Tuesday, April 24, 2012

Main Reasons People Go to Probate Court in California and How to Avoid It


Having to go to court is never any fun, especially when it is required to settle the estate of a deceased family member or friend. But the one of the main reasons estates end up in probate court in California is a lack of foresight or not having the right end of life paperwork prepared.

When a person dies, they obviously have no need for any possessions they owned, so naturally the surviving relatives and friends will want to split these up and claim them for themselves. Probate is involved in almost every case of death, but its role can be defined by the deceased through the execution of a will. If a will is in effect, one reason people go to probate court in California is simply to find out what has been left to them.

When someone wants to contest the will, the probate court will decide the matter. More and more, this unfortunately is another of the main reasons people go to probate court in California. These usually occur in cases where the deceased had a lot of assets or money, and the rest of the family is not on great terms with each other. But, by having a properly written and executed will in place, you can avoid more bad blood and fighting after you are gone.

The worst of the main reasons people go to probate court in California is the deceased had no will at the time of their death. This is more common with younger people, as their dying is often the furthest thing from their mind. However, anyone that has any kind of assets is best served by having a will in place. Otherwise, the probate court will decide who gets your assets, and in what amounts. If your intention is that $50,000 of your life insurance is to go into a trust fund for both your son and daughter to go to college, you definitely need a will. Otherwise, your spouse may get the whole amount, and obviously there is nothing you can do to make sure it is used according your wishes.

Probate can be a messy, time consuming, and expensive undertaking. But, it’s also one that is fully avoidable by taking the time to have a revocable living trust prepared and executed.  In California, a revocable living trust will ensure that the estate avoid the probate court, and the administration and distribution of the assets will be conducted privately and without a court case.

Either way, a properly prepared and executed last will and testament or a revocable living trust will help to avoid bad feelings among your survivors, since they will get what you want them to have, and won’t have any basis to fight over anything else because you have expressly stated your wishes.

Saturday, April 14, 2012

U.S. Savings Bonds Going Paperless

Did you know that starting this year, paper savings bonds will no longer be sold at banks and other financial institutions?   

Series EE and I electronic savings bonds can be purchased in "TreasuryDirect" accounts.  If you currently hold paper savings bonds, you are able to redeem them as usual at financial institutions.  Bonds that have not matured, but were lost, stolen, or destroyed, can be reissued in either paper or electronic form.

You should review your bond holdings to ensure that they are still earning interest.  All Series E bonds have reached final maturity and are no longer earning interest.  Series EE Bonds were first issued in 1980, and reach their final maturity 30 years from date of issue.  This means that all Series EE Bonds issued in 1980 and 1981 are fully matured, and not earning interest going forward.

Most financial experts agree that you should cash in any Savings Bonds that no longer earn interest.  However, check with your CPA or qualified tax advisor, as cashing in old bonds is usually a taxable event.

The U.S. Treasury Department has online tools for evaluating U.S. Savings Bonds at http://savingsbonds.gov/indiv/tools/tools.htm  


Dwight Edward Tompkins
Estate Planning Attorney
Tompkins-Law.com 

Sunday, April 8, 2012

Video: California Advance Health Care Directives



Advance Health Care Directives and Powers of Attorney for Health Care are carefully defined and compared in this video by Orange County Estate Planning Lawyer, Dwight Edward Tompkins.