While in some cases there may be a good and valid need for putting a family member on title, typically people make this decision without realizing the consequences. To many its just a simple document that adds their son or daughter on title and many times the parent or parents think they are protecting them self by doing this when in fact they are not.

First and foremost, putting a family member on title may create a huge tax problem – gift tax and/or capital gains tax. Second, it creates some potential legal problems and creditor problems…
Does this family member have a judgment against them? Do they have debt? Tax liens? Child Support Owed? This is just a few of the problems that occur when putting others on title without the advice of an attorney or professional.

Another thing that is missed by many is that every person that holds title should have estate documents in place. Once you put a child or family member on title you now have some potentially huge legal problems if or when that family member becomes incapacitated or dies. Do they have an estate plan? A Will? Trust? Power of Attorney for Finances? If they don’t have some or all of these documents; your property may become victim to the court system through a conservatorship or probate case.

Last, if you have not specifically set forth whose property it is or what percentage interest each person on title has, this can create some HUGE family problems. If you put your son on title, do you intend that he live in the home after you have passed? Do you intend that he share the home with other siblings? Who is to pay the expenses and costs? How is the home to be divided? Is it to be sold or rented?

Many clients come to me and tell me that they were worried they were getting old or were concerned regarding Medicare expenses or not being Medicare eligible. The problem here is that without the right guidance and legal advice from the beginning, actions such as transferring assets (in this case real property) to family members can become a huge problem – much worse than what caused the original concern.

Parents, Grandparents, Kids, Families, please do not change title on your real property until you have sought legal guidance and advice. You may create a bigger problem than the one you are trying to solve! As the saying goes: Hindsights 20/20. I hope this blog helps one person from making Real Property Title Mistakes – many happy blessings to you and your family.
Shadi Shaffer, Your Personal Family Lawyer

In an interesting decision, the 9th Circuit U.S. Court of Appeals decided Marshall v. Stern. The case is a good review of the complex interplay between federal and state law in matters concerning probate and bankruptcy. Of course, the case is also interesting because of the notoriety of the individuals involved.

Anna Nicole Smith married Texas, oil tycoon, J. Howard Marshall II. When Marshall died, litigation ensued between Marshall’s son, Pierce Marshall, and Smith. There were simultaneous actions in probate court in Texas and bankruptcy court in California. The Texas court determined that Marshall intended to leave his assets to his son and not Smith. The bankruptcy court ruled that Smith was entitled to $474 million from Pierce Marshall for tortuous interference related to the estate. The federal district court reduced that to $88 million. The Ninth Circuit reversed, finding that a bankruptcy court did not have subject matter jurisdiction to resolve probate issues. The U.S. Supreme Court granted cert and reversed and remanded for a resolution of the issue.

Now, the Ninth Circuit decides that the Texas probate court was binding on the federal courts because it was the first final decision on the matters at issue. So, Smith’s claims to Marshall’s fortune may be put to rest after years of litigation

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www.pslawyers.com 714-966-2646

Are you giving your kids the PROTECTION they need and deserve???

What if you were not there to lather them with SPF 50? Who would do it? What level of protection would you want them to use? SPF 5, SPF 10, 20, 50 or better yet 75? Are they more or less sensitive to the sun and who would know this?

Parents. I know you love your children. I know that being a parent is like having your heart walk around outside your body and that you would die for them… BUT what I don’t get is WHY, WHY in the heck have many of you NOT completed an estate plan?????

Money? Time? Is that the excuse? Do you let money or time get in the way of the UV rays? Does that prevent you from lathering those precious little critters with SPF sun protection? I think not.

SO what the HECK is your EXCUSE? Really, what is it???

IF money is the excuse I can remedy that in seconds by referring you to a web site where you can obtain (FOR FREE) Guardianship documents to protect your little ones.

If its time, well then you really don’t love your kids. Sorry you just don’t. You choose not to take the time and/or expense to protect your children and this is a shame as they cannot protect themselves and are DEPENDING on YOU to protect them. So parents, I URGE you, PLEASE PLEASE take the time with whatever summer is left and while preparing your kids for back to school – take a moment to STOP and put your Estate Plan in place.

At the very least you owe it to your child to protect them from the harmful UV rays and the harm they will inevitably face if you do not have a complete Estate Plan.

GUARDIANSHIP designation and planning is not a “choice” when you have a child it is a NECESSITY to their very well being!

If you love your child PROVE it and get your estate plan NOW.

http://www.pslawyers.com/ 714-966-2646 http://www.childprotectionplan.com/

Everyone needs an estate plan. EVERYONE. Especially you with children, with a home, with a business, with any interest in REAL PROPERTY. Almost every Californian needs an estate plan.
What is an estate plan? It’s a set of legal documents that expresses what you want to happen when you either can’t make those decisions or when you are not here to make those decisions. It is your voice in writing or I should say sealed with your signature and that of witnesses and/or a notary. This “plan” ideally keeps you out of the court system – potentially avoiding conservatorships, guardianships, and probate proceedings. Trust me, you are going to want to avoid having to go through these processes and an estate plan can help you do just this.

SO, what’s should an estate plan have or look like? Let me first start by clarifying that a plan depends on you and your circumstances so there is never really one set plan for everyone – atleast that is not what we provide for our clients at Phancao & Shaffer, LLP (The PS Team). For purposes of this blog…. we are going to pretend we are talking to a happily married couple with minor children who live in the OC and have a home. Based on these facts in a very generalized overview, this families’ estate plan should have all of the following:

1) Marital Trust
2) Pour-Over Will (One for Husband/H and one for Wife/W)
3) Guardianship Designation (for the minor children)
4) Power of Attorney for Finances (H&W sets)
5) Personal Property Agreements
6) Community Property Agreements
7) Certificate of Trust
Healthcare Power of Attorney (H&W sets)
9) HIPAA docs (H&W sets)
10) Living Will (H&W sets – for life support wishes)
11) Funeral Memorandum
12) Personal Property Memorandum
13) Funding (transfering of assets into the Trust/Estate Plan)

Ok, so this is more or less what this married couples’ estate plan should have. Now, so as not to bore you with an over lengthy blog… stay tuned for more “talk” on why these documents are important and what else is needed to truly protect yourself, your family, and all you have worked hard for throughout the years…..

From our family to yours – Shadi A. Shaffer from the Law Offices of Phancao & Shaffer where your family is not only business but personal! (It’s Wednesday “hump” day; may the rest of your week go fast so that you can enjoy the weekend! – shadi)