distribute assets directly to beneficiaries, generally passing probate. Probate is costly and time-consuming and must go through the California courts.
• It keeps things private – Usually, the contents of a will or revocable trust aren’t public knowledge, so your and your family’s financial affairs remain private.
• It offers financial flexibility – you can add or remove the trust holdings, change beneficiaries, etc., at will.

Alternatively, once in place, an irrevocable trust cannot be changed, amended, or revoked without the consent of your heirs or family members. When you transfer assets into your irrevocable trust, you no longer have ownership or control over any trust assets.

However, this type of trust still has benefits, such as protecting assets or minimizing estate taxes.

Some primary benefits of an irrevocable trust are:

• Protection of your assets – If you don’t control them, your assets are generally shielded from creditors, legal judgments, etc. However, great care must be taken when using these assets, or they may lose this legal protection.
• Specific tax benefits – Transferring assets into an irrevocable trust usually reduces the overall taxable value of your estate, effectively lowering your tax liability.
• The trust is irreversible – You can only alter it under specific conditions, usually with the approval of beneficiaries or the California court.

Both types of trusts have benefits and liabilities. Because all financial situations differ, you must have the experienced, knowledgeable, and empathetic help of a California estate trust lawyer to assist in deciding which may be best for you and your heirs.

What Are Some Pros and Cons of a California Revocable Trust?

The main benefit of a revocable trust is often its flexibility. When you establish your trust, you still have the power to make changes, modify terms, or revoke it altogether while you’re alive. This adaptability is advantageous if you anticipate changes in your financial circumstances, family relationships, estate planning goals, etc.

For example, you may want to draft a revocable trust if you’re a parent and want to guarantee your minor children are financially taken care of in the event of your death.

You might ask, wouldn’t a simple will solve this issue? It might, but many times, people choose to set up a revocable trust to benefit from the ongoing management provided, which is usually time-consuming and requires a professional level of financial expertise.

However, when asset protection is a primary concern, an irrevocable trust may be a more suitable option.

Some Vital Information About an Irrevocable Trust?

In California, a key benefit of creating an irrevocable trust is lowering tax liability. By removing assets from your taxable estate, you will reduce your overall estate value, which is subject to federal estate taxes.

Additionally, when you transfer ownership of assets to an irrevocable trust, you could legally sound and robust protection that effectively protects your assets from potential creditors.

Finally, using an irrevocable trust will give you complete control over the distribution of assets to beneficiaries, heirs, and family members. It also dictates what assets to include and precisely when and how they should be distributed.

That said, altering the terms of an irrevocable trust can be legally challenging; once the trust is in place and circumstances change, you may have to petition the Californian court and the beneficiaries to change its terms.

To summarize, if you want to be sure you’re doing the right thing for yourself, your family, and their financial future, you must seek the compassionate professional guidance of a knowledgeable Elk Grove trust lawyer.

So, How Do I Know Which Type of Trust is Right for Me and My Family?

All financial and familial situations differ, and deciding what type of trust is right for you will depend totally on your situation. Usually, though, revocable trusts are more common due to their overall flexibility and possible tax benefits.

For example, your experienced and well-versed estate planning lawyer may advise a revocable trust if:

• You want to avoid probate and keep your family’s financial matters private.
• You own real estate in different states and want to avoid probate in a state other than where you live
• You may feel that your plans for your assets may change over time and want the flexibility to alter your plans, beneficiaries, etc.
• You want to use and manage your assets without the California court’s approval after your trust is drafted.
• The total value of your estate is less than the federal amount needed for estate tax exemption

The above are a few common reasons your lawyer may advise you to use a revocable trust. Alternatively, you may wish to use an irrevocable trust if:

• You have high-value assets that exceed the federal estate tax exemption, and you want to avoid estate taxes
• You understand and are comfortable giving up the use and control of your assets after your trust is established.
• You have a distinct need to protect your assets from possible creditors. Because any assets in an irrevocable trust are no longer available to you, they could receive considerable protection from creditors, lawsuits, etc.

You must note that all types of trusts are highly detailed in what they can and cannot do. Therefore, the only prudent and confident means to decide what’s best for your unique situation is to discuss the matter in detail with an experienced, thorough estate planning lawyer passionate about doing what’s suitable for you, your family, and your personal goals.

I Need Expert Advice on Establishing a Trust; How Should I Proceed?

Choosing a type of trust for an efficient and sound estate plan, whether revocable, irrevocable, or another type, is totally dependent on your unique personal circumstances, financial goals, and the need for continued control of your assets.

Each type of trust can be legally complex, and each has its own merits and drawbacks. The lawfully correct choice varies significantly depending on your circumstances.

That understood, as a Californian, you must have expert, in-depth, and empathetic personal legal guidance tailored to your unique situation.

The Elk Grove-based law offices of Cava and Faulkner have a long, expert, and successful history of drafting and managing all types of estate and incapacity planning (and more) for clients and their families throughout the state.

Call them today at 916-831-7565, and they will work diligently to help you navigate the complexities of trusts and ensure your legacy and family are protected.

What Is Asset Protection and Can It Help Me and My Family?

A strategic and professionally drafted estate plan is critical for high-net-worth individuals, especially in California. California’s estate plan and tax laws are complex and constantly evolving.

The overall goal of your California estate planning lawyer is to guide you in creating a very comprehensive plan that ensures your wealth is strictly managed and distributed according to your wishes. This must also be done while minimizing your tax liabilities and avoiding the inevitable legal pitfalls.

First, you must know that California’s estate laws have targeted provisions that significantly impact high-net-worth individuals and their families.

These special provisions can affect many aspects of your estate plan. For example, state real estate transfer and tax laws can substantially alter your plan, especially if you have moved to the state. So, having a skilled, experienced, and knowledgeable estate planning lawyer who understands these nuances is vital for effective high-net-worth estate planning.

Why I Need a Strategic and Tailored Approach to My High Net Worth Estate Plan?

High-net-worth estate plans are different and must be professionally designed with these differences in mind. Although some factors are alike if you do have substantial assets, a tailored approach to estate planning is necessary.

Just a few of the primary reasons you should work with a professional, experienced, and thorough estate planning lawyer are:

• The complexity of the structure of assets – High-asset estate plans have diverse, complex portfolios that include investments, real estate, business interests and ownership, international assets, and more. A structured and detailed plan will address all the specific legal and tax implications involved.
• Family interaction and succession planning – Family dynamics are often challenging in high-net-worth estates, and there is a comprehensive need for strategic succession planning. Your professionally drafted plan will address these issues and ensure the efficient distribution of assets.
• Regulatory Compliance – Families and people with high net worth will face more complex regulatory requirements. Your plan must comply with all California laws and regulations and avoid legal complications.
• Considerations about your privacy—These high-asset estate plans always require significant privacy. Well-drafted, professionally drafted plans will always include measures to maintain that privacy.

The complexity and scope of your high-net-worth estate plan demand a professional approach to estate planning that ensures effective management, tax efficiency, legal compliance, and fulfillment of your personal and family goals.

What Are Some Key Parts of Planning a High-Net-Worth Estate Plan?

Remembering that no two high net worth estate plans are the same, there are a variety of tools utilized in their formation;

• Wills and trusts – These are essential tools that assure the proper distribution of your assets. Establishing revocable and irrevocable trusts, which offer flexibility and significant tax advantages, is often beneficial.
• Effective tax planning – California taxes, added to your federal estate taxes, can grab a substantial portion of your estate. This is why highly strategic planning is necessary to minimize these debits.
• Asset Protection – Protecting assets from creditors, lawsuits, and other risks is critical for high-asset individuals. Proper ownership structuring and the use of trusts offer substantial protections.
• The succession of your business interests – If you have business interests, own a family business, etc., planning for succession is critical to its ongoing success and your family.
• Life Insurance – This can play a significant role in your estate plan by providing liquidity for estate taxes and supporting your family and dependents.

Your thorough, well-versed, and knowledgeable estate planning lawyer will address all these concerns. By doing so, they will effectively mitigate the negative impact of California’s laws on your estate plan, protect your legacy, and ensure your family and beneficiaries have what you wish them to have after you’re gone.

How Can an Effective Estate Plan Mitigate My Taxes In a High Net Worth Situation?

One of the main questions that arises when designing a high-net-worth estate plan is how to reduce or delay taxes. This fact always holds for high-net-worth families whose estate plans have a higher tax burden due to the amount of assets they hold and the accrued wealth.

The simple legal answer to this question is proper, professional estate planning.

A well-versed, experienced, high-net-worth estate planning lawyer may use myriad strategies that suit your unique needs.

That said, however, there are some common strategies that your lawyer could employ that will effectively mitigate the tax burden you may be facing, such as:

• The use of Irrevocable trusts such as Grantor-Retained Annuity Trusts (or GRATs) – A “gifting trust” may allow you to transfer high-yielding or rapidly appreciating assets into a trust for your future heirs without triggering the gift tax.
• Family Limited Partnerships (FLPs) – These are sound options for families with high net worth or blended families. FLPs allow wealth to move from generation to generation while reducing the estate and gift tax.
• Revocable Living Trusts – This type of trust is specifically designed to avoid probate after the death of a loved one. The trusts are created during your lifetime and can be altered as you see fit. This trust will let you precisely dictate how assets are distributed following your death.

Your detailed, organized, and experienced estate planning lawyer may also use other legal tools like education, IRA stretch, asset protection trusts, and more.

However, as stated, every family and asset base differs, and this demands an estate planning law team that is well-versed and familiar with a wide variety of trust strategies; it is not a task that should be attempted without professional help.

I Need More Information About a High-Net-Worth Estate Plan; How Should I Proceed?

Both federal and California tax laws are constantly evolving, and if you’re a high-net-worth individual, you must be prepared for as many of the financial and tax twists and turns that may lie ahead. The highly adept and experienced estate planning lawyers at Cava & Faulkner consistently stay informed on all the latest legal changes and passionately help all their clients modify and draft their estate plans according to their particular needs.

They will use their expertise to stay ahead of negative contingencies and, especially in high-net-worth estate plans, plan for the vast array of financial and personal contingencies that may occur.

Call them today at 916-831-7565 for a complimentary consultation on your needs. They will passionately, empathetically, and professionally work to ensure the security of your finances and your family’s future.

How Can I Make Sure My Digital Assets Are Included in My Estate Plan?

In today’s world of technology, estate planning has taken a step beyond the physical into the fourth dimension of the online world. Many people store a significant portion of their net worth in digital servers or “the cloud.” The Revised Uniform Fiduciary Access to Digital Assets Act, adopted in California in 2016, covers important considerations regarding online access after someone has passed away. By working with the meticulous estate planning lawyers at Cava & Faulkner, you can rest assured that all areas and dimensions of your legacy will be cared for.

What Are Digital Assets and Where Are They Stored?

Computers store information using numbers, specifically the digits “0” and “1.” A “digital asset” is any asset that is stored using digits or “digitally.” Such assets can hold financial worth or be solely of emotional value to the owner; these can include the following:

• Bank accounts
• Cryptocurrencies
• Digital wallets
• Brokerage accounts
• Subscriptions (such as Netflix or Amazon Prime)
• Photos
• Cooking recipes
• Online or PDF documents
• Music
• Email accounts
• Social media accounts
• Rewards programs
• Videos
• Digital Art

In some cases, assets may have more than one component. For example, an online bank account where you review and access your money is a digital asset. Still, funds are considered physical assets if the bank maintains physical locations where tangible money can be withdrawn. In the case of cryptocurrency, this is solely a digital asset, as it can never be physically touched or held; it only exists in the world of computers.

How Can I Include Digital Assets in My Estate Plan?

By following these steps, you can ensure all your digital assets are securely included in your estate plan and will pass smoothly to your beneficiaries.

• Make a list: Review all the important online accounts you manage and list them out, including their usernames and passwords. Make sure you keep this document in a secure location.
• Consult a lawyer: Discuss your options with the experienced estate planning attorneys at Cava & Faulkner. They can help you decide how you would like to pass on your legacy, whether in a trust or your will.
• Choose a digital executor: This person will act to carry out your wishes as they relate to your online assets. The executor should be someone you trust and, ideally, someone adept at computers. It may or may not be the same person assigned to handle your general affairs.
• Complete your documents: With the help of your California estate planning lawyer, have the documents drawn up and officially signed by witnesses so they are legally sound.
• Store your documents safely: Place your estate planning documents and account information in a secure location. Make sure your digital executor knows where they are and has access.
• Talk to your family: Inform the key family members named in the will of your estate plan and where it is being securely stored so they can access it in a time of need.
• Regularly review your plan: Digital assets change fast. Estate planning is typically reviewed every three to five years. You may wish to monitor your digital assets more regularly as they are prone to rapid change. As needed, get your plan updated to reflect new changes.

What Can Happen to My Digital Assets If I Don’t Include Them in My Will?

If you fail to mention your digital assets in your will, you open your family to legal disputes and potentially problematic court processes. Without a will, your assets must be investigated, listed by the court, and assigned a beneficiary according to the legal priority of heirs, covered in California Probate Code § 6401–6402. When there are no clear instructions on accessing your accounts, some social media platforms will not allow access to individuals other than the owner, potentially causing money and memories to be lost forever.

How Can I Avoid Complications When Bequeathing Digital Assets?

Many people are unaware that due to the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), the settings regarding legacy account ownership on the online service or tool take precedence over your will. For example, Facebook offers the option of entering a “Legacy Contact” to manage your account after death. If you designate your daughter in your Facebook account and designate your son in your will by mistake, your daughter will be the one legally granted access, according to RUFADAA. To keep questions or disputes out of the picture, ensuring your estate planning documents align with your online account preferences is a good idea. This organization mimics how trust documents are followed. If a trust document specifies beneficiaries and a trustee and the will does not name the same individuals, the trust is taken as the senior document and considered valid within itself.

Should I Include My Passwords in My Will?

No. A will becomes a public document and should not include sensitive information that unauthorized persons could use to access your accounts. Instead, create a separate document or use a password manager to store all your information privately.

Will My Digital Executor Be Able to Access All My Accounts?

Your digital executor can access your accounts if you leave all the information they need. The information they need includes the following:

• User IDs
• Passwords
• The email address and phone number used for 2-factor authentication
• Security questions and answers

If you do not leave all the information, your executor could face technical issues, including privacy laws, encryption, or platform terms of service. Platform terms of service are upheld by RUFADAA.

Make Your Digital Assets Part of Your Legacy with Cava & Faulkner

Your legacy, memories, art, and creativity deserve to be passed down, not forgotten. In a fast-paced world, the expert team at Cava & Faulkner stays on top of current laws affecting your digital assets and estate planning. With our Family Wealth VIP Membership Program, your documents will be updated annually to remain on the cutting edge of digital law and give you peace of mind that no matter what happens, your loved ones will be cared for. If you have questions or want to learn more about including digital assets in your estate plan, contact us for a free consultation. Call us at 916-831-7565 today to schedule.

How Can I Use a California Trust to Manage Assets for Minor Children?

Trusts are a secure and reliable way to pass your legacy to the next generation. By placing assets in a trust, you can control when and how minor children receive their inheritance. California offers several trust configurations that allow you to use the arrangement that is just right for your family.

What is a Trust and How Does It Work?

Understanding the components of a trust is key to understanding the whole:

• Trustor: The person who creates a trust and places their assets in it, also called a grantor.
• Trustee: The person or organization who manages the trust’s assets.
• Beneficiary: The individuals or groups who benefit from the trust’s assets or income.

Understanding these definitions, the arrangement of a trust may be easier to grasp. A trust is a legally created relationship in which the trustor transfers assets to the trustee who manages or holds them for the benefit of the beneficiary, as defined in California Probate Code Section 15200. This arrangement is made in a document called a trust agreement or a declaration of trust. This legal instrument provides the foundation for a trust and outlines its terms and conditions.

Why Should I Use a Trust?

There are several reasons people choose to use a California trust, including the following:

• To ensure a trusted person controls the assets.
• To avoid the costly and time-consuming probate process.
• To ensure funds are used only for the child’s benefit (such as for healthcare or education).

What Types of Trusts for Minors Are Available in California?

Each California trust type has a slightly different configuration with different benefits.

Revocable Living Trust

A revocable living trust is established during the life of the grantor. The grantor funds the trust and retains full control over its assets during their lifetime. They may “revoke” the trust and its intended minor beneficiaries at any time or can amend it as needed. At death, or due to the grantor’s incapacitation, the trust’s assets transfer smoothly to the trustee for the minors’ benefit without requiring a public, court-supervised asset review.

Irrevocable Trust

An irrevocable trust cannot be changed once it has been created. Because of its structure, it can benefit the trustor by shielding assets from creditors, legal claims, and taxes while ensuring that those assets will always be used for their intended purposes. The grantor can benefit from the assets of an irrevocable trust, but how this is achieved should be carefully balanced by an experienced estate planning lawyer. If the trust is misused for personal gain only, instead of operating as a separate legal entity, the IRS may still consider it part of your taxable estate. By protecting your assets in an irrevocable trust, you can qualify for Medicaid while preserving assets for your heirs.

The benefits of an irrevocable trust include:

• Reduction of estate taxes
• Protection of assets
• Planning for medical expenses
• Providing for a special needs child
• Ability to support charity while reducing income taxes
• Preserving generational wealth
• Preparation for smooth family business succession

Testamentary Trust

A testamentary trust is created through a will and becomes active only after the grantor’s death. Unlike living trusts, they do not operate during the trustor’s lifetime. The will outlines the terms and conditions, including who the trustee responsible will be and who the minor beneficiaries will be. Because they are established through a will, testamentary trusts must go through the court process of probate before they become active. Probate is when a last will and testament is verified as valid in court.

Irrevocable Life Insurance Trust

The irrevocable life insurance trust (ILIT) has many qualities similar to an irrevocable trust but is explicitly used to hold life insurance policies as the chosen assets. Instead of you owning your life insurance policy, it becomes owned by the trust. According to the trust’s directives, any income or annuities will go to the trust and be directed to the minor beneficiary. The needs of the minor could be health, education, or basic living necessities.

Education Trust

An education trust is a specific trust type that has education as its sole purpose. This could be for children or grandchildren and is set up within the bounds of the three main categories of trusts: revocable living trust, irrevocable trust, and testamentary trust. With one of these types, a trust can be structured only to provide funding and use assets for education-related purposes, such as tuition, books, and living costs. Usually, an education trust is a component of a larger trust that may have additional purposes.

Special Needs Trust

A special needs trust (SNT) can be created to look after the needs of children with disabilities while ensuring their inheritance does not disqualify them from government assistance, like Disabled Supplemental Security Income (DSSI) or the income requirements to receive Medi-Cal. The grantor places assets in either a revocable, irrevocable, or testamentary type trust where a trustee will direct their use for the care of the minor beneficiary. Unlike most trusts for minors, which will expire or provide the entire inheritance to the adult child at a certain point, SNTs will continue to function as long as the child lives to provide life-long care for their needs.

Key Considerations While Creating a California Trust for Minors

As you prepare your assets to form a trust benefiting your minor family members, consider the following points in forming your trust:

• Trustee selection: Make sure the person in charge of the trust funds is responsible, trustworthy, and financially savvy. Be sure the person knows you are selecting them and has agreed to take the position.
• Incremental distribution: If you would like the assets to be dispersed at timed intervals, such as at 18, 21, and 25, make sure this is specified in the trust agreement.
• Lump sum inheritance: Some grantors choose to provide the full inheritance to the child once they have reached a certain age. The age could be 18 or as late as 30, as you determine suitable.
• Successor trustee: Adding a secondary option for the designated trustee is a wise idea to ensure your assets are in good hands in case your first choice is unable or unwilling to fill the position when the time comes.

Secure a Brighter Future for Those You Love

You have built a life. Let us help you preserve that wealth for future generations. At Cava & Faulkner, we focus on the long game. High-quality, legally-sound trust planning now can make the future secure and bright for your children and grandchildren. We know how it feels to have peace of mind that what you have built today will continue to provide for those you love tomorrow. We offer free consultations. Call us today at 916-831-7565 to schedule yours.

How Do I Avoid Disputes by Ensuring Clarity in Writing My California Will?

Preparing your will may be one of the most important things you do to ensure your legacy is passed on to those you love. Of course, you will want to ensure it is legally sound and will not result in questions, confusion, or the nightmare of family disputes after you are gone. In a time of grief, you can help bring peace of mind to all concerned by ensuring your final will and testament are explicit regarding your wishes.

What Should My California Will Contain?

There are many tips for making a will iron-clad against disputes, but a solid foundation is the best place to start. Knowing and fully covering the basics is the first step to confusion-free will. All California wills should cover the following items:

• Executor: The individual appointed to carry out your intentions as covered by your will. This includes the settling of your debts and distribution of your assets.
• Family identification: By listing your family members in the will, you will clearly define the relationships between each one and their right to inheritance. You should include your chosen family in this step to ensure that anyone without legal or biological ties is correctly acknowledged.
• Beneficiaries: The individuals or entities that will receive your assets at the time of your passing. Remember that this can include organizations, such as charities, in addition to people.
• Asset distribution: Your will needs to list how your assets will be distributed amongst your named beneficiaries.
• Consideration for communal property: After marriage in California, all property acquired is considered communal property under CA Family Code § 760. After you pass, community property is automatically transferred to your surviving spouse; different arrangements are possible but need to be clearly defined in the will with the help of legal counsel.
• Guardians for minor children: Include the full name and legal address of the person or persons you would like to look after your children.
• Testator signature: The “testator” is the person writing the will who is leaving their legacy, in this case, you. You must be over 18 and sign the document while you are of sound mind for it to be valid.
• Witness signatures: Two witnesses not named in the will must be present and sign it. They must be able to testify in court that you were present, signed the document, were of sound mind, and were aware the document was your will and represented your intentions for the distribution of your assets after death.

Common Causes of Family Disputes

These are the common causes of family disputes over California wills:

• Vague language
• Unequal asset distribution
• Omission of family member names
• Allegations of undue influence
• Claims the testator was mentally impaired
• Claims the will is forged
• Disputes over sentimental property

The most common causes of disputes can be avoided by ensuring the foundation of the will is strong. This will include naming each family member and ensuring the will is correctly witnessed. Some additional strategies may help make your wishes clear and definitive.

Disinheriting Should be Explicit

If you intend to remove someone from your will, leaving their name out of the document can lead to questions. The person should be named in your list of family members, and a simple but explicit statement should be made to show you are intentionally excluding them as a beneficiary, such as:

• “It is my intention that [family member] shall receive no part of my estate.”
• “I expressly omit [family member] from my will, and they are not to benefit from my estate in any way.
• “I make no bequest or gift to [family member] in this will.”

You can consider adding the reasoning or justification behind your decision for increased clarity, but this is not legally necessary. Estrangement, poor financial management, and conflicting life choices are some reasons that may be given. Use tact and discuss the wording with legal counsel to avoid creating unnecessary emotional tension.

Consider Using a Nominal Sum Rather than Disinheriting

In some situations, leaving a nominal amount rather than disinheriting a person can be more effective. By leaving a relatively small sum to the family member, you acknowledge them without providing a meaningful inheritance. By structuring your will in this way, you demonstrate that the exclusion was intentional and lessen the possibility of a dispute or questions about omission.

Add a “No Contest” Clause

A comprehensive “no contest” clause may be a good idea if you are concerned about litigious family members. Such a clause states that if any beneficiary disputes your wishes, they risk losing any inheritance they were named to receive. “No contest” clauses can be implemented, but these clauses also have limitations. According to California Probate Code Section 21311, no contest clauses are not the ultimate safeguard but can function as a useful deterrent.

Clarity Will Not Protect You from Outdated Language

Even if you write the most clearly worded will, if the document is out of date when you pass, it may still cause questions and open the door to familial disputes. If you finished your estate plan years ago and have since adopted a new child, gotten a divorce, and moved to a new location, this may leave your will up to interpretation by the state if you pass away unexpectedly. Experts recommend updating your will every three to five years. When you work with Cava & Faulkner, we update your documents every three years.

Communication Can Prevent Surprises and Manage Expectations

An obvious but often overlooked tip to avoid surprises and potential family disagreements is to discuss your estate plan with family members and loved ones before it is needed. If everyone concerned knows your intentions for bequeathing your assets, there will be far less confusion when the time comes.

Protect Your Future with Cava & Faulkner

Leaving a legacy behind to your loved ones is a very satisfying feeling. Don’t let concerns over familial disputes or ambiguity ruin your peace of mind. At Cava & Faulkner, we are dedicated California estate planning lawyers with years of experience who go above and beyond for their clients. We can help you build an iron-clad will that represents your true wishes and will hold up in court long after you are gone. Contact us today for a free consultation at 916-831-7565 and protect your assets for those you care about.