Pets hold special places in the hearts of their owners, with many becoming more and more like family members over the years. For older pet owners, their pets might be their primary companions. In California, many owners want their pets to continue thriving even in the event of their own passing. By including their beloved pets in their estate plan, owners can give trustees the ability and means to continue providing necessary pet care.

Trusts are common features of estate plans, but their use for pets is perhaps not as well-known. Like with other trusts, a pet trust will contain property — usually in the form of money — which will be managed by a trustee. The trustee will then use the money for the pet’s needs, although he or she may not necessarily be the person designated to provide physical care for the dog,

While the financial portion of pet trusts are extremely important, owners can also provide other valuable instructions. Veterinarian records, relevant medical history, dietary needs or likes and even a pet’s favorite toys or walking trails might all be included within a trust. This information can be invaluable for maintaining a pet’s health in the period following their owner’s death.

Four-legged friends provide love and dedication to their families, and California owners can do more than give a belly rub to repay this kindness. Pet trusts are effective estate planning tools to ensure that beloved pets are cared for even if their owner outlives them. By providing enough money for future expenses, naming responsible trustees and including all relevant information, owners can be sure their animals will continue to be loved and cared for.

Source: aspca.org, “Pet Trust Primer“, Accessed on Jan. 7, 2018

California parents of special needs children often overcome significant barriers to ensure that their kids are well provided and cared for. However, many parents are faced with an uncomfortable question — what happens to my children after I am gone? A special needs trust as part of a comprehensive estate plan can give parents peace of mind.

Trusts are a common estate planning tool, in which someone — the trustee — manages property for the benefit of another — the beneficiary. The property within the trust can range from money to real estate and more. While some trusts have time limits, many are designed and funded to last until the beneficiary’s death. Special needs trusts are an excellent choice for parents concerned about their child’s future care.

Parents can create these unique trusts with the necessary funds for a child’s ongoing care, relevant medical information and instructions for the trustee. Not only will this give parents the ability to continue providing support for their children after death, it can also help protect any government benefits they receive. Many individuals with disabilities that affect their mental capacity receive important government benefits, including Supplemental Security Income, and receiving a lump sum inheritance can disqualify them from SSI, Medicaid and subsidized housing.

Even if California parents have the ability to provide their adult special needs children with necessary services outside of government benefits, many of these individuals are unable to manage their personal finances. A special needs trust ensures that their financial needs will be carefully managed by a trustee. When included in a fully fleshed-out estate plan, these trusts provide an invaluable sense of security to parents and their special needs children.

Source: FindLaw, “Special Needs Trusts FAQ’s“, Accessed on Dec. 17, 2017

Estate planning is often viewed as something that is only useful after death. Trusts in particular are considered good for avoiding probate, but the potential of these powerful estate tools is often underrated. People in California can use trusts to ensure that their assets are protected both in life and afterwards.

Avoiding the time-consuming and fee-heavy probate process is a common use for trusts. Inheritances can be protected from creditors and public scrutiny when safely sheltered and passed on via trusts, and with clearly designated beneficiaries, fighting between heirs is usually avoided. However, professionals who might be vulnerable to litigation — such as doctors — can also benefit from placing important assets in trusts, which will provide valuable protection.

Creating a trust can also minimize the amount of taxes an estate might owe. This is especially important when a person has a life insurance policy that might otherwise be subject to estate tax. Having the death benefits from a life insurance policy pay into a trust with a designated beneficiary can avoid the costly taxes an estate might otherwise have to pay. During life, taxes can also be minimized through revocable living trusts, which control and manage a property on a person’s behalf.

While the importance of estate planning for after death should not be downplayed, it is unwise to ignore the benefits it can provide during life. Trusts are powerful tools that can be used to protect assets, minimize taxes and so much more. These protections are often invaluable to people in California with significant assets that they would like to maintain and protect.

Source: investopedia.com, “5 Benefits of Creating a Trust to Manage Wealth“, Kevin Simpson, Nov. 22, 2017

Most estate plans usually include many different documents. A last will and testament, health care directives and various trusts all come together to create the most comprehensive plan possible, providing guidance for both end-of-life care and how an estate should be handled after a person’s death. Living trusts can be incredibly useful for most people in California, especially during asset distribution.

Living trusts are useful both during a person’s life as well as after his or her death. Certain property can be protected from heavy taxation by transferring it into a living trust, while still allowing an individual to actively manage his or her property. After death, the property can be more easily transferred to heirs by bypassing the probate process.

Transferring property into a living trust can vary. For property that has a title — including real estate, bank accounts, motor vehicles and more — owners must transfer the title into the trust. This means that the trustee’s name will then appear as the owner on the title. Property without titles can also be transferred, and only require that the property rights be handed over to the trustee. Beneficiary accounts — including 401(k)s and life insurance plans — must have the beneficiary changed to the trustee.

Ensuring that a living trust is fully funded even after death is possible. A pour-over will can make sure that all of a person’s assets that have not been assigned to heirs at the time of death will be pushed over into the living trust. However, this will also subjects the living trust to probate, which it would not otherwise have gone through.

Living trusts are just one component of a complete estate plan. When used in addition to wills and other important planning documents, California residents can be sure that their estate and asset distribution will be handled according to their wishes. This is true regardless of a person’s wealth or how many assets they own.

Source: FindLaw, “How Do I Put Money and Other Assets in a Living Trust?“, Oct. 30, 2017

Pet owners in California understand that their four-legged friends are more than just animals — they are family. For how much love most people shower on their beloved pets, many fail to adequately prepare for their future care. A comprehensive estate plan can provide necessary instructions and finances for a pet after his or her owner has passed away.

Pet trusts are one of the most common ways that individuals incorporate their pets into their estate plans. Like other trusts, a trustee who will oversee how the funds are distributed and invested must be named. This is usually not the same person who will actually be taking ownership of the pet.

The pet trust should contain a few important things. Both the trustee and owner should have access to a pet budget that includes the expected cost of food, regular vet visits and other basics. The animal’s medical history should also be included, and many owners also choose to include favorite toys and other pet-specific quirks to help with the transition to a new owner. In some cases, owners also leave some funds to the person taking ownership of the animal.

Having a verbal agreement about who will take care of an animal after the owner has passed might seem like enough, but this provides no legal security for the pet. A person might have the best intentions to take the pet, but discover that they do not have the financial stability to do so or that they have simply changed their mind. California pet owners can best protected their beloved animals by including them in their estate plan.

Source: wilmingtonbiz.com, “What About Bam (Or Fido)?“, Susan Willett, Oct. 16, 2017