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MARCH 2026
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Don’t Leave Your Fortune to Luck Estate Planning Tips for Every Family
When you think of St. Patrick’s Day, images of green shamrocks, cheerful parades, and a little bit of luck probably come to mind. We celebrate the fun parts of serendipity like finding a lucky penny, catching a break, or feeling like fortune is smiling on us. But here’s the thing: While luck is delightful, it’s fleeting. It might bring you opportunities, but it won’t protect them. If you want to make sure what you’ve worked for or what you’ve been lucky enough to inherit lasts for generations, you need more than a four-leaf clover. You need a plan. TURNING GOOD FORTUNE INTO LASTING SECURITY Many people assume that having assets, savings, or an inheritance is enough to secure a future. Luck may have brought it to you, but without careful planning, you can lose it just as quickly. Estate planning ensures your hard-earned (or luckily acquired) assets are protected, distributed according to your wishes, and preserved for the people you care about most. Without it, confusion, legal complications, or even family disputes can undo what you intended to leave behind for generations to come. CONFUSING FAIRNESS WITH EQUALITY A common mistake I’ve seen is trying to split everything evenly among heirs. On the surface, that seems fair, but
fairness and equality aren’t always the same thing. Every child or beneficiary may have different circumstances (many do). One might be financially responsible, another might struggle with money management, and another might face unexpected life challenges. Without planning, an equal division could unintentionally harm someone or create tension among family members down the road.
Estate planning allows you to account for these differences. You can set up trusts, conditional distributions, or other mechanisms that provide support in the right way, without unintentionally creating problems. What’s “fair” becomes much more meaningful when it’s also thoughtful and tailored to individual needs. OVERLOOKING THE DETAILS Even small oversights can create big headaches. I’ve seen situations where beneficiaries’ circumstances, like incarceration, incapacity, or financial struggles, weren’t considered. As a result, they could have avoided complicated legal proceedings. With foresight and careful planning, these issues can be addressed in advance, ensuring your wishes are carried out smoothly and your loved ones are protected.
Planning gives you control. Luck may give you opportunities, but only preparation ensures they last. Take the time to think through different scenarios, talk with advisors, and make intentional decisions is the best way to safeguard your assets and your family’s future. Remember, real luck isn’t just stumbling into good fortune or a winning lottery ticket. True luck is knowing your hard work and resources are protected, your loved ones are cared for, and your wishes are respected long into the future. Planning turns fleeting fortune into lasting
security, and that’s luck anyone can celebrate.
–Elliott Harry
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Can You Deduct Mortgage Interest If You’re Not on the Title?
Did You Know? Did you know that St. Patrick wasn’t Irish? He was born in Roman Britain and brought to Ireland as a teenager. He later returned by choice, which is how he became associated with the country.
WHEN CAN COURTS DENY THESE DEDUCTIONS? The court distinguished the Uslus’ case from others where taxpayers: • Did not personally make mortgage payments. • Could not show that the home
Paying a mortgage on a home you don’t legally own? A landmark tax case explains when you may still deduct the interest. UNDERSTANDING EQUITABLE OWNERSHIP AND MORTGAGE INTEREST DEDUCTIONS IN CALIFORNIA In Uslu v. Commissioner , the U.S. Tax Court clarified that mortgage interest deductions can apply even when a taxpayer isn’t on the property title, so long as they carry the financial burden and beneficial control. THE USLUS’ SITUATION: • The couple sought to buy a home in Covina, California. • A recent bankruptcy prevented them from qualifying for a mortgage. • A brother and sister-in-law took legal title and secured the loan. • The Uslus paid the mortgage, lived in the home, and covered all upkeep. • The title holders never lived there or made payments. • The IRS denied nearly $19,000 in interest deductions because the Uslus weren’t legally liable. THE COURT’S VIEW: SUBSTANCE OVER FORM The Tax Court ruled in the Uslus’ favor, offering a crucial clarification about IRS rules for the mortgage interest deduction. You may deduct mortgage interest if you are either: • The legal owner, or • The equitable (beneficial) owner of the property. HOW THE COURT DETERMINED EQUITABLE OWNERSHIP? The court looked at behavior, not just documents. Factors included are:
Here are three more little-known facts surrounding St. Patrick’s Day.
Green wasn’t the original color! Early images of St. Patrick show him wearing blue. Green became linked later because of Ireland’s landscape and national identity. Corned beef and cabbage isn’t traditionally Irish. That meal became popular among Irish immigrants in the U.S. In Ireland, pork was more common. It’s now a global event. Cities around the world dye rivers, light landmarks green, and host parades.
was used as a personal residence.
• Lacked written or consistent
evidence of ownership intentions.
WHAT DOES THIS MEAN FOR CALIFORNIA HOMEOWNERS, FAMILIES, AND BUSINESS OWNERS? Tax ownership depends on responsibility, not the name on the deed. You may qualify for the mortgage tax deduction if: • You make the mortgage payments. • You live in the home as your residence. • You handle repairs, taxes, and upkeep. • You benefit from appreciation or equity. • You carry the burdens of ownership. BEST PRACTICES TO PROTECT YOUR HOME MORTGAGE INTEREST DEDUCTION To strengthen a claim of equitable ownership, California families should consider: • Written agreements outlining payment and ownership intent • Consistent mortgage and expense payment records • Proof of residence (utilities, insurance, tax statements) • Contributions to maintenance and property improvements • Legal guidance when structuring shared or family ownership GET TRUSTED GUIDANCE FOR SMART OWNERSHIP AND TAX DECISIONS IN CALIFORNIA California real estate and tax rules are complex. At Dahl Law Group, we help families structure ownership and protect mortgage interest deductions.
Do you have a friend who needs our help? When you’re done reading, give them this newsletter and recommend they scan our QR code. We can help
them solve their tax, business, or estate planning problems before things get worse.
• Who lives in the home? • Who pays the mortgage? • Who maintains and repairs the property? • Who bears the benefits and burdens of ownership?
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Do You Need Tax Clearance Certificates When Buying or Selling a Business in California?
Unpaid taxes often delay California business sales. Tax clearance certificates confirm taxes are paid and protect buyers from liability. Understanding this early keeps deals on track. WHAT ARE TAX CLEARANCES AND WHY DO THEY EXIST? California requires tax clearance to confirm that all business taxes are paid before a sale. Certificates protect buyers from inheriting the seller’s unpaid tax liabilities, called successor liability.
missing returns or suspended status can cause delays.
Employment Development Department (EDD)
The EDD monitors payroll taxes and employee classification, often auditing contractor-heavy businesses claiming “no employees.” California Department of Tax and Fee Administration (CDTFA) The CDTFA often requires extensive documentation and a final sales tax return; audits can delay closing. County Tax Collector Property taxes on business equipment or fixtures must be current. Even a small balance can delay escrow, so sellers should verify payment status early.
WHY TAX CLEARANCES MATTER Without clearances:
WHAT DOES EVERY AGENCY REQUIRES FOR A SMOOTH TAX CLEARANCE? Franchise Tax Board (FTB) The FTB checks state income taxes for corporations, LLCs, and partnerships. Up-to-date filings clear quickly, but
• Buyers can unknowingly inherit thousands in unpaid taxes. • Escrow officers may refuse to close the transaction. • Lenders and landlords may block the transfer until proof is provided.
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Spinach Artichoke Pizza Ingredients • 1 loaf frozen bread dough • 2 tbsp garlic herb spreadable cheese • 1 cup shredded mozzarella cheese • 1/2 cup shredded Gruyere cheese
SUDOKU
• 7 oz artichoke hearts, chopped • Several handfuls of fresh spinach • Pepper, to taste
Directions 1. Thaw dough according to package directions and let it rise for 2 hours. 2. Preheat oven to 450 F. 3. Coat a 10-inch cast-iron skillet with non-stick spray, then gently stretch dough to fit. 4. Spread garlic herb cheese evenly across the entire dough layer. 5. Sprinkle mozzarella and Gruyere cheeses evenly over dough, reserving a small amount of each. 6. As the topping, scatter chopped artichoke hearts, followed by a layer of torn spinach leaves, and then the reserved cheeses. Add black pepper to taste. 7. Bake for 15–18 minutes, until the edges are golden brown and crisp.
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INSIDE What’s
2. 1. Turn Good Fortune Into Generational Security
Surprising St. Patrick’s Day Facts Mortgage Interest Deductions for California Homeowners Who Aren’t on the Deed Keep Your Business Sale on Track With Tax Clearances Spinach Artichoke Pizza
3.
WHY THESE REVIEWS EXIST These agencies work together to ensure all business tax obligations are settled before ownership changes, obligations don’t “disappear” in a sale, buyers get a clean start with no hidden debts, and sellers avoid post-closing disputes or collections. STRATEGIES TO AVOID DELAYS AND PROTECT YOUR TRANSACTION Tax clearance issues can derail a transaction if they’re not addressed early. Both buyers and sellers play a role in making sure the deal moves forward without last-minute surprises. ... CONTINUED FROM PAGE 3
Stay Current on Filings and Payments (Sellers) Sellers should file all returns, submit closeout forms, and pay balances before requesting clearance to avoid delays. Require Proof Before Releasing Funds (Buyers) Buyers should get official clearance from all agencies before paying to avoid inheriting the seller’s tax debt. Understand Escrow Holdbacks and Payout Impact Escrow often waits for all tax clearances. In California, tax debts are paid first, which can reduce the seller’s payout, often by surprise. Work With an Attorney Early Engaging an attorney early helps prevent administrative details from becoming legal or financial obstacles. They coordinate communication between escrow, the buyer, and state agencies, respond quickly to audit requests, and track deadlines, ensuring nothing slips through the cracks.
SECURE YOUR TRANSACTION WITH EXPERT LEGAL GUIDANCE
Every business sale depends on timing and compliance. Dahl Law Group helps California business owners structure and close transactions smoothly while avoiding post-closing issues. Buying or selling a business? We’re here to help! Contact us today.
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