Estate Planning for Blended Families

When blending a family, it can be difficult to decide how each new and existing member of the family will be taken care of. One major concern of blended families is how the surviving spouse will handle the estate when the first spouse passes. For example, the surviving spouse may choose to benefit his or her own children rather than the collective children of the blended family. Proper and considered estate planning for blended families ensures that each child, both biological and through marriage are protected. 

Two of the most significant challenges in creating an estate plan for a blended family is choosing a guardian for minor children and deciding on the ultimate division of assets.

One option for a blended family estate plan is what is known as an AB Trust. This is a form of revocable living trust where the surviving spouse will typically have the power to revoke or amend the Survivor’s trust (Trust A) to the potential benefit of his or her children and the detriment of the predeceased spouse’s children. However, the surviving spouse will have no power to revoke or amend the Bypass Trust (B Trust) as this becomes irrevocable upon the death of the first spouse. This provides some form of protection for the predeceased spouse’s children as the B trust cannot be amended to remove beneficiaries after death. 

While estate planning for blended families may add an additional layer of complexity, our firm is well-versed in meeting the planning needs of our clients. To guarantee that your wishes be carried out upon your passing, it is best to create a full estate plan with an experienced attorney. Call Tresp Law, APC today at (858) 248-2779 to schedule your consultation and begin planning for you and your family’s future.

Why Hire a Probate Attorney?

There are various reasons to hire a probate attorney given the confusion surrounding the probate process. A probate attorney can offer valuable advice and solutions from initiation through closing. 

Probate is a court-supervised administration of an estate, typically done when someone passes away without a Trust and gross total assets valued over an amount certain. If the administration is not done correctly, the Executor or Administrator of the estate may be liable for a multitude of things. Without having extensive knowledge of the law, it can be extremely difficult for a person to understand the intricacies and duties involved. 

The probate process becomes much easier to navigate with the assistance of a probate attorney. Having a probate attorney may also help mitigate or prevent family conflict. Further, the help of a probate attorney may reduce the likelihood of accusations that the Executor or Administrator is mishandling the administration. 

Probate is a detail-oriented process, beginning with a multitude of forms that must be filed with the Probate Court. If the documents are completed incorrectly, you will experience a delay with the estate administration which may cause tension between family members, other heirs and/or beneficiaries. With each potential rejection by the Court due to incorrect, inaccurate, or incomplete forms comes more confusion and frustration for all parties involved. However, a probate lawyer will assist with drafting and filing these documents to ensure accuracy and streamline the process as much as possible.

Additionally, not only are distributions to be made to heirs or beneficiaries of the deceased, but all valid creditors who comply with the creditor claims process need to be assessed as well. With the complexity that may arise with financial situations, a probate attorney will ensure everything is handled correctly to eliminate the Executor’s or Administrator’s personal liability for the debts. 

Having a probate lawyer will ensure everything is being handled correctly throughout the administration. Save yourself the worries about the unknown and allow our attorneys to assist you in administering the estate of your loved one. Call Tresp Law, APC today at (858) 248-2779 to schedule your consultation or email us here.

What is a Quiet Title?

A quiet title action is a special type of legal proceeding used to determine ownership to a specific parcel or portion of real property. In a quiet title action, Plaintiff claims his/her/its title to all, or a portion of real property is superior to that of Defendant(s). CCP § 760.020.

Quiet title actions are typically brought due to disagreements or disputes surrounding title. Some circumstances upon which a quiet title action may be filed include, but are not limited to: 

1. Following the death of the title owner;

2. Dispute with a mortgage lender;

3. During extended periods of time where there is no occupancy of the property;

4. Boundary disputes;

5. Errors on a Deed;

6. Easement on or across a Property;

7. Settling property tax issues; and,

8. Competing claims by missing heirs, lien holders, or remainder beneficiaries.

Quiet title actions must be filed in the county where the real property at issue is located. The court must make a determination as to who is the rightful, legal owner of the real property. 

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.

What Happens if You Die With Debt?

When you die, your debt does not simply vanish. The debts incurred during your life are still due and payable after your death. Now, you may be wondering, who is responsible for paying the debt after you pass? Your estate!

Whether your estate passes through probate, a court-supervised administration of your estate, or a trust administration, which is a private administration without oversight from the court, debts must be satisfied even after your passing.

During a probate administration, creditors have a certain amount of time to submit claims for the amount owed. If a claim is submitted during the statutory time frame, the administrator or executor for the estate will either approve or reject the creditor’s claim and file the acceptance or rejection with the court. If the creditor claims are worth more than the estate, the balance of the debt(s), above and beyond the value of the estate, will likely go unpaid. Similarly, during a trust administration, the trustee is responsible for paying off all valid liabilities held by the decedent prior to distributing the trust estate.

It is important to keep in mind that assets held by your estate may need to be sold in order to pay off the remaining liabilities incurred during your life. With that being said, there is an exception when a loved one takes an asset and assumes the liability. An example of this would be a loved one inheriting a vehicle or real property and assuming the loan payments in his or her individual name. Additionally, if you have debts with a co-signer, a joint credit card, if there is state law requiring a spouse to pay the debt(s), or if you live in a community property state where jointly held property is used to pay and satisfy debts, the satisfaction of the debt beyond what is payable from the estate may pass to the other named individual(s) that jointly hold the debt.

Medical expenses, including those for your final illness and death, as well as certain student loans, will also need to be addressed. The care provider or collection agency will determine what happens with your medical debt, i.e., whether it can be declared uncollectible or if they will move forward with satisfaction from your estate.

Regardless of whether your estate moves through administration in probate or trust, all debts must be satisfied prior to your beneficiaries or heirs taking their share(s).

 If you are in the process of administering an estate or are anticipating it in the near future, you should consult with an attorney to determine what debts are owed and whether they are valid.

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