Carney & Sugai, LLP - Estate Planning

Of course, estate administration is considerably more complex in high net worth cases and/or where assets must be liquidated to pay debts and taxes, where there are contested claims against the estate, where the decedent owned land in another state, where the decedent left a dependent minor child or spouse, or where any combination of these and/or other issues exists. Both the estate administrator (i.e., the executor or trustee) and beneficiaries of an estate often need an advisor to help them navigate this complex area to ensure that the administration is done properly and to understand and protect their rights. Some of the simplified procedure situations include the following:

Surviving Spouse/Minor Children: A surviving spouse, and in some cases the decedent's minor children, have a number of administration options which are not available to other beneficiaries of a decedent's estate. These options include a Spousal Property Petition, Surviving Spouse Affidavit, declarations to confirm community property title to real property, Probate Homesteads, and Family Allowance Petitions.

Small Estates: Where a decedent dies with less than $100,000.00 held in his/her sole name (i.e. not in joint tenancy and not in trust), a declaration procedure is available in California to transfer the assets to the heirs or beneficiaries. Specific requirements must be met in order to use the declaration procedure. Generally, an attorney is needed to prepare this declaration properly.

Named Beneficiaries: Insurance policies, annuities, retirement accounts, and some investment accounts usually have one or more persons designated as the beneficiary(ies) of the funds upon the decedent's death. There may also be death beneficiaries on credit card accounts (credit card balance insurance), fraternal organization or club death benefits, union death benefits, and military death benefits.

To collect the funds, a certified copy of the decedent's death certificate will need to be provided to the insurance company, bank, etc., and the named beneficiaries will have to sign some forms. Unfortunately, this can sometimes be difficult. A company will occasionally refuse to give out information regarding who the beneficiaries are or the amount of the proceeds or will demand "court approval of a distribution" prior to the release of funds. Often an experienced attorney can provide necessary information to the companies, thereby allowing the release of information and the funds without requiring a court order.

Joint Tenancy: Assets held in joint tenancy with "rights of survivorship" (sometimes just labeled "joint tenants") pass automatically at death to the surviving joint tenant. Frequently property such as real estate, bank accounts, stocks, bonds, and automobiles is held in joint tenancy, but there must be a written document (such as a deed to real property or a title to a car) showing that joint tenancy exists. However, this does not mean that title to the asset is automatically cleared.

Clearing title involves proving to the investment company or the County Recorder that a joint tenant has passed away. In the case of real property, an Affidavit of Death of Joint Tenant must be recorded with a certified copy of the death certificate. Usually, in the case of bank accounts, a certified copy of the death certificate of the deceased joint tenant is adequate to have him/her removed from the account(s).

For vehicles, the National Automobile Club of California and the California State Automobile Association will assist the still-living joint tenant by giving him/her a temporary ownership certificate and sending the following documents to the DMV for re-issuance: The ownership certificate (signed by the surviving owner), the registration card, a certificate of compliance with the smog-pollution control law, and a certified copy of the death certificate.

Title can be changed to securities by taking or mailing the following documents to the transfer agent at the financial institution: A certified copy of the death certificate of the deceased joint tenant and the original stock certificate, if available.

When a joint tenant dies, the jointly held property is included in his or her taxable estate. Therefore, it is important to talk to an attorney before putting property in joint tenancy or ending a joint tenancy.

	Estate Administration Estate Administration • Probate • Trust Administration What Is Estate Administration? Estate administration is the generic term for the administration of a decedent's estate. Estate administration can encompass one or more simplified procedures, a probate proceeding, and/or a trust administration. In essence, an estate administration (by any method) requires: 1. determining and valuing the decedent's assets 2. determining who is entitled to the decedent's assets 3. determining and paying the decedent's lawful debts and taxes 4. transferring the decedent's assets to the proper beneficiary(ies) Of course, estate administration is considerably more complex in high net worth cases and/or where assets must be liquidated to pay debts and taxes, where there are contested claims against the estate, where the decedent owned land in another state, where the decedent left a dependent minor child or spouse, or where any combination of these and/or other issues exists. Both the estate administrator (i.e., the executor or trustee) and beneficiaries of an estate often need an advisor to help them navigate this complex area to ensure that the administration is done properly and to understand and protect their rights. Some of the simplified procedure situations include the following: Surviving Spouse/Minor Children: A surviving spouse, and in some cases the decedent's minor children, have a number of administration options which are not available to other beneficiaries of a decedent's estate. These options include a Spousal Property Petition, Surviving Spouse Affidavit, declarations to confirm community property title to real property, Probate Homesteads, and Family Allowance Petitions. Small Estates: Where a decedent dies with less than $100,000.00 held in his/her sole name (i.e. not in joint tenancy and not in trust), a declaration procedure is available in California to transfer the assets to the heirs or beneficiaries. Specific requirements must be met in order to use the declaration procedure. Generally, an attorney is needed to prepare this declaration properly. Named Beneficiaries: Insurance policies, annuities, retirement accounts, and some investment accounts usually have one or more persons designated as the beneficiary(ies) of the funds upon the decedent's death. There may also be death beneficiaries on credit card accounts (credit card balance insurance), fraternal organization or club death benefits, union death benefits, and military death benefits. To collect the funds, a certified copy of the decedent's death certificate will need to be provided to the insurance company, bank, etc., and the named beneficiaries will have to sign some forms. Unfortunately, this can sometimes be difficult. A company will occasionally refuse to give out information regarding who the beneficiaries are or the amount of the proceeds or will demand "court approval of a distribution" prior to the release of funds. Often an experienced attorney can provide necessary information to the companies, thereby allowing the release of information and the funds without requiring a court order. Joint Tenancy: Assets held in joint tenancy with "rights of survivorship" (sometimes just labeled "joint tenants") pass automatically at death to the surviving joint tenant. Frequently property such as real estate, bank accounts, stocks, bonds, and automobiles is held in joint tenancy, but there must be a written document (such as a deed to real property or a title to a car) showing that joint tenancy exists. However, this does not mean that title to the asset is automatically cleared. Clearing title involves proving to the investment company or the County Recorder that a joint tenant has passed away. In the case of real property, an Affidavit of Death of Joint Tenant must be recorded with a certified copy of the death certificate. Usually, in the case of bank accounts, a certified copy of the death certificate of the deceased joint tenant is adequate to have him/her removed from the account(s). For vehicles, the National Automobile Club of California and the California State Automobile Association will assist the still-living joint tenant by giving him/her a temporary ownership certificate and sending the following documents to the DMV for re-issuance: The ownership certificate (signed by the surviving owner), the registration card, a certificate of compliance with the smog-pollution control law, and a certified copy of the death certificate. Title can be changed to securities by taking or mailing the following documents to the transfer agent at the financial institution: A certified copy of the death certificate of the deceased joint tenant and the original stock certificate, if available. When a joint tenant dies, the jointly held property is included in his or her taxable estate. Therefore, it is important to talk to an attorney before putting property in joint tenancy or ending a joint tenancy.