1. Not Creating a Living Trust

The first and most critical mistake is not creating a living trust at all. Many people rely solely on a will or don’t have an estate plan in place, leading their estate through the lengthy and expensive probate process. Probate can take 12 to 18 months and eat up to 20% of the estate’s value. A living trust avoids probate, keeps your affairs private, and ensures a smooth transition of your assets.

 2. Failing to Fund the Trust

Once you have a living trust, it’s essential to fund it. This means transferring ownership of your assets, such as your home, bank accounts, and investments, into the trust. If you don’t fund your trust, it won’t be effective. Imagine packing for a trip but leaving all your belongings outside the suitcase—you need to put your assets into the trust to ensure they are managed and distributed according to your wishes.

 3. Misplacing Beneficiary Designations

Don’t transfer assets with designated beneficiaries, such as IRAs, life insurance policies, and annuities, into the trust. These assets already bypass probate through beneficiary designations, and retitling them to the trust can have adverse tax consequences. However, you can name the trust as a beneficiary if you’re concerned about creditors or other issues.

 4. Poorly Drafted Trusts

A poorly drafted trust can lead to significant problems. Online templates often lack crucial provisions, such as spendthrift clauses, special needs trusts, and detailed legacy planning. A comprehensive trust should protect beneficiaries, provide for special needs without jeopardizing government benefits, and ensure your wishes are carried out effectively.

 5. Naming Beneficiaries as Trustees

Naming your beneficiaries as trustees can lead to conflicts of interest and poor management. If beneficiaries have access to the trust’s assets, they may make decisions that aren’t in line with your wishes. Consider appointing a third-party trustee, such as a trusted advisor or a professional fiduciary, to manage the trust impartially and protect the beneficiaries.

 6. Assuming a Living Trust Provides Asset Protection

A living trust does not provide asset protection during your lifetime. It’s a revocable instrument, meaning creditors can still reach your assets if you face legal or financial issues. For asset protection, consider strategies such as irrevocable trusts, LLCs, or other legal entities designed to shield your assets.

 7. Believing a Living Trust is All You Need

A living trust is just one part of a comprehensive estate plan. You also need a power of attorney for financial and healthcare decisions, HIPAA releases, a pour-over will, and possibly a living will for end-of-life decisions. These documents ensure that your affairs are managed according to your wishes if you become incapacitated and that your assets are properly distributed after your death.

 Final Tips

A living trust is a powerful tool, but only if used correctly. Ensure your trust is properly drafted, funded, and managed to avoid common pitfalls and protect your legacy.

Call Us Today

If you have questions or need assistance with your estate planning, please contact me, Jonathan Alexander, at Alexander Legacy Law. Call (949) 334-7823 to schedule a consultation today. Let’s ensure your estate is secure and your wishes are honored.

 What Happens to Your Things When You’re Not Here?

When we own things like cars or houses, they’re in our name. But if we’re not here, we need a way to make sure they go to the right people. That’s where a living trust comes in handy. It’s like a plan for your things so that they go smoothly to the people you choose, without any big hassles.

 Why Not Just a Will?

Some people think just having a will is enough. But here’s the thing—a will still has to go through a process called probate, where a court decides how to distribute your things. This can take a long time and cost a lot of money. Not fun, right?

 Living Trusts to the Rescue

A living trust is different. You set it up while you’re alive, and it lets you control where your things go after you’re not here. The best part? It skips that whole probate court thing, saving time and money. Plus, it’s private, so only the people you choose know about it.

 What Can You Do With a Living Trust?

• Avoid Court Hassles: Your things go directly to your loved ones without court delays.
• Keep Things Private: Only your chosen trustees and beneficiaries know the details.
• Make Specific Plans: You can say exactly who gets what and when—maybe you want your grandkids to use some money for college or traveling.

 Setting It Up

Creating a living trust might sound big and complicated, but it’s actually something many people can benefit from. It’s not just for the super-rich. It’s about making sure your things are taken care of the way you want.

Ready to Take Control of Your Future?

Setting up a living trust is a smart way to protect your things and make sure they go to the right people, the way you want. If you’re ready to take the next step or just want to learn more, give me a call. I’m here to help make the process clear and straightforward.

Contact Jonathan Alexander at (949) 334-7823 for a consultation and start securing your legacy today.

Adding Kids to Your Home Title

Many think adding their children to their home title is a smart move to bypass the complicated probate process after passing away. It seems like a simple solution: just add your child as a co-owner, and they’ll automatically inherit the property, right? Not so fast—there are several important factors to consider.

The Tax Implications

When you add your child to your home title, you’re essentially giving them a portion of your home. This can have big tax implications, like gift taxes if the value exceeds a certain amount (currently $18,000 in 2024). Plus, you might be giving up valuable tax benefits that come into play when you pass away, such as the “step-up in basis.” This rule allows the property value to be recalculated at its current market value upon inheritance, potentially saving on capital gains tax. By adding a child to the title now, you might inadvertently create a larger tax bill for them later.

Potential Legal and Financial Risks

Adding a child to your home title doesn’t just involve taxes; it could open up a can of worms in other areas of your life, too. For example, if your child has financial troubles, undergoes a divorce, or encounters legal issues, your home could unexpectedly become part of those disputes. Additionally, if your home still has a mortgage, transferring part ownership could trigger a “due on sale” clause, complicating matters further.

The Alternative: A Living Trust

So, what’s a better way to ensure your home passes to your child without these headaches? Consider setting up a living trust. This legal tool allows you to transfer ownership of your home into a trust, which you control during your lifetime. Upon your passing, the home can be passed on to your beneficiaries without going through probate, avoiding many of the issues associated with direct gifting.

Real-Life Consequences

To drive the point home, consider this real-life scenario: a person gifts their commercial property to their children during their lifetime to avoid estate taxes. However, this well-intentioned act resulted in a huge tax burden for the children when they sold the property because they inherited the parent’s low tax basis. Had the parent simply held onto the property and allowed it to transfer upon their passing, the children could have benefited from a stepped-up tax basis, significantly reducing their tax liability.

Final Thoughts

While adding your child to your home title might seem like a quick fix to avoid probate, it’s crucial to consider the long-term implications. Taxes, legal risks, and loss of control are just a few potential drawbacks. Before making any decisions, it’s wise to consult with a professional who can help you navigate the best path for your family’s unique situation.

Ready to explore safer, more effective ways to pass on your home to your children? Let’s discuss how setting up a living trust or other estate planning strategies can offer peace of mind for you and your loved ones. Contact me, Jonathan Alexander, at (949) 334-7823 for a personalized consultation. Together, we can ensure your estate planning aligns with your wishes and protects your family’s future.

Imagine the chaos and uncertainty that can ensue if a business owner suddenly becomes incapacitated or unexpectedly passes away. Without a clear plan, the business may be thrown into disarray, leaving employees, partners, and loved ones unsure of what steps to take. The potential for disagreements, legal battles, and even the dissolution of the business looms large, undoing years of hard work and jeopardizing the legacy the owner had envisioned.

At the Law Office of Jonathan D. Alexander, Esq., we understand the importance of a comprehensive business succession plan. We specialize in helping California business owners navigate this crucial phase, ensuring a smooth transition and protecting their legacy. With our guidance, you can establish a plan that addresses all key aspects of business succession.

Our experienced team will work closely with you to understand your unique circumstances, including your goals, vision, and the dynamics of your business. We will create a tailored succession plan that outlines the steps to be taken in the event of retirement, incapacity, or death. This plan will provide clarity and guidance for the future, ensuring that your business continues to thrive and fulfill its potential.

By implementing a business succession plan, you can ensure continuity by designating a successor who will assume leadership and steer the company forward. This minimizes disruptions and maintains stability during the transition process. Additionally, a well-crafted plan reduces the likelihood of conflicts among family members, partners, or key stakeholders, preserving relationships and preventing costly legal battles. It also safeguards the legacy you have built over the years, ensuring that your business remains aligned with your values, goals, and vision.

Don’t leave the future of your business to chance. Contact Mr. Jonathan D. Alexander, Esq., at (949) 334-7823 for a confidential consultation. Our firm has the expertise to guide you through the complexities of business succession planning. Together, we can create a comprehensive plan that protects your business, your loved ones, and the future you have worked so hard to build.

Secure the future of your business with a robust succession plan. Take the first step today by calling the Law Office of Jonathan D. Alexander, Esq.

The Seeds of Discord

Imagine the scenario: You have worked tirelessly to accumulate assets and create a legacy for your children. However, without a well-crafted estate plan, your intentions may be lost amidst disagreements and hard feelings. Sibling rivalries, misunderstandings, and differing expectations can sow the seeds of discord, turning your cherished legacy into a source of bitterness. The stakes are high, and it is crucial to take proactive steps to protect your family’s unity.

The Power of Communication

Open and honest communication is the cornerstone of conflict prevention. By engaging in heartfelt conversations with your children and loved ones, you can understand their hopes, aspirations, and concerns. Expressing your intentions and thoughtfully explaining your estate plan can help foster understanding and eliminate misconceptions. With the guidance of an experienced estate planning attorney, such as myself, you can navigate these discussions with ease and clarity.

Tailoring Your Estate Plan

One of the primary benefits of estate planning is the ability to customize your plan to suit the unique needs and dynamics of your family. By working closely with an experienced attorney, we can design a comprehensive estate plan that addresses potential conflicts head-on. Strategies such as equal distribution, specific bequests, or setting up a family trust can help prevent disputes and ensure fairness among your children.

Choosing the Right Executor and Trustee

The selection of an executor and trustee is a critical decision that can significantly impact the smooth administration of your estate. These individuals should possess the skills, integrity, and impartiality necessary to carry out your wishes without bias. By carefully choosing trustworthy individuals or professional fiduciaries, you can minimize the potential for conflicts of interest and ensure the efficient execution of your estate plan.

Providing Clear Instructions

Ambiguity in estate planning documents can be a breeding ground for disputes. It is essential to provide clear and unambiguous instructions regarding the distribution of assets, beneficiaries’ responsibilities, and any specific conditions or requirements. By leaving no room for interpretation, you can eliminate confusion and reduce the likelihood of conflicts arising among your children.

Updating Your Estate Plan

Life is ever-changing, and so should your estate plan. As your family dynamics evolve, it is crucial to review and update your plan accordingly. Births, deaths, marriages, divorces, or changes in financial circumstances may necessitate modifications to your estate plan. Regular consultations with an experienced estate planning attorney will ensure that your plan remains up-to-date and aligned with your family’s current needs.

The Role of Mediation

In some cases, despite your best efforts, conflicts may still arise. Mediation can provide an effective resolution method that promotes open dialogue and compromise. With the assistance of a neutral mediator, you and your children can work through disagreements and find mutually agreeable solutions. The goal is to preserve relationships and reach a resolution that respects everyone’s interests and desires.

Preserving Unity and Protecting Legacies

The significance of preserving family unity cannot be overstated. By embracing the power of estate planning, you can prevent conflicts and hard feelings that can tear families apart. As an Orange County estate planning attorney with two decades of legal experience, I am dedicated to helping you protect your loved ones and your legacy. Contact me, Jonathan Alexander, at (949) 334-7823, to schedule a personalized appointment. Together, let’s create an estate plan that fosters family harmony, safeguards your assets, and secures a bright future for your children.

Remember, a comprehensive estate plan is not merely a legal document—it is a testament to your love, care, and dedication to your family’s well-being.

The Importance of Naming a Guardian:

One of the most critical decisions you can make as a parent is naming a guardian for your children. This decision ensures that in the event something unexpected happens to you and your spouse, your children will be cared for by someone you trust. Without a named guardian, the courts will make this decision for you, and the outcome may not align with your wishes or what is best for your children.
When selecting a guardian, it’s essential to consider various factors. Think about who shares your values, parenting style, and overall approach to raising children. You want someone who will provide a loving and nurturing environment, maintain stability in their lives, and honor your legacy. By working closely together, we will identify the ideal guardian for your children, giving you peace of mind knowing they will be in good hands.

The Power of a Revocable Living Trust:

Probate can be a burdensome and lengthy process that can significantly impact your loved ones. By establishing a revocable living trust, you can bypass probate and ensure a smooth transfer of your assets to your children. This legal tool provides numerous benefits, including privacy, asset protection, and flexibility during your lifetime.
With a revocable living trust, you remain in control of your assets. You have the ability to manage, modify, or revoke the trust as circumstances change. You can designate your children as beneficiaries, outlining how and when they will receive their inheritance. Additionally, a trust allows for the appointment of a successor trustee, who can step in and manage the trust on behalf of your children if you become incapacitated or pass away. This ensures a seamless transition of assets, minimizing the potential for disputes or delays.

During our consultations, I will guide you through the process of establishing a revocable living trust that reflects your unique wishes and goals. By implementing this powerful estate planning tool, you can protect your assets, maintain privacy, and provide your children with a solid financial foundation.

Crafting a Children’s Emergency Plan:

Life is unpredictable, and emergencies can happen when we least expect them. As parents, it is our responsibility to plan for such circumstances and ensure the safety and well-being of our children. That’s where a Children’s Emergency Plan becomes invaluable.
A comprehensive Children’s Emergency Plan covers a range of critical aspects to guarantee your children’s immediate needs are met in times of crisis. Temporary guardianship is a central component, allowing you to designate a trusted individual who will step in and provide care for your children in your absence. This ensures they will be in familiar and loving hands during challenging times.

Additionally, medical decision-making is addressed in the emergency plan. By designating a healthcare proxy, you empower someone to make medical decisions for your children if you are unable to do so. This ensures that their medical needs will be addressed promptly and in line with your values and preferences.

Lastly, the Children’s Emergency Plan encompasses access to important documents. It includes a comprehensive list of vital information, such as medical records, insurance policies, and contact information for doctors, schools, and other important individuals. By organizing these details in advance, you streamline the process for caregivers, ensuring they have everything they need to care for your children effectively.

During our consultations, I will assist you in crafting a thorough and personalized Children’s Emergency Plan. Together, we will address every aspect to ensure your children’s safety and well-being during unexpected situations.

As a loving parent, protecting your children’s future is a top priority. Estate planning empowers you to take control and make critical decisions that will shape their lives. By naming a guardian, establishing a revocable living trust, and implementing a Children’s Emergency Plan, you provide your loved ones with the security, stability, and peace of mind they deserve.

Don’t delay taking action. Schedule a personalized appointment with me, Jonathan Alexander, by calling (949) 334-7823. Let’s work together to create a comprehensive estate plan that safeguards your children’s future, provides for their financial well-being, and ensures their care during challenging times. With a well-crafted estate plan, you can leave a lasting legacy of love and protection for generations to come.

One bright summer morning, they woke to a thought that had been quietly creeping into their minds – what would happen to Jack and Emily if they were no longer around? It was an uncomfortable realization, and they knew it was an essential question they couldn’t ignore. This story is a wake-up call to you, dear reader, a reflection on the importance of providing for minor children in an estate plan.

Recognizing the Need

As Robert and Linda pondered the future, they recognized a missing piece in their grand scheme – a comprehensive estate plan. Having been responsible parents, they understood that providing for their children was not only about the present but also about ensuring a secured future, irrespective of life’s unforeseen turns.

An estate plan is not just about how your assets will be distributed after your death. It is a broader and more proactive approach to protect and provide for your loved ones, especially minor children.

Setting the Scene – Understanding an Estate Plan

As Robert and Linda began to delve into the world of estate planning, they encountered numerous terms, concepts, and legal jargon that initially seemed overwhelming. Wills, trusts, guardianship – it was a whole new world. However, they were resolute to not let this deter them from their goal of securing their children’s future.

A Will is a document that spells out the distribution of your assets upon your death. It’s a basic but crucial component of an estate plan. However, when it comes to minor children, a will alone is not sufficient.

Trusts, on the other hand, provide a flexible and robust way to manage and distribute assets, especially for minors. A trust can be set up to provide financial security for your children at predetermined ages or milestones. For example, a portion of the inheritance could be held until the child reaches a specific age, or funds could be released for their education or wedding.

The Unexpected Twist – Guardianship

In their journey, Robert and Linda came across an aspect they hadn’t thought of – guardianship. Guardianship is appointing someone trustworthy to take care of your minor children in your absence. This person will have the authority and responsibility to make decisions about the child’s upbringing, education, healthcare, and more.

Choosing a guardian is not a decision to be taken lightly, and it brought about much discussion and contemplation for Robert and Linda. They understood that this decision could potentially shape their children’s lives.

The Happy Ending – A Comprehensive Estate Plan

Eventually, Robert and Linda, with the help of a skilled estate planning attorney, created a comprehensive estate plan. It included a Will, a Trust, and a detailed Guardianship plan. This plan would ensure that, come what may, their children would always be provided for and cared for in the best possible manner.

Robert and Linda’s story may be fictional, but the lessons it carries are very real. As parents, we want to protect our children from the world’s uncertainties. A well-crafted estate plan is the tool to do just that.

The journey to estate planning might seem daunting, filled with complex terms and difficult decisions. However, the peace of mind it brings is worth every step.

Your Own Story

Just like Robert and Linda, you have the power to write your own story and to secure your children’s future. You have the chance to take control of what happens to your wealth and your minor children after you’re gone. As difficult as these questions might be to consider, addressing them now can ensure your children are protected and cared for, even in your absence.

Estate planning might initially seem like a complex puzzle, but with the right guidance, it becomes an empowering journey. In your narrative, an experienced estate planning attorney like myself can play the role of a mentor, guiding you through the complexities and nuances, enabling you to make informed decisions that best suit your family’s needs.

Having two decades of legal experience, I, Jonathan Alexander, have helped many individuals, families, and business owners in Orange County create robust estate plans. I am passionate about helping you protect what you hold dear, ensuring your peace of mind.

I invite you to write the next chapter of your life story. Give your children the gift of security and certainty in an uncertain world. Take the first step towards crafting a comprehensive estate plan.

No matter where you are on your estate planning journey, whether you’re just starting or looking to update an existing plan, I’m here to help. If Robert and Linda’s story has resonated with you and you’re ready to embark on your estate planning journey, I encourage you to reach out.

Call me today at (949) 334-7823 to schedule an appointment. Let’s secure the future for your minor children together.

Your children’s future is your story yet to be told. Let’s make it a story of security, provision, and unwavering love. Because estate planning is more than just asset distribution – it’s about love, care, and ensuring your legacy lives on through those you cherish most.

Remember, every family’s story is unique. The estate planning process is not one-size-fits-all. You have specific goals, needs, and circumstances that should be considered and incorporated into your plan. As an experienced estate planning attorney, I understand this. I’m ready to help you navigate the process and make the best decisions for your family’s future. Call today.

Such a thought may be uncomfortable, but the reality is, life is a mixture of predictability and surprise. A comprehensive estate plan is your safeguard against such twists and turns, crafting a resilient financial future for your family and preserving your hard-earned assets.

Hello, I’m Jonathan Alexander, a seasoned attorney with a two-decade track record in estate planning. My career has been devoted to helping families, just like yours, navigate the intricate maze of estate planning. My mission? To ensure that your loved ones are well-taken care of and your wealth is protected, no matter what tomorrow brings.

Why Estate Planning?

Estate planning is often perceived as a practice reserved for the affluent or the elderly, but this is a common misconception. If you have assets, children, or simply wish to maintain control over your affairs after your passing, you need an estate plan.

Here are the benefits of estate planning:

• It lays a solid financial foundation for your family
• It shields your assets from unexpected creditors
• It averts family disputes and confusion
• It minimizes taxes
• It facilitates a smooth transition of your assets
• It ensures that your healthcare and personal care wishes are honored

Harnessing the Power of Revocable Living Trusts

A crucial element of any comprehensive estate plan is the Revocable Living Trust. This trust provides a private, efficient, and cost-effective way to transfer assets to your loved ones, bypassing the hassle and expense of probate.

Think of a revocable living trust as a treasure chest. You (the grantor) place your wealth into this chest and appoint a reliable person (the trustee) to manage it. The trustee holds legal title to your assets and manages them for your chosen beneficiaries.

The versatility of a revocable living trust is its strength. As its name indicates, it can be adjusted, altered, or entirely revoked during your lifetime. As your circumstances shift, your trust can adapt accordingly.

Children’s Emergency Plan: A Parent’s Essential

Our top priority as parents is the welfare of our children. A Children’s Emergency Plan, an essential yet often overlooked component of an estate plan, ensures your children are never in the hands of Child Protective Services or in the custody of someone unsuitable.

With a Children’s Emergency Plan, you can:

• Appoint short-term guardians who can promptly care for your children if you are temporarily unable to do so.
• Offer thorough instructions to your chosen guardians, including medical directives, educational wishes, and moral and religious guidance.
• Prevent conflicts or confusion among family members and friends regarding who you wish to care for your children.

The Jonathan Alexander Edge

Creating a comprehensive estate plan is more than a mere transaction; it’s a journey. It involves delicate conversations and pivotal decisions that require legal expertise and a high level of empathy, patience, and understanding.

I’ve guided individuals, families, and businesses through this journey, assisting them in protecting their assets, caring for their loved ones, and shielding their future.

Choosing me as your estate planning attorney means opting for meticulous, personalized service, where every detail of your estate plan is tailored to mirror your unique circumstances, values, and aspirations.

Embrace the Journey

The thought of embarking on your estate planning journey might seem intimidating, but it needn’t be. With the right expertise and careful guidance, this process can be fulfilling and empowering.

I am here to support you at every step, from understanding your current situation and identifying your goals, to crafting and implementing a bespoke estate plan that fulfills your needs and those of your loved ones.

And remember, estate planning isn’t a ‘set-it-and-forget-it’ operation. As your life evolves, so should your estate plan. Major life changes, such as the birth of a child, a marriage, a divorce, or significant financial shifts, call for a review of your estate plan. This is why I focus on building lasting relationships with my clients, offering ongoing advice and support as your life, family, and wealth grow and change.

Your life story is a tapestry woven with threads of hard work, resilience, and love for your family. It’s a tale of building assets and forging dreams. Estate planning empowers you to shape the concluding chapters of this story on your terms. It guarantees that your narrative doesn’t end abruptly or unexpectedly, leaving your loved ones in disarray.

I encourage you to picture the legacy you wish to leave. Imagine the tranquillity that comes with knowing that regardless of what tomorrow brings, your loved ones will be provided for, your assets will be protected, and your wishes will be respected. Call (949) 334-7823 to arrange an appointment. It’s time to turn your dreams into plans and shape the future you’ve always imagined for your family.

Your story deserves a fulfilling ending, and together, we can craft it.

The keystone to a resilient future isn’t luck or chance; it’s thoughtful planning. So let’s begin planning today because every story, particularly yours, deserves a fitting closure. And in this instance, your perfect ending is a resilient, protected future for you and your loved ones, achieved through comprehensive and careful estate planning.

When you step into my office, you’re not just a client; you’re family. Together, we’ll traverse the intricate yet rewarding journey of estate planning. And at the end of it, you’ll leave with more than just a comprehensive estate plan; you’ll depart with peace of mind, knowing that you’ve done your utmost to safeguard your family’s future.

Don’t let uncertainty dictate the fate of your hard-earned assets and the wellbeing of your loved ones. Let’s collaborate to craft a resilient and prosperous future, one where your story continues to inspire long after you’re gone. After all, isn’t that the legacy we all wish to leave behind?

So don’t delay another day. Call (949) 334-7823 today and let’s begin crafting your personalized estate plan today. Your family’s resilient future awaits.

As a single parent, you constantly juggle numerous responsibilities while ensuring your children’s future is bright and secure. I understand that your primary goal is to safeguard their future. I’m Jonathan Alexander, an experienced Orange County Estate Planning Attorney, with a passion for helping individuals, families, and business owners protect their assets and loved ones. Let me guide you through how estate planning, including the creation of a revocable living trust and a children’s emergency plan, can offer comprehensive protection for your children.

Understanding the Value of Estate Planning: A Story of a Caring Single Parent

Let me share a story about Lisa, a hardworking single mother I had the pleasure of assisting. Lisa built a thriving business and accumulated substantial assets, all to ensure her children’s future financial security. But she was concerned about the fate of her children and her estate if she were suddenly unable to care for them. She wanted certainty—assurance that her children would be taken care of, and her assets would be smoothly transitioned without the prospect of lengthy court procedures or family disputes.

Implementing an Effective Estate Plan

I helped Lisa understand how a revocable living trust and a children’s emergency plan could provide the peace of mind she was seeking.

Revocable Living Trust: Protection and Control Over Your Assets

A revocable living trust, I explained, would allow Lisa to remain in control of her assets during her lifetime and specify how they would be managed or distributed upon her passing or incapacitation. The beauty of a revocable living trust is that it avoids probate, which is often time-consuming and expensive. It also keeps the details of her estate private.

If Lisa were to become incapacitated, her designated successor trustee could step in to manage her assets, thus avoiding court-supervised conservatorship. And since it’s “revocable,” she can modify it anytime, giving her the flexibility she needs.

Children’s Emergency Plan: Providing Immediate Safety for Your Children

I also emphasized the importance of a children’s emergency plan. In case Lisa were to be involved in an accident or become suddenly incapacitated, this plan would designate a trusted person to have immediate temporary authority over her children. This safeguard would ensure that her children would never end up in the hands of Child Protective Services or become a point of contention within the family.

Achieving Peace of Mind

With my guidance, Lisa was able to create a comprehensive estate plan. Today, she rests easier, knowing her children’s future and her hard-earned assets are secure. She’s confident that her legacy will live on, and her children will have the stability she worked so hard to provide.

How I Can Help

Like Lisa, you’re striving to secure your children’s future. I can help you navigate the complexities of estate planning, creating a plan that suits your unique situation. This way, you can have peace of mind knowing your children’s future is secure, even when life throws unexpected curveballs.

An Act of Love and Legacy

To me, estate planning is a profound act of love. It’s a way for you to tell your children, “I’ve planned for your future because I care.” Estate planning allows you to pass on more than just your material assets—it lets you transmit your values, lessons, and life experiences to your children.

Reach Out Today

Setting up a comprehensive estate plan might seem daunting, but you don’t need to face it alone. I am here to guide you through the process, ensuring your children’s future is secure, and your wishes are honored. Call me today at (949) 334-7823 to schedule an appointment. Let’s take that vital step towards securing your children’s future.

Estate planning is truly one of the most significant gifts you can give to your children. It ensures their financial security and serves as a beacon of your enduring love and care for them, regardless of life’s unexpected twists and turns.

As you embark on this journey, remember that it’s not just about financial wealth transfer—it’s about preserving and passing on your legacy. Your estate plan can include personal letters to your children, communicating your hopes, dreams, and values. These pieces of you will serve as lifelong reminders and guidance long after you’re gone.

Let’s Secure Your Children’s Future

I have helped single parents like you secure their children’s futures. I am committed to working closely with you, crafting an estate plan that ensures your wishes are met and your children are protected.

The prospect of no longer being around to guide and provide for your children is daunting, and it’s something no parent wants to think about. However, it’s essential to plan ahead for these unforeseen circumstances. By doing so, you ensure that your love continues to shield your children, no matter what the future holds.

Take the first step today. Call me today at (949) 334-7823 to schedule an appointment. Let me help you with this crucial task of creating a comprehensive estate plan that guarantees the future you’ve always desired for your children.

Remember, estate planning is more than just a financial decision—it’s a decision about your legacy. As a single parent, you’ve always been there for your children. By working with me, you can ensure you will continue to be there for them, no matter what life brings.

With my help, you can secure your legacy, protect your children, and achieve the peace of mind you deserve. Your children’s future is worth it, and together, we can make sure it’s as bright as they deserve.

Meet the Johnsons, a young family with two children, Ethan and Ava. They love their kids more than anything in the world and would do anything to protect them. But one day, tragedy struck. Emily and David Johnson were driving home from a family vacation when a drunk driver hit their car. Emily and David were rushed to the hospital with serious injuries, leaving Ethan and Ava alone and scared.

Without a children’s emergency plan in place, the Johnsons had no idea who would take care of their children in their absence. They had never appointed guardians, and their family members lived out of state. Ethan and Ava were placed in foster care, adding to their trauma and emotional distress.

This is a story that no parent wants to imagine, but unfortunately, it’s a reality for many families who haven’t taken the necessary steps to protect their children in the event of an emergency. That’s why it’s crucial to have a comprehensive estate plan that includes a children’s emergency plan.

The fear of not being able to care for your children is terrifying, yet it’s a reality that many parents face. Accidents, illnesses, and emergencies can happen when we least expect them, leaving our children vulnerable and alone. Without a plan in place, your children may be placed in foster care or with relatives who may not be equipped to handle their needs.

But there is hope. At the Law Office of Jonathan Alexander, we understand the fears and concerns that parents have when it comes to protecting their children. We offer comprehensive estate planning services that include a children’s emergency plan, providing parents with the peace of mind that comes with knowing their children will be taken care of in their absence.

The children’s emergency plan is a critical part of every family’s estate plan, especially for parents with young children. It identifies guardians who will serve as temporary custodians in the event of parental incapacity, such as in the case of an accident or illness. The emergency children’s plan ensures that guardians are appointed and temporary custodians are authorized to care for children until guardians or parents can take custody.

But a children’s emergency plan is just one part of a comprehensive estate plan. At the Law Office of Jonathan Alexander, we take the time to get to know each client and their unique circumstances. We understand that every family is different, and we work closely with our clients to create a comprehensive estate plan that meets their specific needs and concerns.

Let’s continue with the Johnsons’ story to illustrate the importance of estate planning. After their accident, Emily and David were unable to make financial and healthcare decisions for themselves. They had no powers of attorney in place, leaving their family members unsure of what to do. As a result, their medical bills piled up, and their finances were in disarray.

Now let’s assume that the Johnson’s reached out to the Law Office of Jonathan Alexander for help. The Johnsons created a comprehensive estate plan that included powers of attorney, advance healthcare directives, and wills and trusts. They appointed guardians for their children, identified temporary custodians, and ensured that their assets would be distributed according to their wishes after their death.

Our estate planning services are tailored to meet the specific needs of families with young children, and we take the time to explain the legal process and answer any questions you may have. We understand that estate planning can be a sensitive and emotional topic, and we strive to create a welcoming and supportive environment.

But estate planning isn’t just about protecting your children in the event of an emergency. It’s also about securing their future and providing for them even after you’re gone. With a comprehensive estate plan in place, you can:

• Ensure that your assets are distributed according to your wishes after your death, rather than being subject to probate court or state laws.
• Minimize taxes and other expenses, allowing more of your assets to go to your loved ones.
• Protect your assets from creditors, lawsuits, and other financial risks.
• Provide for your loved ones’ long-term financial security through the use of trusts and other legal strategies.
• Pass on your values and legacy to future generations, ensuring that your family’s story continues to be told for years to come.

At the Law Office of Jonathan Alexander, we have experience helping families just like yours create comprehensive estate plans that protect their loved ones and their legacies. We understand that estate planning can be overwhelming, which is why we take the time to listen to your concerns, answer your questions, and guide you through the process step by step.

Don’t wait until it’s too late to protect your children and secure their future. Contact the Law Office of Jonathan Alexander today at (949) 334-7823 to schedule a confidential consultation and learn more about our estate planning services. Together, we can create a plan that gives you the peace of mind you need to focus on what matters most: your family.

What is the Required Mental Capacity to Create a Will?

Testamentary capacity for a will under California law means that you must:   

• Understand the nature of the testamentary act (understand that you are making a will).  
•  Understand and recollect the nature and situation of your property.
• Remember and understand your living descendants (children), spouse, and parents, and those interests are affected by the will.
• Not suffer from a mental health disorder with symptoms including delusions or hallucinations, which delusions or hallucinations result in you devising (gifting) property in a way that except for the delusions or hallucinations you would not have done.

See Probate Code Section 6100.5.   

In sum, you must understand that you are making will, remember what you own, who you are related to, and you must not suffer from a mental illness that might affect how you would pass your property to your relatives or others. 

What is the Required Mental Capacity to Create a Trust?

To create a trust a person must understand:

• The rights, duties, and responsibilities created or affected by the decision;
• The probable consequences for them and others affected by signing the document; and
• The risks, benefits and alternatives to what is being done. 

See Probate Code Sections 810-812.  The individual creating the trust must understand the mechanics of the trust that he or she is creating.  This is higher level of understanding and higher standard of capacity than that required for creating a will.

California law does; however, presumes that individuals are capable of making decisions and signing documents like wills, trusts, advance health care directives and durable powers of attorney.  The probate code includes a rebuttable presumption that an individual has the required capacity to make decisions and to be responsible for their actions or decisions.   

What if a Will or Trust is Created by Someone Without Capacity?

If a trust or will is created by an individual without the required mental capacity, California law deems it unenforceable.   As mentioned above, the law presumes that a will or trust is valid upon creation. If a will or trust is challenged, the person contesting the will or trust must present evidence that affirmatively proves lack of capacity. 

Lack of capacity is fact and case specific.  An individual may be diagnosed with dementia or other cognitive impairment but still have the required mental capacity to create a trust or will.  See California Probate Code Section 811(d) states that states that these individuals may have the requisite capacity. 

• The mere diagnosis of a mental or physical disorder shall not be sufficient in and of itself to support a determination that a person is of unsound mind or lacks the capacity to do a certain act.”

There must be a correlation between the deficit and the mental capacity required for the specific action that the patient wants to take.

Where Steps Should I Take to Establish an Estate Before Incapacity?

You should speak with a qualified estate planning attorney.  Call the Law office of Jonathan Alexander at (949) 334-7823 today.  Mr. Alexander has 20 years of legal experience and can help you create a plan that avoids probate and protects you, your family, and your legacy.

For more information about Mr. Alexander, his practice, and his estate planning philosophy, please visit his bio linked here. 

The Grantor and non-charitable beneficiaries who receive income before the remainder passes to charitable beneficiaries are referred to as “Lead Beneficiaries.”   

A CRT is referred to as a “split-interest” trust because it allows the Grantor to donate to charity and save on taxes while gifting money to other beneficiaries.  The Grantor receives a partial tax deduction based on the remaining trust assets received by the charitable beneficiaries.    

How Long is the Period of Time that the Grantor and/or Beneficiaries Receive an Income Stream?

A Grantor can arrange for himself and/or other beneficiaries to receive a potential income stream from the CRT for a period of time not to exceed 20 years or the life of one or more non-charitable beneficiaries. The remaining assets then pass to the named charitable beneficiaries.   

There is also an actuarial value component.  The remainder that passes to the charitable beneficiaries must be at least 10% of the initial CRT value established at the time of funding.  The 10% test creates a minimum amount or floor that must remain in trust for the benefit of the charitable beneficiary. 

If the Lead Beneficiary very young, the CRT may fail the 10% test.  The 10% test depends on three elements:

1. The term of the CRT or for lifetime CRTs, the life expectancy of the Lead Beneficiary.
2. The amount of the annual payment.
3. The Internal Revenue Code 7520 rate that is defined as 120% of the federal midterm interest rate (which in November 2022 is 4.80%). 

In a high interest rate environment, a CRT strategy becomes more favorable because higher rates can reduce the actuarial value of the taxable gift. If the trust does not meet these requirements, it can be reformed to meet legal requirements.

What are the Two Types of CRTs?

There are two types of CRTs.

1. A Charitable Remainder Annuity Trust (“CRAT”) is a type of CRT where a fixed annuity payment is distributed annually and no additional contributions to the trust are allowed.
2. A Charitable Remainder Unitrust (“CRUT”) is a type of CRT that distributes a fixed percentage of the assets to the beneficiaries based on the trust balance, which is updated or “revalued” each year.  With a CRUT, the Grantor can make additional contributions. 

For both the CRAT and the CRUT:

• The Grantor contributes an irrevocable transfer of money or property. 
• The Grantor and/or his named non-charitable beneficiaries then receive a portion of the income.
• The amount of the trust assets that must be distributed whether as fixed payment (CRAT) or fixed percentage (CRUT), must be not less than five percent of the value of the trust assets and must not exceed 50 percent of the value.
• The payments must be made at least annually (more frequently is allowed).
• When the CRT expires, the remaining assets pass to charitable beneficiaries.

How Does a CRT Work?

A Grantor transfers a highly appreciated asset to a CRT.  When the CRT sells the asset, the CRT is not subject to capital gains tax, which preserves the full value of the asset within the trust.  The proceeds of the highly appreciated asset sale may then be invested in a diversified portfolio.  The capital gains taxes are eventually paid but are spread out and payable when the Lead Beneficiaries receive income from the CRT.  As mentioned above, the Grantor also receives an immediate tax deduction.     

Where Can I Get More Information?

To create a charitable remainder trust, you should consult with a qualified California estate planning attorney.  Call the Law Office of Jonathan Alexander at (949) 334-7823 to set up your CRT today. 

To learn more about Mr. Alexander, his practice, and his estate planning philosophy click on the link to his bio here. 

How Does It Work?

In a nutshell, here’s how a SLAT operates.  

1. The grantor spouse transfers ownership of his separate property into the trust and reports the gift on a gift tax return.  SLATs may only be funded with separate property. Because California is a community property state it is wise to draft a partition agreement to ensure that the property being transferred into the SLAT is indeed separate property. 
2. Once the property is transferred to the trust (referred to as “funding” the trust), the beneficiary spouse may request distributions of income or principal from the SLAT that may also indirectly benefit the grantor spouse. 
3. When the SLAT is terminated (typically when the beneficiary spouse dies) the assets that are still in the trust pass to the remainder beneficiaries as described in the trust (usually children and or grandchildren).

What Kind of Assets can be funded/transferred into a SLAT?

A SLAT may be funded with several different types of assets if they are the Grantor’s separate property.  It makes sense to transfer assets that will go up to in value.  If you were to transfer a depreciating asset into the trust, you would waste part of your individual lifetime gift and estate tax exemption.  If you transfer $2 million of Apple stock to your SLAT and it goes up in value to $20 million, you will have only used $2 million of your exemption and the $18 million dollars of increased value is outside of your taxable estate.

What are the Risks?

To truly maximize the benefits afforded by SLATs, a couple would each create a SLAT for the benefit of the other.  The IRS; however, may interpret two trusts as constructively related under the Reciprocal Trust Doctrine.  Applying this doctrine, the IRS may conclude that because two SLATs are reciprocal and disregard them by including the SLAT assets in the grantor’s estate (destroying the entire purpose of the SLAT).

To avoid the reciprocal trust doctrine, consult with a qualified attorney.  Your attorney will likely counsel you to, among other things, create the trusts and transfer assets to them at different times, use different trust language, and provide beneficiaries alternative rights of withdrawal.

Where Can I Get More Information?    

Drafting a spousal lifetime access trust is a complicated endeavor and will require the assistance of a qualified California estate planning attorney.  For more information about how to properly create a SLAT that maximizes your individual lifetime gift and estate tax exemption call the Law Office of Jonathan Alexander at (949) 334-7823. 

To learn more about Mr. Alexander, his practice, and his estate planning philosophy please visit his bio linked here. 

How Does it Work?

When the Grantor or Grantors (e.g., a husband and wife) create their estate plan they elect to use a QTIP at the death of the first spouse.  The Grantors decide the rules for the QTIP. There are some design limitations. The QTIP must provide that the surviving spouse receives all the income from the QTIP during her life. If it does, the QTIP trust will qualify for the marital deduction and no estate tax is due.  Under federal law, spouses can transfer an unlimited amount of property and/or money to each other at any time free from taxation. This is known as the unlimited marital deduction.  Only the beneficiary spouse can be a beneficiary of the QTIP trust

The QTIP can also be structured to provide the surviving spouse access to principal.  Once the surviving spouse dies, the payments from the QTIP stop and the assets are then distributed to the Grantors’ beneficiaries as explained in their estate plan. 

What are the Similarities and Differences between a QTIP and Marital Trust?

A marital trust is like a QTIP in that they are both:

• Irrevocable trusts.
• They only name the spouse as beneficiary.
• They can qualify for the unlimited marital deduction.
• Defer taxes until surviving spouse’s death.  

The QTIP is different from the marital trust in that:

• The QTIP does not provide control to the surviving spouse (the Marital Trust does).
• The QTIP provides access to income and may provide access to principal (in a Marital Trust the surviving spouse controls how assets are distributed).

When Would I Need One?

If you are concerned about how your assets are distributed after your spouse dies, you may want to consider a QTIP.  This especially relevant with blended families. 

What are the Drawbacks?

A QTIP may create conflicts between remainder beneficiaries (typically, the Grantors’ children) and the surviving spouse.  The crux of the conflict is that the surviving spouse has no control over the remaining assets.  The chance that conflict will arise hinges on:

• The status of the relationship between the surviving spouse and the remainder beneficiaries (this relationship may be especially fractured if these are children from a prior marriage).
• The surviving spouse’s sources of money besides the QTIP.

What are the Benefits?

With a QTIP, you control the flow of assets after your death and even after your spouse’s death.  Regardless of what your spouse does, any assets that remain in the QTIP are passed to your beneficiaries (children, grandchildren, or kids from a prior marriage). 

QTIPs can provide asset protection.  If place controls around how your money and property are to be used, you can prevent scammers and thieves from getting access.

How Do I get More Information?

 Call the Law Office of Jonathan Alexander at (949) 334-7823 to find out whether a QTIP trust is right for you.  Mr. Alexander has 20 years of legal experience and is ready to help you create a customized, comprehensive estate plan that protects you, your family, and your legacy. 

To read more about Mr. Alexander, his practice, and his estate planning philosophy visit his bio linked here.

In 2008, the U.S. Congress passed House Resolution 1499 designating the third week in October as National Estate Planning Awareness week. 

According to Caring.com’s 2022 Wills Survey, over 66% of Americans believe that having an estate plan is important, but only 1 in 3 Americans have a will or a trust.  Many of the respondents stated that they meant to establish an estate plan but had simply procrastinated.  Others who took the survey confessed to believing a common misconception. They believed that they did not own enough property or money to bother putting drafting an estate plan. 

Why Should You have an Estate Plan?  

You should have an estate plan drafted so that you can decide who inherits your money and property and who can make financial and health care decisions for you if you become sick or disabled.  Remember, if you do not establish an estate plan, the State of California has one for you.  It’s called probate and it is time consuming and expensive. 

What are the Essential Elements of an Estate Plan?

• A revocable living trust and pour-over will.  These two documents are the cornerstones of a well-drafted estate plan.  The proper use of a revocable living trust will help you avoid the expense and delay of probate. A pour-over will provides additional protection if not all your assets are transferred (funded) into your trust and allows you to name guardians for any minor children.
• Durable Power of Attorney appoints an agent who may handle your financial affairs in the event of incapacity.
• Advance Health Care Directive appoints someone to make health care decisions when you cannot and can even contain health care instructions.  
• HIPAA Authorization vests a person of your choice with the authority to view all your medical records.
• Insurance is something that all responsible adults must have.  Make sure that you have the right amount of coverage in place if you die.  You would not want to leave minor children and/or a spouse who rely upon you without financial support.  If you do have coverage, make sure your loved ones have your policy information if they need to make a claim.  
• Personal Inventory.  Compile a list of all your accounts and other important information that would be necessary to handle your affairs in the event of incapacity or hospitalization. This includes:
  • Social security card, passport, and birth certificate.
  • Bank accounts.
  • Investment accounts.
  • Credit cards accounts.
  • Loan accounts.
  • Digital accounts.

How Should you Encourage Your Loved Ones to Create an Estate Plan?

Now is the perfect opportunity.  Simply remind them that it is Estate Planning awareness week.  You can then segue into a discussion about how having an estate plan in place will provide protection against their own incapacity by designating agents of their choice to make financial and health care decisions.  You might mention that a properly drafted estate plan will save time and money by helping their families avoid probate.  Please do schedule your own appointment with a qualified California Estate Planning Attorney to create your estate plan and take the time to speak to your parents, friends, relatives, and co-workers about the importance of estate planning.  For their benefit and the benefit of their families.  

Where Can You Get More Information about Creating a Plan?

Call Orange County Estate Planning Attorney Jonathan Alexander at (949) 334-7823.  Mr. Alexander has decades of legal experience and can guide you through the estate planning process by answering all your questions, explaining the law clearly and without legalese or jargon.  Call today to schedule a confidential consultation. 

For more about Mr. Alexander, please read his bio linked here to learn more about him, his practice, and his estate planning philosophy.      

What Happens When the Surviving Spouse Dies?

The unlimited deduction is no longer available after the second spouse (the surviving spouse) dies.  If the value of the estate is greater than the applicable estate and gift tax exemption—and no advanced estate tax planning has been drafted—the estate may be subject to taxation when the property is passed to children.   A surviving spouse may; however, use the unlimited marital deduction if she remarries.  The surviving spouse may leave the entire estate to her new husband tax free.  This is a nice windfall for the new husband, but not all at what the first husband would want especially if he has surviving children.  With proper estate and tax planning, you can avoid estate and gift taxes while providing for surviving children, grandchildren, other loved ones and charitable institutions (if you so choose).

What is the Individual Estate and Gift Tax Lifetime Exemption?

In 2022, the individual estate and gift tax lifetime exemption is $12,060,000. For a married couple it is $24,120,000.  This means that you and your spouse can transfer up to this amount to other individuals or entities (i.e., not each other because no tax applies to spouse-to-spouse transfers) tax free.  There are 17 state that impose an estate or inheritance tax.  California is not one of them.

The IRS does put an annual limitation on gifting. In 2022, there is a $16,000 annual gift tax exclusion.  Each spouse can gift up to $16,000 annually per person tax free up to the lifetime exemption amount.  Please note that the lifetime exemption is frequently adjusted by law.  The lifetime exemption and applicable tax rates for amounts over the exemption has fluctuated dramatically throughout the last one hundred years. 

What Does this Mean for Couples Who have Taxable Estates?

If you have assets in excess of or that will be in excess of the estate and gift tax lifetime exemption before you die, you should engage the services of a qualified California estate planning attorney. With the help of an attorney, you can create a gifting strategy that may avoid estate and gift tax altogether saving your family millions of dollars in taxes that your estate otherwise would have paid. 

Everyday there are news stories where this scenario plays out and dozens more that do not make the headlines.  James Gandolfini, the star of HBO’s Sopranos, died suddenly of a heart attack at the age of 51.  Mr. Gandolfini had a will but did not engage the services of attorney to perform any advanced tax planning.  He died with an estate worth about $70 million of which about $30 million went to the IRS.  Another tragic story involves the pop music icon, Prince.  Prince died unexpectedly of a fentanyl overdose and without a will.   If he had sought the advice of an estate planning attorney, his family could have avoided the $80 million dollar tax bill on his $165 million estate.

Advance tax planning’s return on investment for taxable estates is self-evident.  

What Does this Mean for Couples Who Do Not Have Taxable Estates?

Every Californian should have an estate plan even if estate tax issues are not a factor.  A properly drafted and funded estate plan will protect you, your family, and your legacy.  In California, if you pass away with only a will and an estate worth 184,250 in 2022 (this amount changes every three years), you will be subject to the probate process.  Probate is time-consuming and expensive. And, in most cases, absolutely in your best interest to avoid it.   

Where Can I Get Help?

To get your estate plan started call the Law Office of Jonathan Alexander at (949) 334-7823 today.  Mr. Alexander has 20 years of experience and is ready to help you establish a customized estate plan that avoids federal taxation, the perils of probate, and protects you, your family, and your property. 

To learn more about Mr. Alexander, read his bio linked here. 

Does California Have an Elective Share?

California has no such elective share law, but it does provide other protections for surviving spouses. California is a community property state.  The general rule is in community property states is that property acquired by a married couple during the marriage is owned equally by each spouse. 

What if the Spouses have a Prenup or Postnup?

Spouses, of course, may agree to different terms by drafting a prenuptial or postnuptial agreement. If no agreement exists, the surviving spouse is entitled to one-half of the community property and one-half of the quasi-community property (property that physically outside of California but was acquired by the couple during the marriage) regardless of any attempts to modify this through estate planning (e.g. by drafting a will or trust that attempts to convey this property to an individual or entity other than the spouse).

What if the Decedent Dies without a Will?

If a spouse dies intestate (without a will or other estate planning),there are even more protections for a surviving spouse.  In this case, the surviving spouse receives one-half of the community property, one-half of the quasi-community property, and a portion of the decedent’s separate property (e.g., property acquired before marriage). The portion of separate property the surviving spouse is entitled to depends on whether the decedent has surviving children, parents, siblings, or nieces or nephews.  If the decedent is survived by:

• One child, the surviving spouse receives one-half of the separate property.
• His parents but no children, the surviving spouse receives one-half of the separate property.
• Multiple children.  The surviving spouse is entitled to one-third of the separate property.

Where can I go for more Information and to get my own Estate Plan?

As you can see, without a properly drafted, comprehensive estate plan, you will be at the mercy of the State of California.  If you would like to take control, maximize your rights under the law, and create a legacy call the Law Office of Jonathan Alexander today at (949) 334-7823. 

Mr. Alexander has two decades of experience and is ready to help you design a plan that protects you, your family, and your property.  To read more about Mr. Alexander and his background and estate planning philosophy, read his bio linked here.

A power of attorney (“POA”) is a legal document where you (the “Principal”) authorizes another person (your “Agent”) to handle your affairs—typically in the estate planning context—when you are incapacitated.  The type and amount of power given to an Agent depends on the terms of the POA.  An Agent can be authorized through a POA to make medical, financial, and general legal decisions. 

What are the Types of Power of Attorneys?

In California there are three types of POA. 

1. General POA.  This is most expansive type with the broadest powers and provides your Agent with a full spectrum of authority to handle your financial affairs.  
2. Limited POA.  This POA provides your Agent a narrow scope of responsibility, for example, handling one specific real estate deal (your new house’s closing) while you are away on business. 
3. Health Care POA also called an Advance Health Care Directive.  In the event of your incapacity, your Agent through this POA is vested with the authority to make healthcare, medical attention, and personal care decisions.

When is it Effective?

It depends on the language of the POA.  A General or Limited POA can be durable meaning that it goes into effect immediately upon signing and remains in effect until destroyed or revoked.

A General or Limited POA can be written that it only takes effect at a certain time or under specific conditions.  When these conditions occur the POA springs into effect.  In the estate planning context, you could draft your General POA to only become effective upon your incapacity.  An Advance Health Care Directive is alwaysa springing type that is only triggered by incapacity. 

How Do You Create a Legally Binding POA?

To create a valid California POA, you must be at least 18 years old and have the capacity to enter into a contract.  A General or Limited POA must be signed by the Principal and a notary (two witnesses may be enough for certain transactions, but real estate transactions require a notary).

Where Can I get a POA?

The California probate code provides a template POA; however, we recommend that you speak with a qualified Orange County Estate Planning Attorney prior to attempted to draft your own POA.  Contact our office today at (949) 334-7823.  A POA is just one critical component of a properly drafted, comprehensive estate plan.  Call the Law Office of Jonathan Alexander to get your estate plan started. 

Mr. Alexander is a California estate planning lawyer with 20 years’ experience.  Click here to read more about Jonathan, his firm, and how he can help you.