The Corporate Transparency Act (CTA) is a significant new law that will impact millions of businesses across the United States. The CTA passed in 2021 and took effect in January 2024. It is designed to enhance transparency and help combat illegal activities like money laundering, terrorism financ...
HLF Blog
Estate Planning: Will or Trust... Which one is right for me?
If you're considering estate planning, you're on the right track. You'll be able to provide for your family, as well as remove much of the stress and headache that would otherwise be involved in taking care of your affairs after you're gone. You've probably heard the terms “will” and “living trus...
Navigating Grief and Estate Planning: Honoring Memories While Securing Legacies
"Mom Tells Kids They Can Buy Late Dad’s Belongings at Her Yard Sale After They Refuse To Take Things For 2 Years”
What is an advance healthcare directive?
If you become incapacitated, and can no longer manage your own affairs, you will need someone to help you. Two primary areas where this is relevant is your financial affairs and your healthcare affairs. There is a separate document for each. A durable power of attorney is the document where you w...
Who should be my healthcare agent?
One of the documents in your estate plan portfolio is an “advance healthcare directive” or “healthcare power of attorney.” This is the document where you name an agent to make healthcare decisions for you if you become incapacitated. You also have the option of giving your agent some guidance abo...
Is your estate plan up to date?
Setting up an estate plan is an important thing to do, but don't stop there. In addition to properly transferring assets to your trust, your estate plan should be “tuned up” from time to time. Depending on the nature of the changes, you might just need an amendment, or you might need a full resta...
How long do I have to contest a trust?
If you are an interested party (heir of the settlor or a beneficiary) under a trust, you may be able to contest the validity of the document in court. This is most commonly done by people who were disinherited and who feel the document might not be valid. However, the law favors the quick adminis...
What does “right of representation” or “per stirpes” mean?
In a will or trust, people often leave their assets to their children “by right of representation” or “per stirpes.” Per stirpes means “by branch” in Latin, referring to family branches that begin with your children. It is a method of distribution to efficiently divide your assets among your desc...
What are the elements of a valid trust?
Not all trusts are valid. The law in California requires specific elements be met for a trust to earn its validity. It might sound like a mere academic discussion, but these requirements can have real world consequences if your trust does not meet all of these elements. What is a trust? A trust i...
Protect your home from Medi-Cal recovery
When you get older, you might have additional medical expenses that you don't have now (i.e., a home healthcare provider or assisted living). If you qualify, you can get assistance with these expenses through Medi-Cal, California's Medicaid program. However, some people are worried about what wil...
My heir or beneficiary has a substance abuse (or other) problem
This is a common situation: Parents want to leave a share of their estate to a child, but the child has an issue that makes them hesitate. It might be drugs, or alcohol, or gambling. Or the person might be bad at managing their finances. Or they have an abusive spouse. Any number of issues might ...
If you own a house, you should have a living trust
Very often, a house or other real estate is the property that triggers probate. The threshold is only $150,000, and in California that is not hard to meet. Probate can be a major inconvenience to the beneficiaries. However, you can avoid it altogether by setting up a living trust and transferring...
What happens to the property of a missing person?
Sometimes, a person can be missing for a long time and you need to figure out what to do with their assets. Bills go unpaid, property is neglected, businesses go downhill, etc. In California, if someone is missing, the court can appoint a conservator to manage the estate until they return. Additi...
Title disputes involving trust property
As you may or may not know, a “quiet title” action is a court proceeding where the court determines title status and ownership questions related to property. When a trust is involved, such an action may be brought under Probate Code Section 850. Some examples of causes of action where this might ...
What is a “revocable transfer on death deed”?
As you probably know, probate is the court administered process of wrapping up a deceased person's estate. It is complicated, time consuming, and costly. For this reason, most people take estate planning steps to avoid probate altogether. One way to avoid probate for real property is to execute a...
What are the responsibilities of a probate executor?
If you've been named executor in a will, or seek appointment as administrator, the probate court will hold you to a high standard when managing the estate. Here are some of your duties as personal representative of the estate: Managing the assets of the estate When managing estate property, remem...
Which debts are paid first when someone dies?
Sometimes, there is not enough money in the estate to pay off all debts. The question then becomes, “Who gets paid?” In California, under the Probate Code, debts of the decedent are paid according to a schedule of priorities. Probate Code Section 11420 states the following: “(a) Debts shall be pa...
Costs of probate: “probate referee” fee
When you hear the term “probate referee,” you might picture a guy with a whistle saying, “Break it up!” at a professional wrestling match. Although someone like this might be helpful (as probate disputes can get heated), that's not actually what a probate referee does. A probate referee is a pers...
How do I access a deceased person’s bank account ($150,000 or less)?
If someone has passed away, and the gross value of their countable property does not exceed $150,000, the person entitled to claim such property does not have to open a probate case. In fact, you may not have to go to court at all. There is a much simpler way to access this property: By drafting ...
My family member passed away. What do I do?
It's always difficult to lose a loved one. It becomes more difficult if you're not sure what to do after they pass away. Once the funeral service has passed, and things have settled down, here are 10 things to think about to start wrapping up the deceased person's affairs. 1. Did the person have ...
Are handwritten wills valid?
A will, or “last will and testament,” is a document that takes effect at death and dictates where your property will go when you are gone. It is also where you name a guardian for your minor children and an executor to carry out your wishes. The person who executes a will is the “testator.” Ordin...
Initiating a probate case
Certain estates of the deceased are subject to administration through the probate court. Generally, if the estate is valued at over $150,000, and ownership does not otherwise pass without the need for court oversight (for example, if the property was held in a living trust), probate will be requi...
What is a “no contest clause” in a will or trust?
No matter how carefully planned your estate is, there is still a risk of an inheritance dispute after you're gone. The best you can do is take steps to minimize that risk. One way to do that is to include a “no contest clause” in your will or trust. What is a “no contest clause”? A no contest cla...
Grounds for contesting a will or trust
If you think a will or trust (or some provision thereof) is not valid, and you would like to contest it in court, you need to have a valid legal reason. You should not contest a document just to cause trouble or because you are unhappy with the distribution. If you file a contest without probable...
Is Probate Necessary?
Probate is the court-supervised process by which a decedent's estate is administered (assets are collected, valued, and distributed to their heirs/beneficiaries after debts and expenses are paid). But not all property is subject to the full probate process. To determine whether probate is needed,...