Falk Barrot & Associates LLP - April 2024

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April 2024

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Spring-Clean Your Estate Plan

Updates You Can’t Afford to Overlook

Spring-cleaning can be a cathartic experience, wherein we determine what is worth keeping and what we should let go of. Organization and consolidation are even more crucial when it comes to your estate plan. Estate plans are living documents, and creating them is only the first step. It is essential to update your plan over time to include new and timely information and instructions that reflect your family’s and your current desires and circumstances. Why You Should Update Your Estate Plan On a personal level, as people age and grow, their philosophies and relationships change, which may merit consideration in your estate plan. Additionally, tax laws and other circumstances may make a timely update especially critical. You also need to consider if the allocation of your possessions and how your finances are laid out reflect your current wishes. Accounting for All Possessions Your asset ownership may have changed since you first established an estate plan, so it’s time to revisit what you want to pass on and to whom. Taking the time to catalog your assets will make your estate plan thorough and well-crafted. Along with that is an appraisal of valuable assets, as it can aid with taxes and the division of assets — and you should incorporate those appraisals into your estate plan. Moreover, even the things that are precious to you for sentimental reasons are worth noting. Your loved ones will want to know what things you hold nearest to your heart and why they should be treasured. Without instruction, it can be difficult for family members to understand how to honor your wishes best. To show our appreciation and help start your spring-cleaning, we encourage all clients to visit our office on June 1 for our annual shredding event! For more information, please see the attached insert.

If you want to get rid of paper records you would like shredded, we can help with that! Come to our annual shredding event on June 1! For more information, please see the attached insert.

Managing Bank Accounts Aside from physical possessions, it’s time to consider

consolidating your bank accounts. Financial advisors direct us to have investments and accounts in different places while growing wealth. Still, for the purposes of an estate plan, you’ll want to move toward simplifying your financial portfolio. In some cases, too many accounts can be problematic for your next of kin. Consider closing unnecessary accounts and clarifying your financials in your estate plan. At Falk, Barrot & Associates LLP, our goal is to provide you with an estate plan that reflects your desires and best interests while securing your legacy and providing for those you love. If it has been more than three years since you have come to see us, please schedule a review with us so we can help work through the details of your estate plan and ensure your estate plan reflects your current wishes so your family has the best tool to honor them.

—Kimberly Barrot

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4 Meaningful Pursuits to Explore After Retirement

education but couldn’t fit it into your schedule, now you can. There are courses available online and in person. Many classes specialize in educating seniors, while others offer highly discounted rates. Some colleges allow seniors to audit their courses at little to no cost with a tuition waiver. Lifelong learning also helps reduce the risk of Alzheimer’s and dementia. So, if you worry about these diseases, continuous learning is one of the best defenses you can have. No. 3 Help and Advocate Many retirees find purpose through volunteering. Many organizations need a hand, like food banks, soup kitchens, and animal shelters. Giving them some of your time allows you to support your community, further a cause, and even save lives. Volunteer work also connects you with like- minded people, ensuring you make friends with people who share your values.

Retirement is the end goal after decades spent working and saving. Once reached, a common question retirees ask is, “Now what?” There’s a massive gap in your schedule now, and there are countless things you can fill the time with. So, here are four big ideas you can use to take advantage of your newfound freedom. No. 1 See the World The world is a vast and beautiful place, and now that you don’t have obligations tying you down, you can finally get out there and see everything on your bucket list. If you ever wanted to experience the breathtaking size of the Grand Canyon or dreamt of dining at French cafes by the Seine River in Paris, then retirement is the perfect opportunity to go on those adventures. No. 2 Never Stop Learning Be a lifelong learner. If you’ve always wanted to explore your interests through

No. 4 Retire a Little Less Some retirees miss the purpose that work gives (as well as the income). Many jobs also keep you on your feet and active. If you count yourself among them, consider picking up a part-time job. Roles like delivery driver, substitute teacher, and dog walker allow you to line your pockets while meeting people. Retirement is not just the end of work — it’s the start of leisure. You can do and experience many things, from seeing the Mona Lisa to volunteering at an animal shelter. It’s time to take advantage of retirement and seize every opportunity.

HOW TO SUCCEED AS AN EXECUTOR TIPS TO AVOID MAJOR MISSTEPS

which is why changing the locks could be crucial if the family situation is contentious.

If you’ve been named the executor for someone’s last will and testament, you’ve been entrusted with the responsibility of carrying out a person’s last wishes. This honor — and legal responsibility — means you must take care of financial obligations, including paying any outstanding debt or taxes, and then properly dispense the remaining assets according to the directions in the will. The person who chose you to be executor trusts that you can handle this responsibility, so we’re here to walk you through the process and clear up any questions you may have. If you are listed as the executor or the trustee in someone’s estate planning documents, you should do a few things immediately upon their passing. First, you must secure their home and any other property as quickly as possible. This involves

Next, you should locate all relevant estate planning documents and then determine whether the estate must go through probate. You will need multiple copies of the death certificate for banks, credit card companies, and insurance. Other important documents you will need include insurance policies, credit card statements, investment account and pension statements, and contacts for attorneys and accountants. Give yourself time to review these documents carefully. Once you understand the estate plan, you can call a meeting with all involved to review the deceased family member’s instructions on how to distribute the assets. Being prepared and proactive will ensure you carry out your duties as an executor with precision and honor the person who entrusted you with this duty.

maintaining any property until the estate is settled, including changing the locks.

Often, family members will try to go into the house after someone passes away and remove items. As the executor or the trustee, you have to ensure this does not happen,

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We are pleased to announce our annual Client Appreciation and Shredding Event!

Saturday, June 1, 2024 11:00 AM to 1:00 PM

NEW LOCATION: SKYWAY CENTER (next to Hiller Aviation Museum) 655 SKYWAY ROAD SAN CARLOS, CA 94070

We are happy to invite you, your family, and Successor Trustee to our annual Client Appreciation and Shredding Event. Please join the law firm and enjoy a delicious treat and complimentary onsite shredding. To register, please call Heather at (650) 463-1550 or email directly at heather@falkbarrot.com. We look forward to seeing you on June 1st!

2024 FEDERAL GIFT AND ESTATE TAX LAW CHANGES

Federal Gift Tax

We are pleased to announce our annual Client Appreciation and Shredding Event! The federal gift tax law has increased by $1,000 to allow taxpayers to gift up to $18,000 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 $36,000 per year to any one individual.

A taxpayer is not limited to the number of individuals they can gift annually. For instance, a taxpayer can make $18,000 annual gifts to one or more individuals without being required to report the gifts. The exemption is tied to inflation but can only increase to the nearest $1,000 annually. On another note, any taxpayer who gives a gift of more than $18,000 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. Federal Estate Tax

Saturday, June 1, 2024 11:00 AM to 1:00 PM

For example – a married couple with a taxable estate of $28,000,000 passes away in 2024. Each individual taxpayer has an exemption of $13,610,000 or a total of $27,220,000 to preserve, leaving $780,000 subject to federal estate tax at an applicable tax rate of 40%. The estate or beneficiaries would owe $312,000 in federal estate tax. 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. If you would like to discuss minimizing estate tax liability, please call the law firm to schedule an appointment with an attorney.

NEW LOCATION: SKYWAY CENTER (next to Hiller Aviation Museum) 655 SKYWAY ROAD SAN CARLOS, CA 94070

We are happy to invite you, your family, and Successor Trustee to our annual Client Appreciation and Shredding Event. Please join the law firm and enjoy a delicious treat and complimentary onsite shredding. To register, please call Heather at (650) 463-1550 or email directly at heather@falkbarrot.com. We look forward to seeing you on June 1st! The federal estate tax exemption has increased to $13,610,000 for an individual taxpayer or $27,220,000 for married taxpayers. This allows for an individual taxpayer to pass up to $13,610,000 (less taxable gifts as discussed above) without incurring a federal estate tax liability. Married couples may pass up to $27,220,000 (less taxable gifts as discussed above) without incurring a federal estate tax liability.

650-463-1550 www.FalkBarrot.com 865 Laurel Street, Ste 4 San Carlos, CA 94070

TAKE A BREAK

Keeper Ledesma Showed Fans a Different Kind of Save

ARBOR ARIES

BASEBALL CHERRIES CHOCOLATE DAISY DIAMOND ENVIRONMENT GARDEN KITE

How a Goalie Helped Rescue a Stricken Spectator

RAINBOW SHOWERS

The European football pitch is often the scene of bitter rivalries and even violence between fans, but spectators at a 2022 match between the Spanish professional football clubs FC Barcelona and Cadiz CF witnessed an entirely different kind of drama. The match was suspended when a spectator in the end zone collapsed. As medical staff rushed to help, the goalie for Cadiz broke from his position, raced to his team’s dugout, retrieved a medical kit with a defibrillator, sprinted back toward the scene, and tossed the kit to the medics. Thanks in part to the defibrillator, which medics used to resuscitate the victim, he was safely transferred to a nearby hospital.

Grilled Steak With Chimichurri Sauce

Many onlookers credit Cadiz’s goalie, Jeremias Ledesma, with averting a tragedy.

It is hard to tell who will step up in a crisis and who will freeze. People who are normally empathetic may shrink back, while sometimes introverts dive in to help, surprising even themselves. Those who respond heroically tend to be hopeful people who take charge in difficult situations — traits professional soccer goalies clearly need. People who step up to help others also tend to have a strong sense of responsibility, another requirement of keepers. The coach of the rival team praised Ledesma’s quick thinking. “We’re talking about a human life, and any human life is above a soccer game,” Barcelona’s coach, Xavi Hernandez, was quoted as saying. Only after the spectator was revived and en route to the hospital did the teams agree to resume the game. Although Cadiz lost the match 4-0, Cadiz fans went home with a different kind of win — global recognition of their goalkeeper’s good deed. Video of Ledesma’s quick response quickly went viral, earning “massive respect” from commenters and worldwide plaudits for heroism.

Ingredients

Inspired by TheSpruceEats.com

For the grilled steak: • 2 lbs steak (flank, sirloin, or skirt steak) • 2 tbsp olive oil • Salt and pepper, to taste

For the chimichurri sauce: • 1 cup fresh parsley, chopped • 2 cloves garlic, minced

• Juice of 1 lemon • 2 tbsp olive oil

• 1 tsp red pepper flakes • Salt and pepper, to taste

Directions 1. Preheat grill to medium-high heat. 2. Rub the steak with the olive oil, salt, and pepper. 3. Grill the steak for 4–5 minutes per side or until it reaches desired doneness. 4. Meanwhile, make the chimichurri sauce: In a small bowl, mix together the parsley, garlic, lemon juice, olive oil, red pepper flakes, and salt and pepper. 5. Let the steak rest for 5 minutes before slicing. 6. Serve the steak with the chimichurri sauce and enjoy!

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650-463-1550 www.FalkBarrot.com 865 Laurel Street, Ste. 4 San Carlos, CA 94070 INSIDE THIS ISSUE

Why You Should Spring-Clean Your Estate Plan

1

How to Flourish in Your Retirement Years

2

How to Be a Successful Executor

Grilled Steak With Chimichurri Sauce

3

Soccer Goalie Saves a Fan’s Life

What We Can Learn From Chaotic Celebrity Probate Battles

4

Chaotic Celebrity Probate Battles Hold Lessons for All BIGGER STARS, BIGGER MESSES

her an allowance so she could remain in the couple’s home. However, his three children eventually inherited the home, and the widow agreed to a settlement in 2015. Even murkier is the case of Gary Coleman, star of the TV series “Diff’rent Strokes.” Coleman died at age 42 after a fall in his home left him in a coma with a brain hemorrhage. Coleman and his ex-wife, Shannon Price, divorced in 2008, and the actor left his estate to Anna Gray, his personal assistant and former girlfriend, in a 2005 will. Price claimed Coleman created a 2007 codicil that left his assets to her, so the battle dragged on for years. The lesson here? The bigger they are, the harder they fall? Perhaps. But there is also real wisdom to be gained: Don’t do as these celebrities did. Seek professional help with estate planning — long after you’re gone, your loved ones will thank you for it.

In November 2020, after 20 years of leading the high-flying retailer Zappos, Hsieh died alone without a will at age 46 from injuries caused by a fire he set himself, leaving a $500 million estate. He had jotted many of his final wishes only on sticky notes, so his family and friends are still battling in court. After the artist formerly known as Prince died in 2016, no fewer than 700 people claimed to be his descendants. Without a will or named executor, the artist’s estate remained unsettled for years as lawyers, bankers, advisers, and heirs haggled over it. It took DNA testing to clear the fog, qualifying his sister and five half-siblings as his rightful heirs. Relatives of the beloved comedian Robin Williams mounted a long and bitter legal fight over his estate, estimated at more than $100 million. His widow, Susan Schneider Williams, claimed Williams intended to leave

While living celebrities claim an outsized share of our attention, many keep grabbing headlines long after they die. Among crazy celebrity probate cases, few have made a bigger mess than celebrated entrepreneur Tony Hsieh.

Photo: Eva Rinaldi

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