To establish a California pet trust, you should:

1.  Determine who will act as the trustee and gain their permission to name them in your trust documents.  You will need to provide their name and address.

2.  Determine a successor trustee in case your primary trustee is unable to fulfill his or her role according to your pet trust.

3.  If different from the trustee, name a primary caregiver and a successor caregiver for your pets.

4.  Furnish photos and microchip ID numbers for each pet included in the trust to prevent fraud.

5.  Outline the care of each pet in detail, including a requirement for veterinary visits, nutritional needs, healthcare needs, etc.

6.  Determine how much cash or assets are needed to properly care for your pet(s).  Be realistic, as your heirs could challenge an excessive amount left for the care of pets.  Include the costs of administering the trust as well.

7.  Select a beneficiary to receive any funds that are left over after the last pet provided for in the trust has died.

8.  Provide instructions for the burial or cremation of your pet(s).

If you have a beloved pet that you want to provide for in a pet trust, contact our Orange County law firm.

Evaluate cash flow. Take a look at your income and detail where it is going.  How much of your gross income can you set aside each month?  Some financial advisors recommend 30 percent, if you can swing it.

Cut the luxuries.  If you eat out a lot, consider cutting back.  Shop your own closet before you buy new clothes.

Use online tools.  There are several websites that can help you track and save, including Mint.com.

Max out your 401(k) match.  Get free money from your employer by taking the maximum percentage they will match.

Evaluate investments.  Look for no-load, low-fee plans to save money on investing.

Diversify.  Make sure you have a healthy mix of stocks, bonds, commodities and real estate to help insulate your nest egg from market fluctuations.

Be consistent.  Don’t try to time the market; if you keep investing at your normal pace, you’ll eventually be able to score when prices are low.

Have an emergency fund.  Have a cushion of cash on hand for emergencies, so you won’t have to draw on retirement funds.  Shoot for the equivalent of six months’ salary in cash.

Don’t take unnecessary risks.  While you always want to grow assets, it’s more important to preserve principal.

Don’t panic.  Letting emotions govern your investing decisions will likely just dig you a deeper hole.

Contact our Orange County law firm for more effective retirement planning strategies.

If your business is a sole proprietorship, the assets of the business (and its obligations) are your personal assets and obligations, so you need to plan for how those are dispensed once you are gone.

Obviously, the basics should be in place:  a Will, a Living Will, Power of Attorney that appoints someone you trust to look after your affairs and Durable Power of Attorney for Healthcare to appoint someone you trust to look after you if you become incapacitated.

You should also consider establishing a trust to handle your business affairs after you die, even if you’ll only use it for closing the business down and dispensing the assets.

Establishing trusts that will protect what you’re working so hard to build right now for your surviving spouse, children and other beneficiaries is also something you should discuss with an estate planning lawyer.

If you’re starting a new business, you’re doing a lot of planning.  Just be sure you do some estate planning as well to protect it all.  Contact our Newport Beach law firm for help.

Executor – this is the person who takes charge of all your assets and ensures they are distributed in accordance with your wishes as spelled out in your will.  Some people choose a responsible family member to fill this role, while others may prefer a professional.

Guardian – this is the person who is designated to care for your minor children in case you and your spouse die before they come of legal age.  While this is usually a family member, careful consideration needs to be given to a guardian’s financial and emotional capabilities as well as their willingness to care for your chlld(ren).  Sometimes, two guardians are appointed – one to look after the children and one to manage the children’s financial assets.

Durable Power of Attorney – this is the person who would make financial decisions for you if you become disabled or otherwise unable to manage your financial affairs.

Health Care Agent – this is the person who would make healthcare decisions for you if you are unable to make them for yourself, and is specified in an advance health care directive.

To ensure your wishes are respected, you need to execute the proper estate planning documents.  Contact our Orange County law firm for help.

Assemble team of elder care experts – this can include an elder law and/or estate planning attorney, a financial planner, a CPA, etc.  A team of trusted advisors is essential to help you plan for how your assets will be managed and how decisions will be made about your care in case of incapacity.

Establish advance directives – advance directives – including a living will, financial power of attorney, healthcare power of attorney, etc. – provide for the seamless transfer of decision-making abilities for your care.

Have a long-term plan – the time to create a long-term plan is before you need it.  People with dementia can live for many years, and the cost to maintain a good quality of life can be a heavy financial burden for a family.  A long-term plan may include funding a long-term care insurance policy, or strategies for spending down assets to qualify for state or federal assistance programs.

For more asset protection strategies, contact our Newport Beach law firm.

1.  Not updating wills and beneficiaries.  86% of those surveyed by Consumer Reports had not updated their wills or other estate planning documents for five years.  Recommendation:  check your will and beneficiary designations for life insurance policies, investment and retirement accounts every year to ensure they reflect any changes in your life.

2.  Not sharing financial information with family members.  Only 30% of those surveyed said both spouses were equally knowledgeable about their financial information.  Recommendation: designate a safe or file cabinet for all your estate planning documents and financial account information (including website log-in information) and tell your family.

3.  Screwing up your 401(k).  Just 40% of those surveyed said they take full advantage of defined-contribution retirement accounts, and 91% said they never reviewed the fund expenses for their plans.  Recommendation:  401(k) plan administrators are now required to send statements to investors outlining fees and these statements should be reviewed to see how fees compare with the recommended average of 0.2 percent or less.  Plan holders need to also contribute the necessary amount to get the full employer match.

4.  Underinsuring your home and life.  Only 36% of those surveyed had the necessary homeowners insurance to cover the full replacement value of personal property, and just 20% of respondents had sufficient coverage to protect against liability lawsuits.  Recommendation:  If you need to economize with your homeowners insurance, choose a higher deductible rather than going without the necessary coverage to protect your personal property and to cover liability issues.  Look into disability and life insurance as well to protect your family against loss of income.

5.  No emergency fund.  Just 29% of survey respondents said they had an emergency fund to cover 3-6 months of living expenses.  Recommendation:  Saving just a small amount at a time – even $20 per week – can help build that important emergency fund.

6.  Not checking your credit report.  81% of survey respondents said they don’t ever bother to check their credit reports, even through identity theft is the fastest growing crime in the U.S.  Recommendation:  you can obtain a free credit report every year from each of the three major credit reporting bureaus (Experian, Equifax and TransUnion) at annualcreditreport.com.  Get one report every four months to make sure your record is clean.

7.  Not managing debt.  About 20% of those surveyed said they had credit card debt of more than $10,000.   With the average interest rate on credit cards at over 14 percent, that debt can stretch for decades.  Recommendation:  Focus on retiring debt by paying more than the minimum each month.

For additional strategies on protecting your financial future, contact our Costa Mesa law firm.

1.  You Will Spend Less Once You Retire.

2.  You Can Count on Uncle Sam.  Recent studies show that most people approaching retirement have no idea how much Medicare does NOT cover – like dental, eye care and some prescriptions.  The government rarely covers home health care or nursing homes, which can take a big bite out of retirement budgets.

3.  If You Move, Your Money Will Last Longer.  Retirees who flock to non-income tax states like Florida, Texas or South Carolina find that sales and property taxes are generally higher – and increasing to meet state budget shortfalls.

4.  Healthcare is the Biggest Retirement Expense.  Actually, the top expense in retirement is taxes.  The assets you put aside that have enjoyed tax deferral are now being withdrawn at ordinary income rates, which means it’s important for you to have a retirement strategy that enables you to tap your accounts in the most tax efficient way.

5.  The Magic Number is $1 Million.  It’s not so much about the number, but how you arrive at it that matters in the end.  Many retirees find that they have not accurately estimated or planned for unexpected expenses, liking taking care of an aging parent or an unemployed child.  Advisers are now telling clients to think of their number as a baseline, not an absolute.

For help with retirement planning, contact our Orange County law firm.

Here are five unexpected expenses that could derail your retirement:

Expensive hobby – experts say that many retirees overspend in their first year or two of retirement, since there are so many choices of hobbies now that they have the extra time to relax.  Be sure your retirement spending plan fits your lifestyle.

Home upgrades – spending more time at home may tempt you to redecorate or renovate, without sufficient funds to accomplish the task.  You shouldn’t take on extra debt, so plan ahead if you’re going to need a new roof or appliances.

Helping children – be generous only if you have the cash on hand.

Helping parents – if you will need to be providing care or financial help for an elderly parent, you need to figure those costs into your retirement budget.

Caring for a special needs child – if you have a special needs child, you need to make the provisions for that child a large priority in your retirement plan.  If the child is over 18, their eligibility for Social Security income is no longer dependent on your income.  You should talk with an estate planning attorney about establishing a special needs trust to care for your child after you are gone.

For more information on retirement planning, contact our Newport Beach law firm.

One of the decisions that you will be asked to make as you are completing the purchase of real property in California, is how you are going to hold title to the property (the vesting). The vesting will appear on the Deed of Trust and the Grant Deed, which are recorded documents in the county where the property is located such as Los Angeles County, Ventura County, Orange County or Santa Barbara County. Usually, your escrow officer or lender, or possibly both, will ask you how you want to hold title. The manner in which you hold title may have significant legal and tax consequencesSome of the issues that you should consider will be explored in this blog.

SOLE OWNERSHIP

Real property in California can be owned in either Sole Ownership or in Co-Ownership. There are three options for holding property as a Sole Owner:

A Single Man or Woman, defined as a man or woman who has never been married.An Unmarried Man or Woman, defined as a man or woman who has been married in the past, but is now legally divorced or is widowed.

A Married Man/Woman, as His/Her Sole and Separate Property, defined as a married man or woman who wishes to acquire title in his or her name alone.

In California, any assets that are acquired during marriage become community property, (i.e., belonging to both spouses), unless they are specifically acquired as separate property. Real property that is conveyed to a married man or woman is considered community property, unless it is stated otherwise. In order for a married individual to acquire title in his or her name only, the spouse must relinquish all right, title and interest to the property. Usually, this is done by executing a Quitclaim Deed to the property, which is recorded concurrently with the deed to the property.

CO-OWNERSHIP

For residential property, the primary methods for holding title are Community Property, Joint Tenancy, and Tenancy in Common. Tenancy in Partnership will not be addressed in this article.

If you decide to buy a house together, you should also decide on how you want to own it.  No matter who pays for it, the house belongs to whoever is listed on the title.  You may want to consult with an estate planning attorney to discuss your options for protecting your ownership interests, including joint tenancy, trust or contract.

If you plan for your unmarried partnership to continue for a long time, then there are other estate planning issues to visit, including a will, durable powers of attorney, health care directives and trust instruments for asset protection.

For more information on estate planning strategies for asset protection, contact our Orange County law firm.