The Law Office of Philip M. Flanigan, P.C. The Law Office of Philip M. Flanigan, P.C. 2026-09-22T15:51:40Z https://www.pmflaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1303897/2022/08/cropped-pmf-fav-icon-32x32.png by The Law Office of Philip M. Flanigan, P.C. <![CDATA[Navigating the Probate Process: What You Need to Know]]> https://www.pmflaw.com/?p=255435 2026-09-14T02:05:10Z 2026-09-18T02:03:44Z Many people have strong feelings about probate and want to avoid it, but they do not always succeed. Probate is the legal process used to settle a person’s estate after death. It generally involves identifying the deceased person’s assets, paying outstanding debts and taxes, resolving claims, and distributing the remaining property to beneficiaries or heirs. Although probate is often viewed as complicated, understanding the basic steps can make the process easier to navigate. The specific requirements, timelines, and costs vary by state, so families should understand the laws that apply to the estate.

What Happens During Probate?

During probate, the court may:
  • Validate the deceased person’s will, if one exists
  • Appoint an executor or personal representative
  • Identify and value estate assets
  • Notify creditors and address outstanding debts
  • Resolve disputes or claims involving the estate
  • Pay applicable taxes and expenses
  • Distribute remaining assets to beneficiaries or heirs
However, not every asset necessarily has to go through probate. For example, certain jointly owned assets, life insurance proceeds with designated beneficiaries, retirement accounts, and assets held in some types of trusts may transfer outside the probate process. Probate Steps in Detail While procedures differ by state, probate commonly follows several steps:

  • Filing the will and opening the estate. If the deceased left a will, the person responsible for administering the estate typically files it with the appropriate probate court. The court then determines whether the will is valid and officially opens the estate. If there is no will, the person died intestate. State intestacy laws generally determine who inherits the estate.

  • Appointing a personal representative. The court appoints an executor named in the will or another qualified individual to administer the estate. This person is responsible for carrying out many of the estate’s legal and financial duties.

  • Identifying and valuing assets. The personal representative must locate the deceased person’s property and determine which assets are part of the probate estate. This can include bank accounts, real estate, vehicles, investments, business interests, and personal property. Assets may need to be appraised or otherwise valued for estate administration and tax purposes.

  • Notifying creditors and paying debts. The estate generally must address valid debts and expenses before remaining assets can be distributed to beneficiaries. Depending on state law, creditors may have a limited period to submit claims against the estate. The personal representative reviews those claims and pays valid obligations using estate assets. It is important to note that family members generally do not automatically become personally responsible for the deceased person’s debts simply because they are heirs. However, there can be exceptions, including debts for which another person was a joint borrower or co-signer.

  • Resolving taxes and other obligations. The personal representative may need to file the deceased person’s final income tax return and, depending on the size and circumstances of the estate, additional tax returns. Other expenses, such as funeral costs, court costs, property maintenance, and professional fees, may also need to be addressed.

  • Distributing the estate. After debts, expenses, and required taxes have been handled, the remaining assets can generally be distributed according to the will. If there is no valid will, distribution typically follows the state's intestacy laws. These laws establish which relatives are entitled to inherit and in what proportions.

  • Closing the estate. Once the representative has completed the required tasks and distributed the estate, the probate case can be closed. The representative may need to provide the court with a final accounting or other documentation before the court formally closes the estate.

How to Avoid Probate Some people use estate-planning strategies designed to allow certain assets to pass directly to beneficiaries without going through probate. Avoiding probate does not necessarily mean avoiding all court involvement. It also does not mean that an estate will have no taxes, debts, or other obligations after death. Instead, the goal is generally to arrange ownership and beneficiary designations so that qualifying assets transfer automatically or through a simplified process. Several strategies may help accomplish this. Create a Revocable Living Trust A revocable living trust is one of the most commonly used estate planning tools for avoiding probate. With a revocable living trust, a person transfers ownership of certain assets to the trust during their lifetime. The person who creates the trust can generally remain in control of the assets and can serve as the trustee. They can also change or revoke the trust during their lifetime, subject to the terms of the trust and applicable law. After the person dies, the successor trustee can generally distribute the trust's assets to the beneficiaries according to the trust's instructions without putting those assets through the traditional probate process. However, simply signing a trust document is not enough. Assets generally need to be properly transferred or titled in the name of the trust for the trust to accomplish its intended purpose.

Use Beneficiary Designations

Certain financial accounts and insurance policies allow an owner to designate beneficiaries who will receive the assets after the owner's death. Common examples include:
  • Life insurance policies
  • 401(k) plans
  • Individual retirement accounts
  • Certain investment accounts
  • Pension and retirement benefits
  • Bank accounts with payable-on-death designations
When a valid beneficiary designation is in place, the asset can generally pass directly to the designated beneficiary rather than becoming part of the probate estate.

Establish Payable-on-Death Accounts

Payable-on-death, or POD, designations can allow money in qualifying bank accounts to transfer directly to a named beneficiary after the account owner's death. The account owner generally retains control of the money during their lifetime. After death, the financial institution can transfer the account's remaining funds to the designated beneficiary after receiving the required documentation. Contact Us Today Probate can be complex. There are a lot of rules and deadlines involved, and it can be hard for the average person to navigate on their own.  Have questions about probate? The Law Office of Philip M. Flanigan, P.C. has the answers you need. We have more than 30 years of experience handling probate and trust administration. We work to resolve your legal troubles quickly. Call (559) 517-3948 or fill out the online form to schedule a consultation.]]> On Behalf of The Law Office of Philip M. Flanigan, P.C. <![CDATA[How to Handle Out-of-State Property: Avoiding Ancillary Probate]]> https://www.pmflaw.com/?p=255437 2026-09-16T06:34:04Z 2026-09-16T06:34:04Z What is ancillary probate? Ancillary probate refers to a separate probate proceeding that may apply when you own real property outside your home state. Your primary probate case generally handles your estate, while the state where you own real estate may require its own process. For example, if you live in California but own a vacation home in Arizona, your family may need to address the Arizona property through Arizona's legal process after your death. California Probate Code section 12501 recognizes ancillary administration for certain estates involving California property.

Why can out-of-state property complicate an estate?

Out-of-state real estate can create extra work because your family may need to deal with another court system and that state's procedures. This can mean additional filings, administrative steps and expenses. If you own property in several states, each jurisdiction may also have its own requirements for transferring real estate after death.

Can a trust help avoid ancillary probate?

A properly established and funded trust can help keep out-of-state real estate outside probate, potentially preventing a separate proceeding for that property. When you place property in a trust during your lifetime, a successor trustee can generally manage or distribute it according to the trust terms after your death. This can help your family avoid navigating separate probate processes for each property.

Why do trust funding and property title matter?

Creating a trust alone does not automatically place every property under its terms. You generally need to transfer ownership into the trust so the trust can control what happens to the property after your death. Before relying on your estate plan, review:
  • How each property appears in the title records
  • Whether each property belongs to your trust
  • Whether recent purchases or ownership changes require an update
A review can identify property that your plan does not yet cover and ensure you don’t miss it.

Review your property before your family has to

Ancillary probate can add another layer to a difficult process, but reviewing your property ownership now can help identify problems early. If you own real estate in another state, consider reviewing the title and your estate-planning documents with an attorney to determine whether your current plan addresses the property as you intend.]]> by The Law Office of Philip M. Flanigan, P.C. <![CDATA[Power of Attorney: A Vital Tool in Estate and Health Care Planning]]> https://www.pmflaw.com/?p=255433 2026-08-22T16:57:59Z 2026-08-24T16:54:16Z Estate planning encompasses many elements. One of them is having a power of attorney. A power of attorney is an important part of an estate and health care plan. It allows you to designate someone you trust to make financial, legal, or medical decisions on your behalf if you become unable to make those decisions yourself. A power of attorney can provide peace of mind and help prevent confusion during an emergency. Without appropriate documents in place, family members may have to seek court intervention to obtain authority to manage certain aspects of your affairs. What Is a Power of Attorney? A power of attorney is a legal document that gives another person, known as an agent or attorney-in-fact, authority to act on your behalf. The person creating the document is generally called the principal. The authority granted to an agent depends on the type of power of attorney. Some documents provide broad authority over financial matters, while others are limited to specific transactions or decisions. Power-of-attorney laws vary by state, so it is important to ensure that the document meets the legal requirements where it will be used. There are several types of power of attorney. Here is a look at them.

Financial Power of Attorney

A financial power of attorney can be particularly useful if an illness, injury, or other circumstance prevents you from managing your finances. A financial power of attorney allows an agent to handle financial and property-related matters for you. Depending on the document, an agent may be authorized to do the following:
  • Access and manage bank accounts
  • Pay bills and other expenses
  • Buy or sell property
  • Manage investments
  • File or handle tax matters
  • Manage business interests
  • Apply for government benefits
  • Handle insurance matters
  • Manage other financial transactions

Health Care Power of Attorney

A health care power of attorney allows you to designate someone to make medical decisions for you if you cannot make or communicate those decisions yourself. Your agent may be able to communicate with health care providers, review medical information, and make treatment decisions according to your wishes and applicable state law. A health care power of attorney is often used alongside an advance health care directive, which can document your preferences regarding medical treatment and end-of-life care.

Durable vs. Nondurable Powers of Attorney

One important distinction is whether a power of attorney is durable. A durable power of attorney generally continues to be effective even if a person later becomes incapacitated. This can make it an important component of incapacity planning. A nondurable power of attorney generally ends when the principal becomes incapacitated or dies, although the precise rules depend on state law and the document's terms.

Who Should You Choose as Your Agent?

Choosing an agent is one of the most important decisions when creating a power of attorney. The person should be trustworthy, responsible, and capable of handling the authority granted under the document. An agent does not necessarily have to be a family member. Depending on the circumstances, you may choose a spouse, adult child, relative, friend, or someone else you trust. You should also consider naming a successor agent who can act if your first choice cannot or will not serve.

Why Is a Power of Attorney Important?

A power of attorney can help ensure that someone you trust has the legal authority to act when you cannot. It can reduce delays, provide clear instructions, and help your family avoid unnecessary court proceedings. However, a power of attorney is only one part of a comprehensive estate and health care plan. Depending on your circumstances, your plan may also include a will, trust, advance health care directive, beneficiary designations, and other documents. Because power-of-attorney requirements and legal effects differ from state to state, consider working with an estate planning attorney to ensure your documents accurately reflect your wishes and comply with applicable law.

FAQs

Q: Does a power of attorney give an agent complete control over my affairs?

A: Not necessarily. The authority given to an agent depends on the type of POA and the powers specifically granted in the document. You can often limit an agent's authority to certain matters, transactions, or periods of time.

Q: Does a power of attorney remain valid after I become incapacitated?

A: A durable power of attorney generally continues after the principal becomes incapacitated. A general or nondurable POA typically does not. The specific rules depend on state law and the language of the document.

Q: Can I have more than one power of attorney?

Yes. You may have different POAs for different purposes. For example, you could have a financial POA for managing your finances and a medical POA for health care decisions. However, the documents should be carefully coordinated to avoid conflicts.

Q: Can I revoke a power of attorney?

A: Generally, you can revoke a POA if you still have the legal capacity to do so. You may also create a new POA that replaces an earlier document. State law may establish specific requirements for revocation.

Q: What happens if I become incapacitated without a power of attorney?

If you become unable to manage your affairs and have not appointed someone to act for you, your family may need to seek court authority to manage certain financial or personal matters. The process can be time-consuming and costly.

Q: Is a power of attorney the same as a will?

No. A power of attorney generally allows someone to act on your behalf while you are alive, whereas a will controls the distribution of certain assets after your death. They serve different purposes and can be important parts of an estate plan. Contact Us Today A medical issue can happen at any time. Do not wait until a crisis forces decisions out of you.  The Law Office of Philip M. Flanigan, P.C. can help you secure your health care and financial future. We can create legal documents that meet your needs, meet California’s legal requirements, and give you peace of mind. To schedule a consultation, fill out the online form or call (559) 517-3948.]]> by The Law Office of Philip M. Flanigan, P.C. <![CDATA[The Importance of Living Wills: Ensuring Your Wishes Are Honored]]> https://www.pmflaw.com/?p=255429 2026-07-13T13:39:43Z 2026-07-16T13:35:23Z When going through the estate planning process, many people focus on their death and what will happen to their assets when they die. But what they should also focus on is what will happen if they are still alive but incapacitated and unable to manage their affairs. This type of situation happens quite often. An illness or injury could cause a person to suffer damage to their brain, rendering them unable to walk, talk, or engage in daily activities. They may be unable to work or pay bills. They may be unable to manage their bank accounts or even take care of themselves. These situations can be frustrating, especially from a legal standpoint. Without the right documentation in place, you and your family face a devastating situation. This is why right now is the right time to get a living will in place. If you become incapacitated without a living will, also known as an advance health care directive, your medical care will be determined by state default laws and your doctors. Without a living will to provide clear, legally binding instructions,  doctors will generally err on the side of preserving life, potentially keeping you on life-sustaining equipment longer than you would have preferred. Your family may have to guess what you would have wanted regarding life support, ventilators, or feeding tubes. If family members disagree on your care, it can lead to stressful medical debates or even legal disputes.  A living will avoids all this. You can outline the medical care you want and avoid unnecessary suffering, reducing confusion or disagreement about the choices your loved ones would have to make. Creating a living will is one of the most important steps in care planning. It helps protect your autonomy, eases the burden on your family, and ensures your healthcare decisions are guided by your own values if you cannot speak for yourself.  What Does a Living Will Do? A living will is a legal document that tells doctors and your family what medical treatments you do or do not want if you become unable to communicate your wishes yourself. For example, a living will can state whether you want:
  • CPR 
  • A breathing machine (or ventilator)
  • Tube feeding or artificial nutrition and hydration
  • Other life-sustaining treatments if you are terminally ill or permanently unconscious
The purpose is to:
  • Make sure your healthcare wishes are followed.
  • Reduce uncertainty and stress for your loved ones.
  • Guide healthcare providers when you cannot speak for yourself.
Why is a Living Will Important? A living will is important because it ensures your medical wishes are known and respected if you become unable to communicate due to a serious illness or injury. Without one, your loved ones may be left to make difficult decisions without knowing what you would have wanted. Some of the key benefits of having a living will include:

  • Control over your medical care. A living will allows you to specify the types of life-sustaining treatments you want or do not want in situations where recovery is unlikely. This helps ensure your healthcare aligns with your personal values and preferences.

  • Reduces stress for your family. Making end-of-life decisions for a loved one can be emotionally overwhelming. A living will provides clear guidance, helping family members avoid uncertainty, guilt, and disagreements during an already difficult time.

  • Helps healthcare providers honor your wishes. Doctors and hospitals use a living will as a guide when you cannot communicate your decisions. Having your preferences documented can make it easier for medical professionals to provide care consistent with your instructions.

  • Prevents family conflicts. When your wishes are clearly documented, there is less room for misunderstandings or disputes among family members about the care you would have wanted.

  • Complements other estate planning documents. A living will works alongside a healthcare power of attorney, which appoints someone to make medical decisions on your behalf if situations arise that are not specifically addressed in your living will. Together, these documents form an important part of a comprehensive estate plan.

  • Provides peace of mind. Knowing that your medical preferences are documented can give you confidence that your wishes will be respected. It also reassures your loved ones that they are making decisions based on your expressed preferences rather than guessing what you would have wanted.

FAQs

Q: Is a living will the same as a last will and testament?

A: No. A living will deals with your healthcare decisions while you are still alive but unable to communicate. A last will and testament directs how your property and assets should be distributed after your death.

Q: Who should have a living will?

A: Every adult can benefit from having a living will, regardless of age or health. Serious accidents or unexpected illnesses can happen at any time, making advance planning important.

Q: When does a living will take effect?

A: A living will generally takes effect only if you are unable to make or communicate your own healthcare decisions and the medical circumstances described in the document occur.

Q: Can I change or revoke my living will?

A: Yes. As long as you are mentally competent, you can update, replace, or revoke your living will at any time. It's a good idea to review it after major life events or changes in your health.

Q: Do I need a lawyer to create a living will?

A: Many states provide standardized living will forms that you can complete yourself. However, an estate planning attorney can help ensure your document complies with state law and reflects your wishes. Contact Us Today Living wills are great tools for adults of any age. They can give detailed instructions about what decisions need to be made and who can make them for you. Because these documents carry legal weight, working with a qualified estate planning lawyer is essential to confirm that everything is valid and enforceable under California law. Get the help you need from The Law Office of Philip M. Flanigan, P.C. We offer practical legal support tailored to your goals as well as California’s legal requirements. Schedule a consultation today by calling (559) 517-3948 or filling out the online form.]]> On Behalf of The Law Office of Philip M. Flanigan, P.C. <![CDATA[Three gifting strategies before death to avoid unintended taxes]]> https://www.pmflaw.com/?p=255428 2026-06-29T01:01:44Z 2026-07-14T00:59:50Z Giving away assets while you are still alive can be a wonderful way to see your family enjoy their inheritance. It can also reduce the overall size of your estate, which helps your loved ones avoid financial burdens down the road. Still, making large financial moves without a clear plan can trigger unexpected tax bills or interfere with government benefits. If you want to support your family and protect your wealth, you need to use the right approach. These three practical strategies can help you share your assets safely: annual exclusion gifts, 529 plans and family loans.

Annual exclusion gifts

One of the easiest ways to reduce your future estate tax burden is to give direct financial gifts every year. The federal government allows you to give a specific amount of money to as many people as you want without any tax penalties. Under federal law, the annual gift exclusion sits at $19,000 per recipient in 2026. However, you must also consider Medicaid and Medi-Cal rules. The government looks back at your financial history if you need long-term nursing care. Giving away large sums of money can create a penalty period that delays your healthcare eligibility. Keeping careful track of every check you write ensures you do not accidentally jeopardize your future care.

529 plans

A 529 plan is an option if your primary goal is to help a child or grandchild pay for school. These state-operated accounts allow you to contribute money for educational expenses. The funds grow tax-free, and withdrawals are completely exempt from federal tax as long as they pay for qualifying costs. These plans are highly flexible. You can use the funds for college tuition, books, room and board, and even internet access or computers. You can also withdraw up to $10,000 annually for tuition at private elementary or secondary schools. However, you might need to pay state income tax fees on these transactions. You maintain full control of the money as the account custodian. If a grandchild decides not to go to college, you can change the beneficiary to another family member without paying a penalty. Be aware that large contributions can trigger gift tax consequences if they exceed annual limits. To protect your estate from future taxes, ensure your total gifts to one person stay within safe boundaries.

Family loans

If you want to help a relative buy a home or start a business but do not want to give the money away permanently, a family loan is a great alternative. This strategy keeps the money within the family while avoiding federal gift taxes entirely. For this strategy to work, you must treat the transaction like a real business deal. You cannot simply hand over a briefcase of cash. You must write a formal promissory note that outlines the repayment schedule and a fair interest rate. The Internal Revenue Service requires you to charge a minimum interest rate based on current federal standards. If you fail to charge interest, the government will view the uncharged interest as a financial gift. By using annual exclusion gifts, 529 plans or structured family loans, you can provide vital support to the people you love. Taking the time to document your transfers and follow federal limits will protect your family from unnecessary tax penalties. Remember to contact a local professional to discuss how these strategies can fit into your personal financial goals.]]> On Behalf of The Law Office of Philip M. Flanigan, P.C. <![CDATA[How to choose the right trustee]]> https://www.pmflaw.com/?p=255427 2026-06-25T09:33:02Z 2026-06-25T09:33:02Z the right person for the job is crucial if you want your wishes carried out smoothly while saving your loved ones from massive administrative headaches.

What should you look for?

You do not need to hire a financial professional, but you absolutely need someone who is highly organized, honest and grounded. Look for a person who communicates clearly and can handle paperwork, as managing a trust involves filing taxes, tracking assets and meeting strict legal deadlines. Be on the lookout for major red flags. Avoid naming someone who struggles with their own personal finances, has a track record of disorganization or is simply too busy to take on a demanding second job. Most importantly, it is not wise to sname a family member purely out of guilt or obligation if they lack the maturity to handle the responsibility.

Considering successor trustees

A successor trustee steps in only if your first choice passes away, becomes ill or declines the role. When picking this successor, look to a younger generation—such as a responsible adult child, niece or nephew—who will likely have the health and capacity to manage your estate decades down the road. Always ask your backup options for permission beforehand. If your primary choice can't serve and your backup refuses the job, your trust could end up stuck in court anyway.

Choosing a trustee to reduce family conflict

In some cases, naming one adult child as the trustee over their brothers and sisters often breeds resentment and fuels accusations of favoritism. If you suspect your family dynamic is fragile, consider appointing a neutral third party to handle the distribution. If you do choose a family member, it is wise to have an open conversation early on to reduce the risk of conflict in the future.]]> On Behalf of The Law Office of Philip M. Flanigan, P.C. <![CDATA[What assets are exempt from probate?]]> https://www.pmflaw.com/?p=255387 2026-01-05T13:59:57Z 2025-07-01T12:38:05Z Change comes quickly when a parent moves into assisted living. You want to do the right thing, but there's a lot to manage, including what will happen to their property. Understanding how probate works and which assets are exempt can give you some peace of mind during a stressful time. One important step is understanding what happens to the property and which assets may not need to go through probate.

What probate does and why it matters

Probate is the legal process for transferring someone’s property after they pass away. The court reviews the will, pays any outstanding debts and distributes assets to the rightful beneficiaries. This process can be time-consuming and often involves fees. Avoiding probate can make this process easier for your family. That is why it helps to know what assets are already set up to avoid probate.

Assets that usually avoid probate

Some property goes straight to another person and does not pass through probate. This means they can be transferred quickly, without needing court approval. These include:
  • Joint ownership: Property that transfers automatically to the other owner
  • Beneficiary designations: Accounts that pay out to a named recipient
  • Payable-on-death accounts: Bank funds that go directly to the person listed as a beneficiary
  • Revocable living trusts: Assets that are owned by a trust and avoid probate
These tools help families avoid delays, court involvement and stress. You can review account documents or property titles to confirm if these protections are in place. If the home isn’t already protected, you may need to use tools such as a trust or deed to keep it out of probate.

How to protect the family home and other properties

If, for example, your mother owns a house and no longer lives in it, you may be thinking about selling. Before doing that, check how the home is titled. If she owns it by herself, a trust or a transfer-on-death deed may help keep it out of probate. Consider consulting with someone who understands the laws in your state.

When to talk to an estate planning attorney

It's okay to ask for help when the decisions feel overwhelming. An estate planning attorney can explain your options, guide your next steps and help protect your mother’s assets and your own. Good advice now can help you avoid problems later.

Moving forward with peace of mind

It’s normal to feel unsure when you’re caring for a parent and thinking about your future. By asking the right questions and getting help, you can protect your family, reduce stress and move forward with confidence. If you’re also thinking about your own estate, now is a good time to start planning and give your loved ones peace of mind. Consulting with an experienced attorney can give you clarity and help you make informed choices for your mother and for yourself.]]> On Behalf of The Law Office of Philip M. Flanigan, P.C. <![CDATA[What happens to a person’s debts after death?]]> https://www.pmflaw.com/?p=255375 2025-01-15T21:23:10Z 2025-01-15T21:23:10Z Who pays for the debts a person leaves behind? When someone dies, all their assets and liabilities are collectively known as their "estate." In California, the estate is responsible for paying off any debts that the deceased has left behind. California law specifies the order in which debts should be paid from the estate:
  • Costs for managing the estate.
  • Mortgages and liens.
  • Funeral costs.
  • Medical bills from the deceased person’s last illness.
  • Money to support the surviving spouse and young children.
  • Claims for unpaid wages.
  • Other debts
The executor, who oversees the estate, pays off these debts in this order. Whatever is left goes to the deceased person’s heirs. If there is not enough money in the estate to cover all the debts, they pay as much as they can following this order. In this situation, lower-priority debts may go unpaid, and the heirs might not receive anything.

Do you have to pay off your loved one’s debts?

It is important to note that family members do not usually have to pay the deceased's debts from their own money. However, if the person who passed away shared responsibility for their debts – whether as a joint account owner, authorized user or co-signer – the other person on the account may still have to pay. Handling debts after a death can be challenging. Luckily, an experienced probate attorney can help. They can give advice specific to your situation and help executors manage everything correctly and legally. Dealing with the debts a person leaves behind can add an additional layer of stress to their passing. Understanding these key points about managing debts after someone dies in California can help you manage a loved one's estate or plan ahead for your own peace of mind.]]> On Behalf of The Law Office of Philip M. Flanigan, P.C. <![CDATA[Using an estate to protect loved ones from costly estate taxes]]> https://www.pmflaw.com/?p=255267 2026-01-05T14:01:29Z 2024-08-17T22:02:25Z What estate taxes apply? Estates probated in California are subject to federal rules as well as California state statutes. The good news for California testators and their loved ones is that the state does not collect an estate tax. However, federal estate taxes can still be a concern for a California estate. The amount of the estate that must go toward taxes is higher than many people realize. Depending on the overall value of the estate, taxes can consume anywhere from 18 to 40% of the total value of the estate. In 2024, any estate worth $13.61 million or more is at risk of estate taxes.

How can people avoid estate taxes?

There are several estate planning tactics that can help limit or even eliminate estate tax obligations. One tactic involves making strategic gifts to family members during retirement years to slowly diminish the overall value of their holdings. Another is to arrange to transfer as much property to a spouse as possible. People can also use trusts as a way of reducing the taxable portion of their estate. Often, those with particularly large estates may need to engage in all three of these tactics for optimal protection. There may be other solutions available as well depending on the personal holdings and family relationships of the individual considering estate tax obligations. Understanding the massive impact estate taxes can have on a personal legacy can help people understand the importance of planning for these taxes. Those who learn about factors that could diminish their legacies can craft estate plans that optimize what they transfer to the next generation, close friends and even charitable causes.]]> On Behalf of The Law Office of Philip M. Flanigan, P.C. <![CDATA[3 estate planning mistakes to avoid]]> https://www.pmflaw.com/?p=255266 2024-05-27T11:16:21Z 2024-05-27T11:16:21Z avoid these mistakes.

Not creating an estate plan at all

One of the biggest mistakes you can make is avoiding the estate planning process. If you don’t create the estate plan, your assets are going to be distributed according to the intestate laws. This doesn’t take your wishes into account, so you won’t have any say in who gets what. Using a combination of your will and trusts can help you to get assets to your chosen beneficiaries.

Addressing assets in more than one place

Each asset you have should only be managed in one place in your estate plan. For example, if a bank account has a payable-on-death designation, you shouldn’t put it in your will or any trust. You also shouldn’t put anything that’s in a trust into your will or vice versa. Having assets in more than one place can be problematic if you change one place and not the other.

Failing to address end-of-life needs

While most people focus on their assets, your estate plan should also address your care if you become incapacitated. You should set up power of attorney designations for your health care and your finances. The person you name for each of these will make decisions on your behalf. You should also write out your advance directives, which outline what medical treatments you want and don’t want. Making sure you have a comprehensive estate plan in place is crucial. Working with a legal representative who’s familiar with your wishes and the legal tools available may help you to discover options that make it easier for your loved ones to honor your wishes in the event of your incapacity or death.]]>