Probate Discount

With the California's Economy being so slow I am currently offering my own form of economic stimulus. I am offering a new deal for new Probate customers. If you end up being appointed the personal representative of decedent's estate, the estate meets certain requirements detailed below, and have retained my firm, I will give you a 5% discount off of statutory attorney's fees. Subject to certain requirements after the jump.

In order to qualify for the discount there are certain conditions.

• Estate must require a "full blown probate" where statutory fees are available.


• Estate must be solvent – i.e. have enough money to pay attorney fees


• Estate must have at least $200,000 in assets


• Estate must consist of ten items or less of property – ten accounts –


• Discount does not apply to any extraordinary compensation for extraordinary services. (ie selling a residence through probate, disputes etc. )
  

Additionally we always reserve the right to refuse a case, and will do so especially if the possible client ends up not being the right person to serve as the decedent's personal representative. Also this only applies to estates that have to be probated in California, which usually means the decedent was a resident of California at the time of his or her death.

ABOUT CHRISTOPHER R. TWINING Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.

CHRISTOPHER R. TWININGLAW OFFICES OF CHRISTOPHER R. TWINING1440 VETERAN AVENUE, SUITE 509LOS ANGELES, CALIFORNIA 90024(310) 492-5990 Fax (310) 775-9774http://www.twininglaw.com

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Congress Resolves 2010 Thorny Death Issues

Congress and the president finally acted passing new Estate Tax legislation. The new bill signed into law by President Obama on December 17, 2010.

Most importantly the bill ended the uncertainty and thorny issues that many middle class estates for 2010 deaths were going to have. Essentially the bill created an option for 2010 deaths to utilize the existing no estate tax but limited step up in basis rules or use the new 2011 and 2012 rules which consist of a $5 million dollar Applicable Exclusion Amount for individuals with a 35% for anything above the AEA.

This bill is a blessing for middle class estates because they will now be able to shelter $5 million free from the Estate and Generation Skipping Transfer Taxes and keep an unlimited step-up in basis. This means beneficiaries and heirs selling inherited property will be able to do so capital gains tax free.

Many heirs of High Net Worth individuals who passed in 2010 will likely choose to use the old no estate tax system even with its limited step up in basis for capital gains because the long term capital gains rate is 15% instead of the 35% rate for estate taxes.

But for middle class families the new legislation is a blessing as it vastly simplifies things. Most families will now owe no Estate Taxes for 2010 deaths and be able to sell inherited property with a stepped-up basis. Additionally, this will avoid the issue of trying to prove the basis of property acquired by a decdedent decades ago. This has surely made life easier for heirs and IRS agents alike.

ABOUT CHRISTOPHER R. TWINING: Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990

CHRISTOPHER R. TWININGLAW OFFICES OF CHRISTOPHER R. TWINING1440 VETERAN AVENUE, SUITE 509LOS ANGELES, CALIFORNIA 90024(310) 492-5990 Fax (310) 775-9774http://www.twininglaw.com

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2010 Deaths Create Thorny Estate and Income Tax Issues

Today I want to talk about some misconceptions that are floating around regarding the administration of estates for individuals who have or will leave us in 2010.

Many people are aware that since Congress failed to act the Estate Tax and Generation Skipping Transfer Tax are repealed for this year only. While this is certainly true for the time being, there are a number of pitfalls to watch out for. Before you decide that there is nothing to do as an executor/ administrator or successor trustee of a deceased loved one consider the following.

• Congress can still reinstate the Estate Tax and Generation Skipping Transfer Tax retroactively
• regardless there is only 1.3 million in stepped-up basis available.

First, as stated above all authoritative commentators that I am aware of indicate that Congress can retroactively enact legislation reinstating the Estate Tax and Generation Skipping Transfer Tax. Estate tax returns are due generally 9 months from the date of death. This means that for people dying on January 1, 2010 their returns aren't due until approximately October 1, 2010. Even assuming that Congress lacks that authority expect both Congress and the Department of the Treasury to take the position that it can. Therefore, one would likely be tied up in expensive litigation for years before prevailing on this issue. For most people not inheriting vast fortunes( in the tens of millions) it is probably not going to make sense to fight the IRS on this one.

Second, Congress left a little doozy in the legislation that repealed the Estate Tax. Congress still wanted the taxman to get his pound of flesh so he altered the system. Previously, all property inherited received whats known as a "stepped-up" basis to the value of the property on the date of death or an alternative valuation date. This meant that if the heirs had to sell property they would essentially never pay any capital gain income taxes on the sale of the property. Now however for 2010 decedents can only pass along $1.3 million worth of this "stepped-up basis." So many heirs inheriting estates that have a value above $1.3 million but below the $3.5 million applicable exclusion amount of 2009 are actually far worse off.

The combined worries create several problems for personal representatives of people who died in 2010. For one there is a great deal of uncertainty about the Estate Taxes. Most attorneys will advise their clients to file for the automatic extension. Additionally, distributions to heirs will likely take longer this year. Likewise, it will be difficult for heirs to actually determine what their basis in inherited assets are (if in excess of the $1.3 million allowed currently). Finally, there now exists a difficulty for the personal representative to allocate the "stepped-up" basis. Particularly for anyone acting as a successor trustee this will create thorny issues. Trustees as fiduciaries owe beneficiaries duties of impartiality. This means that successsor trustees may have to allocate the precious "stepped-up" basis in a fair manner. Trustees of larger estates will likely seek court instructions. As usual the more modest Estates will be more murky as successor trustees will be less inclined to seek instructions of the court due to the expense involved.

ABOUT CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.

CHRISTOPHER R. TWINING
LAW OFFICES OF CHRISTOPHER R. TWINING
1440 VETERAN AVENUE, SUITE 509
LOS ANGELES, CALIFORNIA 90024
(310) 492-5990 Fax (310) 775-9774
http://www.twininglaw.com

Read more On "2010 Deaths Create Thorny Estate and Income Tax Issues"!

County Auctions Personal Property of Intestate

Ever wonder what happens to your stuff ( personal property) when you die if you don't have a will and don't have any heirs?

A recent LA Times Article reveals the answer: The County of Los Angeles will auction off the items to the highest bidder at one of several auctions that occur 10 times a year.

If you die in Los Angeles County without heirs or a will, your worldly belongings will probably end up here, in a 122,000-square-foot warehouse along the railroad tracks in the City of Industry, protected by surveillance cameras and extra security. The walls are piled high with hundreds of 7-by-5-foot wooden crates. County employees and private auctioneers break open crates, divide the contents into lots and sell them at daylong auctions held on the second Saturday of the month, typically 10 times a year. Proceeds go back into the estate and often are used to cover burial expenses and other costs. Whatever is left goes to the state of California.

I personally take the position that one would rather make arrangements ahead of time and benefit a charity that does work which is meaningful to you rather than the State of California. Although, the state needs all the money it can get it would seem like one might want a greater control over where the proceeds would go.

ABOUT CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.

CHRISTOPHER R. TWINING
LAW OFFICES OF CHRISTOPHER R. TWINING
1440 VETERAN AVENUE, SUITE 509
LOS ANGELES, CALIFORNIA 90024
(310) 492-5990 Fax (310) 775-9774
http://www.twininglaw.com Read more On "County Auctions Personal Property of Intestate"!

My Advice to California fiduciaries

I am taking the occasion today to write a post to all those wood be fiduciaries out there. Fiduciaries include all those who serve as successor trustee, attorney-in-fact under a durable power of attorney for health care or financial matters, agent for healthcare, etc.


Recently, I have become involved in quite a lot of litigation involving the potential financial abuse and or breach of fiduciary duty by a successor fiduciary. This can take the form of a petition to appoint or remove a successor trustee, a petition for probate conservatorship of the person and/or estate.

It almost always plays out the same way . Usually, I am approached by the loved one of an elderly person. Usually the fiduciary who is alleged to have acted wrongly ( i.e. breached their fiduciary duties to the principal, is either a family member or a friend/ caretaker of the elderly person. In several current cases the fiduciary has been acting in secrecy. Either hiding important decisionmaking, etc. or blatantly refusing to turn over information. In some cases the alleged financial abuser is living in the principal's residence or some other real property they happen to own or beneficially own, rent free.

This is potentially a breach of the duty of loyalty, which requires that a fiduciary put the interests of their principal ahead of their own. There may be some circumstances in which it would be appropriate for a principal to live in someones house or apartment rent free and it wouldn't be a breach of fiduciary duty. However, only an attorney or really rather a probate judge can make that determination.

In many of these situations the accusers lack information so its mainly a case of hearsay and conjecture until facts are obtained either through formal discovery, factual investigations, or just as a result of being appointed conservator of the person and or estate. But all these cases share one thing in common; the accused financial abuser has not been acting transparently ( i.e. have not been letting all the other beneficiaries and family members know what is going on. Additionally, they should provide accountings when compelled and generally keep all those people informed. To hide things or not disclose all sorts of these things only leads to suspicion.

Occasionally, there are reasons to keep information like this from one or more particular family members or other interested parties. However, in the vast majority of cases if the fiduciary has done no wrong (i.e. not breached any fiduciary duties) they should have no reason not to keep everyone informed! So my advice to all fiduciaries is unless there is a good reason not to, make sure you keep all interseted persons informed of everything that you are doing on behalf of a principal and let them know your reasons for decisions.

ABOUT CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.

CHRISTOPHER R. TWINING
LAW OFFICES OF CHRISTOPHER R. TWINING
1440 VETERAN AVENUE, SUITE 509
LOS ANGELES, CALIFORNIA 90024
(310) 492-5990 Fax (310) 775-9774
http://www.twininglaw.com Read more On "My Advice to California fiduciaries"!

What happens when a person dies without a will in California?

What happens when a person dies without a will in California?

Answer: When a person dies without a will the person is referred to as having died intestate. . The dead person’s property is then supposed to be divided according to the laws of intestacy. The laws of intestacy in California are found in the California Probate Code sections 6400 et. Seq.


This also means that if the person who died, also known as the decedent, left any significant property, then a formal probate administration will be required. Otherwise if the person left less than $100,000 in total property a summary probate petition can be used. (link to other page). Usually a relative, or close family friend will petition the probate court to be appointed as administrator. An administrator is the name for the personal representative appointed by the court in a probate where the decedent died intestate ( without a will). This is in contrast to an executor who the court approves but whom was nominated in a will. Both an administrator and an executor fill the same duties during a probate.

Unfortunately, being that a formal probate is now required it will result in significant fees and costs that could have been avoided with a revocable living trust and a pour-over will. The fees which both a personal representative (either an administrator or an executor) are entitled to as well as the attorney for the personal representative, are entitled to are set by statute. Additionally, the fees are based on the gross value of property and are not netted out to take encumbrances (mortgages and other debts and liens) into account.

Also, if the person left children under the age of eighteen, there will usually be a guardianship petition where again a relative or close family friend will petition the court to be granted guardianship of the children who are still minors. If the person had executed a will there still would have been a guardianship proceeding that would be necessary but the court would give strong preference to whom the dead person had named to be guardian in a will.

ABOUT CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney,. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.

CHRISTOPHER R. TWINING
LAW OFFICES OF CHRISTOPHER R. TWINING
1440 VETERAN AVENUE, SUITE 509
LOS ANGELES, CALIFORNIA 90024
(310) 492-5990 Fax (310) 775-9774
http://www.twininglaw.com

Read more On "What happens when a person dies without a will in California?"!

A Common Myth About Revocable Living Trusts

As an Estate Planning Attorney, I often run into Myths people have about revocable living trusts. One of the most common ones is that nothing needs to be done when a grantor aka settlor dies. However, this is certainly not true. While a revocable living trust can help you avoid a full blown probate and its attendant intrusions into privacy, huge professional fees and duration, it does not mean that there is nothing to do upon the death of a settlor

Among some of the things that usually have to be done by a successor trustee are:

• order timely appraisals of all trust assets


• prepare and file a final income tax return for the person who passed away


• obtain a taxpayer identification number from the IRS


• Provide notice to Medi-CAL


• fund subtrusts or atleast prepare separate accounts


• execute certain documents


• lodge the pour over will with the clerk of the county court


• preparing statutory notices to beneficiaries

The above list is by no means exhaustive, there are many more things that a trustee may be legally required to do. But I think you get the point. There are still procedures of legal significance that need to be done upon the death of a settlor. Failure to do some of these things leave a successor trustee open to liability for breach of fiduciary duties.

So its not that the use of a properly funded revocable living trust avoids any and all costs associated with the handling of ones affairs. However, in the ordinary situation the fees charged by an attorney should be far less than the statutory fees for probate which by the way are calculated on the gross value of property and not the net ( meaning mortgages do not discount the value the percentage is based on).

ABOUT CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.

CHRISTOPHER R. TWINING
LAW OFFICES OF CHRISTOPHER R. TWINING
1440 VETERAN AVENUE, SUITE 509
LOS ANGELES, CALIFORNIA 90024
(310) 492-5990 Fax (310) 775-9774
http://www.twininglaw.com Read more On "A Common Myth About Revocable Living Trusts"!