Newman Law Group Tustin Estate Planning Law Blog | Newman Law Group 2026-10-10T00:26:50Z https://www.tustinestateplanninglawblog.com/feed/atom/ WordPress On Behalf of Newman Law Group <![CDATA[How can a trust protect an inheritance from creditors?]]> https://www.tustinestateplanninglawblog.com/?p=47313 2026-10-05T00:27:52Z 2026-10-10T00:26:50Z How to use a spendthrift trust for protection A spendthrift provision can restrict a beneficiary from transferring their interest in the trust and prevent creditors from reaching trust income or principal before it is distributed. For example, a parent may establish a trust for an adult child and direct the trustee to distribute money according to specific terms rather than giving the child the entire inheritance at once. Keeping assets in the trust may make it more difficult for a creditor to satisfy a judgment from the beneficiary’s undistributed interest.

Are trust assets always protected?

No. California law provides exceptions to spendthrift protections. Certain claims, including child or spousal support obligations, may reach trust interests despite restrictions. A creditor may also seek court relief once the trust principal or payments become due to the beneficiary. In addition, the protection depends on how the trust is drafted and administered. A standard revocable living trust usually does not shield the person who created it from that person’s own creditors. Because creditor protection depends on a trust’s terms and a beneficiary’s circumstances, California families considering creditor protection should seek guidance from a qualified estate planning legal professional. They can review their circumstances and explain which trust structure and provisions may be appropriate for a family uniquely.]]> On Behalf of Newman Law Group <![CDATA[Can you avoid probate via a spousal property petition?]]> https://www.tustinestateplanninglawblog.com/?p=47311 2026-10-05T00:21:24Z 2026-10-05T00:21:24Z How does a spousal property petition work? A spousal property petition asks the probate court to determine whether some or all of the deceased person's property belongs to the surviving spouse or registered domestic partner. California Courts identify this procedure as an option when the surviving spouse is legally entitled to the property, including certain community property. The surviving spouse generally files Form DE-221 and provides information supporting the claimed ownership interest. Ownership documents, such as deeds and account records, may help establish whether the property was community property. Then, the court can issue an order determining the spouse's rights in the property.

When is probate still necessary?

A spousal property petition does not automatically eliminate the need for probate. Issues may arise if:
  • The deceased person owned separate property
  • They left property to someone other than the spouse
  • Ownership cannot be established clearly
  • There is a will or a prenuptial agreement
Because the correct transfer procedure for any given situation depends on an estate's assets and ownership records, a surviving spouse may benefit from legal guidance to review their deceased spouse’s estate before administration begins. Legal guidance during the estate planning process can also help individuals to avoid probate proactively.]]> On Behalf of Newman Law Group <![CDATA[What taxes apply when selling inherited property in California?]]> https://www.tustinestateplanninglawblog.com/?p=47308 2026-09-22T20:52:02Z 2026-09-22T20:52:02Z Selling a home or other real estate you inherited in California can provide major financial value, but the sale may have tax consequences. The inheritance itself is generally not treated as taxable income in California. However, selling the property can create a taxable gain depending on its value when you inherited it and the price you later receive.

What taxes could apply?

Understanding the property's tax basis is an important first step. For inherited property, the basis is usually its fair market value on the date the previous owner died. This adjustment can reduce the amount of gain subject to tax when the property is sold.  For example, if a home was worth $600,000 when you inherited it and you later sold it for $650,000, the potential gain would be based on the increase from the inherited value, subject to applicable adjustments and rules. Therefore, when inherited property is sold for more than its adjusted basis, the gain may be subject to capital gains taxation. California taxes capital gains as income, so the sale can have both federal and California income-tax consequences. Inherited property that qualifies as a capital asset is treated as long-term property for federal tax purposes, regardless of how long the beneficiary actually owned it. Other factors can affect the final tax calculation, including:
  • Improvements made to the property
  • Selling expenses
  • Depreciation from a rental property
  • Whether the property was used as a residence or rental
California may also require withholding in certain real estate transactions. Because the tax treatment can depend on the property's history and the estate's circumstances, beneficiaries should review the basis and potential tax obligations before completing a sale. Consulting a qualified tax professional or legal representative can help identify issues before they become costly problems.]]> On Behalf of Newman Law Group <![CDATA[Things not to include in your will]]> https://www.tustinestateplanninglawblog.com/?p=47306 2026-09-21T17:30:30Z 2026-09-21T17:30:30Z A will is a part of estate planning, but it is not designed to control every decision about your property or personal wishes. Some instructions may be handled through other estate planning documents or beneficiary arrangements. Understanding what may not belong in a will can help create a clearer plan and reduce confusion for the people carrying out your wishes. A will in California should also be considered as part of the estate planning picture rather than a document that handles everything.

Property with named beneficiaries

Certain assets may pass according to beneficiary designations rather than the instructions in your will. Life insurance and some financial accounts may transfer directly to the person you have named. Jointly owned property may also pass according to the ownership arrangement. If your wishes change, review the relevant beneficiary or ownership records instead of relying only on changes to your will.

Funeral instructions

Funeral arrangements often need to be known soon after death, while estate administration can take longer. Funeral wishes may therefore be better kept in a separate document that family members can access quickly.

Conditional gifts

You may want to leave property only if a beneficiary meets a particular condition. Some conditions may be difficult or impossible to enforce, especially when they conflict with law or public policy. More complex conditions may require a different estate planning structure that provides clearer administration.

Care arrangements for a disabled relative

Providing for a disabled family member can involve financial and personal needs that extend beyond a simple gift in a will. A suitable trust or other planning arrangement may provide a more structured way to address those needs while considering circumstances.

Gifts for pets

Pets cannot generally receive property directly. If you want to provide for an animal's care, consider arrangements that identify a caregiver and provide resources for expenses. Some jurisdictions also recognize pet trust arrangements. Estate planning is about more than writing down who receives your property. Your circumstances, assets, family relationships, and location can affect how a plan should be structured. If you are preparing or reviewing a will, seek legal guidance to understand which documents and arrangements fit your circumstances.  ]]> On Behalf of Newman Law Group <![CDATA[Which assets should be addressed in a California estate plan?]]> https://www.tustinestateplanninglawblog.com/?p=47304 2026-09-16T14:45:54Z 2026-09-16T14:45:54Z In California, the way an asset is titled determines how it will transfer after death. Some property may pass through probate, while other assets may transfer through a trust, joint ownership or a beneficiary designation.

What your estate plan should identify

Your inventory should include these categories so your representative or trustee can locate, value and distribute your property:
  • Real estate: List your home, rental properties, land and timeshare interests. Record addresses, mortgage information and where deeds are stored. State whether the property is owned individually, jointly or through a living trust.
  • Financial accounts: Identify checking and savings accounts, certificates of deposit, brokerage accounts, stocks and bonds. Include the institution’s name, account type and the final four digits of the account number.
  • Retirement and insurance benefits: Add pensions, 401(k) accounts, IRAs, annuities and life insurance policies. Check the named beneficiaries, as these designations generally determine how the benefits transfer.
  • Business interests: Document ownership in corporations, partnerships, limited liability companies and sole proprietorships. Include operating agreements, succession plans and information about business debts.
  • Personal property: Record vehicles, jewelry, artwork, firearms, collectibles and valuable household belongings. Keep titles, receipts and appraisals with your supporting documents.
  • Digital assets: Include cryptocurrency, domain names, websites, online businesses, cloud storage and social media accounts. Store access instructions securely rather than writing passwords in your will, which could become public.
  • Money and legal rights: Identify loans owed to you, royalties, intellectual property, expected inheritances and potential legal claims. These interests may carry value even when no money has yet been received.
An inventory should also identify debts that may reduce the estate’s value. Review the document after marriage, divorce, a birth, a death or a major purchase. A legal representative can help coordinate your will, trust, ownership records and beneficiary forms so they reflect your intentions accurately and enforceably.]]> On Behalf of Newman Law Group <![CDATA[Expanded small estate limits can minimize probate delays]]> https://www.tustinestateplanninglawblog.com/?p=47303 2026-09-07T12:33:00Z 2026-09-07T12:33:00Z streamlined probate process where property is transferred via relatively simple documentation to family members or other beneficiaries. However, up until last year, a small estate was considered one that had $184,500 or less in “probate assets.” Probate assets are ones that aren’t passing directly to a beneficiary, like an investment or retirement account with a designated beneficiary listed. That threshold basic excluded estates that included a home, given the cost of residential property in many parts of the state.

How has California law changed?

That’s why last year, the law was changed to increase the definition of a small estate significantly – and specifically to include more California homeowners. The law now allows a threshold of $750,000 for “real property” as long as that property was the deceased’s primary residence (in other words, not a vacation home or investment/rental property). Further, other probate assets may not exceed just over $200,000. These amounts are set to increase periodically with the Consumer Price Index (CPI). This change in the law certainly allows more Californians to take advantage of the streamlined probate process that saves time and money and helps beneficiaries get their inheritances faster than if there was a probate process dragging out months or even longer. However, many more people can help ensure that most of their estate avoids probate completely with a multitude of other estate planning tools. An experienced legal professional can help review and implement options for doing just that.]]> On Behalf of Newman Law Group <![CDATA[3 tips for discussing your estate plan with your beneficiaries]]> https://www.tustinestateplanninglawblog.com/?p=47302 2026-09-05T12:50:02Z 2026-09-05T12:50:02Z talking to your loved ones about it while you’re still alive can help them to understand your wishes and avoid potentially unpleasant surprises after your death.

#1: Choose an appropriate time and place

You should have this discussion in private at a time when you don’t have to rush. It’s also a good idea to make sure there aren’t any other major life events occurring at the time you have this talk with people who might otherwise be quite overwhelmed.

#2: Consider printing copies of the estate plan

Unless your estate plan is very simple, it may be beneficial to print out a copy of the plan for each person. This gives them a hard copy to review so they can be prepared to follow its terms.

#3: Prepare for questions

Your loved ones may have questions about your estate plan. Being able to answer those while you’re still around may help them to follow your wishes after you pass away. Ultimately, your estate plan should reflect your wishes in a way that can be legally upheld. In addition to the above-noted benefits of proactive communication, letting your loved ones know what’s in your plan may help to minimize a risk of legal challenges after you pass away.]]> On Behalf of Newman Law Group <![CDATA[Some financial resources should not be addressed in a will]]> https://www.tustinestateplanninglawblog.com/?p=47301 2026-08-29T23:44:44Z 2026-08-29T23:44:44Z Some accounts require special consideration There are two primary scenarios that may make it inappropriate to include financial resources, such as a savings account, investment account or retirement account, in a will. First is when there is a co-owner. Typically, only assets that belong solely to the person who dies belong in their will. The second scenario is when the testator creating the will already established transfer-on-death or payable-on-death arrangements. Financial institutions and investment professionals often accept documents that allow a specific beneficiary to assume immediate ownership and control of an account after a person dies. The account then does not need to pass through probate court. If the instructions in the will contradict the instructions filed with the financial institution, there may be confusion and conflict related to property distribution. Creating strong wills and maintaining an updated estate plan are both important steps for those who want to support their loved ones and establish a meaningful legacy. An estate planning attorney can help people avoid common mistakes, such as including contradictory information or the wrong assets in a will.]]> On Behalf of Newman Law Group <![CDATA[When should I start considering estate planning?]]> https://www.tustinestateplanninglawblog.com/?p=47300 2026-08-09T00:33:17Z 2026-08-13T00:31:36Z Estate planning can begin in early adulthood Turning 18 brings an important legal change. Here, parents usually no longer have automatic authority to make decisions for an adult child. This can make basic estate planning documents relevant even for someone who owns very little. For example, as a young adult, you may want to consider documents that authorize a trusted person to handle certain financial or health care matters if an illness or serious accident leaves you unable to act independently. Then, as assets and responsibilities increase, the estate plan can develop with them. Remember, an initial plan does not have to address every possibility for the rest of your life.

Certain life events can make planning more important

Instead of waiting for a particular birthday, it may be more useful to consider what is happening in your life. Estate planning deserves greater attention after changes such as:
  • Marriage or divorce
  • Having or adopting a child
  • Buying a home
  • Building substantial savings or investments
  • Starting or acquiring a business
  • Experiencing a major family change
These events can also serve as useful reminders to review documents prepared years earlier. So, as long as you have loved ones you want to protect, property they care about or preferences about who should act for them during an emergency, estate planning may already be worth considering. To help ensure that an estate plan complies with state laws and is legally sound, it is vital to work with a legal professional. They can make sure an existing plan continues to reflect your wishes over time as well.]]> On Behalf of Newman Law Group <![CDATA[Signs that your estate planning documents need to be updated]]> https://www.tustinestateplanninglawblog.com/?p=47299 2026-08-09T00:22:42Z 2026-08-09T00:22:42Z When it may be time to revisit your estate plan Several key signs may indicate that it is time to revisit an existing plan:
  • Your family circumstances have changed: Marriage, divorce, the birth or adoption of a child and the death of a family member can significantly affect an estate plan.
  • Your financial situation is substantially different: Buying or selling real estate, receiving an inheritance, opening a business or accumulating significant investments can change what an estate plan needs to accomplish.
  • Your beneficiary designations may be outdated: Retirement accounts, life insurance policies and certain financial accounts can pass according to beneficiary designations. Reviewing them alongside the rest of the estate plan can help identify inconsistencies that could lead to unintended distributions.
  • The people named in your documents are no longer appropriate choices: Estate plans frequently appoint people to administer an estate, manage a trust or make important decisions during incapacity. Over time, a chosen person may die, experience health problems, relocate or become unwilling to serve. Personal relationships may also change.
  • You have moved to another state: Estate planning laws vary among states. After a permanent relocation, it can be useful to have existing wills, trusts, powers of attorney and health care documents reviewed under the laws of the new state.
  • Your health or long-term care needs have changed: A serious diagnosis or declining health can make previously signed documents worth reconsidering.
A periodic review can reveal impractical appointments and provisions that may no longer accomplish their intended purpose. A legal team can assist with appropriate revisions so that your plan continually reflects your current intentions.]]>