A six-month whirlwind engagement ended in a dream wedding for Guardians of the Galaxy actor Chris Pratt and bride Katherine Schwarzenegger, daughter of Maria Shriver and Arnold Schwarzenegger.

Santa Rosa, CA -- (ReleaseWire) -- 06/08/2020 -- Fox News covered the June 8, 2019 nuptials, including a ceremony and reception at the San Ysidro Ranch in Montecito, CA. The couple announced their engagement in January, just three months after Pratt finalized his divorce from another high-profile celebrity, actress Anna Faris.

Many media outlets and celebrity reports speculated on whether Pratt and Schwarzenegger executed a prenuptial agreement before their big day.

Their individual and combined net worth certainly seems to provide sufficient grounds for such a contract. In 2016, Pratt was listed as the 16th highest earner in Hollywood, having made $26 million over the year. He followed up with three blockbuster hits in the years that followed, putting his estimated net worth at around $40 million. Schwarzenegger also brings considerable wealth to the relationship through her own efforts in journalism and as a media contributor. Her net worth may be up to $3 million.

Charles D. Stark, a Sonoma County attorney who focuses on prenuptial agreements, provided multiple reasons why such a contract would be in the best interests of both members of the new couple. "Contrary to popular assumption, a high combined net worth isn't the only factor to consider. Prenups are a way to hash out divorce issues while you're still getting along. You can account for almost every detail through a prenuptial agreement, starting with clarifying what assets are community property."

In a community property state like California, divorce laws stipulate that all assets acquired during the marriage are equally owned by both spouses.

In the event of a divorce, this community property is divided equally between the parties, regardless of the duration of the marriage. Still, separate versus community property may not be clear-cut. A prenuptial agreement is one way to solidify the distinction.

Mr. Stark described additional prenuptial agreement benefits that would apply to any couple getting married. "Beyond drawing the lines around community property, you can also use a prenup to address how to divide assets if you don't intend an equal or equitable split. Spouses can also state their intentions regarding alimony. In essence, you take control over your divorce instead of rigid, California divorce laws dictating what happens."

As a final note, Mr. Stark pointed out one key exception to what spouses can accomplish through a prenuptial agreement: Custody, visitation, and support for minor children. These matters are governed by California's laws on the child's best interests.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Santa Rosa, CA -- (ReleaseWire) -- 05/06/2020 -- The Law Office of Charles D. Stark was created to be an effective advocate for clients. Whether you need a lawyer that can go into a courtroom and fight aggressively to meet your goals, or you need the services of an attorney that can help you draft and review complex financial documents, I am prepared and equipped to assist you. Taking the initiative and preventative law is often the best strategy. Here are the most common seven estate planning mistakes.

1. Not understanding the plan

Many people rely on an estate planner to make all the decisions and to ensure that everything in the plan is done properly.

2. Outdated beneficiary designations

Failing to update the beneficiaries of your estate may allow your assets to go to your parents and siblings instead of your spouse and children, for example, because that is what you put on the form when you initially filled it out.

3. Failure to update asset ownership

Like beneficiary designations, assets need frequent review. You might have picked up a few new assets in your own name and a few others in joint title with your spouse or someone else, for example, or the Tax Cuts and Jobs Act may have affected your estate tax.

4. Failure to update powers of attorney

You should name at least two powers of attorney – one to speak for you when it comes to overseeing your medical care and a second one for managing your financial matters. As with your beneficiary designations, your choices in powers of attorney may change with time.

5. Failure to update your plan

Update your plan any time your family undergoes major changes, such as birth, death, marriage, or divorce. Review your plan any time there are changes in your net worth, job status, residence, or overall composition of your estate.

6. Not coordinating trusts and retirement plans

If you are like many people, you designated your living trusts or any other trusts as the beneficiaries of your retirement plans. While there are good reasons to name a trust as an IRA or other retirement plan beneficiary, naming the wrong type of trust as an IRA beneficiary may increases taxes.

7. Failure to fund living trusts

A living trust, also known as a revocable trust, names one person responsible for managing your assets for the eventual beneficiary. Assets owned by the trust avoid probate and assist in disability planning and a number of other issues. In many cases, the trust has to be funded after all of the parties sign it, which means you have to transfer the legal title of those assets to the trust. That process is easy for some assets, such as household and personal effects. The process is more complicated for other assets, such as real estate, vehicle registration, and financial accounts.

Consulting with effective, professional representation can help you avoid some of the most common pitfalls associated with estate planning. For more information, contact the Law Office of Charles D. Stark. Phone consultations available.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Though it may not be the most well-known event of the month, National Healthcare Decisions Day (NHDD) on April 16, 2020 is important as a way to remind Californians of the importance of planning for the future.

Santa Rosa, CA -- (ReleaseWire) -- 05/01/2020 -- Sponsored by the Conversation Project, an initiative dedicated to raising awareness about tools for health care planning, NHDD specifically encourages the use of advance directives to communicate medical decision-making.

Generally, an advance directive is a document through which individuals can describe their wishes regarding health care in the event of incapacity. In California, there are two key sections of an Advance Health Care Directive.

 A Power of Attorney for Health Care, where the signer appoints an agent to make decisions regarding medical treatment, procedures, and other aspects of care; and,

1. Individual Instructions, a statement of intentions regarding end-of-life care and pain relief which also goes by the term "living will."

In addition, the California Advance Health Care Directive includes sections on the donation of organs and the designation of a primary care physician.

Charles D. Stark , a Sonoma County attorney who focuses on wills, trusts, and estate planning, applauded the objectives of NHDD. "I always advise my clients on the importance of executing an advance directive for health care, so it's good to see that this event is also raising awareness. Many people don't fully understand what could happen if they don't have one."

Mr. Stark was referring to the legal issues that can arise in the absence of a properly executed advance directive.

When a person is incapacitated and cannot make health care decisions, there is no one to act on his or her behalf. A family member must file a petition in court through a guardianship proceeding, requesting the judge to grant the authority to handle medical determinations.

Based upon Mr. Stark's experience, "the guardianship process can be time-consuming, especially if family members are fighting or multiple people file competing petitions for guardianship. Days or weeks could pass before anyone has the power to make health care decisions for the incapacitated individual. Plus, there can be considerable legal costs and filing fees associated with guardianship proceedings."

It is worth noting that California is one of a few US states that maintains an Advance Directive Registry.

By filing a copy, physicians and loved ones can locate it in the future if the principal becomes incapacitated. The agent will have official authority under the Power of Attorney section, and all parties will have documented instructions regarding medical decision-making.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Many Californians start thinking about Tax Day on April 15th right after the New Year in January, as they start receiving W-2s, 1099s, and other important tax-related documentation.

Santa Rosa, CA -- (ReleaseWire) -- 03/13/2020 -- Within a few weeks, a good percentage of people have already filed all income tax paperwork with the IRS. Once the deadline has passed, taxpayers are either anxiously looking forward to a refund or reluctantly getting ready to pay what more they owe.

One aspect of Tax Day that most people do not consider is how the annual date for income tax filing offers a perfect opportunity to review the estate plan they already have in place. The documentation forwarded by employers, financial institutions, administrators of investment accounts, and other organizations provides a snapshot of a person's net worth. Considering the fact that financial status drives many aspects of an estate plan, the weeks leading up to Tax Day 2020 are ideal in terms of timing.

Charles D. Stark, a Sonoma County attorney who focuses on wills, trusts, and estate planning, elaborated on the topic. "So many people think they're done with estate planning once they get their will, advance directives, and other documentation in place. They stow their documents away and let loved ones know where to find everything, assuming that the next time this paperwork will be relevant is upon their death."

Mr. Stark described an important, informative hypothetical to stress his point. "When you get your tax documentation covering income from all sources every January, you need to note any significant changes from previous years. Once you hit a certain level, you should discuss your situation with an estate planning lawyer. You might need a revocable trust alongside your will, or you may want to consider gift planning and more complicated forms of trusts."

In addition, Mr. Stark referred to other scenarios in which it would be appropriate to review an existing estate plan and make modifications to update the arrangement. Certain milestones and life events to consider include:

?Marriage, divorce, and remarriage;
?Retirement;
?The death of a beneficiary, executor, or trustee;
?The point where children reach a point of financial stability, such that bequests to grandchildren are more appropriate;
?A finding that a beneficiary is incapacitated, in which a special needs trust might be an ideal way to pass assets;
?Concerns about a beneficiary's irresponsible spending habits, making spendthrift trust provisions a wise strategy for maximizing trust distributions; and,
?Many other life changes that could have an impact on an existing estate plan.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

A Recently Reported Statistic May Come As A Shock To Many Californians Who Think Their Estate Planning Bases Are Covered After Executing A Will.

Santa Rosa, CA -- (ReleaseWire) -- 01/16/2020 -- Around two-thirds of all Americans have not prepared a health care directive, according to a December 13, 2019 article written by a personal finance specialist at Forbes. The author noted the irony of this figure, pointing out that California was the first US state to enact a law regarding health care directives back in 1976.

The California Probate Code covers the requirements and process for executing an Advance Health Care Directive, sometimes referred to as a health care power of attorney. Through this document, it is possible for a person, as principal, to appoint an agent to make health care decisions on his or her behalf. If the principal becomes incapacitated, the agent steps into his or her shoes to manage medical procedures, treatment, and related care. In addition, the statute enables the principle to:

Provide specific instructions regarding certain medical issues, such as end-of-life care and pain relief;

Designate his or her wishes regarding donation of organs; and,

Identify a physician who has primary responsibility for medical care.

Charles D. Stark, a Sonoma County attorney who focuses on wills, trusts, and estate planning strategies, was not surprised to learn that 66 percent of individuals have not executed an Advance Health Care Directive. "Far too many people think they're done with their estate plan after creating a will or trust, not realizing critical gaps. A comprehensive, well-crafted estate plan isn't just what happens to your property at death. It should also cover what happens if you're incapacitated and unable to make decisions on your own."

Mr. Stark described the challenging situation that individuals could encounter without a health care power of attorney, especially for family and loved ones. "If you don't have a directive, your medical care might be on hold. Even though you might express your wishes to someone, this doesn't have the effect of law. Without a power of attorney, the only way your spouse, children, or others can get authority to make health care decisions is to go to court. They'd have to file a petition to act as your guardian, which can take some time – particularly when they can't agree."

By preparing an Advance Health Care Directive, the principal gives the agent decision making authority via the document rather than the court process. There are certain requirements involved with the execution process, specifically with respect to having individuals observe and sign as witnesses.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

In an ongoing segment on financial planning and advice, a recent article published by the Wall Street Journal highlighted the unique circumstances of a Paradise, CA couple and their family.

Santa Rosa, CA -- (ReleaseWire) -- 12/04/2019 -- The pair was seeking advice on a range of topics, including paying down their credit card debt, assessing their financial future, and implementing estate planning goals. The article noted that the couple was looking at strategies that would prioritize the needs of their youngest child, who was born with Down Syndrome.

Based upon their situation, the best recommendation was to create a special needs trust for the little girl, which would be funded by the proceeds of three life insurance policies at the death of her parents.

A special needs trust is a structure that protects the interests of a person with a disabling medical condition, who is entitled to monetary benefits through the federal Supplemental Security Income (SSI) program, Medicaid, and other public assistance plans.

Charles D. Stark, a Sonoma County attorney who focuses on special needs trusts in the context of estate planning, agreed with the suggestion. "It's understandable that parents and others want to provide for a loved one with special needs in their estate plan. However, you can encounter serious problems when you include a specific bequest in a will or trust provision. Giving the person money outright makes him or her 'too rich.' They don't qualify for SSI and related programs, since many of the laws look at assets and/or income in awarding benefits. A special needs trust solves this issue."

An individual creates a special needs trust by executing a document that complies with federal and state law.

Many resources can be used to fund the trust, such as lifetime gifts, a bequest in a will, distributions of living trust proceeds, life insurance, and others. The special needs trust appoints a trustee to manage the funds on behalf of the beneficiary.

Mr. Stark explained that, "The beneficiary with special needs doesn't have control over the funds, so they're not considered assets or income for purposes of SSI. This separation ensures the individual is still eligible for all available assistance programs." It is important to also note that, by law, the trustee cannot make direct distributions to the beneficiary. Instead, the trustee expends the funds for goods and services that benefit the person with special needs. Examples of proper expenditures include:

Medical costs;
Compensation for caregivers;
Costs for education and extracurricular activities;
Household supplies and furnishings;
Transportation, utilities; and,
Other living expenses.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Santa Rosa, CA -- (ReleaseWire) -- 09/09/2019 -- A will is among the most important documents a person will ever sign, which is why far too many people believe it is best to tuck this instrument away for safekeeping after execution. Most assume that there is no need to pull a will out again until death. However, a San Francisco-based publisher of US financial news, analysis, and data argues otherwise. In a September 5, 2019 article, MarketWatch offered an excellent reminder of when it's time to revisit a will, trust, and other estate planning instruments.

Many life events could require an estate plan update, but they generally involve financial shifts, welcoming new family members, saying goodbye to others, and related changes in circumstances. MarketWatch recommends updating a will to reflect current situations and intents, such as after relocation, the birth of a child, the death of a beneficiary, divorce, and many more.

Charles D. Stark, a Sonoma County attorney who focuses on wills, trust, and estate planning strategies, commended the article. "It's essential to review your entire estate plan on a periodic basis, especially since life changes can lead to post-mortem arrangements you never intended. But realizing you should take a look is a far cry from actually making changes the proper way."

Mr. Stark continued that there are legal issues related to updating a current, valid will. "You basically have two options: You can write a new will and destroy the old one, or you can create a codicil. The codicil is an amendment to your original will, which retains the main provisions you want to keep. You can pick and choose the terms according to your wishes. With a codicil, you don't have to go through the entire process if there are only a few details to address."

Under California law, both a new will and a codicil are subject to certain requirements to be valid. Each document must be signed by the maker in the presence of two witnesses. Because the requisites are the same, many people opt to make a new will. Being an amendment, it is easy to lose or misplace documentation related to a codicil.

In addition, California law does allow for holographic wills and codicils. Therefore, it is possible to create or update a will in the maker's own handwriting, signed and dated by him or her. The potential for a will contest is strong with holographic wills, which is why estate planning attorneys like Mr. Stark recommend going through the official execution process.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Santa Rosa, CA -- (ReleaseWire) -- 08/06/2019 -- Though it just concluded its second season on July 21, 2019, HBO's hit show "Big Little Lies" has already drawn critical acclaim as a crime drama that follows the lives of five women in Monterey, CA. One story arc features a character who loses custody of her twin sons to the mother of her recently deceased husband. The scenario may make for engaging television, but it can lead to some confusion over parental rights in California.

In truth, it can be very difficult for a grandparent or any non-parent to get custody of minors absent extreme circumstances. It would be rare that anyone other than a parent could obtain custody over a child. There are even challenges for parents who are going through divorce or paternity cases, since courts place a priority on the child's best interests.

Charles D. Stark, a Sonoma County attorney child custody, visitation, and co-parenting, explained that state law dictates the child's best interests standard. "A judge will look at the health, safety, and welfare of the child when making decisions on care and parenting time. For instance, if there's any evidence of violence, alcohol or substance abuse, or other criminal activity, the living arrangement isn't in the child's best interests."

Other factors when looking at the child's best interests include:

The ability of parents to get along in co-parenting;
The child's preferences, if he or she is of an appropriate maturity level to make responsible choices;
How well each parent can encourage a positive relationship with the child and other parent;
Willingness to coordinate child care schedules; and,
Many other factors.

Mr. Smith noted that the gender or traditional gender roles of parents are not a consideration. "While the mother may have had an advantage in the past, courts will not take these issues into account. The big picture matters in looking at the child's best interests."

In the context of grandparents' rights, Mr. Smith pointed out that visitation is a very different analysis. Custody is concerned with important decision making regarding this child, such as education, health care, extracurricular activities, and other significant issues. Visitation involves limited interaction, which means grandparents' rights may be recognized by courts. Grandparents may be able to enjoy more time with minor children, especially when there is an established relationship. This complies with the child's best interests standards, which are served through maintaining the status quo with their extended family.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Santa Rosa, CA -- (ReleaseWire) -- 07/03/2019 -- When Amazon founder Jeff Bezos and then-wife MacKenzie announced their plans to divorce in January 2019, many people assumed that a hostile, outrageously expensive legal process would follow. The couple had four children during their 25-year marriage, but skeptics predicted that the couple's $37 billion marital estate would lead to hotly contested divorce proceedings. Naysayers were shocked just four short months later when the two revealed that they reached a divorce settlement, amicably and with mutual expressions of appreciation.

Neither of the parties revealed the details of their negotiations and how they reached an agreement. However, experienced divorce attorneys and legal analysts speculate about whether the Bezoses engaged in the collaborative law process. This approach is intended to move away from traditional divorce scenarios where strict statutory requirements and legal rules apply, at times subverting the wishes of the parties. Instead of handing over key divorce issues to a mediator or judge, future ex-spouses work with a specially trained collaborative law coach.

The objective of collaborative divorce is to reach compromise on property division, spousal support, and issues related to minor children. As such, the process may incorporate family law counselors, financial experts, and other professionals to provide their expertise. Charles D. Stark, a Sonoma County attorney who focuses on collaborative law, pointed out some important factors that impact success with the process.

"The key to smooth sailing in a collaborative divorce is realizing that it's not a win-lose situation. Your marriage may be over, but parties need to actively participate and be amenable to full disclosure about everything. The advantages are considerable, especially for parents who need to maintain an amicable relationship for the benefit of minor children." As parents themselves, the Bezoses may have been motivated by this factor to facilitate their intent to co-parent their children.

Mr. Stark stressed that collaborative divorce is not suitable for all couples. "Though the Bezos divorce may serve as an inspiration, the legal process may be more appropriate in certain situations. It's not something I would recommend if drug or alcohol addiction was an issue. And by definition, collaborative divorce is off the table in the context of domestic violence."

If the smooth, efficient proceedings involved with the Bezos divorce are any indication, divorcing spouses should at least explore the possibility of collaborative law in the process. However, a discussion with an informed, knowledgeable attorney is essential for those considering this approach.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Santa Rosa, CA -- (ReleaseWire) -- 07/03/2019 -- A six-month whirlwind engagement ended in a dream wedding for Guardians of the Galaxy actor Chris Pratt and bride Katherine Schwarzenegger, daughter of Maria Shriver and Arnold Schwarzenegger. Fox News covered the June 8, 2019 nuptials, including a ceremony and reception at the San Ysidro Ranch in Montecito, CA. The couple announced their engagement in January, just three months after Pratt finalized his divorce from another high-profile celebrity, actress Anna Faris.

Many media outlets and celebrity reports speculated on whether Pratt and Schwarzenegger executed a prenuptial agreement before their big day. Their individual and combined net worth certainly seem to provide sufficient grounds for such a contract. In 2016, Pratt was listed as the 16th highest earner in Hollywood, having made $26 million over the year. He followed up with three blockbuster hits in the years that followed, putting his estimated net worth at around $40 million. Schwarzenegger also brings considerable wealth to the relationship through her own efforts in journalism and as a media contributor. Her net worth may be up to $3 million.

Charles D. Stark, a Sonoma County attorney who focuses on prenuptial agreements, provided multiple reasons why such a contract would be in the best interests for both members of the new couple. "Contrary to popular assumption, a high combined net worth isn't the only factor to consider. Prenups are a way to hash out divorce issues while you're still getting along. You can account for almost every detail through a prenuptial agreement, starting with clarifying what assets are community property."

In a community property state like California, divorce laws stipulate that all assets acquired during the marriage are equally owned by both spouses. In the event of divorce, this community property is divided equally between the parties, regardless of the duration of the marriage. Still, separate versus community property may not be clear-cut. A prenuptial agreement is one way to solidify the distinction.

Mr. Stark described additional prenuptial agreement benefits that would apply to any couple getting married. "Beyond drawing the lines around community property, you can also use a prenup to address how to divide assets if you don't intend an equal or equitable split. Spouses can also state their intentions regarding alimony. In essence, you take control over your divorce instead of rigid, California divorce laws dictating what happens... or worse, leave questions to be answered by a judge through adversary litigation."

As a final note, Mr. Stark pointed out one key exception to what spouses can accomplish through a prenuptial agreement: Custody, visitation, and support for minor children. These matters are governed by California's laws on the child's best interests.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Couples Divorcing in 2019 Can No Longer Utilize a Tax Deduction For Spousal Support Payments Under the Tax Cuts and Jobs Act (TCJA).

Santa Rosa, CA -- (ReleaseWire) -- 05/08/2019 -- There are other strategies to take advantage of favorable tax treatment in divorce. A legal structure termed an "alimony trust" captures some key tax benefits. While also delivering other advantages to ex-spouses and their children.

For couples who finalized a divorce settlement prior to January 1, 2019; spousal support payments were deductible by the payor spouse.

These amounts were also taxable for the recipient. The person paying alimony could save considerably by not having these amounts included in income. However, the TCJA eliminated the alimony tax break entirely for couples who settle their divorce in 2019 and going forward. A payor spouse will be taxed on his or her full amount of income. The recipient will not incur tax liability for spousal support payments.

Creation of an alimony trust can alleviate some of the tax burden for the ex-spouse who pays support.

That individual funds a grantor trust with income-generating assets. Examples include shares in a business, investment accounts, real estate, or other types of property. The trust pays income to the recipient, as beneficiary, in the amount that he or she would receive as alimony. A third party acts as trustee to manage the trust assets, so there is a neutral party overseeing it. 

Charles D. Stark, a Sonoma County alimony and spousal support attorney, explained alimony trusts in more detail. "Essentially, couples are working out asset division when creating this type of trust. The arrangement isn't alimony in the strictest sense. It's a property settlement, which is common to any divorce."

Mr. Stark pointed out some additional benefits for alimony trusts unrelated to tax matters.

"The structure is also useful when the recipient spouse will receive a large sum as spousal support, but is less sophisticated financially. An alimony trust protects the principal assets, while still providing income to the recipient spouse."In addition, divorcing couples may want to consider an alimony trust to hold non-liquid assets, such as rental property. Dividing and selling off certain assets may have drawbacks for both spouses, and a trust could retain their value. By its terms, an alimony trust terminates when the obligation to pay spousal support ends, through remarriage, death, or by court order. Upon termination, the trust assets can be transferred to children or other beneficiaries.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Anyone who is engaging in estate planning in Sonoma County or elsewhere in California should be aware of newly proposed legislation that aims to introduce an estate tax in California.

Santa Rosa, CA -- (ReleaseWire) -- 04/09/2019 -- According to a news release from the office of Senator Scott Wiener (D-San Francisco), the proposed legislation is modeled on the federal estate tax but would lower the exemption rate to $3.5 million, which is lower than the federal estate tax exemption. Senator Wiener introduced Senate Bill 378 at the end of March. If the bill is passed, it would result in a special fund designed to improve socioeconomic equality in the state.

With the lowered exemption rate of $3.5 million, or $7 million for a married couple, the proposed estate tax would phase out at $11.4 million for an individual or $22.8 million for a married couple, which is the current federal estate tax exemption rate. By phasing out at the federal estate tax exemption, the bill would prevent California residents from being double-taxed. In other words, estates would be taxed by California if they range from $3.5 million to $11.4 million. In addition, similar to the federal estate tax, SB 378 has exemptions, including for transfers to a surviving spouse, and for family farms.

The proposed legislation is designed in part to help produce socioeconomic equality in California. The proceeds from the tax would go toward to creation of a special fund known as the Children's Wealth and Opportunity Building Fund. The Fund would provide money to a variety of programs and services for California residents, and particularly low-income children. One of the specific programs would include helping lower income children to develop savings accounts in order to build wealth. In total, those in support of the bill anticipate that it would be able to result in anywhere from $500 million to $1 billion each year.

According to Sonoma County estate planning lawyer Charles D. Stark, "it is important for families in California to pay attention to the ballot measure, given that, if it passes, an estate tax would change the way that many individuals and couples engage in estate planning."

If the California legislature passes SB 378, it will appear on the ballot in November 2020. This would not be the first time that an estate tax measure appeared on the California ballot. California residents approved a ballot measure in 1982 that prohibited an estate tax. Accordingly, in order to put an estate tax in place in California, voters in the state need to approve it in a ballot measure.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

On January 31st, 2019, California’s Sixth District Court of Appeals reversed a lower court’s decision that ordered the liquidation of a family trust.

Santa Rosa, CA -- (ReleaseWire) -- 03/01/2019 -- In the case of Patrick Trolan et al., as trustees vs. Nellie Trolan, the appeals court ruled that although the lower court's decision was correct in requiring the distribution of the assets within the trust, the forced liquidation was inappropriate. The trustees should retain discretion to distribute the trust.

The underlying dispute in this case arose out of Santa Cruz County. In 1974, two parents set up a trust for their six children. In 2015, when the mother passed away, five of the siblings jointly agreed that they wanted to keep their assets within the trust — with the goal of increasing the value for the next generation. However, one dissenting sibling argued that she had the right to request full distribution and that she wanted her share of the trust in cash.

Upon review of the case, a trial court determined that not only did the dissenting sibling have the right to request her share, but also that termination of the trust was necessary. The court went so far as to require the immediate liquidation of the trust along with the payment of all legal fees through the proceeds of the trust.

On appeal, the Sixth Appellate Court reversed the order to liquidate the trust. The appeals court affirmed the decision that the sibling did have the right to receive her share of the trust. Indeed, the appeals court determined that the lower court was correct in requiring the termination of the trust, the reason being that the founding documents unambiguously stated that assets would be distributed on the 30th birthday of each beneficiary. However, the lower court was incorrect in ordering the payment of attorney's fees and ordered liquidation, ruling that the trustees should retain discretion in how exactly the trust would be terminated.

This case is another example of how complex trust litigation can be in California. As noted by Sonoma County estate planning attorney Charles D. Stark, "When setting up a trust, the language always matters. Should a dispute arise over a trust, California courts will carefully examine the language in the controlling documents. To ensure that the true wishes of the founder are carried out, the language must be unambiguous and specific." He further emphasized how important to it is to have holistic conversations with your estate planning attorney to anticipate and plan for family issues such as business succession, sibling rivalries, and control issues.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm