John B. Palley - Attorney at Law

Free in-person estate planning seminars. So Cal and Sacramento. Sign up and mention my name please!

Free In-Person Estate Planning Workshops Looking for in-person California estate plan guidance with legal experts? FREE estate planning workshops throughout CA! ? Register today!

Another great free webinar at the new office. Check it out!

You still have time to register for How to Avoid and Defer Capital Gains Tax on March 14th @ 12:00 PM (PST)! Here is what we will focus on at the webinar:

Are you looking to minimize your capital gains tax liability? Join attorney and author Jim Cunningham in this informative webinar as he breaks down strategies to avoid and defer hefty capital gains taxes. Whether you're selling a property, stocks, or other assets, the tax implications can be significant. Make sure you minimize the bite! Jim will share legal methods to reduce or possibly eliminate capital gains tax, from utilizing tax-loss harvesting to 1031 exchanges. With Jim's expert guidance, navigate the complex topic of capital gains tax mitigation with confidence.

How to Avoid and Defer Capital Gains Tax Learn from an expert how to avoid and defer capital gains tax!

I will say one of the things I really like about CunninghamLegal is they offer a ton of free webinars to clients and friends. For example, next week we have a big webinar on California Prop 19 that is likely of interest to some of you. Yes, please mention my name if you sign up!
https://www.cunninghamlegal.com/prop-19-california-what-is-it/?utm_campaign=Webinars&utm_medium=email&_hsmi=295442202&_hsenc=p2ANqtz-_Jwa_ur7TgYJP-lp3dOARnWbM8LdqOvrrHTZ3__ju2udQPzU1LzMEMljyTFPwQshS9Z2cWYnwYs7O0TWbdEHXF_Y_Lcg&utm_content=295442202&utm_source=hs_email

Join us for an eye-opening webinar: Prop 19 California… What is it? Passed in 2020 to little attention, Prop 19 significantly altered California’s Prop 13 tax caps with wide-ranging implications. With few exceptions, Prop 19 effectively eliminated the ability of a parent to leave a low property tax assessment to a child. At the same time, it created remarkable opportunities to transfer a low tax base to a new property for people over 55. In this webinar, attorney and author Jim Cunningham tackles Prop 19’s “good, bad, and ugly” challenges head on. What strategies should you pursue to hold on to your Prop 13 caps? Don’t miss this webinar!

Prop 19 California: What is it? Learn about Prop 19 in California: What is it? Thought leader and expert estate planning lawyer Jim Cunningham explains.

So, I left the law firm I have been with since 1999 last week and now I officially announce my joining of Cunningham Legal. I will be doing the same estate and probate law with my official office in Sacramento (no I do not have a desk there). Cunningham Legal has offices throughout California – including the Bay Area and greater LA area as well. Again, nothing bad to say about the old firm but it was time for new scenery for me and I am super excited. If you, or your loved ones, need help with California estate, probate and tax planning reach out to me! There are a lot of things I like about the new place. Perhaps the thing I like best is we have a strong presence throughout California with offices in Sacramento, Roseville, San Francisco, Oakland, San Rafael, Walnut Creek, Pasadena and Westlake Village. Cunninghamlegal.com

My last blog post... can you really leave tattoos to a loved one after death!? WTF!?

Can I leave my tattoo to my loved one? - Probate Sacramento CA | Trusted Probate and Estate Attorney In my 30 years as an estate attorney I have not yet been asked if a client can leave their tattoo to a loved one. However, after seeing this article maybe that’s going to start happening!? This Ohio mortuary is doing just that. They will preserve your tats for your loved ones. Yes, really! So […...

John B. Palley - Attorney at Law updated their phone number.

I frequently post new blogs on probate law issues. My last was about transferring cars after death.

https://californiaprobate.info/2020/04/small-estates-creditors-and-cars-real-question/

Small Estates Creditors and Cars - Real Question - Probate Sacramento CA | Trusted Probate and Estate Attorney I received a question the other day which I modified to protect the identity of the person. They asked: Hi. My uncle recently passed with my dad (his brother) as his closest relative and few assets. His estate qualifies as a “small estate” under California law. I cannot find any resources about ...

We have several videos posted including my latest Covid-19 video on you tube.

https://www.youtube.com/watch?v=3kRoFcyVv-U&t=15s

California probate during the Covid-19 crisis Hi there. I am John Palley the California Probate attorney. I wanted to take a minute to put this minute up on the web to let you know that we are open for b...

John B. Palley - Attorney at Law's cover photo

Trusts and Estates Section of the California Lawyers Association

The State Bar of California Trust and Estates section finally has a page. If you are really into trusts and estates law you might LIKE their page. I imagine they will be posting new laws and other such information. Check it out:

https://www.facebook.com/calbartrusts?ref=hl

We encourage California Trusts and Estates lawyers to join us in our endeavors to protect the public and improve the practice.

International Wills

I have been practicing law since 1994. I have been extremely focused on the areas of estate and probate law during that time. Through those years I have a number of clients who have property in other countries. Usually we agree that they will talk with an attorney in the other country. As you might have guessed many countries have far simpler laws for passing assets, after death, than we do here in California. Some not as easy. The one, almost uniform, constant I have found is that most countries do not honor our living trusts. That is, the concept of a revocable living trust generally is not one that carries over. There are some exceptions but even then they might prefer, or require, the use of THEIR countries trust and not a US trust. The use of a home country will is fine. As long as the two wills clearly do not revoke the other one … Continue reading →

Robin Williams estate in the news

Robin Williams estate in the news

I was reading this article about Robin Williams' estate. It is written by a Minnesota lawyer. I am not saying the story is "wrong" but it is a little misleading. Now that makes for better reading than a 100% accurate story of course. In this story they make a big deal about the high cost of probate in California. Yes, it is high. However, let's look at the story: 1) It mentions a trust that Robin Williams' allegedly had. It was called The Domus Dulcis Domus Holding Trust according to the story. If he had a trust and if the properties were in the trust then there would be no probate for these assets... unless someone brought a trust contest of some variety. In fact, you can Google that trust name and you will find hits for properties where Robin M. Williams was involved in the transaction. Thus, I think it's fair to assume he really did have a trust! … Continue reading →

California Insurance Code Section 10113.71 Form

California Insurance Code Section 10113.71 Form

Have you gotten forms from your life insurance companies giving you the option of providing them an alternate person to receive your lapse notices? I love this! It all stems from California Assembly Bill 1747 which became effective January 1, 2013. It was written into law as California Insurance Code section 10113.71. I think it's a very helpful law. It provides for a 60 day lapse period on policies issued after January 1, 2013. Plus the insurance company must provide notice of the lapse to everybody including your designated person. To me this makes very good sense. With people moving around so much providing the insurance the address of the most stable friend or relative you know can't hurt. If your insurance company hasn't contacted you with a form to fill out I encourage you to contact them to ask them for their form. If you use your favorite search … Continue reading →

Ask your parents some tough questions to help everybody

Ask your parents some tough questions to help everybody

Back in 2012 I posted a blog about talking to your parents about their estate plan. I called it "5 Questions to ask YOUR parents about their estate plan." I encourage you to read it before reading on.... The key here is that it's a sensitive thing and, often, when dealing with your parents it can be tough. Heck, they are your elders, your respect them, you don't want to look like a gold-digger. The 5 questions I posted back in 2012 are: 1) What estate planning documents do you have in place? 2) Can I have a copy of your trust? 3) Who are the financial decision makers in your estate plan? 4) At what age are the assets distributed to the kids? 5) Are all of your assets actually titled in the trust? Let's ask five MORE questions. That is, here are 5 more questions to help you help them help you! 1) So, the first question can be asked another way which is … Continue reading →

My hole sponsorship sign from last week's Urijah Faber Team Alpha-Male Golf tournament. Thank you to Urijah for putting on such a great event!

Notifying the California Department of Health Services of a death

Notifying the California Department of Health Services of a death

How does one go about notifying the California Department of Health Care Services (aka: "Medi-Cal") of the death of a friend or loved one? You can have an attorney help you or just go to this handy link on their website. Once there click on NOTICE OF DEATH. Another screen is brought up where you put in a whole host of information about you, the decedent, their assets, etc.... Just fill it all in, honestly of course, and then wait for Medi-Cal to get back to you. Don't forget Medi-Cal generally will take a back seat to other costs of administration in a probate. So a large Medi-Cal bill does not mean you should just walk away from a piece of real estate. We can often get our client's MONEY IN THEIR POCKET. Medi-Cal just wants the house sold and are ok to get paid after probate. The key is talking to an experienced probate attorney. If you want to talk … Continue reading →

Special Letters of Administration and Mortgage Companies

Special Letters of Administration and Mortgage Companies

"My husband died and the mortgage company won't talk to me." This is becoming a common statement that I hear. Mortgages and the actual deed to real estate are NOT connected. They are separate. So, for example, if a spouse dies with a house in their name the other spouse can often use a "spousal property petition" to transfer assets to themselves without going through a full probate. However, the mortgage, or encumbrance against the property, does not transfer with the "deed" or title. What? Say it isn't so Mr. California Probate Lawyer! It's true. Plus, mortgage companies are making it more and more difficult to communicate with them after death. Sure I have known of people who have pretended to be the decedent and that can last for years but eventually that will stop working. Plus it's not legally correct to do that! I recently encountered an … Continue reading →

Could Donald Sterling use a blind trust?

Could Donald Sterling use a blind trust?

Donald Sterling has a pretty large net worth. I don't know if it's $2 billion or $3 billion or what exactly it is. I think most of us estate planning attorneys would call him "high net worth." I certainly don't have any billionaire clients at this time. Anyway, he is probably busily working with a team of estate planning attorneys to figure out how he can retain control of the LA Clippers in light of his recent racist rampage that has gone public and gone viral! When I think back to others who have gotten themselves into similar pickles I have thought of owners like Eddie Debartolo, of the 49ers, and Jimmy Haslam, of the Cleveland Browns. It is believed that both men utilized "blind trusts" so as to retain ownership of their beloved teams even if they did lose day to day control. I actually found a great definition of a blind trust on wiki. It … Continue reading →

Finish your parent’s probate and then….

Finish your parent’s probate and then….

Probate can be a long and drawn out process. These days it's eight months and often longer. Many probates drag on for a year or more. So when you finish your parent's probate what should you be thinking? It seems to me that's a great reminder that YOU need a living trust of your own! You don't want your kids or loved ones going through probate at your death, right? You don't have to wait for probate to be done but that seems as good a time as any. Here's the dirty little secret of probate and estate planning. Don't tell anybody. Shhhhhh. Keep this between you and I.... you will die some day. Plan ahead and get your revocable trust done and done right! Share/Bookmark

The Dangers of Do-it-Yourself Wills

The Dangers of Do-it-Yourself Wills

I often tell people that it MIGHT work out fine if they do their own will. Of course it might not. I like to tell people that we'll find out after they die! Well, a recent Florida case emphasizes this sentiment. The Supreme Court of Florida recently heard the case of James Michael Aldrich v. Laurie Basile, et al. (No. SC11-2147). In this case the decedent used an "E-Z Legal Form" will. She laid out every item with detail but failed to mention later acquired assets. She inherited a large sum after doing her E-Z Legal Form will and thus the will did not give away these assets. In fact, the laws of Florida gave those later acquired assets away to someone other than who she intended to give things to by her will. In her concurring opinion in Aldrich v. Basile, Florida Supreme Court Justice Barbara Pariente wrote: "While I appreciate that there are many … Continue reading →

We fix $499 Trusts

We fix $499 Trusts

I was reading the paper the other day and I saw an ad for a $499 trust. This blog post is not specifically saying that trust company is bad because I have no idea. That $499 trust may be the best trust of all time. However, seeing the ad reminded me that you really shouldn't price shop for your estate planning documents. That can be VERY costly to your family in the long run. Let me start by saying that our firm has been providing reasonable cost legal services since 1979. We pride ourselves on this. However, we aren't the cheapest. We are far from the most expensive but also not the cheapest. When you are searching for your attorney don't shop solely on price. Yes, consider it but please don't use that as your only factor. I have seen way too many trust mill trusts that are completely inadequate in one of different ways. Some common problems: 1) Unfunded … Continue reading →

Ten characteristics of a good trustee

Ten characteristics of a good trustee

When I go through the estate planning questionnaire with a client I suggest they think long and hard before selecting their trustee. In fact, if they hesitate for a split second when naming someone I ask about it. For example, they might say, "well our son is probably our first choice... well... ahhh...." The second I heard the word "probably" I was wondering what that was about. I know it does not mean their son is dishonest but maybe he has an overbearing wife? Or maybe he and his brother don't get along. Or who knows!? The point is there is a reason they said "probably." I thus bring you 10 characteristics to look for in your chosen trustees in no particular order: - Trustworthy - General competence - Financial experience - Life experience - Ability to see things from the beneficiaries point of view - Geographic location - Above reproach - Wants to do … Continue reading →

Starting probate as a creditor

Starting probate as a creditor

I have a new case where the decedent's son contacted me about starting a probate. He wasn't quite ready as he had other things going on in life. Well, last week he called, in a panic, because one of his mom's creditors had started probate! That's right. A creditor, in a California probate, can start the probate process for you whether you like it or not. In most probate cases it's better to be in control. There are a variety of reasons for that which is beyond the scope of this post. However, trust me, control is good in probate! With a creditor's claim you lose your leverage to negotiate. Think about it. If a creditor is in the driver's seat it's a lot harder to suggest they take a haircut on their claim. Plus there are likely going to be added costs. We can salvage the situation by paying the creditor and then filing our probate case. The creditor has … Continue reading →

Ancillary Probate

Ancillary Probate

An ancillary probate is a proceeding when a person dies with property in more than one state or dies in one state with property in another. Our office can help in all ancillary probate situations. The California probate code defines ancillary administration as "proceedings in this state for administration of the estate of a nondomiciliary decedent." PC 12501. A "nondomiciliary decedent" is defined as a person who dies "domiciled in a sister state or foreign nation." PC 12505. Finally, California Probate Code sections 12500-12591 sets out the rules governing treatment of estates of nondomiciliary decedents, as well as distribution of property to a sister-state personal representative (PC 12540-12542) and collection of personal property of a small estate by a sister-state personal representative without ancillary … Continue reading →

Michael Jackson’s estate valuation tax fight with IRS

Michael Jackson’s estate valuation tax fight with IRS

I read about the Michael Jackson tax dispute with the IRS on a legit website but figured I would get better dirt on TMV so here's the link to that article. Most of my readers understand that when a wealthy person dies their estate may have to pay an "estate tax" which is basically a death tax. It's certainly due to the IRS for estates over $5mil and sometimes also due to the estate depending on what state the decedent lived in. Mr. Jackson lived in California so there is no state estate tax. Just the feds! This dispute with the IRS is going to get good. Look, I am certainly not an asset valuation expert but for the estate's advisors to suggest Mr. Jackson's likeness has a value of $2,105 is sort of silly. I mean really I'll give you $2,500 without even understanding what's included in his "likeness." The IRS values at $434 million. I imagine the … Continue reading →

Getting on with life and avoiding the family fights

Getting on with life and avoiding the family fights

I recently talked to a prospective client. His story made me think of one thing, though I didn't tell him in these words, IT'S TIME TO SOLVE THIS AND GET ON WITH YOUR LIFE! His story was one I have heard countless times. Siblings fighting. It's not always clear what exactly they are fighting about and an outside mediator can probably solve everything in 5 minutes. I often say, not to the clients, that issues stem from when they were five years old or at some point when the older sibling was mean to the younger sibling, or the time mom babied the younger sibling and the older sibling felt bad, or whatever. It doesn't matter the background. The fact is it's 50-60 years later so let's help you move on with life. I am not a therapist or a counselor but my legal services do the same thing sometimes. My advice is probably what some family law attorneys tell … Continue reading →

Help write the California probate code

Help write the California probate code

People often complain about the California probate code. Now YOU can help fix it! According to this GCN.com article there will be a crowdsourcing feature to modify and amend the code on wiki. GCN is the only website reporting this at the moment. Read about it here. Share/Bookmark

A/B Trust Options

A/B Trust Options

The "A/B" trust is a very common set-up for married couples in the estate planning world. I should say there are different names for these trusts. I call it an A/B Trust. Others may be call it a Bypass trust, a credit trust or even a 1/2 trust. Whatever you call it a split trust is a common estate planning vehicle. How does it work? There are 4 main options for a standard husband and wife to consider in trust planning. That is, at the first death what happens to the trust. 1) Totally revocable: This is the simplest trust. I call it a "probate avoidance" trust. It's the simplest and most straight forward trust. The downside though is that the surviving spouse can completely change the trust and disinherit the kids. However, assuming no estate tax issues this is a good option for many people with more modest estate sizes. 2) A/B Disclaimer Trust: This is a … Continue reading →

Pay for your trust or probate work with Bitcoins

Pay for your trust or probate work with Bitcoins

As an attorney in Northern California, near Silicon Valley, I realize there are many people who may want to pay with Bitcoins as it's a very tech savvy type of currency. Maybe that's estate planning or probate work!? Additionally, I have represented clients from around the world who have probate legal issues in California; Bitcoins are sort of the world's currency! I thus will gladly accept payment in Bitcoins! Additionally, I was reading on espn.com that my local basketball team, the Sacramento Kings, now take Bitcoins. If I want to go to a game I can pay with this great new currency! If you have Bitcoins burning a whole in your wallet let me know! -John Share/Bookmark