What If You’re Single and Don’t Have Children? Who Are Your Beneficiaries?

What If You’re Single and Don’t Have Children? Who Are Your Beneficiaries?

Estate planning can seem fairly simple when you have children to leave your estate to. But what if you don’t have obvious beneficiaries?

These days, many singles are planning to marry and have children much later in life. This doesn’t mean that estate planning can be delayed. It is just as important for singles with no children to get started with estate planning early. Here’s why –

What Happens If I Die Intestate?

Dying “intestate” means passing away without leaving a Last Will. If you’re married with no kids, your estate will automatically pass to your surviving spouse. In California, the registered domestic partner is just as entitled as a legal spouse to your estate when you die intestate.

But If you’re single and suddenly die without leaving a will, the court will distribute your assets and property to your nearest relative. They may be people you don’t know or don’t intend to leave your estate to.

Who Will Inherit My Estate?

For single and childless individuals without a named beneficiary, the intestate succession hierarchy is as follows –
  1. Your parents
  2. Your siblings, or if they have passed away, your nieces/nephews
  3. Your grandparents, and if they have passed away, your aunts and/or uncles
  4. Any children of your deceased spouse
  5. Any relatives of your deceased spouse
  6. Your state of legal residence

Whom Do I Want To Inherit My Estate Instead?

Having an estate plan allows you to determine who inherits your assets and property. Instead of having the court decide who should be your beneficiaries, consider leaving your estate to –
  • Your romantic partner
  • Your business partner
  • Your sibling
  • Your close friend
  • Your trusted employee
  • A charity or other organization
  • A scholarship or educational institution
  • In a trust to care for a minor or a pet

How Do I Get Started With Estate Planning?

Now that you have an idea to whom you can bequeath your estate to in the absence of children or a spouse, you are ready to make your estate plan. Here are 5 simple (but not easy) initial tasks to set you on the right path –

1. Identify the Executor of your Last Will and Testament

This person is at the top of the list because they will be responsible for enforcing your plans and your wishes once you have passed away. These plans include finalizing arrangements for the funeral service, up to the distribution and closing of your estate.

2. Identify Your Medical Power of Attorney

In case you have become incapacitated and can’t voice your wishes in a medical crisis, this person will execute your personal health care decisions, or make decisions on your behalf.

3. Identify Your Beneficiaries

These are the people or organizations that you want to bequeath your assets and property after your death

4. Identify a Guardian For Your Pets

It is also important to consider naming a guardian for your beloved pets who will be responsible for their care if you pass away.

5. Identify a Successor Trustee

If you’re setting up a trust, your Successor Trustee will manage your finances and the stewardship of your estate on behalf of a minor beneficiary until they come of age.

What’s Next?

After choosing the various parties in your estate plan, and informing them of your decisions, the next phase of Estate Planning is to draft the legal documents and get your affairs in order.

Our highly experienced team at Crider Law will help you prepare your Last Will and Testament, Power of Attorney, Health Care Directive, Living Trust and End-of-Life Plan and ensure that these guidelines are mapped out for the successful execution of your Estate Plan.

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What Does it mean to be a Conservator?

What Does it mean to be a Conservator?

You have been assigned as a conservator of a person or estate – now what? How is the role defined? What does it do? What are the expectations? These are some of the basic questions that will be covered in this article.

This is not meant to be a do-it-yourself guide to conservatorship. Just a quick introduction to one of the most serious and complex roles that you will undertake. You will most likely be needing the help of a lawyer in order to navigate the legal process which is critical to becoming a successful Conservator.

First, what does Conservatorship mean?

Under U.S. law, conservatorship is the appointment of a guardian or a protector by a judge to manage the financial affairs and/or daily life of another person due to old age or physical or mental limitations. A person under conservatorship is a “conservatee”, a term that can refer to an adult.

Who Needs Conservatorship?

Many elderly people (and some younger people) who are mentally or physically disabled, whether permanently or temporarily – need some form of conservatorship to live the best life possible.

 Some conservatees can no longer shop for food or cook; others need help bathing and dressing. Some need medical care or help cleaning the house. Others can’t drive and need help getting around. Some conservatees are isolated and need social activities and contact with other people.

 Other conservatees can’t keep track of their money or remember to pay their bills. Some give away large sums of money to their relatives, people they think are friends, or even strangers; others need help managing their investments.

What are the types of Conservatorship?

1. General Conservatorships are for adults who can’t handle their own finances or care for themselves. These conservatees are often older people with limitations caused by aging, but they also may be younger people who have been seriously impaired—as the result of an auto accident, for example.

2. Limited Conservatorships are for adults with developmental disabilities who cannot fully care for themselves or their property, but who do not need the higher level of care or help given under a general conservatorship. Developmental disabilities include mental retardation, epilepsy, cerebral palsy, and autism that began before age 18. They also include conditions that are similar to mental retardation or that require similar treatment. For someone with more extensive developmental disabilities, the court may decide to appoint a general conservator.

3. Temporary Conservatorships may be necessary when a person needs immediate help, usually during the time between the filing of a petition for appointment of a general or limited conservator and the court hearing on that petition. A judge may appoint a temporary conservator of the person or of the estate, or both, for a specific period until a general or limited conservator can be appointed. A temporary conservator arranges for temporary care, protection, and support of the conservatee, and protection of the conservatee’s property from loss or damage, during the limited period of his or her appointment.

What is a Conservator?

A conservator is an individual or organization, chosen through a legal process, to protect and manage the personal care or finances—or both—of a person who has been found by a judge or a jury to be unable to manage his or her own affairs. That person is called the conservatee.

Who can be appointed as a Conservator?

A conservator might be the conservatee’s wife, husband, domestic partner, daughter, son, mother, father, brother, sister, other relative, or friend. If there is no suitable relative or friend who is willing or able to serve, the conservator might be a professional fiduciary or a county agency called a public guardian or public conservator.

How Do You Work with the Conservatee?

Let the conservatee have as much independence as he or she can handle. You should involve the conservatee as much as possible in your decisions. When you must decide for the conservatee, try to make choices that respect the conservatee’s stated preferences, personal independence, dignity, and lifestyle.

Remember, though, that in the end, you are the decision maker, and the court will hold you responsible.

What is the core responsibility of a Conservator?

The court and the conservatee are trusting you as a conservator, to follow the law and to act in the conservatee’s best interests. You should make choices that align with the conservatee’s capabilities and wishes; that support, encourage, and assist the conservatee.

 As a conservator, you are authorized to make many decisions for the conservatee, but there are situations that may require you to ask the court for instructions or for approval before you act. Your lawyer will help you prepare and file a petition whenever you need or want to ask for court approval for a specific action.

What are your duties as Conservator of the Estate?

  • You manage the conservatee’s finances.
  • You locate and take control of the conservatee’s assets.
  • You collect income due the conservatee.
  • You make a budget to show what the conservatee can afford.
  • You pay the conservatee’s bills.
  • You invest the conservatee’s money.
  • You protect the conservatee’s assets.
  • You account to the court and to the conservatee for your manage- ment of the conservatee’s assets.

What are your duties as Conservator of a Person’s Assets?

  • Locate and take control of the assets and make sure they are adequately protected against loss.
  • Make an inventory of the assets for the court.
  • Collect all of the conservatee’s income and other money due and
    apply for government benefits to which the conservatee is entitled.
  • Make a budget for the conservatee, working with the conservator of the person, or if there isn’t one, working with the conservatee or his or her caregiver.
  • Pay the conservatee’s bills and expenses on time and in line with the budget you have made.
  • Keep track of how a trustee, spouse or domestic partner, or other party is managing any of the conservatee’s assets in his or her control.
  • Invest the estate assets and income in safe investments that will meet the conservatee’s needs and the court’s requirements. You should consult with your lawyer concerning any investments of the conservatorship estate. Some investments require prior court approval or may not be authorized under any circumstances.
  • Periodically account to the court and to other interested persons about income coming into the estate, expenditures, and the remaining conservatorship property.
  • Prepare a final report and accounting of the estate when the conservatorship ends.
  • Distribute the conservatee’s property remaining in your hands to the conservatee, if he or she has been restored to capacity; to a successor conservator appointed by the court if you resign or are removed as conservator; or to the personal representative of the conservatee’s decedent estate or other successor in interest, if he or she has died.

What are the Rights of the Conservatee?

1. The Right to Question – The conservatee has the right to ask questions, to express concerns and complaints about the conservatorship and your actions as conservator.

2. The Right to Take Court Action – The conservatee may ask the court to review your handling of the conservatorship if disputes can’t be worked out between you.

Even if the conservatee does not take direct action, the court will periodically send a court investigator to see the conservatee, to inquire about his or her circumstances and desires, and to advise the conservatee of his or her rights. The court may also appoint a lawyer to represent the conservatee.

3. The Right to Personal Freedoms – The conservatee keeps the right to exercise “personal rights,” including—but not limited to—the right to receive visitors, telephone calls, and personal mail (unless these rights are specifically limited by court order).

4. The Right to Enforce Rights – The conservatee can grant you the power to enforce their rights against others—for example, the administrators of a care facility where the conservatee resides.

How do you apply as a Conservator?

Before you may begin to handle the conservatee’s affairs, you must take certain steps to qualify as a conservator

1. Completing a Letter of Conservatorship, a document stating the terms and conditions of the conservatorship

2. Signing an acknowledgment that you received a statement describing the duties and liabilities of the office of conservator,

3. Obtaining a bond, when one is required (a bond is required in most cases to guarantee proper performance of the duties of the conservator of the estate)

4. Signing an oath, or affirmation, that you will perform your duties as conservator according to the law (this affirmation is part of the Letters of Conservatorship); and

filing these papers with the court clerk

5. Securing a hearing date with a judge who must approve and sign the documents in order to make your appointment as Conservator official.

What’s Next?

We understand that your decision to become a Conservator is not an easy one to make. We at Crider Law can hold your hand through this process by first giving you the right tools and information. Book your free consultation meeting and we’ll help you apply for conservatorship as timely and as efficiently as possible.

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Who Are The Legal Heirs in California’s Intestate Succession Law?

Who Are The Legal Heirs in California’s Intestate Succession Law?

Heirs are individuals who are entitled by law to inherit a portion or the entire estate of a person who died “intestate”, meaning, someone who passed away without establishing a legal last will and testament.

Heirs vs Beneficiaries – What’s the difference?

Strictly speaking, not all heirs inherit property. The legal term “heir” is used to describe a direct descendant who is entitled to inherit property in the absence of a will. The correct term used to describe someone who inherits property as designated by a will is called a “beneficiary”.

If we go by the above definitions, it is correct to say that “not all heirs are beneficiaries” as in the case of a decedent’s children who are intentionally left out of a will. The statement “not all beneficiaries are heirs” is also true. For example, a friend or a non-relative may be entitled to receive property as specified in the decedent’s will.

But if a person dies intestate, friends and non-relatives are not entitled to the decedent’s property because they are not “heirs”.

What are the types of heirs?

1. Heirs-at-Law

Surviving spouses and children are first to qualify as direct heirs-at-law in California’s Intestate Succession which orders the priority of heirs on how closely they are related to the decedent. Grandchildren would qualify as direct heirs only if their parents are deceased.

2. Collateral Heirs

The decedent’s parents, siblings, grandparents, and other relatives are next in line from the heirs-at-law to inherit property in case there are no surviving spouses, children, or grandchildren. They are considered “collateral heirs” because they could only claim inheritance if there were no living direct descendants.

3. Unknown Heirs

In cases where a decedent has no known heirs-at-law, California requires that a special notice be run in the newspaper so that individuals who believe that they are related to the deceased can come forward and be recognized. They will undergo a court process to establish heirship which would then entitle them to inherit the decedent’s property. If no heirs are identified, the decedent’s assets and property would go to the state.

Breaking Down Heirship in Children

The simple term “children” can mean different things in establishing legal heirs especially now that blended families are the norm. Below is a quick breakdown of how children are recognized as heirs-at-laws in California in the absence of a legal will.

1. Natural Children

In California intestate law, the biological children of a deceased person, regardless of the marital status of their parents, have the strongest rights to inheritance because they are direct bloodline descendants.

2. Adopted Children

Legally adopted children have the same inheritance rights as biological children do in the absence of a will or estate plan.

3. Step-Children

In California, stepchildren can inherit from an estate if there is no will provided that there are no other close relatives alive, e.g. children, parents, nieces, nephews, aunts, uncles, grandparents, etc.

4. Children Adopted by Another Family

A child given up for adoption severs the legal ties with its birth parents and can no longer qualify for inheritance under intestate succession laws.

5. Children Adopted by a Stepparent

In California, children adopted by a stepparent may still inherit property from their birth parents.

6. Foster Children

In the absence of a will, foster children don’t inherit property from foster parents as “children”.

Beneficiaries and Estate Planning

These guidelines on legal heirs only apply to persons who pass away without a will. Laying these out, hopefully gives you an idea of how the court would decide on your behalf. You can, however, purposely distribute your assets and property to your intended beneficiaries by doing some estate planning.

Start taking action with your estate planning by booking your free consultation with our team at Crider Law.

Should You Invest In Life Insurance For Your Child?

Should You Invest In Life Insurance For Your Child?

Typically, investing in life insurance for a child is not recommended. Life insurance is essentially a form of financial protection for dependents when the bread winner dies. And since the heads of the family do not usually depend on children for income, it does not always make sense to spend money on life insurance for them.

But there are also important reasons for insuring your children. And if you’re well covered yourself as a parent and provider and can spare the cost, investing in life insurance for your child could be a smart move.

Before you decide if children’s life insurance is right for your family, consider these points below —

5 Reasons to Invest in Child Insurance

1. It secures coverage for health risks due to COVID-19

The pandemic is a wakeup call for many families to consider getting life insurance for kids to secure their insurability in case of infection or serious health risks associated with the COVID-19 virus.

2. It locks in low premium rates

Insurance premiums increase with each year of life. So, the younger your child is when you buy a whole life insurance policy, the cheaper it will be. You will pay the same low premiums from the time of your purchase up to the maturation of the policy.

3. It guarantees insurability

Insurability is guaranteed when you enroll a child for a policy to protect them in case they develop health problems later in life or if you have a family history of genetic medical conditions. Another benefit of purchasing insurance for children is that it guarantees insurability in case they take on a job or hobby in the future that insurers consider risky, for example – scuba diving or mountain climbing.

4. It will accumulate cash value

When you buy an insurance policy for a child, a larger portion of the premium will go toward cash savings. Because the cost of insurance premiums are so low, your investment will accumulate in value when your child reaches adulthood, giving them a financial head start.

5. It provides financial support in case of death

The chances of a parent surviving a child are low. But in case of a child’s death, insurance proceeds can provide much needed financial support to beneficiaries, for example, minor siblings, elderly or handicapped parents and relatives.

Final Thoughts –

Insuring children is a long-term financial commitment that could be better spent on supporting their well-being or establishing a family emergency fund. For high-income parents, investing in kids’ life insurance and placing them in a family trust is a strategy worth considering for estate planning.

Is Child Insurance the best option for your family? Consult our team at Crider Law and map out your family’s financial future through smart estate planning.

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Common Mistakes in California Estate Planning

Common Mistakes in California Estate Planning

It is a common misconception that estate planning is only for the rich. Most people have at least one thing of significant value – such as a home, car, insurance, money in a bank account and so on. Having an estate plan secures your assets and saves your loved ones from undue emotional and financial stress in case of your death or incapacity.

An estate plan also helps with maximizing the actual value of the estate you’ll bequeath to your heirs and beneficiaries. And allows you the opportunity to make informed decisions concerning how your assets should be handled while you are still alive.

Below are ten common mistakes in California estate planning and how to avoid them:

1. Failing to make a plan

The most common mistake is not recognizing how critical it is to have an estate plan in place. It is an unfortunate fact of life that we will all die someday and planning for what may happen after death is critical to securing the future of your heirs.

2. Failing to update your will

Births, deaths, divorces, and new property acquisitions – it’s hard to keep up with the changes in the family and business.To ensure the assets you leave behind are given to your intended beneficiaries, it’s best to remind yourself to periodically review your will – say, every year as you celebrate your birthday, for example.

3. Failing to plan in case of sudden disability

Disability could adversely impact your personal and financial affairs. Have you thought about who will handle your finances, raise your children, or make healthcare decisions when you fall ill and become disabled? It’s critical to appoint a power of attorney and create a living trust to act on your behalf in case you are unable to.

4. Failing to donate or send gifts

Sending donations or gifts under your estate plan reduces your estate taxes. According to the Internal Revenue Code, gifts up to $14,000 a year per spouse may be excluded from estate tax. That’s $28,000 in savings. Your act of charity will be rewarded with more money in your estate for distribution.

5. Putting your child’s name on the deed

When you put your child’s name on the deed to your home, you are, in effect, giving your child a hefty taxable gift. (Refer to number 4). While gifts up to $14,000 are excluded from estate tax, gifts more than $14,000 per spouse are taxable. The best thing to do is to place the home in a trust for inheritance.

6. Failing to appoint the right trustee

While you may trust your spouse or child more than any other person, they may not be suited to handle the affairs of the estate when you are gone. Sometimes it’s wiser to appoint someone outside of your family to objectively handle the extensive duties and demands required of an executor, trustee, or guardian.

7. Failing to transfer your life insurance policies to a life insurance trust

A life insurance policy is subject to estate tax when you die and a sizable chunk of your estate could go to the IRS instead of your intended beneficiaries. One way to avoid this is to set up a life insurance trust to act as the owner of your life insurance policies. This way you shield the insurance from a hefty tax so your beneficiaries can get the full amount of the insurance proceeds.

8. Failing to take advantage of federal exemptions

For married couples, one of the easiest ways to reduce estate taxes is to fully use the federal exemption for each spouse (set at $11.18 million per spouse in 2018). Surviving spouses are allowed to make a “portability election” which passes any of the deceased spouse’s unused exemption to the surviving spouse, in effect potentially doubling the exemption amount for the surviving spouse.

9. Being lazy

Death comes for us all and though you may already realize that an estate plan benefits you, sometimes this realization comes a little too late. There is no better time than now to get started, consult an attorney and put a proper estate plan in place.

10. Doing it yourself

Failing to consult a professional estate planning lawyer is a risky move especially if you have complicated assets or if you have doubts about your own ability to draft an estate plan. An experienced attorney can provide you with tax-planning strategies based on the particular needs and demands of your estate.

Final thought…

It’s best to work with an estate planning professional to make sure that all bases are covered. Talk to an attorney to learn more about avoiding the pitfalls that you may encounter in the complicated business of estate planning. Click the button below and schedule a call with our team to get started.

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What are the Inheritance Rights of a Surviving Spouse?

What are the Inheritance Rights of a Surviving Spouse?

A Surviving Spouse deals not only with the grief but also with the legal and financial responsibilities that come with the death of a husband or wife. It is important to be aware that the California Probate Code has protections for them and to assert that protection.

Knowing this is the first step to ensuring that a surviving spouse receives the property that is entitled to them by law. Here are 5 basic things you need to know about the inheritance rights of a surviving spouse.

In California, the surviving spouse is first in the line of succession

If your spouse dies, you are first in the line of inheritance and will assume ownership of the estate. If a decedent was not legally married at the time of death, any biological or legally adopted children, living parents, siblings and relatives are next in line to inherit the estate.

It’s worth noting that in California, the protections for legally married couples also apply to registered domestic partners.

California is a communal property state

This means that married couples have an equal but undivided claim to shared property which includes – real property, cash investments and other liquid assets acquired during the marriage including property acquired prior to and then shared during the marriage.

Community vs Separate Property

Community Property generally includes all property acquired while you were married, while Separate Property means property acquired prior to marriage. There are some exceptions however – gifts and inherited property of one spouse are separate property even if acquired during marriage.

The surviving spouse will inherit half of the Community Property

Many married couples consolidate their assets and don’t have any Separate Property. But in case they do, the surviving spouse will inherit all or a portion of it.

The size of their share of the Separate Property will largely depend on whether or not there are living parents, children, siblings, nieces or nephews. In which case, the surviving spouse will have to share the deceased’s separate property.

Legally separated but not yet divorced

If your spouse suddenly dies while you’re legally separated but not yet divorced – you will not be entitled to their property. It’s best to see an experienced family attorney if you are concerned about this area of the law.

Learn more about California Estate Planning and Inheritance

California has specific guidelines for passing property to loved ones. Consult our team at Crider Law to understand Intestate Succession Laws in California and how they will play into your estate planning.

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