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January 2025
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New Year Brings New Changes Holiday Plans and Important Updates From Our Staff
Whether you spent the holidays with a cup of eggnog or with a nice cup of peppermint tea, we hope you’ve enjoyed the holiday season with family and friends. Our team certainly enjoyed a much-deserved holiday break. Each of us has had our own holiday and pre-holiday festivities and have a lot to look forward to in 2025! Kimberly Barrot: Kim enjoyed the holidays with friends and family, especially experiencing the magic of Christmas with her daughter. She is reflecting on the successes of 2024 and looking forward to all 2025 has to offer, including a trip to Costa Rica. Mary Falk: Mary has been enjoying traveling the world and spending a lot of time in Italy with family. This Christmas, she spent time in Kansas City, MO. Her next adventure is an African safari! Jessie Burgueño: Jessie is still talking about his long-awaited trip to Paris he took with his sisters in November. They went to Disneyland in Paris, enjoyed the sites, and had an amazing time. Jenna Gimarelli-Ferreira: Jenna loves the holiday season! She has enjoyed all the decorations, activities, spending time with family, and her annual holiday Disneyland trip. She is excitedly celebrating her son’s 6th birthday this month! Heather Russell: Heather has enjoyed her time off for the holidays, which allowed her to reorganize her studio and have lunch with her friends. Jessica Estes: Jessica loves celebrating a white Christmas in Lake Tahoe with her family. She is eagerly planning her next vacation to New York.
We believe everyone needs an Estate Plan. However, finding the right time or motivation can sometimes seem overwhelming. We understand discussing estate planning — death and money — is a daunting task. People are confused and struggle to find accurate information. They are overcome with emotion when contemplating their potential incapacity, disability, and death and the family and friends they will leave behind. However, people do know if they don’t plan, the State of California will get unnecessarily involved, often causing additional delays and expenses while protecting their assets, minimizing estate taxes, and preserving their wealth for their friends, family, and charitable causes. If you have a friend or family member you think would benefit from hearing more about Living Trusts or Estate Planning, please provide them with the dates below for our upcoming living trust and estate planning seminars. All webinars are presented via Zoom, and registration is required.
Tuesday, Jan. 28, from 12:00 p.m. – 1:30 p.m.
Tuesday, Feb. 11, from 6:30 p.m. – 8:00 p.m.
Please contact Heather at (650) 463-1550 or heather@falkbarrot.com for additional information and registration.
We hope your holiday season was just as full of fond memories and exciting new adventures. Let’s work together to make this New Year even better still! We are grateful you continue to choose us, Falk, Barrot & Associates, LLP, as your trusted legal counsel. We sincerely value the opportunity to assist you and your loved ones with your estate planning needs.
Please see our flyer on the next page, which includes 2025 updates to the Federal Gift and Estate Tax Law, an important notice for business owners regarding FinCen reporting requirements, an extension of our “Gift a Trust” special, and our 2025 rate increase.
—Heather Russell
www.FalkBarrot.com
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YOUR ROLE AS EXECUTOR Estate Plan Responsibilities Explained
Being named an executor is an honor that comes at a difficult time. But looking after the estate of a loved one after they are gone is a privilege that comes with many responsibilities. You must manage paperwork, assets, and maintenance costs. Moreover, as executor of the estate, you
are responsible for carrying out the will of the deceased. If you have been named executor of an estate, here are three duties you must manage.
This is necessary to file a tax return for the decedent’s final year of life and to file a life insurance claim. It will also be required when notifying applicable government agencies, such as the Social Security Administration, of the decedent’s passing. It will also be your responsibility to notify the decedent’s credit card company, banks, and mortgage lenders. Funeral Arrangements and Accounts The decedent’s wishes for funeral arrangements will most likely be included in the will, and it is your role as executor to carry them out. Additionally, all payments made on behalf of the decedent should come from an estate account. Establishing an estate account for dividend payments, paychecks, tax refunds, and burial expenses is key. This role may seem complicated, but whoever gave it to you knew you were up to the task.
Asset Distribution The primary role of the executor is to
distribute the estate’s property according to the decedent’s wishes. This also includes paying for maintenance costs during probate and before distribution can occur. As the executor, you are responsible for paying any mortgage, utility, car, and other necessary bills until the beneficiaries take over those responsibilities. Although some assets may avoid probate, the executor must file the will in probate court in most states. Paperwork and Notification As executor, you must obtain copies of the death certificate from the funeral home.
Embrace the French Art of Living
Enrich Your Golden Years With L’art de Vivre
Living like a French person isn’t just about enjoying cheese and wine; it’s about embracing l’art de vivre , or the art of living. This philosophy emphasizes finding joy in simple pleasures, prioritizing quality over quantity, and cultivating beauty in everyday life. For those of us reaching our golden years, adopting this way of life can enhance our quality of life and make every moment more fulfilling. Let’s explore how you can infuse your daily routine with French elegance and leisure. Slow down and savor. The essence of the French lifestyle is taking the time to savor life’s joys. In France, this might mean lingering over a meal rather than rushing through it. Apply this principle by taking time to appreciate the small details of your day, whether enjoying the quiet morning hours with a cup of coffee or watching the sunset. This deliberate
slowdown helps to reduce stress and increase mindfulness. Prioritize self-care. Self-care is paramount in French culture. It goes beyond vanity to encompass a comprehensive lifestyle that maintains mind and body health. This can involve a balanced diet rich in natural foods, regular physical activity, and routines nourishing the body and soul. As you age, these practices are vital for maintaining your health, energy, and vitality, allowing you to enjoy your years to their fullest potential. Choose quality over quantity. The French are known for their classic style, which favors quality over quantity. This principle applies to various aspects of life, from clothing to kitchenware. Investing in fewer but better-quality items ensures longevity and guarantees your purchases are meaningful and genuinely improve your life.
Inspire your inner artist. The French celebrate creativity as a significant aspect of their daily life. Emulate this by setting aside time for cultural activities that spark your creativity and passion. Whether attending a concert, visiting an art gallery, or simply engaging in a creative hobby at home, these activities enrich your life, stimulate your mind, and provide tremendous joy. Adopting these elements of the French art of living can bring richness and joy to your everyday life, proving that the golden years can be your most vibrant.
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Kimberly N. Barrot, Esq Jessie J. Burgueño, Esq
2025 Federal Gift And Estate Tax Law Changes
Federal Gift Tax The federal gift tax law has increased by $1,000 to allow each taxpayer to gift up to $19,000 per year to any one individual without reporting the gift and without reducing his/her available estate tax exemption. A married couple can now gift up to $38,000 per year to any one individual.
Federal Estate Tax The federal estate tax exemption has increased to $13,990,000 for an individual taxpayer or $27,980,000 for married taxpayers. This allows for an individual taxpayer to pass up to $13,990,000 and married couples to pass up to $27,980,000 (less taxable gifts as discussed above), without incurring federal estate tax liability. The amount which exceeds the federal estate tax exemption is subject to federal estate tax at an applicable tax rate of 40%. Important Reminder: Under current law, the federal estate tax exemption amount, which is adjusted annually for inflation, will revert back to $5,000,000 (as adjusted for inflation) on January 1, 2026. We will notify our clients if there are any changes to the Federal Estate Tax law under the new administration.
A taxpayer is not limited to the number of individuals they can gift annually. Any taxpayer who gives a gift of more than $19,000 to any one person is required to file a gift tax return, Federal Form 709 and the amount in excess reduces the taxpayer’s available federal estate tax exemption at his or her death.
Important Notice for Business Owners: Beneficial Ownership Information (BOI) Reporting Requirement
Who Should Take Action: If you are a business owner or play a key role in managing or making decisions for a qualifying company — whether it’s a corporation, limited liability company (LLC), limited liability partnership (LLP), or similar entity organized with a Secretary of State — you may need to comply with a newly released federal reporting requirement. This requirement is for the company (known as “Reporting Company”) AND for the individuals that own 25% or more of the company and/or plays a significant role in managing or making decisions for the business. W hat Y ou Need to Know: Many U.S.-based and foreign companies registered in the U.S. are required to report Beneficial Ownership Information (BOI) to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). The deadline for submitting your BOI report is January 1, 2025.* Required Information: Companies must provide details about the business and the individ-uals who own or control 25% or more of the company, and/or play a significant role in managing or making decisions for the company.
Penalties for Noncompliance: Failure to fil e the required BOI report can result in substantial fines, exceeding $500 per day for each day the form is not submitted. How to File Y our BOI Report: Access the reporting portal and find more information on FinCEN’s official website: fincen.gov . You will need to upload identification documents (such as a driver’s license or passport) as part of the filing requirement. Need Help? Please reach out to your CPA or consult the FinCEN website for further guidance. Update – December 3, 2024: A federal court ruling has temporarily blocked the enforcement of the BOI reporting requirements nationwide. FinCen is stating that the Department of the Treasury is appealing the order. Businesses are still encouraged to report. We will notify clients on updates to the filing requirements. * The deadline of January 1, 2025 is for businesses established before January 1, 2024. Businesses that were created in 2024 have a 90-day deadline from their effective date of formation or registration. Those created in 2025 or later have a 30-day deadline.
falkbarrot.com | (650) 463-1550
Gift a Trust A holiday gift idea for someone who may already have everything they need: A holiday gift idea for someone who may already have everything they need:
Give the gift of peace of mind. Setting up a living trust often seems daunting, but what better way to set up your loved one for success than by gifting them a living trust with your trusted legal advisors, Falk, Barrot & Associates, LLP . Our rates have increased as of January 1, 2025. Gifting your loved one a trust today will help lock in the 2024* rates for them. Gift today! Give the gift of peace of mind. Setting up a living trust often seems daunting, but what better way to set up your loved one for success than by gifting them a living trust with your trusted legal advisors, Falk, Barrot & Associates, LLP . Our rates have increased as of January 1, 2025. Gifting your loved one a trust today will help lock in the 2024* rates for them. Gift today! Lock in these 2024 rates today: 2025 Rates (Jan. 1) Gift a Trust
Individual
�4,975
�6,575
�5,975 Lock in these 2024 rates today: Married
�6,975 2025 Rates (Jan. 1)
Individual
�4,975
�6,575
* Recipients of a gifted trust must engage the law firm to establish their estate plan by March 1, 2025.
Married
�5,975
�6,975
Hourly Rate Increase Notification, effective March 1, 2025:
* Recipients of a gifted trust must engage the law firm to establish their estate plan by March 1, 2025.
falkbarrot.com | (650) 463-1550 Paralegals — $250–$410/hour Law Clerks — $150–$250/hour Administrative Assistants — $100–$200/hour Kimberly N. Barrot, Esq. — $650/hour Jessie J. Burgueño, Esq. — $490/hour Associate Attorneys — $425–$575/hour Paralegals — $250–$410/hour Law Clerks — $150–$250/hour Administrative Assistants — $100–$200/hour *Mary S. Falk, Esq. — $750/hour (Mary S. Falk is Senior Counsel and unavailable.) Kimberly N. Barrot, Esq. — $650/hour Jessie J. Burgueño, Esq. — $490/hour Associate Attorneys — $425–$575/hour
Hourly Rate Increase Notification, effective March 1, 2025:
TAKE A BREAK
BEGINNINGS BLANKETS CARNATION CAPRICORN GARNET HEALTHY ICICLE PENGUIN PLANNING RESOLUTION SNOWBOARD SOUPY
Photo: Matthew Fox Recolored from original
Nashville is known as “Music City” because of its role in the birth of country music and its centuries-old Ryman Auditorium. Famous performers like Jimi Hendrix, Otis Redding, and Dolly Parton have performed in venues on the city’s iconic Jefferson Street. As amazing as their live performances are, they are nowhere near as impactful as Jon Bon Jovi’s was on Tuesday, Sept. 11, last year. I Don’t Want to Live Forever On Wednesday, Sept. 12, Jon Bon Jovi, frontman of the rock band Bon Jovi, became the unwitting star of a viral video released by the Nashville Metropolitan Police Department (NMPD). The day prior, while filming a music video for his upcoming album on the public Seigenthaler Pedestrian Bridge, Bon Jovi came across a woman standing on the ledge overlooking the Cumberland River. He quickly acted to ensure she didn’t get “One Step Closer” and did his best to provide her with “Something to Believe In.” Over several minutes, Bon Jovi evoked his song, “I Got the Girl,” and successfully convinced her to step away from the ledge to safety. Nobody’s Hero The NMPD was impressed by Bon Jovi’s selfless act. After YouTube took down the video of Bon Jovi’s rescue, the NMPD reposted it on their Facebook page and lauded the singer’s achievements wherever they could. Rock Legend Saves Woman in Peril JON ‘BRIDGE’ JOVI
CITRUS-HERB PORK ROAST Inspired by TasteOfHome.com
Ingredients
• 1 boneless pork sirloin roast (3–4 pounds) • 2 tsp dried oregano • 1/2 tsp ground ginger • 1 tsp pepper • 2 medium onions, cut into thin wedges • 1 cup plus 3 tbsp orange juice, divided
• 1 tbsp sugar • 1 tbsp grapefruit juice • 1 tbsp steak sauce • 1 tbsp reduced-sodium soy sauce • 1 tsp grated orange zest • 1 tsp salt • 3 tbsp cornstarch • Egg noodles, cooked
Directions 1. Cut roast in half. In a small bowl, combine oregano, ginger, and pepper; rub over pork. In a large skillet coated with oil, brown roast on all sides. Transfer to a slow cooker; add onions. 2. In a small bowl, combine 1 cup orange juice, sugar, grapefruit juice, steak sauce, and soy sauce; pour over roast. Cover and cook on low for 4–5 hours or until meat is tender. Remove meat and onions to a platter. 3. Transfer cooking juices to a small saucepan. Add orange zest and salt. Bring to a boil. Combine cornstarch and remaining orange juice. Gradually stir into the pan for 2 minutes or until thickened. Serve with pork and noodles.
“It takes all of us to help keep each other safe,” NMPD Chief John Drake said of Bon Jovi on X (formerly Twitter).
Bon Jovi is no stranger to altruism. His nonprofit organization, the JBJ Soul Foundation, assists those suffering from homelessness, poverty, and hunger. His foundation’s food and affordable housing programs have aided the less fortunate since 2006. It sure seems like Bon Jovi is committed to “Work for the Working Man.”
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650-463-1550 www.FalkBarrot.com 865 Laurel Street, Ste. 4 San Carlos, CA 94070 INSIDE THIS ISSUE
A Holiday and New Year Update
1
The Responsibilities of an Executor
2
Live a More Joyful, French-Inspired Life
3
Citrus-Herb Pork Roast
Bon Jovi Saves Woman on Bridge
The High Price of Dying Without a Will
4
PURPLE HAZE Prince’s Heirs Face Difficult Legal Battle
Estate attorneys constantly harp about the importance of having an updated, thorough estate plan. It may seem like nothing more than a marketing pitch, but those
reminders are consistent because of their dire importance. Take, for example, the case of the legendary musician Prince. When he passed away in April 2016, his estate was valued at over $150 million. The singer had no children or spouses to speak of, but he had six siblings entitled to inherit his estate. However, determining all potential beneficiaries without an estate plan was a challenge that cost the estate dearly. Prince’s Probate In the case of Prince’s estate, the absence of any will led to a prolonged probate process. While the six siblings were named as legal heirs, they could not agree on a distribution of assets between them. This resulted in frequent court visits and a prolonged legal entanglement that cost the estate millions. During this process, several heirs sold their inheritance shares to a company called Primary Wave, which acquired the rights to
Prince’s music. This only complicated the process further. Unworthy Suitors Due to the estate’s value, many suitors came looking for a portion of the inheritance. This included 45 imposters alleging kinship to the late musician. Ruling them out took half a decade, thousands of court filings, and numerous DNA tests. When all was said and done, the potential heirs cost the estate over $3 million in legal fees. The Importance of an Estate Plan The lack of an established will or trust in Prince’s case may have come down to his natural mistrust of lawyers. However, his failure to confide in legal advisors cost his estate and heirs millions of dollars. If you have yet to establish an estate plan, let this be your wake-up call: You do not want a fight to occur in your wake. Prepare for your family’s future.
Photo: Allen Beaulieu
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