What is a Holographic Will?

A holographic will is a will handwritten by the testator. While this type of “do-it-yourself” will may sound appealing, many states do not recognize holographic wills because they are very prone to mistakes. In order for a holographic will to be valid in California, it must meet the following minimum requirements:

 1. Testator must be at least 18 years of age and have had capacity at the time of the writing and signing;

2. Material provisions and signature must be in the testator’s own handwriting; and,

3. The document must state intent that this be the testator’s last will and testament. 

The date is not required to be included, but it is highly recommended to serve as a good indication of when the will was executed. Also notice that while witnesses are not required, they may be able to assist in proving that the holographic will is truly in the testator’s own handwriting.

 Holographic wills create their own host of problems ranging from a court’s potential need to hear testimony from people that knew the testator in order to ascertain if the provisions of the holographic will are something the testator would have wanted, to the invalidity of all or a portion of the will due to the writing being deemed illegible.

 In the simplest terms, holographic wills are far from reliable in ensuring your estate will be administered according to your wishes. To guarantee that your wishes be carried out upon your passing, it is best to form a traditional will or trust with an experienced attorney. Call Tresp Law, APC today at (858) 248-2779 to schedule your consultation and begin planning for your future.

Donating to Charity with Crypto

With the massive increase of popularity in cryptocurrency the past year, many crypto investors ended 2021 with large gains and may be wondering how to reduce their future taxes. According to a survey conducted by Fidelity Charitable, “More than half of crypto investors said they weren’t sure whether they could donate crypto assets to charity.” By donating these assets to charity, you can both minimize your tax bill and contribute to a good cause. 

Not all charities can accept cryptocurrency, so be sure to research this prior to making your decision. A donor advised fund or third party processor may be required as well. This option can be incredibly useful for organizations working in countries where it is difficult to access resources or without reliable banking systems. Many organizations and charitable programs now use the blockchain, including the United Nations World Food Program, to make it easier to obtain money for food and necessary items. 

If you are interested in donating some of your crypto assets, there are a few questions to consider. The first being, which charities accept cryptocurrency donations. A few well-known nonprofits that accept crypto include the Salvation Army, Susan G. Komen, Toys for Tots, and Save the Children. There are also websites such as Every.org which connect crypto donors and charities. Another question you may want to consider is if you need to have your crypto appraised before donating. Since cryptocurrency is classified as property, donations over $5,000 in value must obtain an independent, third-party qualified appraisal of the value of the cryptocurrency donated. This is to verify the tax deduction the donor will claim on their tax return for the year donated. Third, do you qualify for the tax benefits you are seeking, as there are requirements that need to be met. 

We have extensive experience with charitable donations and expertise in every aspect of estate planning and asset protection. Call Tresp Law, APC today at (858) 248-2779 or email us here. 

How To Decide on a Long-Term Care Facility for Your Loved One

Determining whether to place a family member or loved one in a long-term care facility is extremely difficult, as is finding the right place. Unfortunately, most people are unable to offer full-time care due to their own circumstances and a long term care facility can really be the best option.

In order to find an appropriate long term care facility, you need to do your research. Pinpoint your loved ones’ needs and level of care, as well as your particular family circumstances. Some long-term care centers are focused on memory care, while others are centered on behavioral issues and assisted living. In addition to finding a home that fits the individual’s needs, you also want to take into account if you prefer them to live in the same area they do now or closer to family. Other considerations could include if pets are allowed, if special dietary needs can be accommodated, and services offered. 

The next point to consider is the cost of the facility. This can be hard if the individual does not have the ability to pay for their care. Long-term care facilities can have a monthly cost of up to $10,000 depending on what is needed.

The real deciding factor will be physically visiting various facilities and asking questions. It is important to know about the staff since they are the ones ensuring your loved one’s safety and well-being. Be aware of the overall cleanliness, if other residents seem happy, how many events are scheduled daily, and so forth. There are many aspects that can be easily overlooked but are vital when making a final decision. Questions to ask the administrator and the staff could include the ratio of staff to residents, if there is a daily routine, if there are any additional community fees, and if religious services are held at the facility.

We have expertise in all areas of estate planning and elder law. Feel free to call Tresp Law, APC today at (858) 248-2779 or email us here if you need legal advice or guidance related to this critical life decision.

Irrevocable vs Revocable Trusts: a Primer

Trusts are legal vehicles that allow a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. All trusts have three main aspects including the grantor, the beneficiary, and the trustee. The grantor is the person or entity that created the trust, the beneficiary receives or benefits from the assets held in trust, and the trustee manages the assets of the trust and distributes them to beneficiaries according to the grantor’s wishes. 

A revocable trust, often called a “living” trust, may be amended or revoked. This includes naming different beneficiaries or trustee(s) and having the option of transferring assets out of the trust. Revocable trusts are primarily used to avoid court-supervised probate proceedings after the grantor passes away. If you, the grantor, can no longer manage your finances due to incapacity or death, your trustee takes over and manages assets according to the terms of the trust, and the trust becomes irrevocable.

Beyond strictly an estate planning tool, irrevocable trusts can be a tax planning tool. Since some irrevocable trusts remove all incidents of ownership of the assets from the grantor, the transfer thereby can effectively remove the trust's assets from your taxable estate. Tax rules vary by jurisdiction, but generally the grantor can't receive those benefits if they are the trustee, which means the grantor won’t effectively have control of the assets. The assets held in the trust can include business interests, investment assets, cash, life insurance policies, cryptocurrencies, and more.

Tresp Law, APC has two locations in Southern California and a team of experienced attorneys with exceptional knowledge about estate planning, estate administration, and trust and probate litigation. Contact Tresp Law, APC today for a free consultation by calling us at 858-248-2779 or email us here.