MEET OUR TEAM

How AI Works AI generates its responses through sorting through large quantities of data on the internet. This can include websites, novels, blogs, and sites like Facebook. This is a 1000-foot view of what AI does and is not meant to minimize the technology. However, understanding the basics is important to answer whether one should use AI to generate an estate plan. Why This matters? An estate plan is among the most personal legal endeavors a person will take. That’s because it is highly individualized and rarely are two estates the same. Clients have various intentions for how they want their estate to be distributed, often not based on what would seem logical, but instead on very personal beliefs. Clients also vary on how they want their estate handled if they are incapacitated for example, or how their pets are to be cared for, end-of-life decisions, and the list goes on and on. While an AI or software program can ask some of these questions, they will not read a client like an experienced attorney who will proactively investigate and inquire. For these reasons, AI often struggles with answering highly individualized questions. This is because AI thrives on generalizations since it gathers its data in the aggregate. This can be even more of a concern if the user is not savvy with AI. It’s often said in AI communities that an AI is only as good as the questions it's asked. AI Accuracy I’d bet most users vastly different testimony regarding AI accuracy. Some may point to different AI versions or programs having varying levels of accuracy. Based on my experience, the accuracy is often correlated with the subject matter. The more general question, the more precise. Legal nuisances, partly grey areas, are where I have noticed the most struggles with AI accuracy. Like most of you, I’d wager that AI will become more accurate with time. However, will it ever be accurate enough to bet your estate on? I say this because even if an AI is 99% accurate, it may be that 1% that makes the difference. Remember that AI owes you no legal duty whereas an attorney is accountable for their work. 

What is Step Up in Basis and Why is it Important? The step-up in basis rule can dramatically reduce capital gains tax when an asset is sold after inheritance. Normally, an asset is calculated based on the original cost of the asset, not the current value. However, when an asset receives a step-up in basis when a person dies, that cost is readjusted based on its current market value, rather than the original cost. This can be critical since a piece of real estate that was bought, for example, in the 1990s, could save thousands if not millions, of dollars in tax on capital gains. Example Your parents bought a house for $100,000 ten years ago and the house is worth $500,000 when they die. Without a step-up in basis, if the house was sold there would be a capital gains tax on the $400,000, the house's appreciation. But with a proper strategy, when you inherit the house, the ‘basis’ (cost) is automatically ‘stepped’ up to the current value. If you then turn around and sell it for the same price, $500,000, you pay no capital gains tax. Holding Title and Step Up in Basis How a property's title is held might mean different tax results. These are the three common ways in which title can be held in California, joint tenancy, tenancy in common, and community property with the right of survivorship. 

In today's digital age, we have more than just physical possessions to consider when planning for the future. Digital assets are electronic records that hold monetary value or sentimental importance, such as cryptocurrencies, online accounts, photos, videos, and documents. Additionally, these are assets that are acquired throughout one’s life and are often irreplaceable. Personally, I have acquired substantial digital assets throughout my life that are of great sentimental value to me, such as digital photos of my family. I’m sure most of you are in the same position. Here are some of the reasons why digital assets matter for estate planning: Digital currencies that operate independently of central authorities, like Cryptocurrency, may have significant monetary value. They are stored in digital wallets that require keys, passwords, or codes to access. Additionally, this should be included in your estate plans and provided to the executors or trustees with the necessary information to access them; otherwise, they may be lost forever or inaccessible to your heirs. Further, these are more difficult to track than standard currencies since they are not stored in a traditional bank like most currencies. It's best to make the management of digital currencies as easy as possible for your heirs. Digital assets are also vulnerable to data breaches, hacking, or theft. These types of breaches can become increasingly elaborate with technology and time. Therefore, without proper planning, you may lose access to valuable or sensitive digital assets, such as bank accounts, investments, or personal information. To prevent this, ensure secure storage and documentation of their digital assets and provide their executors with the means to access them. Moreover, they should also review the terms of service and privacy policies of the custodians of their digital assets, such as online platforms, cloud services, or apps, to understand their rights and obligations regarding their digital assets. Additionally, paid third-party assistance can also be used for assistance with breaches. I have personally experienced invasive breaches of digital assets and it’s a headache to deal with. Your heirs would appreciate not having to deal with these obstacles in a time of grieving. The Importance of digital photos cannot be understated. In our interconnected world, most of our cherished memories are captured digitally. This includes things like family photos, videos, and personal documents. You may want to preserve them for posterity, share them with loved ones, or even delete them for privacy reasons. Moreover, these photos can be on many platforms or cloud devices, such as Facebook or Google Drive for example. You should include them in your estate plans and provide the executors or trustees with the instructions and access to them. I personally have thousands of photos and I would be devastated if they were lost or inaccessible.

Understanding Proposition 19 Proposition 19 was enacted in California at the end of 2020 and created substantial obstacles for homeowners to avoid reassessment of their property. This is significant because, under Proposition 13, property taxes are limited to 2 percent annually absent a change in ownership. This can be a massive benefit, particularly in California, where it’s common for homeowners to have purchased their property at a time when home values were much lower, and therefore, so would their property taxes. However, absent an exception, if there is a change of ownership under Proposition 13 the property would be reassessed. In a nutshell, what Proposition 19 does is severely limit these exclusions. The current exclusions under Proposition 19 include victims of disasters, disabled persons, persons over 55 years of age, parent to child, and grandparent to grandchild.

Learn how to transfer your business into a trust with our comprehensive guide. Discover the benefits of avoiding probate, protecting your assets, and ensuring business continuity. Whether you have an LLC, general partnership, sole proprietorship, or corporation, we provide step-by-step instructions and highlight potential issues to consider. Maximize your estate planning strategy and secure your business's future. Consult with our expert attorneys for personalized advice on transferring your business into a trust.

Navigating estate planning for blended families can be complex and challenging. This comprehensive guide covers essential considerations, including guardianship decisions, fair asset division, and inheritance rights. Discover effective strategies like establishing trusts, making direct gifts, and ensuring open communication to protect your loved ones and minimize conflicts. Learn about the benefits and drawbacks of different trust structures, such as revocable trusts and A/B trusts, and how to leverage life insurance and separate accounts for smoother transitions. Consult with an estate planning attorney to create a customized plan that addresses your family's unique needs and ensures peace of mind.