Clara Yang Attorney at Law

Financial Matters to Consider When You Marry Later in Life

clara.yang@gmail.com (Admin) — Tue, 21 Aug 2018 09:11:18 +0000

08.21.2018

Financial Matters to Consider When You Marry Later in Life

Marriage is a major commitment, no matter what age. Those who choose to marry later in life for the first or second time, or beyond, have to take extra care to prepare for the impact on their finances.

Although marriage is not about the money and assets, a marriage later in life has its own set of complications if you are not thoughtful in how you manage your personal finances. You may be especially sensitive if you have gone through a messy divorce in the past. Here are some things you should think about before your marriage to ensure everyone has a happily ever after.

Discuss the Marriage With Your Family

When you have not been in a marriage for a while and are well-established, introducing a new person into your family can be a sensitive topic. This can be especially difficult if you were recently in a marriage and you have older children who may find it hard to understand your wish to remarry.

Talk about your marriage with your family. Make sure they understand your intentions, and reassure them you will be smart with how you deal with your estate and financial circumstances.

Talk About Your Assets

When you plan to marry when you are both established, you need to discuss how you will deal with your assets now and any plan to obtain in the future. If you acquire money together during your marriage, are you going to put your finances together or keep everything separate?

You also need to discuss where you will live. Since the marriage will take place at a later time in your life, chances are both of you have a home of your own. Which will you live in? Should one of you sell a home? How will you handle payment for a new home? All of these important questions are very important to discuss ahead of your nuptials.

Think About Your Retirement

Whether retirement is a long way off or just around the corner, you need to discuss both of your retirement accounts before marriage. Retirement accounts are the sole source of income for most people.

Are you both going to add to the other's retirement accounts? Should you open another retirement account together, such as an IRA? Will you each have to live on your own accounts and come together to pay your household bills?

Look at Your Estate Plan

A marriage is the perfect reason to evaluate your estate plan to make sure your will is correct. Most people add a new spouse to a will once they get married to make sure the other receives enough to live on after his or her death.

This presents another opportunity to speak to your families about your wishes after your death. If you want to ensure your children get your estate, you need to indicate so in your will. You can opt to open trusts for each of your children or other family members to ensure they receive the assets you want them to have.

Discuss Your Life Insurance Needs

Another item to discuss is what kind of life insurance you have and whether or not you need to add additional coverage. Although your marriage is later in life, one or both of you may still have children who live in the home. You may want to consider adding the children to a policy you buy together to make sure their needs are met in the event of your death.

If you have any questions or concerns about a marriage later in life, please contact Clara Yang Attorney At Law. We pride ourselves on our accessibility to our clients.

4 Reasons to Hire an Attorney to Help With the Probate Process

clara.yang@gmail.com (Admin) — Thu, 28 Jun 2018 18:01:43 +0000

06.28.2018

4 Reasons to Hire an Attorney to Help With the Probate Process

Many people spend a significant portion of their adult life generating wealth and acquiring physical assets. These items might benefit a person while he or she is living, but they can quickly become a source of contention among remaining family members once the individual passes away.

If you have recently lost a loved one, then you should stay aware of the many tasks that you must complete in order to release the individual's assets from probate effectively. Having the help of an experienced attorney can prove invaluable in dealing with the death of a loved one.

This guide lists four reasons you should consider hiring an attorney as you go through the probate process. This guide also explains how an attorney can help you successfully clear your loved one's estate.

1. Compile an Inventory

Before you can successfully clear your loved one's estate through probate, you must provide an accurate accounting of his or her assets. This process of conducting a complete inventory can be daunting, so it's best to leave the inventory process to a legal professional.

Your attorney will be able to create a comprehensive list of your loved one's assets, including accounts or properties that you might not even know about. The sooner you are able to compile an inventory, the sooner your loved one's estate can clear probate and be divided among surviving family members.

2. File Tax Returns

You must also prepare and file tax returns on behalf of both the deceased individual and his or her estate. The rules and regulations that govern the taxation of an estate can be challenging.

Making the choice to hire an attorney to handle the preparation and filing of tax returns for your loved one and his or her estate can help ease your burden following a loved one's death. Mistakes made during the preparation and filing of tax returns could leave an estate in probate, so it's best to leave these administrative tasks in the hands of a capable attorney.

3. Determine Solvency

When an individual passes away, his or her debts can often remain intact. Creditors must be repaid using funds from the estate before assets will be released from probate and made eligible for inheritance. If your loved one left behind assets of substantial value, then you may not be concerned about repaying creditors.

However, if your loved one left a modest estate behind, then an attorney can help you determine the solvency of the estate. Hiring an attorney to compare the actual value of your loved one's estate with the creditor claims will help you adhere to statutory guidelines regarding the handling of an insolvent estate.

4. Handle Disputes

Once all debts have been repaid, and the estate is ready to be released from probate, an attorney will help you avoid potential disputes among surviving family members. Arguments regarding the distribution of a deceased's assets can often lead to bitter legal battles.

By working with an attorney from the beginning of the probate process, you will be able to reduce the likelihood that you make errors when distributing assets. When you let an attorney handle asset distribution, they can also help create a buffer between family members, which may help defuse tension over time.

To really recognize the valuable services an attorney can provide as your loved one's estate moves through the probate process, hire legal services. Contact us at Clara Yang, Attorney at Law, for additional information on legal services that might benefit you as you handle the death of a loved one. We can help you through this difficult time — give us a call today to learn more.

The Difference Between Guardianship and Conservatorship

clara.yang@gmail.com (Admin) — Wed, 25 Apr 2018 21:59:08 +0000

04.25.2018

The Difference Between Guardianship and Conservatorship

As the old saying goes, "If you fail to plan, you plan to fail." Unfortunately, many people do not take the time to plan on what would happen to them and/or their children if they ever became incapable of making decisions.

One of the best ways to prepare for this situation is to spell out your plans. For example, do you need to establish guardianship? Will you need a conservator? The first step is to understand the difference between the two.

What Is Guardianship?

Often, the words guardianship and conservatorship are used interchangeably. While these terms may mean essentially the same thing in some states, this is not the case in California.

In California, guardianship is used to protect the affairs of minor children. A guardian could be needed in the event of your death or if you ever become unable to parent for any reason.

The person who is appointed guardian would assume all parental duties, including custody and authority over your children. A guardian would be able to:

Provide shelter, food, and clothing
Make financial decisions
Make medical decisions
Make education decisions

You could list your choice of guardian in your will, or one may be court appointed if you become incapacitated or disabled before selecting a guardian. If court appointed, the guardian would have a periodic reporting responsibility to the court.

What Is Conservatorship?

Conservatorship is very similar to guardianship in that a person is appointed by the court to take over the care and control of the affairs of someone else, or the conservatee. In the case of conservatorship, the conservatee is usually an adult who is not able to manage their own affairs.

For example, you may need a conservator if you are involved in an accident or have a debilitating disease and become mentally unable to make your own decisions. You may also need to appoint a conservator over your disabled adult child and/or your elderly parents.

Unlike Guardianship, there are two basic types of conservatorship in California. These are:

Conservator of the Person — one who manages the personal affairs of the conservatee.
Conservator of the Estate — one who manages the financial affairs of the conservatee.

Many times, both of these are the same person, but in some cases, different people may be appointed to each role. The person who fulfills these roles may be a friend or family member chosen by the conservatee in advance, or they may be a professional chosen by the person or the court.

If a professional, or a non-profit agency, is used as a conservator, they must be licensed by the State of California in order to do so. They are also required to have continuing education to maintain their eligibility.

Once appointed, they are responsible to submit a financial report to the court at the end of the first year and every two years thereafter. This report will outline assets and expenditures that have taken place during the preceding review period.

How Do You Create a Plan?

You do not want just anyone making decisions for you and/or your children. You want someone you can trust appointed in both of these roles. To ensure you and your family are cared for following your death or incapacitation, put a plan in place before either position is needed.

Clara Yang Attorney At Law can assist you with creating the legal documentation to ensure your choices are in place if they are ever needed. We have years of experience in estate planning and elder law. Give us a call today so we can help you create your plan.

Special Needs Parenting: Planning for Their Financial Future

clara.yang@gmail.com (Admin) — Fri, 23 Feb 2018 01:00:40 +0000

02.23.2018

Special Needs Parenting: Planning for Their Financial Future

Life with a child who has special needs requires planning and organization. The efforts are never more important than when preparing for the day when the child no longer has their parents to rely on. All parents worry about what will happen when they are not there to protect their children, but estate planning makes it possible to continue to support and protect a child after the parents are gone.

Find All Benefits

The cost of education, medical expenses, and equipment quickly drain the bank accounts of parents raising a child with special needs. Research all benefits available locally, at the state level and through the federal government. Programs like these were established to enable people to get their children the help they need without sacrificing their own comfort or safety.

The California Childcare Health Program helps families to identify when their children may need special assistance. They provide important information about the legal rights provided to individuals through The Individuals with Disabilities Education Act and The Americans with Disabilities Act. The program can also it easier for struggling, young families to locate the financial help they need.

Have Open Discussions

The siblings of a child with special needs should understand that their brother or sister will always require a higher level of care. Honesty from the start helps to avoid any family strife when an estate is divided in the future.

You can’t know for sure if adult children will follow requests, so giving all the responsibility of caring for the sibling to another child after the death of the parents can backfire. Without the right legal guidelines and protections in place, a parent cannot guarantee the caregiver will use inheritances to provide the services their sibling needs. There is also no guarantee that one sibling will outlive another.

Learn About Trusts

Trusts allow individuals with special needs, as adults and children, to benefit from their inheritance without losing out on the government benefits they rely on to thrive. A trustee is named when a special needs trust is created and they use the funds in the trust to pay for any items not covered by the insurance or other benefits used by the disabled individual.

Most parents with multiple children will name one of the siblings as the trustee. It is possible to find reliable trustees through trust companies, banks, and nonprofit groups to oversee the use of the funds if a sibling or other reliable family member is not available.

Access Additional Income

Not everyone has enough money to leave their children a large inheritance, but there are ways to make sure the child continues to have adequate financial resources. Establish a special needs trust with a life insurance policy. An additional benefit of this option is that the money is immediately available to aid the beneficiary without any probate delays.

Consider a Pooled Trust for Multiple Children

Special needs pooled trusts are operated by nonprofits and protect the inheritances of multiple-children families. The operators of the trust understand the law, so the money is protected. Fees are involved with this type of trust, and any money remaining after the beneficiary passes away is not passed down but is used to cover previous expenses paid by government programs.

A pooled trust is useful for families with more than one disabled child, as well as when limited funds are available for a trust. A special needs pooled trust reduces the risk that the money may not last long enough. The funds put into the trust are pooled and responsibly invested, so the beneficiary benefits longer from their parent's gift.

Future living arrangements, transportation demands, and the organizing of the parent's final arrangements must also be considered. However, plans that establish how to protect the basic financial requirements of the child are a great place to start. Contact Clara Yang, Attorney at Law to discuss what legal options are best for your family.

6 Reasons to Set a Financial Plan While Your Children Are Still Young

clara.yang@gmail.com (Admin) — Thu, 11 Jan 2018 01:33:26 +0000

01.11.2018

6 Reasons to Set a Financial Plan While Your Children Are Still Young

Often times, young families make the mistake of neglecting financial planning until it's too late. Parents sometimes assume that they don't have enough money to set out a financial plan and consider retirement savings seriously.

You never know when some unexpected expense or tragic event is going to occur that could compromise your ability to support your children, maintain financial independence after retiring, or help your children to achieve financial independence as adults.

You may be focused on your career or on raising your kids, but you should recognize the importance of financial planning — even amid all your other responsibilities as a young parent. The following are six reasons why you should set out a financial plan while your children are still young.

1. Provide Protection When the Family Is Most Vulnerable

Your kids are in the greatest need of financial support when they are children. It's imperative that you plan for the potential of an unexpected accident or early death that will cut off your income prematurely.

Probably the most important reason why you need to start early with financial planning is so that you can ensure the continued financial support of your children — regardless of what happens to you or your spouse.

2. Enjoy Peace of Mind

There's a lot to be said for doing what you can to increase your everyday peace of mind. If you establish a financial plan now, then you can rest assured that your family will be provided for, and you will be less worried that financially devastating accidents might come up.

3. Build Relationships

When you start financial planning early, you can get in touch with legal and financial professionals that will prove invaluable to you when you and your family need to deal with issues like probate and trust administration.

Get started now, and you will begin building long-term relationships with experienced professionals who will walk you through the processes involved with designing and executing a foolproof financial plan.

4. Crunch the Numbers

It's basically impossible to successfully plan for the future unless you formally create a financial plan that involves careful and detailed calculations. You can't determine how much you need to be saving up for retirement and college if you haven't created a budget and determined how much you'll have in savings when it's needed — depending on how much you put aside every paycheck.

The only way you can be sure that you're putting enough toward savings is if you crunch the numbers and make careful plans. You don't want to find out that you haven't been putting enough in savings after it's already too late.

5. Earn Interest

Enjoying passive income based on your savings is the best way to add to your savings. When you're saving for a long time, you don't have to put as much toward savings because your savings are going to start earning interest on investments.

Interest income will allow you to enjoy a greater standard of living while you’re saving, and you’ll have as much or more once you retire and start drawing on those savings.

6. Save for College

College tuition is probably one of the biggest expenses you're going to deal with as a parent. Beginning to save up for college for your children when they are still infants is important. Kids grow up quickly and bring about a lot of expenses in the meantime. Don't underestimate the enormity of saving for college and get started as soon as possible.

To get started with your financial planning now, contact Clara Yang Attorney At Law for help with a wide variety of legal and financial tools, including wills and trusts.

Getting Your Affairs in Order After a Troubling Diagnosis

clara.yang@gmail.com (Admin) — Thu, 26 Oct 2017 05:25:52 +0000

10.26.2017

Getting Your Affairs in Order After a Troubling Diagnosis

Finding out that you have a potentially terminal illness can be very scary. There are many people who get scared and overwhelmed when they get this type of news because they do not know what steps to take next. It is essential to get your affairs in order when you find out that you may be terminally sick to ensure that you do not make life more difficult for your friends and family.

Properly planning for your potential passing ensures that things are done the way that you want them to be done and that your family is able to have the time they need to grieve without worrying about doing things the way that they think you want them done. You will need to hire an attorney to ensure that everything is put into writing so that it is legally binding.

If you have recently found out that you have a disease that may be terminal, use the following guide to learn how to properly prepare for any negative situations that could arise along the way.

Determine Who You Trust to Make Medical Decisions on Your Behalf

There are times when someone battling a terminal disease finds themselves needing to make a hard medical decision on the spot. If a surgeon needs to adjust the surgery while you are sedated, the person that you choose to make the medical decisions for you will be able to let the surgeon know if they can make the possibly life-saving adjustment or not.

This person will have medical power of attorney over your medical decisions should you not be able to make the decisions yourself. If you are in your right state of mind and are able to understand what a doctor is saying to you, you will be able to make the ultimate decisions for your health. The medical power of attorney is just an extra step that ensures you get the care you need.

Determine Who Will Handle Your Finances

When someone battles a terminal illness, there are many times when they have to stay in the hospital for weeks or even months at a time. If something happens and you end up becoming incapacitated, you will need someone to handle your finances for you so that your bills can still be paid.

The person will have durable power of attorney over your estate. They will not be able to spend your finances however they please. Within the durable power of attorney, you can dictate what the money can be used for and the person will have to track where the money goes so that it is not spent inappropriately.

Determine Who Will Care for Your Children

When you are battling the illness, there will be times when you cannot provide your children with the care that they will need. Establish who you think would be able to provide your children appropriate care in your absence. You need to be sure that they are willing to take on the task before you make arrangements for them to take guardianship of your children if need be.

You need to talk to your children about the situation as well. Being surprised later on down the road that something is wrong could lead to animosity from your children and make it difficult for them to handle the situation in a healthy way.

If you have been diagnosed with a potentially terminal illness, contact Clara Yang Attorney At Law to get your affairs in order. Be sure to give the contact information for your attorney to your loved ones so that they can get in touch with him or her quickly and easily when needed.

What You Need to Know About the 2017 Medi-Cal Recovery Update

clara.yang@gmail.com (Admin) — Fri, 14 Jul 2017 11:57:40 +0000

07.14.2017

What You Need to Know About the 2017 Medi-Cal Recovery Update

When low-income individuals need medical assistance, California’s Medi-Cal program is there to help. Medi-Cal is the state of California’s version of Medicaid, and it provides medical assistance to a variety of low-income individuals based on eligibility factors like age, ability, income and more.

Medi-Cal Recovery is the process by which the state seeks repayment for the costs of services that were rendered as part of Medi-Cal.

If you receive Medi-Cal benefits, it’s important that you understand the Medi-Cal Recovery process and how it will impact your loved ones and your estate after you pass. In this blog, we’ll cover the changes to the Medi-Cal Recovery process so you can better understand how it will affect your family.

The Medi-Cal Recovery Process

The Medi-Cal Recovery process is fairly straightforward: When a person passes away, the state can make a claim to recover the cost of benefits if the deceased had received Medi-Cal benefits when they were over the age of 55. If the estate cannot pay the claim and the claim cannot be waived, a “voluntary lien” will be placed on the estate.

The updated Recovery policy, effective January 1, 2017, covers several restrictions and specifications for Recovery, including exemptions.

Benefits That Are Subject to Recovery

If you received any of the following benefits at the age of 55 or older, your estate will likely be subject to Recovery to recoup the costs:

Nursing home care
Intermediate care for developmental disabilities
Home- and community-based services, including personal care, assisted living and nursing facility waiver programs
Prescription drug and hospital services provided while receiving care at a nursing facility or from a home- or community-based service

Medi-Cal beneficiaries under the age of 55 are also subject to Recovery if they were permanently institutionalized in a nursing care facility or intermediate care facility and were determined unfit to be released.

Exemptions to Medi-Cal Recovery

With the update, the Recovery process is subject to more restrictions than in years past, including those discussed here.

If you are survived by a spouse or domestic partner, a Recovery claim cannot be made on your estate (if your spouse or partner also receives Medi-Cal benefits, their estate can be subject to Recovery after their death). Also, if you have children under the age of 21 or disabled children of any age, a claim cannot be made on your estate.

Recovery is also limited to assets that are placed under probate in the state of California. Assets like the following are not subject to probate and therefore not subject to Recovery:

Any assets that are transferred via living trusts, survivorship, joint tenancies or live estates
Manufactured or mobile homes

Any property that is no longer in your name is not subject to Recovery, nor are insurance and retirement accounts with one or more named beneficiaries.

Additionally, if your homestead is “of modest value” (valued at 50% or less than the average home value for the county), it is not subject to Recovery.

What This Means for You

One of the best ways to ensure that your estate and property goes to your loved ones instead of the state is to work with an estate planning attorney.

An attorney can help you name beneficiaries for the relevant accounts and set up trusts for your property to ensure it never goes through the probate process or becomes subject to Medi-Cal Recovery. It may not be enough to simply leave property in your will, as willed property is usually subject to probate, so be sure to speak with a professional.

To learn more about Medi-Cal and how estate planning can help your loved ones avoid the Recovery process, contact the Law Office of Clara Yang. We specialize in estate planning, probate and wills to ensure that your estate is protected after you pass.

Questions About Wills, Living Trusts, And the Consequences Of Not Having Either

clara.yang@gmail.com (Admin) — Fri, 02 Jun 2017 20:02:36 +0000

06.02.2017

Questions About Wills, Living Trusts, And the Consequences Of Not Having Either

Do you already have an up-to-date estate plan in place? If not, then you will need to create or update the proper documents to ensure that your assets will be divided as you intended after you pass away. Here are some common questions about wills and living trusts, as well as what can happen if you decide not to create an estate plan.

Will vs. Living Trust

It is important to know the difference between a will and a living trust.

What Is a Living Trust?

Having a living trust will let you move assets you own into a trust while you're still alive. Things like vehicles, property, stocks, bonds and jewelry can all be put into a living trust due to them being personal property. A living trust will list beneficiaries and how assets are distributed to them.

How is a Will Similar to a Living Trust?

You can modify wills and living trusts when you want to. You are able to remove or add assets over the years, and even modify the beneficiaries to determine who receives which items.

A living trust will require an assigned trustee, who will have similar responsibilities to the executor of a will. The trustee will distribute assets after your death, and can even manage the living trust if you end up incapacitated. For example, a living trust will give the trustee access to money to help pay your bills if you're unable to pay them yourself.

How is a Living Trust Better?

You will never see the differences between a will and a living trust, because most of them take place after your death. A will is filed with a probate court so the proper legal procedures can take place to finalize the will. A will could result in waiting a very long time for people to receive the assets they are assigned. A will eventually becomes a part of public records, allowing anybody to access the document to see what you left behind to beneficiaries. Trust offers far more privacy..

Living trusts allow asset distribution to happen immediately since there will not be a probate process. All asset distribution will remain private, and others will not be able to see what was in your estate when you passed.

The Consequences of No Estate Plan

Not having an estate plan in place is a serious problem. Yet 55% of adults in the U.S. do not having one in place. Know what can happen if you decide to not do anything regarding your estate.

Who Will Be in Charge of the Estate?

Every state has laws to determine when probate is necessary. Necessity is usually based on sizeon size of the Estate. Estates that require probate will have a court appointed administrator. The court starts by selecting a surviving spouse or adult children, and then moves on to other relatives.

Small estates that do not require probate have a very simple process to distribute assets, which is decided by a family member.

How Will Inheritance Be Determined?

Every state has its own succession laws. These laws ultimately determine who will receive your assets after you pass away. A surviving spouse and blood relatives generally havea rightful claim. Friends and partners that are not married will not be able to make a claim to any assets, and would depend on your family members to redistribute assets to them. If you do not have surviving blood relatives, your assets will go to the state.

Do All Assets Go Through Probate?

If you have any assets with predetermined beneficiaries, such as life insurance or jointly owned property, those assets will go to the appropriate people automatically.

Now that you understand more about estate planning, it is time to get one in place. Work with Clara Yang, Attorney at Law to help you get it done.