How Prop 19 Changes Parent to Child Transfers
Under Prop 19, the parent to child reassessment exclusion no longer applies unless it is a transfer of a primary residence from a parent to a child who uses it in turn as their primary residence. Whereas before there was no limit to the value of the transfer of a primary residence, prop 19 only excludes the first $1 million of assessed value.
Talk to Your Family over the Holidays about Your Estate Plan
Many of us labor a lifetime to build up our assets and fight for causes that matter to us. Few things are more fulfilling than the thought of sharing wealth and legacy with our family.
Of course, it’s impossible to plan for every eventuality, but careful planning can mitigate against the two primary risks.
Why you need an estate plan. Now.
Amazingly, 6 in 10 U.S. adults don’t have a will or living trust, and almost half of boomers (age 53-71) haven’t put their estate planning documents in place yet. In my experience, I have seen that most people fail to set up an estate plan because they simply don’t know they need one. Estate planning isn’t just for the wealthy, every adult needs some level of estate planning regardless of their age or how many assets they have. In fact, if you don’t create your own estate plan, then you are on the default plan that the State of California has in place for you (and you probably won’t like it).
The 5 Golden Rules of Lending Money to Children
When you think about the price of having kids, the costs that come to mind may include things like child care, camp, braces and college tuition.What probably doesn’t spring to mind are mortgages, car payments or personal loans.
Who Will Inherit Your Financial Wisdom?
Many people who inherit wealth or small businesses are at significant risk for essentially squandering the wealth. An Ohio University study shows that an astonishing 33 percent1 of all beneficiaries lose their entire inheritance within two years of receiving it. The ways they manage to do so are as varied as the imagination, but in our experience we have seen a common thread: mismanagement.
Don’t Let Your Living Trust Go Stale
If you have already set up your living trust – congratulations! Having a living trust can save your loved ones from having to go through a long, costly and public probate and/or conservatorship court proceeding. A living trust and other essential estate planning documents also make your wishes clear, minimizing the potential for hard feelings between family members. These reasons along with others clearly outline the benefit of having a living trust, but don’t let your living trust go stale!
Is your trust funded?
A trust avoids probate, but an empty trust does not. What do I mean by that? You have probably heard me say that a trust is like a bucket and you need to fill it with your assets for it to avoid probate. Retitling your assets to your trust is referred to as “funding” your trust. In this newsletter, I’ll explain more about the funding process as well as which assets to retitle into the trust.
Is your child turning 18 this year?
Here’s an issue many families overlook when children leave for college: That child, in the eyes of the law, is now an adult—and needs some all-important documents.
Very important information for small business owners
Congress passed a paycheck protection program for small businesses. The Paycheck Protection Program sets aside $350 billion in 100% federally-backed loans for small businesses that may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
We’re here for you during this difficult time
Due to the Governor’s order, I am now only meeting with clients via video or phone conference. As some of you may know, I have met with clients virtually before, so systems are already in place for that.