San Jose Estate Planning Attorney Blog

By now, the flood of floral commercials has already reminded us that Mother's Day is Sunday, May 12. But before you plunk down a good chunk of change on something that will wilt and die in a week or so, consider a gift that is truly priceless: a plan for your kids (or grandkids) that provides Mom with peace of mind that, if anything should happen to mom and dad, her children will always be in the care of the people she knows, loves and trusts.

We all hate to think that something could happen to us, but we know it happens to others like us every day.

We've all seen the news stories of moms and dads who leave their children with a babysitter, get into a terrible accident and don't make it home.

The babysitter calls and calls, but there is no one to answer. The police are summoned and the children have to be placed with Child Protective Services. It's the thing every mother is most afraid of happening.

Continue reading "Best Mother's Day Gift Ever? The Kids Protection Planning Kit®" »

Downton Abbey - the British drama about the fortunes and misfortunes of an aristocratic British family in the early 20th century that has taken American audiences by storm - gets most of its gripping plot twists as the result of a number of bad estate planning moves. For example (Spoiler Alert: these include references to Season 3):

Protect your inheritance. The Earl of Grantham inherits Downton Abbey and marries a rich American to keep the estate solvent. However, he squanders the family fortune on an unwise overseas investment that goes belly up. The family turns to Lady Grantham's rich American mother, but she is unable to help since her fortune is tied up in a trust.

Continue reading "What We Can Learn From Downton Abbey About Estate Planning" »

The digital afterlife debate over who owns the online assets of someone who has died has been in the news recently, brought to light by several families whose children have died tragically and who want access to their child's online accounts to preserve memories and try, in the case of suicide, to make sense of a senseless act.

To date, six states -- Connecticut, Idaho, Indiana, Oklahoma, Rhode Island and Virginia -- have passed legislation regarding the ownership of digital assets, with legislation pending in a number of other states and at the federal level as well.

At the heart of the debate are concerns over violating privacy laws. Facebook went to court in California last September to block the estate of a British model from getting access to her Facebook account and prevailed.

Continue reading "The Digital Afterlife Debate: What Happens to Your Online Assets After You're Gone" »

Every single adult needs to have an advance health care directive written, signed and in place. This includes your children, as soon as they turn 18. This includes you. This includes your parents.

Without an advance health care directive in place, you would not be able to access your child's medical records, if they are unable to communicate permission. You would not be able to ensure your health care decisions will be made the way you choose. And your parents lose the ability to communicate their wishes and remain in control as long as possible.

Here is what you can do to have the conversation you need to have about advance healthcare planning:

Continue reading "The Conversation You Must Have With Your Kids and Your Parents" »

There have been a number of new rules and services implemented by the Social Security Administration for 2013 that affect a majority of American workers as well as retirees:

Expiration of the payroll tax cut. Workers may have already noticed the hit their paychecks took this year due to the expiration of the payroll tax cut, which went from 4.2 percent to 6.2 percent on earnings of less than $113,700 (increased from $110,100 in 2012).

Continue reading "New Social Security Rules and Services for 2013" »

Many parents perceive a conflict between funding a child's college education and building their own retirement nest egg. The conflict usually arises from the lack of financial resources to do both while funding daily living expenses, so parents become stuck between priorities and usually wind up doing nothing at all.

One of the things a Personal Family Lawyer® can help you do is sort out your priorities in a way that supports your family for the long-term. With that in mind, here are some guidelines on striking a balance between saving for your retirement and your child's education:

Build an emergency fund first. This should be 3-6 months of living expenses that you have saved to fall back on in an emergency. If you don't have it, you will likely be forced to raid your 401(k) or other retirement account, spending more for penalties and taxes to cover the cost of the emergency.

Continue reading "Striking a Balance Between Funding Your Retirement and Your Child's Education" »

In the process of becoming new parents, many couples become experts at planning - scheduling the birthing classes, planning the new nursery, even picking out a preschool. There is so much to think about before you welcome your new child.

Unfortunately, one of the most important things you can do to protect your child is often overlooked: an estate plan. Here are five important considerations you need to discuss with your Personal Family Lawyer® when setting up an estate plan once your new baby is born:

Guardians and trustees. Parents who delay choosing a guardian for their children usually do so because they cannot agree on that "perfect" choice. Get comfortable with the fact that there is no perfect choice - and if you don't choose, a court will choose for you. You can always amend your choice if you change your mind. When choosing a guardian or trustee, you need to think about choosing someone who shares your beliefs and who will naturally be a part of your child's life. And you need to make sure whomever you choose is willing to take on the responsibility of raising your child if you are unable to do so.

As your neighborhood Personal Family Lawyer, I offer a unique process for families with young children at home. Contact me to discuss how a Kids Protection Plan® can ensure your children are always cared for by people you know, love and trust if anything at all happens to you.

Continue reading "Congratulations! It's an Estate Plan! Protecting Your Newborn From Birth" »

Most of us conduct a lot of our personal business online these days, so the necessity of being savvy when it comes to security has never been greater. Hackers are becoming much better at scouring our online lives - including social media networks - to get the information they need to compromise our security.

Here are some steps we should all take to secure our information online:

• Create strong passwords. Yes, it's a major pain to create different passwords for each of our online accounts, but it is one of the most effective ways to stop hackers in their tracks. Experts say passwords should be at least 10 characters long and include a mix of upper and lower case letters, numbers and characters. Never use your name or initials in your password.
• Security question switch-up. Many sites now require you to answer security questions, like where you were born. Instead of answering correctly, choose a place that has meaning to only you that is unrelated to your birthplace.
• Choose double-verification. If you have a Google account, you know about double verification: anytime you try to access your account from an unfamiliar computer, Google asks for your password and also sends a one-time password that they generate to your cell phone. Whenever a site you regularly use offers you this option, use it.
• Password-protect your Wi-Fi. Never use an unsecured network in your home - hackers can break in, control your computer and even break into your bank account. Create a strong password for your home Wi-Fi network. And if you are using public Wi-Fi, always log out of your accounts when you are finished.
• Never click on questionable links. Ever get an email from a friend's account that you know just doesn't sound quite right? That friend's account has been hacked, and their contact list is being used to send spam. If you get an email with just a link from a friend, ignore it. Then let your friend know he or she has been hacked.
• Back up your data. Get an external hard drive to back up your data or store your files in the cloud via applications like Dropbox or Apple iCloud.

If you'd like to learn more about protecting all your assets, including digital assets, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I've made space for the next two people who mention this article to have a complete planning session at no charge. Call 408-899-9529 today and mention this article.

While there are some good reasons why parents and adult children consider joint ownership of assets, there are also some potential unintended consequences, including:

• Divorce: If a parent adds an adult child as joint owner on bank or investment accounts and that adult child becomes party to a divorce action, the child's ex may claim the joint assets as part of the marital estate.

Continue reading "Joint Ownership of Assets Can Have Unintended Consequences" »

If you or a family member are one of the millions of Americans facing a diagnosis of some type of dementia, it is critical that you have the essential estate planning documents in place that will protect you and your loved ones. And the earlier that planning is done once a diagnosis has been made, the better protected you will be against the financial and emotional burdens of mental incapacity.

Continue reading "Planning for Loss: Legal Protections For Those Facing a Diagnosis of Dementia" »

The U.S. Census Bureau has reported that the number of unmarried people aged 50 to 54 increased from 29 percent in 2000 to 35 percent in 2010; in addition, those aged 55-64 increased from 30 percent in 2000 to 33 percent in 2010. Planning strategies differ for single people in middle age; here are some financial planning tips for single baby boomers:

Continue reading "Estate Planning for the Single Baby Boomer" »

Parents of special needs children are naturally concerned about how that child will get the care he or she needs after they are gone. There are several ways to plan for the care of a long-term disabled heir, including:

Special Needs Trust - A special needs trust can be established by a parent or grandparent for the care of a child or grandchild of any age in lieu of leaving an inheritance, which would likely disqualify a special needs person from receiving necessary government assistance.

Continue reading "How to Plan for the Long-Term Care of a Special Needs Child" »

As Personal Family Lawyers®, we see it every day: one spouse is more motivated that the other to establish an estate plan, either because he or she just inherited a tidy sum or because one is a planner by nature and the other is a procrastinator.

If this situation sounds familiar, you are not alone!

So how do you get a spouse who is seemingly disinterested in planning your estate to get on board?

Continue reading "How to Talk to Your Spouse About Estate Planning" »

A will is a vital estate planning document, and allows you to distribute your assets and property according to your wishes. However, there are several items that should NOT be included in a will:

• Property held in a living trust or joint tenancy - property deeded to a living trust cannot be willed to someone else, and a will cannot change the right of survivorship in joint tenancy, which passes to the joint tenant by law.


• Accounts with designated beneficiaries - financial accounts and life insurance proceeds go to beneficiaries who are designated by you via a designated beneficiary form, and cannot be given to someone else through a will.



Continue reading "Things You Should Never Put in Your Will" »

Currently, 29 states have what is known as filial support laws, which means that children of destitute parents could be on the hook for unpaid long-term care bills.

Historically, usage of these laws has been uncommon, but with cutbacks to federally funded programs like Medicaid, some long-term care facilities are pursuing the children of indigent patients for payment. At the least, these facilities are leveraging the law to pressure children to disclose their parents' assets or assets that they may have transferred to their children.

In a recent Pennsylvania case, an appellate court ruled that a nursing home could recover unpaid expenses from a patient's son, finding that the son had the means to pay. This could prove to be an enticing development for nursing homes in other states with filial support laws.

Elder law experts agree that the best defense is careful estate planning in advance of the time when parents may need financial help, considering strategies like long-term care insurance to fill any anticipated gaps.

If you'd like to learn more about planning for long-term care or have other estate planning questions, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I've made space for the next two people who mention this article to have a complete planning session at no charge. Call us at 408-899-9529 today and mention this article.