Wills

Leaving Securities to Heirs

If you have a diversified portfolio of assets, you may have questions about the best way to leave securities to your heirs would be. For example, can you pass securities on to heirs through transfer on death (TOD)? We’ll examine how this works so you can make an informed decision on the best way to leave your assets to beneficiaries.

You Can Pass Securities Directly to Heirs at Death

The good news is that the state of California has ways to transfer some of your assets outside of the potentially costly and lengthy probate process. One of these is the California Uniform TOD Security Registration Act. This act specifically addresses the passing of stocks and other securities directly to a beneficiary by what is called transfer on death.

The good thing about TOD is that if something happens to you, your heir immediately becomes the owner of the securities that have been designated. The key is to properly designate the TOD assets so that the transfer takes place seamlessly and without question.

Help in Designating Transfer on Death Securities

Petrov Law Firm specializes in estate planning. We can help you to leave your assets to beneficiaries in a way that cuts through some of the legal red tape and gets the money to your heirs faster and without costly legal bills. To learn more, give our San Diego office a call today at 619-3344-0360. We can help you with all of your estate planning needs in the state of California.

“Can I Cancel a Loan in My Will?”

Most people think of estate planning as a way to leave material assets and instructions to others. However, we occasionally hear the question: “Can I use my will to cancel a loan?” We’ll discuss a few reasons this question may come up and provide the answer.

Why Cancel a Debt Posthumously?

The fact is that if you leave your estate to beneficiaries, the executor has the responsibility to ensure those heirs receive what is rightfully theirs. If you have someone paying back a loan, that money is owed to the estate. The executor would move to collect the loan so that the beneficiaries receive the money. But you may decide that your estate is sufficient without placing an extra burden on someone who owed you money. In that case, you can cancel the debt in your will, and the loan will not have to be repaid. Here is an example of why you may choose to do this.

Let’s say you intend to leave your fortune to two sons, but the older boy borrows $50,000 from you as business capital. You have a written contract outlining how he will repay you. If you pass away, you could choose to include a clause forgiving the rest of the loan. This would allow the two boys to split the remainder of your estate evenly. If not, the son with the loan may have to repay his loan or have the balance come out of his share of the inheritance.

Help with Preparing a Will that Expresses Your Wishes

It is up to you to determine what is fair and just in the distribution of your estate when you die. The estate planning attorneys at Petrov Law Firm can help by drafting documents that legally bind your executor and heirs to abide by the decisions that you make while alive and in a sound state of mind. To learn more, call 619-344-0360 today.

Who Will Inherit Your Retirement Accounts?

There are a number of different ways to save for your golden years. Some types of retirement accounts are: 

• IRA – Contributions are tax deductible and taxes must be paid when the funds are withdrawn. 
• Roth IRA – Contributions are taxed in advance instead of at the time of withdrawal.  
• 401(k) – Contributions are made pre-tax, and therefore are subject to taxes when withdrawn. In addition, a penalty is imposed if funds are withdrawn earlier than age 59 and 6 months.  

The question arises, however: what if you pass ways with money in a retirement account? Who gets it?  

Where Your Retirement Accounts Go 

The normal process when setting up a retirement account is to designate someone who would serve as a beneficiary and inherit any remaining funds. If you do designate a beneficiary on a retirement account, this will supersede your will. For example, if your retirement account beneficiary is your mate, but you later divorce and leave everything to your kids in your will, you will have to change the beneficiary on the retirement account as well, or your ex will still get that money. 

In other words, a retirement account is not a probate asset, so your executor will have no say in what happens to it. You have to make that decision now by keeping your beneficiary up to date. 

Having the Proper Estate Planning Attorney on Your Side 

In order to ensure that all of your wishes will be carried out, you want the advice of an estate planning attorney who can help you to understand how these little details work. The experienced estate lawyers at Petrov Law Firm can help you plan for the future of your heirs. To learn more, call 619-344-0360 today. 

3 Things You Need to Know About Will, Trusts, and Probate in California

Estate planning is subject to different laws by state, so it is important to know how things such as Wills, Trusts, and Probate work in your home state. An estate planning attorney can be of great assistance in this regard, but here are 3 things to help you get started.

If You Have a Will, Your Estate Still Goes Through Probate

Some people are under the misconception that as long as they execute a Will, heirs automatically receive the inheritance. The fact is that even if you have a Will, you have to determine an executor who will take care of the probate process and help to ensure that your desires are carried out. How long the process will take depends on numerous factors.

Trustees Can Only Be Removed in Superior Court

That is where the probate division of court matters is handled. Some states will allow a person to utilize the civil court system to take action against a Trustee or to take care of other Trust matters. In California, civil suits cannot be filed for estate matters.

What Happens if You Die Without a Will or Other Estate Planning?

Intestacy law is a division of law that constitutes the state’s rules of inheritance. In California, the order of inheritance is: spouse, direct descendants (children, grandchildren, etc.), parents, siblings, grandparents. However, other factors may complicate this succession.

Taking Control of Your Estate Planning

Petrov Law Firm can help you to take control of your estate planning and navigate the many state and federal statutes that are involved. Call 619-344-0360 to get started on your plans.

How Using a Will May Expose Your Family to Scams

What Someone Can Learn from Your Will

If a scam artist is looking for a big score, all he has do is look through public records to find wills that divide up large estates. Now he can either go after that money through trying to run a scam on you personally, or if you don’t fall for it, he can add your heirs to a list and wait patiently for them to inherit the money.

How Much Do Scams Cost Seniors?

In just the first 3 months of 2016, more than 1.7 million dollars were stolen from seniors in the US using phone scams alone. That is hard earned money that should have gone to loved ones rather than a conniving stranger. Here’s one way to take the target off your back.

Safe Estate Planning Techniques

Implement safer estate planning methods by calling Petrov Law Firm. Our estate planning attorneys can help you set up a confidential living trust. No one should know how much money you have, and only your family should get it. Call 619-344-0360 today to schedule a consultation with the San Diego estate planning lawyers you can trust.

Situations in Which a Lawyer Should Help with a Living Will

Worried About Family Disagreements

When it comes to healthcare, in particular, family emotions can flare. What one person said he or she is willing to do to follow your wishes may change in an emergency. If you are worried about a close family member fighting your medical wishes, consulting a lawyer to check your healthcare directive is a good idea.

You’re a Frequent Traveler

Medical documents are often only valid in the state they are executed in. If you spend a lot of your time in a neighboring state for work or other reasons, you may want to consult a lawyer to execute a legal document that bears the right language for multiple states.

You Need More than Just a Living Will

If you have more assets, you may want to consider other options such as trusts and other documents that can help your heirs to avoid lengthy probate issues. A capable estate planning lawyer can help you to see the best way to protect your assets and help your family in their time of loss.

To learn more from the estate planning legal experts at the Petrov Law Firm, please call 619-344-0360 to set up a consultation.

Death with Only a Will—Which Assets Avoid Probate?

Life Insurance Policies – Your named beneficiary will be paid directly by the life insurance company.

Retirement and Pension Plans – IRAs and other retirement accounts will automatically pass to the beneficiary that you have named.

POD (Payable on Death) Accounts – When a POD account is set up, you select the beneficiary who will receive the account upon your death. These funds, therefore, do not go through probate as other bank accounts may.

Joint Tenancy Properties – Joint tenancy properties can include things such as a home, vehicle, or even a bank account. The advantage of having both names on a deed, title, or bank account is that these assets then avoid probate. The disadvantage is that creditors may be able to go after these assets for debts owed by the deceased.

Making Trust and Will Decisions in California

In order to keep your family from long and expensive probate battles, you may choose to use a trust to pass on your estate. However, the four means noted above also hasten the process and avoid probate even if you use a will only. Which option is best for you? The estate planning lawyers at the Petrov Law Firm will be happy to help you make these decisions so that your loved ones will be well cared for when you are gone.

When the Will is Out-of-Date

If properly constructed by an estate attorney, the will has certain phrases to keep its general intent evergreen. For example, the will could use percentages instead of dollar amounts to ensure the entire estate is accounted for in the will. Instead of naming specific people, the will could use terms like “grandchildren” to ensure no one is unintentionally neglected.

If the will is more than ten years old, unaccounted dollar amounts could mean that the will is forced to go through probate court. For investors, high interest returns are fantastic. But unless those gains are accounted for through a well-worded will or updated estate plan, a measurable percent of the investment gains could end up going to pay for probate fees.

If you are a beneficiary named in an out-of-date will, hire an estate attorney to help you minimize the financial losses. The legal system will often take the “spirit” of a legal document into account; however you will need a good lawyer to help you argue this point.

Facing Family Requests

Even if you have a relatively small estate, you might face some uncomfortable questions by your family regarding your estate planning. Sometimes, these concerns are well-founded; and sometimes, the questions are simply rude.

“Do you have a will?”

Generally, this is an acceptable question. An estate that passes into probate can cost thousands of dollars in fees; many of which can be avoided by simply having a valid will. If a family members asks this questions, they may simply want to know where you keep your will. It’s not outrageous for a close family member to want to know the name of your estate attorney and the location of your will.

“What’s Your Plan for Your Estate?”

Occasionally, this is an appropriate plan. Generally, only the closest family members have the right to ask such a person question. Because financial circumstances can change so dramatically over time, a will is not a promise, but simply a plan that may need adjusting when your estate is released to beneficiaries. Sometimes, adult children with significant assets of their own may want to make a contribution to the overall plan. For example, an adult child might want to buy the family summer home in an attempt to keep it in the family instead of seeing it sold after you pass.

“How Much Will I Get When You Die?”

While there are several ways to answer this question, the best answer might be with your own question. “Why?” “How much will I get?” is a rude question, but it might be based in a pressing need. Instead of being offended, you might delve deeper to find out if there is something you can do while you are alive. For example, you might be able to offset the cost of tuition for a grandchild or offer a gift for a down payment on a house.

Preventing Someone from Contesting a Will

If the will is more than three or four years old, visit a lawyer and give it an update. Even if there are no changes, document the review of the will. If the will ends up being reviewed by a judge, you will have the favor of the legal system if the will was recently reviewed for fairness and accuracy.

If you (or your loved-one) has started to see a decrease in mental ability, contact a lawyer to confirm your current mental status as sufficiently sound and validate the contents of the will. Decreased mental capacity is a strong basis for contesting a will. However, if you can confirm the text of the will while still with a generally sound mind, the will won’t be vulnerable to being contested.

If the will assigns a substantial percentage to one child over another; or if it assigns a significant amount of money to an organization, visit a lawyer and confirm the details. Again, anything that stands out as unusual could be grounds for contestation.

The more documentation around the creation of will, the better. Witnesses, doctor’s notes, and the help of a good estate planner will ensure that your wishes are carried out exactly as you want.