A: Each bank has requirements for transferring your bank accounts to a trust so you will want to contact them to ask what their process is. We always facilitate the process for our clients by preparing a cover letter and a certification of trust that our clients can...
A: In California, real estate is transferred into a trust by signing a grant deed. The grant deed, which must also must be notarized and recorded, states the owners of the property (the Grantors) are conveying all their interest to their Trust (the Grantee). We...
A: Your assets are the “sandwiches” that go inside the basket. REMEMBER: to have a picnic, you need both a picnic basket AND sandwiches inside the basket. Next week, we’ll talk about tips to make sure you are able to pack all of your “food” (your assets) inside your...
A: In most cases, no. Assets you receive as a gift or inheritance typically aren’t taxable income at the federal level (some states have inheritance taxes though). However, if the assets later produce income (perhaps they earn interest or dividends, or you collect...
A: On top of the $16,000 annual exclusion, each person also gets a $12.06 million lifetime exclusion (married couples can exclude double that amount in lifetime gifts). Everything over the annual exclusion amount spills over into the lifetime exclusion bucket. For...
A: We’ve crafted a bullet point list of everything you need to know! In 2022, you can gift up to $16,000 ($15,000 in 2021) to any one person in a year, generally without having to file a gift tax return to disclose the gift. The annual exclusion is per recipient, and...
A: There are two different exclusions that allow you to avoid gift tax: the annual gift tax exclusion ($15,000 per year in 2021 and $16,000 per year in 2022) and the lifetime gift tax exclusion amount ($11.7 million in 2021 and $12.06 million in 2022). When you gift...
A: Yes and no. Although Prop 19 did drastically change the rules regarding transfers between parents and children (many of these types of transfers in the future will cause a property tax increase), it did NOT eliminate the Prop 13 benefits that all property owners...
A: Yes! Remember, the trust is like a picnic basket that the attorney gives you, and although the attorney will typically transfer business interests and real estate into your trust for you, you will almost always be required to personally make arrangements with your...
A: Probate Code Section 16000 et seq. lays out ALL of the duties trustees have, and there are MANY. Having said that, the most common mistakes made by Successor Trustee are the following: selling assets for below-market value, failing to provide an accounting,...
