Another benefit of having a living trust rather than a will alone:  checks and balances.

My last entry discussed selecting a guardian to care for minor children.  In this post I elaborate on guardian selection and want to point out one of the many advantages of having a living trust as your estate plan rather than a will alone.  In addition to avoiding costly and lengthy probate proceedings, our comprehensive living trust package includes both a will and a trust.

Guardians are appointed in the will.  Successor trustees are appointed in the trust.  Successor trustees manage your
finances in the event you become ill, disabled, or die whereas a guardian is responsible for taking care of your child(ren)’s daily needs, health, etc.  So, if you are not sure who to pick for either or both roles, the fact that there are two roles to fill allows you to
appoint more people in different roles and you don’t have to worry about hurting feelings or “playing favorites” since each would have a job in managing your affairs in the event something happens to you.

Maybe one person is better with money and another more nurturing or who you’d feel more comfortable caring for your children.  Other factors to consider include location—where do you want your children to grow up?  In the home they’ve been growing up in?  Or relocate to the would-be guardian’s home?  Who would be willing or able to accommodate a move to your home if that is what you want?

Also, how will you provide financially for the guardian?  Oftentimes people want the same person to fill both roles of guardian and successor trustee, but there is another benefit to appointing different people—checks and balances.  If different people are filling these roles (one managing your finances, the other caring for your child(ren)) you avoid any chance of a later contest by a child against a guardian who was also acting as trustee.  Another way to avoid potential conflict is to set aside a share directly for the guardian if you
wish.  Whatever you decide, your estate plan needs to be tailored to your individual needs, which is why it is important to have an experienced attorney help you.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

Just a couple weeks ago over 2 billion people all over the world watched the Royal wedding. And it got me thinking. Weddings, new births, and divorces are all big life changing events, and they can all affect your wishes as to who will inherit your property when you pass away.

Have there been any recent weddings or births in your family? If so you may want to consider reviewing and/or updating your estate plan or creating one if you haven’t already.

And not everyone gets married. For the many couples out there who don’t want to marry, you should be aware of the consequences this can have when they die. No automatic benefits are reserved for co-habitants the way they are for spouses and domestic partners. Also, a lot of people may not realize that California does not recognize common law marriage so, though you may have lived with your partner for many years, it doesn’t mean either of you are automatically entitled to something when the other dies.

So, if you and/or your partner want to make sure the other will inherit something from you, then perhaps you should consider doing some planning.

Depending upon your situation, and especially if you own property or have minor children, you should consider setting up a trust, or at the very least a will, so that your estate passes as you desire. And if you already have a plan in place, you may want to consider reviewing it to make sure it still serves your needs.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

When you are the one entrusted by your loved one to administer his/her estate, many unexpected issues can arise. Certain issues require some additional action, and one of those issues is the proper handling of unregistered guns. Assuming that the guns are not classified as firearms under the National Firearm Act (i.e., machine guns, short-barreled rifles, short-barreled shotguns, etc., in which case, different requirements apply, and you should contact your local ATF office), the following are some guidelines which should provide you some peace of mind.

If you are the trustee of your loved one’s estate, and you come across a gun which you believe to be unregistered, there is no need to panic. The first thing to do is ensure the gun is not loaded and it is placed in a locked, secure location within your possession and control.

Once the gun is safely locked and secured, you can obtain a form from the California Attorney General’s website (www.ag.ca.gov/firearms/forms) called an “Operation of Law or Intra-Familial Handgun Transaction Report.” Once you have completed the form and submitted it to the Department of Justice at the address provided, the gun will be properly registered to you as trustee of your loved one’s estate, which should take approximately 4 to 6 weeks.

What if, once you have registered the gun, your cousin who lives across the country wants it? No problem. After you have given the proper notice to all people entitled to inherit, presuming no one objects to your cousin receiving the gun, you can contact any local Federal Firearms Licensee (“FFL” – a fancy name for a gun dealer) and explain that you would like the gun sent to an FFL in the state in which your cousin lives. (Your cousin should provide contact information as to the designated FFL to which he/she wishes the gun to be sent). Your local FFL will then send the gun to your cousin’s designated FFL for registration in his/her name. There will be a transfer fee associated with the transfer of the gun, so it would be prudent to contact several FFLs to confirm that you’re paying a reasonable fee.

Once your cousin’s designated FFL receives the gun, the FFL can assist your cousin to ensure that the gun is properly registered pursuant to his/her state’s registration requirements.

What if you ascertain, after the appropriate notice, that no one wants the gun? Easy. Save yourself some headache, not to mention paperwork, and simply surrender it to your local police or sheriff’s department, and be sure to request written confirmation that you have done so.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

The purpose of a living trust is to protect the value of your estate, and to make sure your assets are given to the people or places you chose. But what about your tangible personal property – a grand piano, artwork, or even your favorite crystal vase that always receives compliments?

After an individual passes away, frequently the most contentious issues involve personal items rather than the house or the money. That crystal vase everyone liked could end up with family you did not like and it can destroy family relationships. Here’s how to avoid having your tangible personal property become the basis of arguments.

The General Assignment of Property, a document included when you signed your trust, simply assigns all your personal property to the trust. If you have specific bequests you want to make, you can make a list of the items and include the list with your trust paperwork. Make sure you sign and date the list; you can change or update the list at your convenience, making sure to sign and date it each time and to throw away the previous list.

For smaller items, such as photographs, dishes, or other sentimental items, put the intended person’s name on a sticker or piece of paper, attach the paper underneath the item, and avoid any confusion about who should receive it. Or leave notes in your trust to have a “lottery”, where each beneficiary chooses one item, continue through all beneficiaries, and continue until all items are chosen.

Beneficiaries can draw straws to see who goes first.

An even better way might be to ask your beneficiaries if there are particular items they would like; you might be surprised at their responses. This makes it easier for you and for your beneficiaries. Just remember that a bit of planning on your part can help avoid family disputes when you’re gone.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.