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JANUARY 2025
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Don’t Let These Estate Planning Misconceptions Derail Your Goals
Estate planning and trust administration can be intricate processes, often surrounded by confusion and misconceptions. In honor of Opposite Day on Jan. 25, let’s address some common misunderstandings. Many people hold beliefs about estate planning and administration that are the opposite of reality, and clarifying these can help ensure your plans truly align with your intentions. NO. 1 — Often, clients misunderstand the implications of adding their children as joint account holders, assuming that when the time comes, everything will naturally go to their child, who will distribute it among the siblings as intended. However, under the law, if a father and son are joint account holders, and the father passes away, the entire account automatically becomes the son’s property. Legally, there is no obligation for him to share it with his siblings. Additionally, if the son faces a lawsuit or has outstanding debts, creditors could potentially target the joint account. Because of these risks, I always advise clients to approach joint accounts with caution and consider establishing an estate plan with a trust instead. A trust clearly outlines who will inherit assets or property after passing to help minimize the chances of family disagreements. A
trust also allows the father to remain the trustee while he is alive and maintain control over the assets. After his passing, a successor trustee, such as the son, can manage and distribute the funds according to the father’s wishes — ideally avoiding court intervention. NO. 2 — Many people attempt to handle probate and trust administration on their own to save money, but this can often lead to complications. Probate court, in particular, is filled with nuances that we, as attorneys, are trained to navigate to ensure the process moves smoothly. When individuals represent themselves, cases are frequently delayed or continued and sometimes can take years to resolve. In contrast, working with an attorney can significantly shorten the timeline. An attorney can help you stay on top of procedural requirements and legalities while minimizing the risk of exposing yourself to liability. With laws constantly evolving, having professional guidance ensures you’re protected and your case is handled efficiently. NO. 3 — Sometimes, clients have a trust but no assets actually placed in it. Often, they may set up an estate plan online but fail to transfer the title of their home, real property, or bank accounts into the
name of the trust. At Dahl Law Group, we ensure the trust is fully functional by completing deeds to transfer property titles into the trust and addressing any bank account issues or questions. This way, when the time comes, the plan is more than just a piece of paper — it’s effective and enforceable. An estate plan isn’t a “set it and forget it” solution. Without transferring assets into the trust, its effectiveness is significantly diminished. A fully funded trust is essential to achieving your estate planning goals.
–Elliott Harry
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New Rules for Small Estates Don’t Skip Estate Planning Under AB 2016
Did You Know? Did you know that Mount Everest actually isn’t the tallest mountain? It’s true! In honor of Opposite Day on Jan. 25, read on to explore three fun facts that might surprise you because they’re the opposite of what you might think! Mount Everest isn’t the tallest mountain from base to peak. While Everest is the highest point above sea level, Mauna Kea in Hawaii is taller when measured from its base on the ocean floor. Bananas don’t grow on trees. While they look like trees, bananas actually grow on large plants classified as giant herbs. Goldfish don’t have short memories. The old saying about goldfish having a three- second memory is false. They can remember things for weeks or even months!
More California families will be able to transfer assets to descendants without undergoing a lengthy — and often costly — probate process under a new state law. Assembly Bill 2016, which takes effect April 1, changes the definition of “small estates” by raising the probate threshold to $750,000, a massive leap from $184,500. While this new law does simplify the estate planning and administration process for many, it does not eliminate the need for estate planning. WHAT CALIFORNIA’S AB 2016 SAYS Estates falling under AB 2016’s new “small estates” threshold will now be exempt from the formal probate process, allowing assets to be transferred more quickly and with fewer legal hurdles. The bill also calls for a review of this threshold every three years to account for inflation and other economic factors. WHY EVEN SMALL ESTATES STILL NEED A PLAN Even with the expanded threshold, families with “small” estates need a strategic and formalized plan in place. For example, families with children who have special needs should not forego planning because they fall below the new threshold. Additionally, if you have minor children, estate planning is still crucial. Without a plan in place, the court will determine guardianship for your children and the assets they inherit, which may not align with your wishes. Managing assets for minors can also be complicated without the proper documents in place. WHAT AB 2016 MEANS FOR BUSINESS OWNERS Business succession planning should still be handled formally and strategically, regardless of whether your business assets fall under the $750,000 threshold or not. To ensure your business’s smooth transition, you still need to establish an entity, such as an LLC or corporation, and have a trust in place to manage the transfer of ownership. Without these critical documents executed, your business could face unnecessary financial repercussions, disputes, or even dissolution after you pass away. MANAGE YOUR ESTATE WITH CONFIDENCE Don’t let the expanded definition of “small estates” lull you into complacency. Comprehensive estate planning and having an effective Asset Protection Plan are still necessary to protect your loved ones, your assets, and your business. At Dahl Law Group, we provide effective legal counsel to guide you and your loved ones through the process of protecting your legacies, children, and businesses. Contact us today to discuss how we can help you plan with confidence, regardless of the size of your estate.
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financial statements (Corporations Code Section 1501(c)).
LLCs, as well. A corporation must maintain detailed records of financial transactions, minutes from meetings, and other significant activities. LLCs enjoy more leniency when it comes to recordkeeping, though a degree of organization is still essential to maintain the benefits of limited liability. LLCs are not burdened by the same legal formalities as corporations, which can be a relief for business owners who want to focus on growth rather than paperwork. GET A LEGAL PARTNER FOR YOUR BUSINESS Dahl Law Group helps business owners in California make informed decisions about their legal structures and other important legal matters throughout the life of the business. Let our experienced team help you protect your business’s privacy, manage shareholder expectations, and remain in compliance with necessary California and federal laws. Contact us today to ensure your business is set up for long- term success.
Choosing the right entity structure is a critical decision that impacts the entire life of your business. While both LLCs and corporations offer a number of advantages, the decision often comes down to what suits your management style, financial circumstances, privacy preferences, and long-term goals. One thing to keep in mind: Many accountants, while helpful for tax and financial matters, may not fully grasp the complex nature of legal structures. That’s why it’s essential to work with an experienced legal partner who can guide you through these choices. SHAREHOLDER RIGHTS AND ACCESS TO FINANCIAL INFORMATION When selecting between a corporation and an LLC, access to company financial information can play a big role in your decision. In a corporation, shareholders holding at least 5% of any class of shares are entitled to access the company’s Which One Fits Your Business Goals? LLC vs. Corporation
On the other hand, LLCs offer more control over financial information. You can restrict access to financial documents, which makes them appealing for business owners who prefer a more private approach.
FLEXIBILITY IN MANAGEMENT STRUCTURE
LLCs also offer major flexibility in how you structure the management of your business. You can choose to manage the business yourself (member-managed) or appoint managers who may not even be members of the LLC (manager-managed). The Operating Agreement allows you to choose the structure that fits the unique needs of your business. Corporations, however, have a more rigid management structure. By law, a board of directors must be in place to oversee the company, and shareholders generally elect these directors. RECORDKEEPING AND LEGAL COMPLIANCE Corporations are governed by stricter recordkeeping requirements compared to
One-Pot Chicken Noodle Soup Ingredients • 2 1/2 lbs skinless, bone-in chicken thighs • 1 tsp salt • 1 tsp pepper • 2 tbsp olive oil
SUDOKU
Inspired by TasteOfHome.com
• 4 celery ribs, chopped • 4 medium carrots, chopped • 2 bay leaves • 1 tsp dried thyme • 3 cups uncooked egg noodles (about 8 oz) • 1 tbsp chopped fresh parsley • 1 tbsp lemon juice
• 1 large onion, chopped • 3 garlic cloves, minced • 10 cups chicken broth
Directions 1. Season chicken with salt and pepper. In an 8-quart stockpot over medium-high heat, add oil and chicken and cook until golden brown, 3–4 minutes. Remove chicken and set aside. 2. Add onion to drippings; cook over medium-high heat for 4–5 minutes. Add garlic and cook for 1 minute. Add broth and bring to a boil. Return chicken to pot. Add celery, carrots, bay leaves, and thyme. Reduce heat and cover; simmer until chicken is tender, 25–30 minutes. 3. Turn off heat. Remove chicken to a plate. Add noodles and let stand, covered, until noodles are tender, 20–22 minutes. 4. Shred chicken meat into bite-size pieces, and return to pot. Stir in parsley and lemon juice, and discard bay leaves.
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INSIDE What’s
2. 1. Avoid These Common Estate Planning Mistakes Facts That Flip the Script for Opposite Day
California’s ‘Small Estates’ Change Outlined Breaking Down LLCs vs. Corporations
4. 3.
One-Pot Chicken Noodle Soup Smart Snacks for Stress-Free Family Travel
Snack Smart Healthy Munchies Ease Travel With Kids fiber, low-sugar ingredients such as nuts, dried fruit, whole-grain pretzels, and unsweetened dry cereal. Legume-based chips such as Harvest Snaps or Hippeas chickpea snacks can add novelty. If you’re short of time, consider assembling some ready-to-grab items such as RX Bars with Nut Butter, high-protein Chomps meat sticks, dried fruit, rice cakes, and portable tubes of low-fat yogurt. Fresh fruit and handheld cheese sticks or Babybel mini-snacks are spill-proof protein sources. A few hard-boiled eggs, perhaps with a little hot sauce or ketchup, can calm hunger. And for youngsters in a growth spurt, some rolled-up slices of deli meat with cheese can satisfy their boundless appetites. Finding the right container or bag can make portable snacks easier to manage. If you have room among your belongings for a small cooler, keep yogurt, fresh veggies, and other perishables handy. A small, inexpensive tackle box or zippered tote can be another space-saving solution. Once all the preparations are behind you, you can relax knowing your kids will be well- nourished and ready to enjoy the trip!
“I’m hungry” may be the second most common complaint parents hear when traveling with kids — right behind, “Are we there yet?”
Children need to eat often because they have small stomachs and high energy needs. Running on empty can cause irritability and fatigue, tempting many parents to resort to fast-food drive- thrus. A healthier, thriftier route may be to invest time upfront in planning and preparing snacks to keep your kids happy. Some snacks can occupy preschoolers with counting, sorting pieces, or assembling their own treats. For example, preschoolers handed a bag of rainbow-colored Goldfish crackers may be tempted to sort and count by color. Kids can create mini- sandwiches from homemade “lunchable” bags with high-fiber crackers, Artisana nut-butter packets, lean deli meats, and cheese. “Ants on a log” is another entertaining snack: Stuff celery sticks with nut butter, hummus, or cream cheese and line the filling with raisins or nuts.
The most satisfying, energizing snacks combine protein, healthy fat, and fiber. Making your own trail mix enables you to select high-
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