A: Yes, actually. The exemption amount for people dying in 2022 will be $12.06 million per person, up from $11.70 million per person dying in 2021.
Estate Planning
Q: As a business owner, how can I legally protect my business?
A: Register your business with the state: This legitimizes your business for both you and your consumers, gives you the ability to apply for grants and loans, and allows you to receive an employer identification number (EIN), which means you can establish business...
Q: Should I list my minor kids as the beneficiaries on my life insurance policy?
A: No. Here's why: If something happens to you, your life insurance proceeds won't pay out until they are 18 years old. This is not why you got life insurance and not what you want! The solution? Name your living trust as the beneficiary on your life policy instead! A...
Q: I recently married, and I own a house and an investment account as my separate property. Will these assets pass automatically to my spouse after my death?
A: Not necessarily! Your spouse may only receive one-half or one-third of your estate when you die if you do not have a will or trust in place that specifies how the assets of your estate will be distributed. Under California law, the proportion of your separate...
Q: Will my 2 children have to pay any inheritance taxes when they receive their inheritance from me one day?
A: Whether or not your children will have to pay inheritance taxes will depend upon which state they reside in at the time of your demise! For example, if both your children live in California, they will NOT have to pay any inheritance taxes. However, if one of your...
Q: Do estate planning attorneys think there is anything spookier than a trust made by LegalZoom?
A: We're delivering a chilling #WednesdayWisdom this week! 👻 The most ghoulish part about doing a will or a trust with LegalZoom is that you have no way of knowing whether or not it is done correctly until it’s too late to fix it! We think that your family, assets...
Q: Attorneys are always so confusing with their “legal speak”! What exactly is “estate planning”?
A: The term “estate planning” refers to the process of anticipating and arranging for the management, disposal and transfer of one’s estate both in the event of a person’s incapacity and also after the person’s death. If you have any questions about this, please feel...
Vineyard ownership and estate planning
Wineries, especially when kept as family businesses, are expected to incur high rates if they don’t adjust their tax plans now. California is anticipating a tax season with hikes that all farmers should be aware of. If your land is a part of your business, then estate...
Q: My husband and I have 2 adult children (a son and a daughter) and we own 2 properties (our home and a rental); should we just leave one of the properties to our son and the other one to our daughter?
A: You can, but be aware that setting up your trust this way could lead to some seriously unintended negative consequences! For example, if you ever sell one of the properties and then you either forgot to (or were unable to) update your trust thereafter, you will...
Q: In my original trust, I included a $10,000 cash gift to my nephew, but now I want to write him out. If I pass away, will he ever find out that I had included him but then changed my mind?
A: It depends! If you merely amend that distribution section to eliminate him from your trust, then by law he will be entitled to a copy of both the original trust and the amendment. However, to avoid this scenario, we often counsel clients in similar situations to...
