Probate-court-hearingMany people think that if they die while they are married, the law dictates everything they own goes directly to their spouse or children. They’re thinking of state rules that apply if someone dies without leaving a will. In legal jargon, this is referred to as dying “intestate.” In California’s case, the specifics will vary depending on the type of property held and the number of children you have, if any. However, the general rule is that your spouse will receive a certain share and the rest will be divided among your children.

Now that may seem like, “So far, so good,” right? Your spouse is getting an inheritance and so are the kids. But wait. Here are some examples of how the intestacy laws can – and do – fail many common family situations.

First off, if both parents of minor-aged children die intestate, then the children are almost always left without a legal guardian. Kids won’t automatically go to a godparent, even if that’s what everyone knew the parents had intended. Instead, a court will appoint someone to be the children’s guardian. In such situations, the judge may not make the decision that you, as a parent, would have made. In fact, sometimes the judge appoints the last person you would have wanted to have custody of your children.

It’s important to note that when it comes to asset division, in most cases, state intestacy law presumes that a family consists of a husband, wife, and their natural-born children. But, that’s not the way all families are structured, and things can become legally complicated for those other families quickly.

According to Wealth Management, one analysis counted 50 different types of family structures in American households – 50! Almost 18% of Americans have been remarried, and through adoption and stepfamilies, millions of children are living in blended families. The laws just haven’t kept up, and absurd results often occur for these types of families if they’ve relied on intestacy as their estate plan. For example, stepchildren that you helped raise (but didn’t legally adopt) may end up with no inheritance, while a soon-to-be-ex-spouse may inherit everything from you.

Of course, with proactive estate planning, you can control your assets and essentially eliminate the risk of these crazy results.

Also, keep in mind that intestacy provides no asset protection or preservation benefits. Without any protections in place, an estate’s assets are vulnerable to creditors, lawsuits, and others who may claim entitlement to the property. These claims would take precedence over the statutory requirements for inheritance. In other words, the family won’t be first in line; they’ll be last. They’d only be able to inherit the scraps and leftovers.

The best way to safeguard and pass along what you’ve worked so hard to build is to do your own estate planning rather than leave things to the laws of intestacy. Protect yourself, your family and your assets by talking to a qualified estate planning attorney today.

Dedicated to empowering your family, building your wealth and securing your legacy,

Marc Garlett 91024

same sex couples 91024Blended families, unmarried couples, assistive reproductive technology (ART) and same-sex marriages all challenge the traditional concept of “family” – at least as it’s been known for legal purposes.

Significant changes in the way we define family culturally means families are often left without the valuable protection they need, in the event of a death or incapacity of a loved one.

As these legal definitions and our personal situations expand, so do the priorities of the modern estate plan.

No longer is estate planning just for the wealthy, who wish to save money on their taxes; it’s for all of us who want to ensure our legal system recognizes and protects the one’s we love.

For example, if you are in a life partnership you may be “married” in the eyes of your community, but not in the eyes of the law. As such, your partner would have no legal right to see you or make decisions on your behalf, if you were hospitalized.

Even if you are married, your spouse or partner would not be able to access your financial accounts without court intervention, without proper legal planning in advance. And, if you are not married, the Court is unlikely to give a non-legal spouse access and would instead appoint a professional fiduciary before allowing your unmarried partner access.

If you are part of a blended family (meaning one or both spouses have children from a prior relationship) or have children who aren’t biologically both yours and your spouse’s (or non-spouse partner), you need to include provisions in your estate plan that clearly define the inheritance rights of all children, biological or not.

It is vitally important that you clearly state any legally established relationships between you, your spouse (or non-spouse partners and loved ones) and your children, biological or otherwise, to ensure your wishes will be carried out in the event of your death or incapacity. If you do not do this, your kids could end up in the care of someone you would never want and taken out of the home of the non-biological parent they are living with.

Whatever your family’s configuration may be, estate planning is your chance to safeguard the people you love and your assets on your own terms and per your own definitions. With the uncertainty of the current political and social climate, developing a carefully crafted plan tailored to your family’s needs is more important now than ever.

Dedicated to empowering your family, building your wealth and delivering your legacy,
Marc Garlett 91024

kelly-clarkson-91024Starting a new family is always exciting and even a bit scary. This natural apprehension can be enhanced when a couple creates a blended family. Bringing children from different parents together presents challenges – and those challenges are multiplied when the couple have new children of their own.

Former American Idol star Kelly Clarkson recently added a new baby to her family. Kelly and her husband, Brandon Blackstock, have been married a little over three years. Kelly and Brandon already had a little girl together and Brandon brought two children into the marriage. So the new baby, Remy, brings the couple’s children to four.

The big risk of conflict for Kelly, Brandon and their children is that if Brandon dies before Kelly and specific and clear provisions are not made for Brandon’s children from his prior marriage, significant conflict could result between Kelly and her step-children that is totally avoidable with advance planning now.

Merging two families into one presents financial issues which can cause significant disruption later if a couple does not deal with them early on.

These significant issues include: differing opinions on prenuptial agreements, different financial goals, and different ideas about how assets should be handled after death. While these are not insurmountable problems, dealing with them upfront can prevent grief and hard feelings later.

A well-drafted prenuptial agreement can prevent later misunderstandings. Some people are concerned that asking for a prenuptial agreement shows they lack confidence in the marriage right out of the box. In truth, however, a prenuptial agreement actually protects both parties and the relationship by surfacing hard issues earlier rather than later.

This is particularly important in blended families, where the partners may have different expectations of how assets will be split if the marriage ends or when one of the partners dies. With skilled counsel (who actually knows how to counsel, not just draft documents), the prenuptial agreement conversation can actually create more closeness.

Newly married couples may also have differences of opinion about budgets and financial goals. These issues are generally magnified in blended family situations. One or both partners may have accumulated assets or debts before their marriage, so it is critical that both consider and discuss their full financial picture including assets, debts, cash flow, budgets, and goals.

It is particularly important that partners in blended families talk about what they want to happen with their assets when they die. Working with a Personal Family Lawyer specifically trained in counseling blended families will help the couple clarify and document their goals so there is not a fight between the survivor’s children and the survivor of the partnership after the death of the first to die.

Proper estate planning is always important, but it can be even more critical in blended families. If you have a blended family or are in the process of merging two families into one, prior planning can help you build a solid foundation for success.

Dedicated to your family’s health, wealth, and happiness,
Marc Garlett 91024

Casey Kasem 91024Casey Kasem, the celebrity radio host who counted down America’s Top 40 popular songs for decades, died on June 15 at the age of 82 and left behind an estimated $80 million fortune. He also left a family feud of biblical proportions between his surviving spouse and his three children from a prior marriage. And this is exactly why I do what I do — to help keep your family connected in love, not conflict.

Kasem married his second wife, Jean, who is 22 years his junior, in 1980. Together, they had one child, Liberty Kasem. Casey also had three children from a prior marriage: Kerri, Mike and Julie. The family was apparently in discord prior to Casey’s death; in mid-May, Mike and Julie filed a missing persons case with the Santa Monica police department saying they could not locate their father. At that time, Kerri was fighting with Jean over control of his care.

After Kasem died, news broke that his body had been taken from the Washington state funeral home and a judge awarded Kerri a temporary restraining order preventing Jean from removing his remains or having him cremated before an autopsy had been performed. Kerri hired a private investigator who says the body has been moved to Montreal, the hometown of a man that Jean has allegedly been involved with for the past two years.

A mess, right? And they haven’t even gotten to the money yet!

A little advance estate planning could have helped prevent this scenario, which is not uncommon when an older man with children from a prior marriage takes a second, significantly younger wife.

A recent WSJ Marketwatch.com article outlined four estate planning tools that could have helped head off this disaster:

Revocable trust. Placing assets in a revocable trust can help protect the trust owner’s wealth transfer wishes, and provides the flexibility to make changes as long as the trust owner has the legal capacity to make those decisions. Upon the owner’s death, the assets are dispersed as outlined in the trust without having to go through probate. A trust is also more difficult to contest than a will.

Life insurance. A life insurance policy can be a good way to provide for a surviving spouse while leaving the rest of the estate to children from a previous marriage, or vice versa.

QTIP trust. A qualified terminal interest property (QTIP) trust is used to set aside assets for a surviving spouse’s benefit while that spouse is alive. After the surviving spouse passes, the remaining assets in the trust are passed on according to the trust terms.

Family meeting. Having a family meeting so that everyone knows their beneficiary status and what will happen to the estate after the estate owner dies is a good way to head off conflict. An estate planning attorney can mediate these meetings, which is usually advisable when there is a potential for conflict.

One of the main goals of my law practice is to help families like yours plan for the safe, successful transfer of wealth to the next generation without conflict or court involvement. Call my offices today to schedule a time for us to sit down and talk about your family estate planning needs so we can identify the best strategies for you and your family to ensure you provide a legacy of love and financial security.