ESTATE PLANNING

Tangible property

property that has a physical existence
ex: books/clothes

intangible property

value derived from its legal rights it gives to its owners
ex: money/stock/classic cars/ antiquefurniture

Can you get taxed if you own or controll property?

yes

fee/fee simple interest

highest form of ownership
-generally the person who owns the property

what is property?

-it is all about rights
-"a bundle of sticks"- ea. stick has a value and the value of all those rights is your wealth, which is your estate

property->

Value->Wealth->estate

Estate is?

the value of your rights

what is real property?(aka real estate)

Land and any improvements on that land that are permanettly attched to that land

what is personal property?

all property that is not real property

is a vinyard personal or real property?

land and vines are real estate
grapes are personal property

forest personal or real property?

land and trees if they are plante
-if trees are on the ground then personal property

are mineral rights personal or real property?

depends
-in Ca -> personal property

what estates have present inerests?

-fee/fee simple
-life estate
-estate for years

life estate

-the next mostpowerful form of ownership
-when an individual can use, possess or enjoy property until they die

estate for years

-when en individual can use, possess, or enjoy for ANY period of time less than life, usually more than a year

reversion

a future interest that an individual has on a peice of property. once the lesser estate has expired, the property will return to the original owner

remainder

once A transfers to B, when B dies it transfers to C

tenents in common

2or more people holding propertywho are NOT married
-both have undivided right to use possess and enjoy that property
-default ownership
-does not have to be =, but must be specified in tittle

joint tenants

-has automatic right of survivorship!
-MUST own = shares
-No ability t pass on. automatically terminates when you die
- does not have to go throgh the courts
-CAN be unilaterally severed

unliateral severence

can sever their own interestwithout consent of the other joint tenants

Tenents by the entirety

-SOLEY for married couples
-w/right of survivorship
-NOT in CA
-NO unilateral severence

testamentary doc

any document that transfers property upon death
ex: will/trust/life insurance

An heir may be a bene. , but a ?

Bene may not be a heir

specific beneficiary

-have PRORITY
-receive specific property

revocable transfer on death deed

-applys only to personal residence
-does not allow to alter bene
-does not provide for contingencies (B has to survive A)
-Avoids probabte process

Custodian Account

-okay for small amts of$
-does not have alot of oversight
-has a custodian appointed by the court who manages funds for miinor

trust

-require you to be insured
-lots of provisions in place to make sure $ stays safe
-for large amts of $$
-trusty is responsible for their actions

beneficiary @ law

a person that recieves property because of the law

who has the right to claim bene. at law?

pretermitted heirs &spouse

pretermitted heir

bio child who can prove that they were mistakenly forgotteen

Power of Attorney (POA)

Legal doc fiving one person(the agent) the power to acxt for another prson (principal)

Limited Power of Attorney

agrants agent specific powersto make decisions
-is void when principal dies or loses capacity

durable power of attorney

exists when person executes a power of attorney which will become or remain effective in the event he or she should later become disabled
-void upon death

general power of attorney

has all legal capacity, except to change designated bebe or will
-voids when princial dies or loses capacity

Springing Durable Power of Attorney

A springing durable power of attorney is activated when an agent receives notification from a physician that the principal is found to be mentally or physically incompetent.

durable power of attorney for health care

lets you name someone else to make decisions for your health car (written)

surrogate decision maker

family allowed to make decisions, if principal is incapacitated as long as they all agree

Statutory Surrogate

by law if you have capaity you may ORALLY appoint health care decision maker
-lasts 60 days or extent of illness whichever is shorter
-takes presedence over DPOA for health care

Testimentary Capacity

1. you must understand that you are executing a will
2. understand the nature, extent and situation of your property
3.you must undrstant who your next of kin are and the impact your gift will have on them

a standard type written will

-in CA requires 2 wittnesses;other states 3
-witnesess cannot be bene
-can be anyone who is an adult
-needs to be signed by testator
- needs to have words of testimentory intent