Estate Planning

For Everyone You Love and Everything You've Built

If something unexpected happens to you and you haven't planned for everyone you love and everything you have, the State of California has a default plan for you.

 

Sound scary?  Well, it can be. Those you love would have to deal with the red tape and bureaucracy of government procedures and regulations.

 

We at Sky Unlimited Legal Advisory help you understand the legal and financial consequences of not having a comprehensive Estate Plan to protect your loved ones ... and more.

 

Before meeting, we'll ask you to complete a Family Wealth Worksheet, which will help you understand what you own and what needs to be decided for the well-being and care of your loved ones and cherished belongings.  We'll meet for a Family Wealth Planning Session™, where we spend some time together reviewing this document.  You'll learn about our Planning for Life process and we will both decide if it makes sense to work together to design an estate plan that will best suit the needs of your family.

 

The foundation of your estate plan will often include a revocable living trust, which when done properly and maintained over time, should help your family to avoid the cost and delay of probate and minimize or eliminate estate taxes. 

 

At Sky Unlimited Legal Advisory, we do not offer a "one size fits all" estate plan.  We form a working relationship with our clients.  We educate you, take the time to get to know you and your family.  We will discuss your concerns, your goals, and will gladly and patiently answer all of your questions.  Our goal is to create an estate plan that is exactly right for you.

 

Our services include a no-charge three-year review to ensure that as your lives change, so will your estate plan to safeguard your assets for maximum protection.

 

If this sounds like the kind of relationship you're looking for, please call us at (650) 761-0992 to schedule your personal Family Wealth Planning Session™ today or schedule online now.


Having a will simply is not enough.  It doesn't guarantee the care of your children if the unthinkable happens!  See how we do it differently...

The strategies that are appropriate for protecting your assets are different for every family.  Check out our proven process that gives you peace of mind...

Our unique legacy process gives your loved ones a precious gift - a lasting expression of your love.  Find out what we offer with every plan... 



Estates Weekly

Articles from the Chief Counsel's desk.  Sign up for our newsletter to receive these in your email with additional discounts, offers and rewards.

Appoint a Guardian to Keep Your Kids In Safe Hands At All Times

Probably every parent who has watched the news has felt the heartbreak over what had happened to immigrant families at the border due to the Trump administration’s immigration regulations.

 As you likely know, the administration's “zero-tolerance” policy had led to the separation of more than 2,300 children from their parents at the U.S.-Mexico border between May and June 2018 alone.

 

Putting politics aside, with horror stories of toddlers being ripped from their mothers’ arms and audio recordings of children crying and begging for their parents, we imagine it would be hard for anyone with their own kids not to be disturbed.

 

What’s more, perhaps these events have got you thinking about how it would be for your children to be taken into custody of strangers. And if not, let this be the moment you willingly feel the fear and decide to use your privilege of being able to make choices on behalf of your children to ensure their well-being and care by the people you want no matter what happens.

 

It can happen to your family

Even though most people think that something like that could never happen to their family, they’re totally wrong. While your kids almost certainly won’t be taken into custody by U.S. border agents, your children could be taken into the care of strangers if something happens to you—even if your family or friends are on the scene.

 

But you can do something to protect your children and ensure they’re always in the care of people you know, love, and trust. If you use this atrocity against families to take action on behalf of your own kids—instead of merely feeling numbness and paralysis over not knowing what to do—these events can inspire you to do the things you know you must in order to properly take care of your family.

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4 Critical Estate Planning Tasks to Complete Before Going on Vacation

Going on vacation entails lots of planning: packing luggage, buying plane tickets, making hotel reservations, and confirming rental vehicles.

But one thing many people forget to do is plan for the worst. Traveling, especially in foreign destinations, means you’ll likely be at greater risk than usual for illness, injury, and even death.

 

In light of this reality, you must have a legally sound and updated estate plan in place before taking your next trip. If not, your loved ones can face a legal nightmare if something should happen to you while you’re away. The following are 4 critical estate planning tasks to take care of before departing. 

 

1. Make sure your beneficiary designations are up-to-date

Some of your most valuable assets, like life insurance policies and retirement accounts, do not transfer via a will or trust. Instead, they have beneficiary designations that allow you to name the person (or persons) you’d like to inherit the asset upon your death. It’s vital you name a primary beneficiary and at least one alternate beneficiary in case the primary dies before you. Moreover, these designations must be regularly reviewed and updated, especially following major life events like marriage, divorce, and having children. 

 

2. Create power of attorney documents

Outside of death, unforseen illness and injury can leave you incapacitated and unable to make critical decisions about your own well-being. Given this, you must grant someone the legal authority to make those decisions on your behalf through power of attorney. You need two such documents: medical power of attorney and financial durable power of attorney. Medical power of attorney gives the person of your choice the authority to make your healthcare decisions for you, while durable financial power of attorney gives someone the authority to manage your finances. As with beneficiary designations, these decision makers can change over time, so before you leave for vacation, be sure both documents are up to date.

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Ensure the Security of Your Senior Parents' Identity and Financial Assets

Today, we live in an uber-connected world, where nearly every type of financial transaction—shopping, banking, investment management—can be made online using a computer or mobile device.

In light of this, it’s critically important to have the appropriate safeguards in place to reduce the risk of fraud and identity theft, especially for your senior parents. Because your parents are probably not as savvy about digital technology and may be losing some of their powers of discernment as they age, it’s quite likely up to you to help them protect themselves—and ultimately your inheritance.

 

Along with traditional estate planning strategies to ensure your parents’ planning is handled in the event of their incapacity or death, you should take the following four precautions to ensure the safety of their identity and finances while they’re still alive and well.

 

1) Secure their computer: Your first step should be to make sure all computers they use are protected by robust security software bundled with anti-virus, anti-spam, and spyware detection features. Always go with the latest version of software, and make sure it’s configured to provide automatic updates, including security patches.

 

2) Use strong passwords and PINs: Create strong passwords and PINs that contain numbers, letters, and symbols, and change them regularly (once every six months). Don’t use the same password for multiple accounts—each account should have its own unique password. Never share passwords, don’t store them on a computer, and keep them in a secure location.

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7 Events That Necessitate a Review of Your Estate Plan

Even if you put a totally solid estate plan in place, it can end up proving worthless if it’s not properly updated.

Estate planning is not a one-and-done type of deal: It should continuously evolve along with your life circumstances.

 

No matter who you are, your life will inevitably change: families change, laws change, assets change, and goals change. In the absence of any major life events, we recommend reviewing your plan annually to make sure its terms are up to date.

 

Yet there are several common life events that require you to immediately update your plan—that is, if you want it to actually work and keep your loved ones out of court and out of conflict. To this end, if any of the following seven events occur, contact us right away.

 

1) You get married: Marriage not only changes your relationship status, it changes your legal status. Regardless of whether it’s your first marriage or fifth, you must take the proper steps to ensure your plan properly reflects your current wishes and needs.

After getting hitched, some of your most pressing concerns include: naming your new spouse as a beneficiary on your insurance policies and retirement accounts, granting him or her medical power of attorney and/or durable power of attorney (if that’s your wish), and adding him or her to your will and/or trust.

 

2) You get divorced: Since divorce can be so overwhelming, estate planning often gets overshadowed by the other dramatic new changes happening. But failing to update your plan for divorce can have devastating consequences.

 

Once divorce proceedings start, you’ll need to ensure your future ex is no longer eligible to receive any of your assets or make financial and medical decisions on your behalf—unless that’s your wish. Once the divorce is finalized and your property is divided, you’ll need to adjust your planning to match your new asset profile and living situation. 

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Power of Attorney - What is it and Is it Enough?

Power of attorney (POA) is a document that grants a specific person, called an agent, the authority to make important decisions on behalf of another person, called the principal.

There are many different kinds of power of attorney. The scope of the authority the principal grants to the agent can be very broad or quite specific. The power of attorney document specifies exactly what that authority looks like. For example, it is customary to give someone the power to make decisions about your:

  • Finances
  • Health care
  • Personal property
  • Real estate
  • Business
  • Personal and family matters
  • Lawsuits
  • Insurances and annuities
  • Taxes
  • Government benefits

The agent can be granted authority to make only financial decisions or just health care decisions. Every situation is different and calls for a customized document reflecting the wishes of the principal.

 

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Alert: If This Language Is In Your Trust, Your Spouse Could Be Screwed Over When You Die … Check Your Plan Today!

If you created an estate plan that includes a living trust, you must review it to determine if it contains language that could create unnecessary cost, effort and stress for your surviving spouse.

Back in the day, when the estate tax exemption was $675,000 to $1,000,000, most living trusts were drafted to provide for a mandatory split of trust assets upon the death of the first spouse.

 

This was done to ensure that the full estate tax exemption was used and unnecessary estate taxes were avoided.

 

A split of the trust assets is still appropriate in certain circumstances, but not for the same reasons, and currently, it would not be handled in the same way.

For example, if you are in a second marriage, with children from a prior marriage, you are likely to want a split of trust assets at the first death. This ensures that the surviving spouse can use the assets of the first spouse to die during his or her life, but that the remaining assets after the death of the surviving spouse return to the children of the deceased spouse and are not diverted to a new spouse or children from a new marriage.

 

However, if you are in a first marriage situation, all children are from the current marriage and no additional children are likely, splitting the assets at the death of the first spouse adds significant cost and unnecessary complexity.

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Should I Pay Off My Mortgage Now or Save More Money?

To many people, living debt-free is a lifelong dream. It’s the picture of the easy life. Retired with no debt . . .

You may be surprised to learn, however, that debt-free is not always the best decision - particularly if the choice is between paying off a mortgage or using the money more wisely to invest in a future using low-interest rate funds.  

 

What?  I Shouldn’t Pay Off My House?

Most of us don’t have that much extra cash lying around.  We simply don’t have the luxury of being able to pay off our family home and maxing out our retirement contributions and investing in a side business. It’s pretty much an either-or proposition.

 

With that said, from a financial standpoint, it is usually most favorable to make additional contributions to a company 401(k) program, if your company is matching your contributions, or investing in growing a side business, rather than using extra money to pay off the mortgage.

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Are You Leaving Your Retirement Account at Risk Due to Poor Planning?

You’ve spent your entire life building up your retirement account.

It may even be the biggest asset you’ll leave behind for the people you love.

 

If that’s the case, you may want to consider creating a special trust designed specifically to receive your retirement account assets in the event of your death.

 

If you leave your retirement account to the people you love outright, simply by naming them as beneficiaries on your retirement account rather than through a special trust, here are the risks:

 

1. Some studies indicate 80% of retirement account beneficiaries immediately liquidate the account and frivolously spend the assets (and on top of using the assets in ways you may not agree with, they also lose significant tax benefits for these assets you worked so hard to create);

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Can I Benefit from a Reverse Mortgage?

It seems that we can’t turn on the television or radio without hearing an ad for a “reverse mortgage.”

So what is a reverse mortgage exactly, and who can benefit from using one?

 

A reverse mortgage is a type of loan taken out against your home.  With a reverse mortgage (as with a traditional mortgage) you are borrowing against your home equity which is the difference between your home's market value and the amount you owe on your mortgage. The difference in a reverse mortgage is that you do not have to pay it back while you are alive. Instead, the loan is paid off after you pass away.

 

What Are Some of the Benefits of a Reverse Mortgage?

Reverse mortgages can be a fantastic tool, depending on your goals.  They can provide additional income and improve your cash flow, particularly if you have already paid off your home.  Here are some reasons to consider a reverse mortgage:

  • They can help you maintain your financial independence by providing additional income;
  • They can allow you to stay in your home until you die;
  • For most people, the risk of default is low; and
  • They are not taxed.

One of the best things about a reverse mortgage is that the amount paid back will not exceed your home’s value.

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When Is the Purchase of Long-Term Care Insurance Worth It?

Elder Care is emerging as a significant issue for many people as life spans continue to increase.

It is nice to know that because of health care advances, we can expect to live longer, but there are no included guarantees on the quality of life in the later years.

 

Many people eventually face a period in life when they can no longer do for themselves. Daily living tasks such as walking, bathing, cooking, and managing household affairs are beyond their physical and perhaps even mental capabilities. Frequently, that period has not been planned for by the person or family members. And sometimes, this period in life comes suddenly, such as when a debilitating fall takes place.

 

One thing which people and their families should consider before this difficult period is the purchase of long-term care insurance. This type of insurance provides coverage for the expense of daily living assistance. It can cover in-home assistance as well as assisted living or nursing home costs. Most people, however, buy it to cover in-home living expenses so as to avoid a nursing home.

Often, an elderly person will suffer intermediate health issues before needing permanent assisted daily living. Health insurance and Medicare cover costs of treatment for injuries and illness and typically pay for some daily living assistance as the person recovers or levels off at a permanent degree of recovery. When that recovery occurs, though, those services no longer pay, and the person is on their own.

 

A long-term care insurance policy will pick up the ball at this point and, depending on its terms, pay for daily living assistance for a period of time or for the life of the policyholder.

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