Norton Basu LLP Norton Basu LLP2024-01-30T17:19:21Zhttps://www.nortonbasu.com/feed/atom/WordPress/wp-content/uploads/sites/1201907/2021/03/cropped-favicon-32x32.pngOn Behalf of Norton Basu LLPhttps://www.nortonbasu.com/?p=495262023-12-18T10:21:01Z2023-12-21T10:20:46ZThe largest states could be at risk of massive tax bills
California is one of 38 states in the United States of America that do not currently assess an estate tax. People who learn that fact sometimes take for granted that they can bypass planning for tax minimization when thinking about their future legacy. However, there could still be federal estate taxes that could apply. The highest federal estate tax rate is a shocking 40%! Up to two-fifths of someone's estate could end up in the coffers of the federal government instead of in the hands of their loved ones without proper advance planning.
Thankfully, the threshold for federal estate taxes is relatively high. The estate must have a total value of $13,610,000 as of 2024 for federal estate taxes to be a concern. Gifts and sizable transfers made in the three years prior to someone's death do contribute to the value of their estate, as well as any resources solely in the decedent's name at the time of their death.
Estate tax planning may involve making gifts to loved ones or transferring assets to a trust. Those who anticipate having millions of dollars in property when they die may need to plan carefully to minimize those tax obligations. Recognizing concerns that could diminish someone's legacy, and seeking legal guidance accordingly, is an important component of modern estate planning.]]>On Behalf of Norton Basu LLPhttps://www.nortonbasu.com/?p=495172023-09-15T19:11:36Z2023-09-19T13:51:34ZThinking about long-term care
One of the most pressing issues as people age will be the need for daily support. Moving into a nursing home or having a skilled support professional come to someone's home may be the only way of ensuring their safety later in life. However, obtaining those services can be very expensive. It can cost thousands of dollars a month for nursing support at someone's home or a room in a nursing home. People need to very carefully plan if they hope to qualify for Medi-Cal benefits to cover their long-term care costs later in life.
Leaving instructions about preferences
Those who end up unconscious or experiencing diminished capacity due to dementia or a brain injury will not be able to enforce their personal preferences regarding their medical care. In fact, they may not even be able to effectively communicate them with their loved ones or healthcare providers. An advance healthcare directive is a very important document that can clearly state an individual's preferences about choices ranging from life support to anatomical gifts.
Empowering a trusted agent
Those who have a spouse have someone they trust who will generally have the authority to make choices on their behalf. There are some people who remain unmarried for years and others who might experience incapacity at the same time as their spouse, possibly because of a car crash. Having powers of attorney in place will ensure that there is someone with the authority to act as an agent and make medical decisions on an individual's day half. Power of attorney can also give someone the authority to handle financial matters during someone's incapacitation.
Those who take the time to think about and address future medical needs can derive greater protection from their estate planning paperwork. Including plans for future healthcare needs along with testamentary documents in an estate plan is often a smart decision for those who are concerned about safeguarding their future interests.]]>On Behalf of Norton Basu LLPhttps://www.nortonbasu.com/?p=494582023-06-14T04:24:53Z2023-06-20T04:23:28ZWomen tend to live longer
Women live longer than men. It’s true that life expectancy in the United States has been declining lately, but it is still higher for women. They’re likely to outlive men. For example, in 2020, life expectancy at birth for women was 79.9 years old. That fell in 2021 to 79.1 years old. However, a man in 2020 only had a life expectancy of 74.2 years old. That expectancy also went down in 2021, dropping to 73.2.
In other words, it’s likely that the average woman is going to live for roughly five or six years longer than the average man. In opposite-sex marriages, this means that the husband is going to pass away long before his wife, and she is going to be left with the entire estate. Women in this position have a lot of things to consider. What are the costs that go along with aging and what plans have they made for them? How are they going to make medical decisions in the future, especially if they are incapacitated? Precisely how should assets pass to the next generation and what things have to be considered for each heir?
Creating your plan
All of these questions – and many more – can be addressed in an estate plan. Asking questions is just the beginning. If you do not yet have an estate plan but you’re considering one, it’s very important to understand exactly what legal options you have available to you. Seeking legal guidance is a good place to start.]]>On Behalf of Norton Basu LLPhttps://www.nortonbasu.com/?p=494512024-01-30T16:58:50Z2023-05-19T14:55:19ZSeven Steps to an Estate Plan:
Determine what you have: Gather documents which help you determine exactly what you have in your estate.
Establish your Living Trust: If you have young children, determine who will be their guardian and manage your assets for their benefit.
Fund your Living Trust: A living trust is a gift that you fund in the present for your friends/family/charities in the future. Funding your trust means changing the title on your home/bank account/etc.
Create a Will: If you have a living trust, your will is called a pour-over will and works in conjunction with your trust. If you don’t have a Trust, you need a will to distribute your assets.
Create a Power of Attorney: A durable Power of Attorney takes effect when you are incapacitated and gives your agent the ability to make financial decisions on your behalf.
Create an Advance Health Care Directive: Decide what kind of care you would like if you are unable to talk to your doctors. Talk to your friends and family to determine who would make the best choice to act as your agent.
Celebrate! You got your estate plan done!
Zakiya J. Norton, Esq. and Somita Basu, Esq., founding partners of Norton Basu, LLP, an estate planning and probate law firm in Los Gatos | Santa Clara | Los Angeles. https://www.nortonbasu.com/]]>On Behalf of Norton Basu LLPhttps://www.nortonbasu.com/?p=494412023-05-11T18:16:06Z2023-05-11T09:29:03ZWhat is a revocable trust?
This legal tool helps avoid probate and can be a much more private estate planning option than a will.
Characteristics of revocable trusts
The following features of a revocable trust are reasons people may utilize them as part of their estate plan:
Revocable trusts allow the Settlor to maintain control of the assets while they are alive.
The Settlor can make changes to the trust if they are mentally competent.
Revocable trusts do not protect the assets inside it from creditors if the Settlor owes money.
Assets titled in the revocable trust avoid probate, the legal process that transfers property after a person dies.
Revocable trusts are easy to create and change. As long as the Settlor is mentally competent, changes can be made.
A revocable trust can also take care of the Settlor if they become unable to care for themselves, avoiding the process of the court having to order guardianship.
Whether used to supplement or replace a will, a revocable trust is an essential estate planning tool that helps people accomplish their estate planning goals.]]>On Behalf of Norton Basu LLPhttps://www.nortonbasu.com/?p=494422024-01-30T17:02:46Z2023-05-05T15:11:00ZUnderstanding the potential benefits and limitations of mediating a divorce is crucial. Here are a few of the key pros and cons to help you determine if mediation might be the right fit:
The Upside:
A quicker and less expensive resolution: It is safe to say that almost everyone would prefer not to prolong the divorce process. Mediation has the potential to reach a satisfactory conclusion more quickly than a court battle. Additionally, mediation can save both parties significant legal fees.
Less contentious: Working together to craft a settlement agreement rather than fighting it out in court may encourage a more amicable post-divorce relationship, especially if children are involved.
More desirable outcome: Taking charge of your destiny is likely to be better than putting your fate into the hands of a judge who doesn’t know you or your family.
The Downside:
More costly than DIY: The cost of meditation can’t beat negotiating the pertinent issues on your own. But to avail yourself of the least expensive route, you and your spouse must be on the same page without third party intervention.
No guarantees: While attempting mediation may be worthwhile in many instances, there is no guarantee that a consensus will be reached.
You may still need an attorney. Mediators don’t provide legal advice, so you may still need a lawyer to advise you and represent your interests.
How to Find a Family Law (Divorce) Attorney
Personal Recommendation: Professionals found via friends, family or other trusted advisors is often the best way to make the right selection.
State Bar Association: Your state maintains a directory of practicing attorneys; this may be a good place to start.
Online directories and review sites: Check reputable sources for local attorney listings.
]]>On Behalf of Norton Basu LLPhttps://www.nortonbasu.com/?p=494322024-01-30T17:02:52Z2023-04-21T14:47:43ZWhat is Divorce Mediation?
If you and your spouse have agreed to divorce and need help navigating the issues and negotiating a final agreement, engaging a trained mediator may be the most expeditious and affordable way forward.
A meditator’s role is to facilitate productive communication and provide relevant input which allows the parties to make informed decisions. A mediator typically sets the meeting agenda and maintains structure, requests and reviews information provided by both participants, listens to both parties, and drafts a proposed settlement.
What is the Cost of Divorce Mediation?
While mediation may involve some costs, it is generally far less expensive than pursuing litigation. This is probably the primary benefit of attempting to mediate your divorce.
Is Divorce Mediation Right for Me?
If you feel that you and your spouse have aligned goals, mediation may be the optimal path.
Mediation may not be the best option if:
Both spouses are not able to compromise.
Circumstances are too tense for spouses to attend the same meeting.
Domestic abuse is present.
There is suspicion that assets may be hidden.
Mediators don’t provide legal advice, so you may still need a lawyer to advise you and represent your interests.]]>On Behalf of Norton Basu LLPhttps://www.nortonbasu.com/?p=494222024-01-30T17:15:25Z2023-03-31T14:16:14ZOn Behalf of Norton Basu LLPhttps://www.nortonbasu.com/?p=494182024-01-30T17:04:48Z2023-03-24T13:42:07ZTake Inventory
A detailed inventory with estimates of value could be crucial since your beneficiaries and Trustee will not necessarily be knowledgeable about specific items in your collection and their potential worth. If an item is special for some reason, such as a signed baseball, this should be noted. The inventory, perhaps created in an Excel spreadsheet, should reference any authenticating documentation or appraisals. A road map to where these items are stored is vital as well.
Time to Sell
If no one else in your family or circle of friends has a passionate interest in your collection, then your survivors will likely wish to sell it. To obtain maximum value, provide guidance to your heirs by referencing suitable auction houses or other avenues for sale.
Expert Advice
If your collection is highly valuable, it is wise to consult an attorney and a financial advisor to avail yourself of their expertise in this area.]]>On Behalf of Norton Basu LLPhttps://www.nortonbasu.com/?p=494032024-01-30T17:05:15Z2023-03-03T15:07:26Z