A fairly noteworthy change was brought to the estate planning landscape this year- the “small estate,” which since January 1, 1997, has been defined as an estate of $100,000 or less, has been redefined as an estate of $150,000 or less. Effective on January 1, 2012, Bill AB 1305, introduced by Assemblywoman Huber, amended certain provisions of the California Probate Code to allow a simplified administration of all estates with real and personal property having a gross value less than $150,000. The bill also authorizes real property with a gross value less than $50,000 to be transferred by an affidavit procedure, which was raised up from the previous level of $20,000, and authorizes a surviving spouse to collect unpaid salary or other compensation of $15,000, which was raised up from the previous level of $5,000. Read the rest of this entry »
Small Estate Redefined-Probate Required for Estates Greater Than $150,000 in California
January 12th, 2012Who Still Needs an A/B Trust Anyway? P.3
June 28th, 2011Creditor Protection.
One thing that the standard revocable living trust does not offer is protection from a Settlor’s creditors. During the lifetime of a married couple, or in the event that the surviving spouse retains complete control over the entire estate after the death of the first spouse, the power to amend and revoke the trust and to withdraw the income and principal of the trust at any time for any purpose remains with the couple or surviving spouse. This allows creditors the ability to attach claims to the Trust Estate and demand immediate payment. A Decedent’s Trust, on the other hand, limits distribution to the health, education, maintenance and support needs of a beneficiary and states that these distributions are to be made in the discretion of the Trustee. Read the rest of this entry »
Who Still Needs an A/B Trust Anyway? P.2
June 14th, 2011Blended Families.
As the divorce rate continues to rise in this country, so too does the incidence of remarriage. While these second and third marriages can bless our clients with comfort and happiness in their later years, many of our clients worry that if they die before their new spouse their entire estate will transfer to their new spouse and our client’s children will be put at risk of being left nothing in favor of the new spouse’s family. If this is a concern of yours, then one way to ensure that your children are provided for is the A/B Trust. If you die before your spouse, your separate property and your one-half (1/2) share of the community property of the Trust Estate is set aside in an irrevocable trust, typically called the “B Trust” or “Decedent’s Trust”. Read the rest of this entry »
