Attorney Andrew Bethel discusses testamentary capacity - the ability to understand and make decisions about one's estate when setting up a will or trust. He cites a recent California case, Eyford v. Nord, which addressed the issue of whether a person who initially lacked testamentary capacity but later regained it could set up a trust. The court ultimately held that as long as the person had the requisite capacity at the time of executing their will or trust, those documents are valid. Andrew emphasizes the importance of understanding testamentary capacity when creating estate planning documents and consulting the probate code for guidance.

Attorney Andrew Bethel answers the common question of when to put one's home in a trust. It is advisable to do so as soon as possible and to use an attorney’s help in doing so. Andrew goes on to list some reasons why there's no time like the present to do this, including avoiding probate, simplifying the administration of one's estate, and keeping matters private. He also gives a brief overview of how to put one's home in trust.

Attorney Andrew Bethel advises on estate planning for investment and retirement accounts, including brokerage accounts, 401(k)s, and IRAs. To avoid probate, it is recommended to place brokerage accounts in a trust, even if they don't trigger a probate issue alone. Retirement accounts can have designated beneficiaries who can claim the assets without probate, and individuals are usually recommended as beneficiaries rather than trusts. However, trusts can be advantageous as beneficiaries in certain situations, such as when taxes are owed on assets in an IRA or 401(k). Trusts can be amended during the client's lifetime and can serve as a safety net if initial beneficiaries predecease the client. The probate threshold in California is a gross estate of $184,500 or more.

The responsibility for credit card debt after a loved one has passed away depends on various factors such as joint ownership, co-signers, and sureties. In community property states, the surviving spouse is typically responsible for the debt. In contrast, in separate property states, the surviving spouse may not be responsible for the debt unless they were a co-signer or surety. The blog also discusses what happens when there isn't enough money in the estate to cover debts and the order of priority for paying off debts.

Attorney Andrew Bethel discusses the best way to manage your real estate. The baseline rule for any real estate, including primary and investment properties, is to put them in a trust to avoid probate and maximize estate value. If the property is generating income, it may be best to hire a property management company and obtain liability insurance. For multiple properties generating income, an LLC structure may be more appropriate. If investing in out-of-state properties, it is recommended to put everything in one trust to avoid creating unnecessary complexity. Bottom line: put everything in a trust, including LLCs managing real estate empires.

Attorney Andrew Bethel discusses spendthrift trusts and the creditor protection they can provide. A spendthrift trust is a type of trust designed to protect the beneficiaries from their own bad choices and creditors. This type of trust prevents the beneficiary from voluntarily or involuntarily transferring the trust assets and does not require special wording as long as the intent of the settlor is clear. It makes it so that if someone is a beneficiary of the trust, their creditors cannot collect from the trust that beneficiary’s share of the trust estate to satisfy that beneficiary’s debts. However, there are exceptions to spendthrift trusts. Additionally, self-settled trusts, where the settlor retains an interest in the trust assets and management, are illegal in most states.

Attorney Andrew Bethel, discusses whether real estate assets should be placed in a trust or a limited liability company (LLC) for estate planning purposes. The baseline rule is to make sure the real estate assets avoid probate by putting them in a trust, which is the simplest and least expensive method. A land trust is a type of trust that specifically manages real estate assets, but for most people, an LLC is a better option for real estate investing as it offers a higher level of legitimacy, separates business and personal assets, and makes it easier to sell the business. However, people may easily overcomplicate and overspend when creating multiple LLCs for each asset. There are specific factors to keep in mind when deciding whether to use a trust or an LLC.

Attorney Andrew Bethel discussed how trust debts are to be addressed and whether a trustee is liable for a trust's debts. Trustees do not have an obligation to pay trust debts personally, but where they choose to do so, they are entitled to a reimbursement for out-of-pocket expenses paid by the trustee. The same holds true for beneficiaries. There are other methods to create liquidity such as selling real estate held in trust. Ultimately, trustees have a duty of care and a duty to safeguard the trust assets meaning they don't have to personally bankroll a trust, but they must work to the benefit of the trust and the beneficiaries above their own interest.

Wrapping up the estate of a loved one can be a cumbersome and stressful task, especially when dealing with the emotional stress of loss. The process involves gathering information and documents to determine what assets are included in the estate, verifying assets and their values, filing an estate tax return, and transferring non-probate assets to beneficiaries. The first step is to gather information and documents, such as bank statements and bills, to understand what assets are included in the estate. Next is to verify assets and their values, which includes listing them, determining the date of death value, and whether they were held jointly with another person or had a beneficiary or pay-on-death designation. This is useful for organization and is required to be submitted to a probate court if necessary. After verifying assets, an estate tax return may need to be filed if the gross value of the estate exceeds the estate tax exclusion amount. Lastly, non-probate assets such as those with beneficiary designations can be transferred to beneficiaries without court involvement.

Estate planning attorney Andrew Bethel will discuss the different ways to plan for a child with special needs, with the goal of leaving money to them while still preserving their public benefits. Three options are presented: custodian accounts, which allow someone to manage a child's money until they turn 25; setting aside funds in a normal revocable living trust, which has more flexibility in terms of when and how funds are distributed; and a Special Needs Trust (SNT), which is a separate, irrevocable trust where money is set aside specifically for the benefit of the special needs child, and the trustee has control over the funds. The main advantage of an SNT over the other options is that the beneficiary never has control over the funds, and the money cannot be considered as an asset or income to that beneficiary.