Brian Lindsay Chew's Answers

When considering living trusts is there is a tax advantage when placing financial assets like bank accounts in a trust?

There is no tax advantage for making your trust the owner of your financial accounts. Additionally your trust can not own your tax deferred retirement accounts. However the primary advantage of having a trust own your account is if you become incapacitated it is much easier for you successor trustee to access your account than someone who holds your power of attorney (which is what would be used if your trust is the beneficiary). If your trust owns the account, the financial institution...

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Will bank accounts / investment accounts that have beneficiary designation avoid probate?

Yes, beneficiary designations will avoid probate assuming the beneficiary is alive. If none of your beneficiaries are alive, the account may then need to go through probate. Also, if you designate your children as beneficiaries, they will receive those assets as soon as they turn 18 which may be too young.

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Can I revise a living trust without the use of an attorney?

You do not necessarily need an attorney to amend any of your estate planning documents although it is generally a good idea to have an attorney do your amendment to make sure everything is done properly. You should be able to find an attorney who would only charge you for one hour of time at a rate of less than $250 per hour to do this for you.

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Does a beneficiary have to pay back funds to an incentive trust

Absent any specific language requiring payback of education benefit or some characterization of the payments as being a loan to the beneficiary, the beneficiary should not have any obligation to pay back the benefits received from the trust.

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What are the tax ramifications of owning a property in joint tenancy with regard to the step up basis?

The primary disdvantage of joint tenancy is that the survivor only gets a stepped up basis for 1/2 the property and thus may owe capital gains taxes when they sell the property. Other than changing title to community property with the right of survivorship which avoids probate and creates a 100% stepped up basis on the passing of the first spouse, I would alternatively recommend setting up a living trust so that you can avoid probate for your home if it would goto your children or any other...

I am 24 years old. Can I obtain guardianship of my 14 year old cousin? Can she live with me so she can go to a good school?

Her mother can appoint you as a temporary guardian of your cousin by filling out a few forms and consulting with an attorney.

Aunt and Uncle want to leave Niece and Nephew their house in CA

As always, you should direct any tax questions to your CPA. However, the advantage of inheriting a property as opposed to being added to the deed is that you get a full stepped up basis in the property when you inherit it. If they just put you on the deed and then you sell the property, your basis will likely be zero and thus the entire amount may be subject to capital gains taxes. If you inherit the property, your basis will be whatever the property is worth when they pass on and thus if...

Legal rights of a Will

Even if you were still legally married, you have the right to will your share of the community property to whomever you want to. In your case, you can have a will created that leaves your share of the community property (as decided by the courts or otherwise agreed upon) plus any separate property you may now have to your fiance.

Grandmother passed away but left my deceased father in the will.

I concur, absent some other language, your father's share will goto to his children

If the beneficiary in a will is listed as a joint owner of the home with the deceased, can probate be avoided in California?

You can avoid probate by being listed as a joint tenant with your sister. However their are some potential negative tax consequences with regards to capital gains taxes if you did not assist financially in the purchase of this home and then turn around and sell the home after your sister's passing. If you inherit the home and then sell it, you typically will not have to worry about any income taxes on the gain because you get a 100% stepped up basis on the property. If you are a joint owner,...