An Advanced Health Care Directive will provide clear instructions for a client’s family if there is a health or medical emergency which leaves the client incapacitated. A client can select an individual to make important medical decisions if the client cannot communicate with physicians.
A buy-sell agreement, also known as a buyout agreement is a binding agreement between co-owners of a business that discusses what happens if a co-owner dies, is forced to leave a business or chooses to leave a business.
A corporation is a legal entity, which limits the personal liability of the owners and is subject to double taxation. The owners of a corporation, also known as shareholders, are not liable for debts and other obligations of the corporation.
Estate planning involves the development of strategies for protecting your assets, distributing them according to your wishes when you are deceased, to provide for your family or loved ones. A carefully developed estate plan can help you to accomplish many estate planning goals, such as:
The most critical component of an effective estate plan is a properly prepared will. You want to ensure your assets transfer in accordance with your wishes. Additionally, you must consider the probate process and the possible tax liabilities of your estate. This process can involve in-depth financial projections and estate tax calculations. Estate planning may involve naming guardians for your children, creating trusts, special titling of assets, and other elements.
Almost everyone needs some sort of estate planning. If you have kids, you should have at the minimum a will so that you decide who will take care of your children in the absence of one or both parents due to death. If you own a home, you need a trust so you avoid the probate court.
Certain types of Revocable Living Trusts provide the benefit of reducing federal estate taxes. At Barouti Law Corporation we provide a thorough estate tax analysis in developing your estate plan.
Writing a will protects your family and ensures that your wishes will be carried out. Anyone of legal age with any property should have a will. If you die without a will, or what is known as intestate, your estate will be distributed as determined by state law and administered by someone appointed by a court. In addition, the court will decide who will care for your minor children. Dying intestate also can increase the tax burden for your heirs and cause dissension within your family. A will enables you to:
b) Provide for future management of investments or a family business. Designate guardians for your minor children. Select the person you want to distribute your estate, eliminating the necessity of an expensive, court-appointed administrator. Minimize taxes and administration expenses in the settlement of your estate. Provide for special desires, such as charitable contributions.
A general partnership is a business entity that is made up of two or more persons to carry on a trade or business for profit. Each partner is obligated to contribute money, property, labor, or special skills. In addition, each partner is entitled to share in the profits and losses from the business.
Whether you need health coverage or have it already, the health care law offers new rights. Some rights and protections apply to plans in the Health Insurance Marketplace or other individual insurance, some apply to job-based plans, and some apply to all health coverage.
A limited liability company (LLC) is a legal entity with liability protection similar to a corporation. A limited liability company has one or more members. These members are generally not personally liable for any debt or liability of the limited liability company. A limited liability company can choose to be taxed as either a corporation or as a pass-through entity.
A limited liability partnership (LLP) is a legal entity in which on partner is not responsible or liable for another partner’s negligence. A limited liability partnership is designed primarily for specific professional services. The tax benefits are that an LLP does not pay income tax.
A lawsuit is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant’s actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff’s complaint. If the plaintiff is successful, judgment is in the plaintiff’s favor, and a variety of court orders may be issued to enforce a right, award damages, or impose a temporary or permanent injunction to prevent an act or compel an act. A declaratory judgment may be issued to prevent future legal disputes. A lawsuit may involve dispute resolution of private law issues between individuals, business entities or non-profit organizations. A lawsuit may also enable the state to be treated as if it were a private party in a civil case, as plaintiff, or defendant regarding an injury, or may provide the state with a civil cause of action to enforce certain laws. The conduct of a lawsuit is called litigation. The plaintiffs and defendants are called litigants and the attorneys representing them are called litigators.
A contract executed after a couple gets married. The agreement will discuss in detail how a couple’s assets in the event of a separation or divorce will be divided.
What is probate? Probate is the legal process whereby a court oversees the distribution of assets left by a deceased person to the appropriate beneficiaries. Assets are anything a person owns with value, such as real and personal property and cash, for instance. If you have a will, the process includes proving that the will is valid and ensuring that assets are distributed according to its provisions. Otherwise, the probate court will oversee the distribution of your assets according to state law. The probate process is a matter of public record and can be costly and time consuming. There are many estate planning strategies that enable you to avoid or bypass the probate process. These strategies typically involve providing for the transfer of your assets through joint ownership, trusts, or gifts while you are alive, instead of through a will.
Developing a proper estate plan requires setting concrete goals. Ask yourself, “Who do you want to provide for when you die?” Your attorney will help you determine how this should be accomplished. Identifying your estate planning goals becomes the framework for undertaking other activities, such as:
Probate is a process where the court distributes your assets after your death and will appoint legal guardians for your children if you have not already done so. Your family will have to “go to probate” court if you do not do correct estate planning while you are alive. This means that a judge will make all of the decisions about your estate and who your children go to, what they inherit — after your death — if you do NOT properly plan while you are alive! Probate is long, public and expensive. Probate costs in California generally run between 4% and 5% of the estate. So, a $500,000 estate will cost between $20,000 to $25,000! HOWEVER, with proper planning, you can avoid probate.
A Durable Power of Attorney for Asset Administration is essential if a client suffers an illness or medical emergency. Often a client will be left incapable of handling financial or business decisions; however, an agent can be designated who will have the authority to continue to make financial decisions until the client recovers.
A prenuptial agreement is a contract executed before a couple gets married. The agreement will discuss the division of assets, property and spousal support in the event of a divorce.
In order to effectively transfer land, properties, building and houses into the client’s Revocable Living Trust, transfer documents and grant deeds must be executed. In addition to property, a client should also transfer stock in any corporation, membership units in any limited liability companies, partnership interests, or any other business interests.
The benefit of having a Revocable Living Trust is that it will not go through probate, therefore, eliminating the delay and cost of probate. Going through probate takes at least a year and cost anywhere from 6% to 8% of the total gross estate. A Revocable Living Trust will allow a client to control his or her estate by passing it along to a selected individual referred to as a “successor trustee”. The term of the Revocable Living Trust will express the client’s wishes and provide the successor trustee specific guidelines about how and when to distribute specific assets to named beneficiaries.
More than half of American adults don’t have a will. If you have children under the age of 18 or still in college, you need a will to appoint guardians of your children. It is extremely important to have correct documentation spelling things out! If you do not, the court will decide who will raise your children. The court’s choice may not be your choice for raising your kids. The last thing you want your children and family to have to deal with after the loss of both parents would be a messy court battle over who will take care of your children. The will should name a guardian for anyone under 18. You’ll also want to name a trusted person as executor of your estate. If you have young children, ask an attorney about creating a minor’s trust — assets you leave them will be held in the trust until they reach your state’s “age of majority” (18 in most states).
A living will is a legal document which clearly states what you would like to have happen in the event that you are put on artificial life support and unable to communicate.
The last will and testament acts as a pourover will to the Revocable Living Trust. Ultimately, the pourover will, will “pour over” into the trust any miscellaneous assets that have no beneficiary or were not properly placed into the trust.