With his no-nonsense style and explanation of complex legal topics, expert estate and tax planning attorney James L. Cunningham, Jr. shows how to avoid the mistakes that could damage your financial future, financial succession, family, heirs, and legacy. Author of bestselling book Savvy Estate Planning, Jim provides both the essentials and the advanced strategies you need in the protection and transfer of multi-generational wealth. The only mistake you could make now would be to neglect this vital part of your financial life.
CunninghamLegal’s Estate Planning attorneys are experts in the areas of estate planning, trust administration, special needs planning, asset protection, advanced planning for high income people, and much more. Our firm is dedicated to making sure your estate plan will work the way it was intended over time. Learn more and contact us at www.cunninghamlegal.com.
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My mom created a Living Trust and passed away this May. The property is in the Trust. I'm 58 and have been renting the property from her for the past 12 years. I'm the Successor Trustee and beneficiary along with 2 siblings as beneficiaries. I want to stay in the home, and my siblings are okay with me keeping the condo as long as I buy there 1/3rds. It's a condo in Riverside CA. Mom purchased in 1995 for $50,000 and current market value is approximately $340,000. Does the property get reassessed? How do I transfer the property out of the Living Trust into my name after I pay my siblings with my portion of inherited funds (the entire estate assets are being split equally). Also, do we need an appraisal on death date?
THIS IS NOT LEGAL ADVICE. If a beneficiary purchases the shares of a property from their siblings outside of a trust, the property will likely be reassessed on the 2/3 that was bought. Consulting an attorney could help explore ways to potentially avoid this reassessment. You can contact our office and we can see if there is anything we can do to help: www.cunninghamlegal.com/california-law-offices/contact/
Whether or not you are required to go through Probate depends on a variety of factors, like if there is a Will or a Living Trust, if the Living Trust was properly funded, and if there are any conflicts between beneficiaries (to name a few). To understand your situation more fully, I highly recommend contacting our firm for a free 15-minute call with a client specialist, where we can gather these types of details and provide you with additional information. Please contact us at: www.cunninghamlegal.com/california-law-offices/contact/ or view our video archive on our website: www.cunninghamlegal.com/blog/after-a-death-trust-administration-trustees-executors-and-probate/
Hi! I assisted my father in inheriting/buying out his parents home from the trust he is owner occupying and has maintained the tax basis. He’s been owner occupying for three years now. Question: is it OK for him to move out of the home at this point and turn it into a rental? Or does that trigger reassessment? How long does he need to own occupy it?
Jacob, thank you for your question. It would be inappropriate for us to give you legal advice on a RU-vid post, so please contact our office if you are seeking legal advice. In terms of information, generally, if the parent to child reassessment exclusion was based on Prop 19 which was effective February 2021, the FTB has taken the position that once the property ceases to qualify for the homeowner’s exemption, the reassessment exclusion ($1M+) goes away, and the property taxes go up accordingly. With more facts, we can walk you through this on a consultation. You can contact us by filling out the form on our website: www.cunninghamlegal.com/california-law-offices/contact/ or calling us at 866.988.3956
As part of my retirement plans and also owing to the very shaky housing market now, I just sold a property in Philly and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains in months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge, And it also all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.
Reason I decided to work closely with a broker ever since the market got really tensed and the pressure became so much(I should be retiring in 17months) so I've had an brokerage-adviser guide me through the chaos, its been 9months and counting and I've made approx. 650K net from all of my holdings.
That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind suggesting the adviser you're using ?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Interesting how homelessness wasn't mentioned as a con. California has the largest population of unhoused people, which explains some of the crime epidemic. Not to mention the totally soft on crime politicians. I have lived in CA my entire life, and it has some beautiful areas, but in my opinion, the state as a whole has been deteriorating, and I don't see anything coming from our politicians that will make it better. Nearing retirement now, and I think I'll look for a better quality of life elsewhere. As long as you don't mind aggressive panhandling or having to sidestep some tents on the sidewalk, you'll love it here. The weather is great.
I agree with you that California does have a higher than average percentage of homeless people. Statistically, however, the homeless population is rather consolidated to major areas: The homeless population in cities is more than ten times the rural homeless population. These cities in California hold the largest homeless populations, totaling 64% of the state’s homeless population: Los Angeles (38%), San Jose (5.8%), Oakland (5.7%), Sacramento (5.4%), San Diego (4.9%) and San Francisco (4.5%). [SOURCE: www.ppic.org/blog/homeless-populations-are-rising-around-california/#:~:text=The%20largest%20cities%20and%20CoCs,Francisco%20(4.5%25)%20far%20behind.]
Best way is to have a family trust setup for the family name and how to control the trust name as a business in due course over the living revocable trust
Hi, I'm not sure that I completely understand your question. Businesses are usually "controlled" by entities (LLC, Corporation, Partnership). There are vessels designed to be used by several generations, such as a Dynasty Trust. You can find more information on both here: www.cunninghamlegal.com/dynasty-trusts-not-just-for-the-super-rich/ and www.cunninghamlegal.com/choosing-between-types-of-business-structures/. You can also learn more about Living Trusts here: www.cunninghamlegal.com/how-much-should-a-living-trust-cost/
There isn’t a simple form to change a trust from revocable to irrevocable. Many of the terms of the trust would need to be revised. Revocable and irrevocable trusts have different purposes and implications. Irrevocable Trusts come with various tax implications, an annual tax reporting requirement, and the potential need for Court involvement if changes are needed in the future. In addition, some assets might not make sense to title to an irrevocable trust and are better suited for the revocable trust, which may mean you need to have both a revocable and irrevocable trust. It would be best to speak with an attorney to discuss these issues and the reasons you want to set up an irrevocable trust to determine the best course of action for you.
@@CunninghamLegal I just want to be able to afford a care center for my wife without going broke in the process. We own our home outright and have a savings of $150,000.00 (that would be depleted in about 4 years). This means I would have to sell my house and then I would have no place to live. I'd be better off just moving to Mexico and coming back across the border for the benefits. I am not going into debt after accumulating what we have.
@@doirmad It sounds like you might want to look into Medi-Cal options since it is income based and could be a good fit for you, based on the details you explained in your comment. Here's a helpful CA Gov resource for Medi-Cal: www.dhcs.ca.gov/services/medi-cal/pages/applyformedi-cal.aspx and some FAQs: www.dhcs.ca.gov/services/medi-cal/eligibility/Pages/Medi-Cal_CovCA_FAQ.aspx
Hi Jim, I’m on my third pass on this video. Also have about 60 pages left in your book as I slowly chew through it. Really interested in a proper LLC for a beach house we own to pass to our 3 adult children. I understand a lot of the California pitfalls but was also curious about putting Washington state rental into the LLC to offset costs as time goes on. Are there any videos on out of state property held in an LLC. Trying to get our ducks in line before meeting with you.
Hi there! Thank you for watching our videos and getting the book! We do have a couple videos on putting real estate in LLCs: 1. Real Estate Investing... NOT in California: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-F3FF6qT1KKc.html 2. Using an LLC for Real Estate Investing: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-RaNbnMaE9bg.html 3. Asset Protection and the Corporate Veil: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-JcXNliHWEEY.htmlsi=QKFprLVyDgCIDCAq
I believe this can be one of the ultimate question: in your professional field, please give me some figure(s) how many cases or the numbers of the average percentage who successfully operated/handled living trust, living will, last will,... perfectly to avoid probate pit falls? The more I hear from lawyers like you about surviving from probate, the more my concerns grow: I even feel "not possible." Addition to that, having not many "certified" professionals out there in the country, and it seems like "you don't know what you don't know" appears every corner I walk... I wonder how others handling, succeeding this process. I bought your book, "Savvy Estate Planning" and also listening in Audible daily. I will learn, and I will be careful, but I am also worry. But thank you for your detailed, heartwarming helps for all of us :)
Thank you for leaving a comment and I hope you enjoy the book! would say a large percentage of people who work with an attorney to set up a quality estate plan (about 75% have wills, while 18% have trusts), follow instructions to fund their trust properly and update it every 3-5 years or upon a major life event change, can successfully avoid probate. It certainly can be possible! The biggest issue we find is not funding trusts properly and subjecting assets to formal probate or a simplified probate process to collect assets.
I called for 15 minute free consultation and was told that I cannot speak with a lawyer so any questions that I asked could not be answered.. I was told I need to make a 60 to 90 minute appointment consultation to speak with an attorney and it would cost me $595. Couldn’t even tell me a ballpark figure of how much it would cost to put one property in a revocable trust for my child I need to have a 90 minute consultation to find out the cost to do this and pay $595
We moved from Long Beach, CA to Boise Idaho and bought a 4 bedroom house for the price of a 1 bedroom Condo in Long Beach. Not traffic. The weather is awesome. We actually spend more time outdoors here than California because of accessibility and the time you don't spend battling crowds and traffic. With the money we're saving I can retire a full 7 years early. I do miss good Mexican food, but it's not worth the high cost of living and crowds.
Thanks for leaving a comment. I'm glad to hear that you like Boise and the early retirement sounds great! From my experience, many Californians don't stay in Idaho long because of the snow, the drier air of the high desert, and the cultural differences. But I'm happy to hear that you were able to find a place that fit your needs and that you are happy to call home.
Great video, but I have a few questions: 1. The amount of assets division in A/B trust - in your video you made the examples of A/B trust in many places as "If a couple has 2M assets, then A will have 1M and B trust will have the other 1M....". But in my understanding of how A/B trust is commonly set up, it's not meant to be divided 50-50. Usually the B trust is the amount of federal life-time exemption amount and A trust is the remaining. This was developed to make sure the deceased spouse's federal exemption is not wasted. I understand that with the portability rule later in effect this is no longer necessary, but that was the original intention. Anyway, necessary or not, the division of A/B trust amount was never meant to be 50-50. 2. The other factor is the unknown estate tax rate and exemption amount in the future. For high net-worth couples, there is a benefit with the irrevocable B trust as any growth and appreciation in the B trust will be exempted from the estate tax when the surviving spouse passes away. Let's say the lifetime exemption amount is 7M at the death of the 1st spouse and a B trust of 7M is created. Later when the 2nd spouse die, the $7M has grown to $14M. It seems to me it's not simple clear answer if getting a step-up on cost basis for that 14M assets to save 30+% capital gain tax for the children beneficiaries is always better than saving 40% estate tax on the $7M growth. Am I missing something? 3. A/B trust with disclaimer - if the A/B trust had the disclaimer option setup, then the surviving spouse has the option to decide whether and how much to set up the B trust anyway within 9 months after the death of 1st spouse depending on the estate tax law at that time and asset situation.
According to the Public Policy Institute of California, "California is often considered quite liberal, with strong support for the Democratic Party-but the state encompasses many people with differing political views." Here's the full research report: www.ppic.org/publication/californias-political-geography/
Makn issue woth that Finra thing is you have to keep it updated. For example if ine of the owners changes address you have 30 dats to update Finra. If you have many LLC, this is cumbersome. Best thing is to make a Finra ID to auto update all LLC
Yes, you're talking about creating FinCen ID for the Corporate Transparency Act reporting requirements. If you own or partly own an LLC, a partnership, or a corporation, this law is something you need to understand-and you may need to take action. The Corporate Transparency Act (CTA) requires specific information about the ownership of most small businesses to be reported to the United States Financial Crimes Enforcement Network (FinCEN), which can be reported here: boiefiling.fincen.gov/. *To your point, @PedroOjeda, if your business ownership changes, you must update this information within 30 days. If you have an existing company, you must file by January 1, 2025. Complying with the CTA might seem like a daunting task, especially for smaller businesses. We’re here to help make the process as easy as possible. Please contact our office if you would like assistance with the filing process. We have further materials on this here: www.cunninghamlegal.com/corporate-transparency-act-what-you-need-to-do-now/
The Preliminary Change in Ownership report in Part 1 Transfer Information box J “This transaction is recorded only as a requirement for financing purposes or to create, terminate, or reconvey a security interest (e.g., cosigner). If YES, please explain: _______” can be used to avoid reassessment. For example, dad could convey to dad and daughter as joint tenants, get the loan, then daughter re-conveys (transfers) the property back to dad. THIS IS NOT LEGAL ADVICE! Get legal advice before doing any of this!! www.boe.ca.gov/proptaxes/pdf/sample-boe502a.pdf
Another question - Irrevocable Grantor Trust - the video in time 10:30 says for Irrevocable Grantor Trust the assets are not part of the owner's estate".... I think that's not correct. According to IRS, the assets held in an irrevocable grantor trust generally remain included in the grantor's estate for estate tax purposes. So if the goal is to reduce estate tax, then one should set up Irrevocable Non-Grantor Trust, not Irrevocable Grantor Trust?
An irrevocable grantor trust can be written in a way to be excluded from a decedent’s gross estate. A grantor trust is ignored for INCOME tax purposes while the grantor is alive. It is not ignored for estate tax purposes. This can be an extremely valuable inter-generational wealth creation tool. Contact us if this is something you are interested in: www.cunninghamlegal.com/california-law-offices/contact/
Question - I don''t quite understand the number you showed in "Gifts in Trust" at time 4:00 of the video. If the couple gives each of the 3 children the annual gift tax exemption, that's total of 6 times the annual gift tax exemptions. Plus, they can each gift the irrevocable trust up to annual gift tax exemption as well, right? That's another 2 times the annual gift tax exemptions. So together it should be 8 times, so why you show under "Total Gift" column as 6 times? My understanding is that people can gift to the irrevocable trust with their children being beneficiaries separate from gifting to children directly, am I correct?
@@CunninghamLegal Hum... I searched this topic online and found "Crummey Powers ... in which the court ruled that the as long as a trust beneficiary has the right to withdraw a gift to a trust, the gift qualifies as a present interest gift and the annual gift tax exclusion will apply....", and "When you gift to an irrevocable trust, the gift must still be evaluated on a per donee basis. For the gift to qualify for the annual exclusion, each beneficiary must have a present interest in the gift. .." Anyway, I could be wrong, but just for your reference. Thanks.
@@ericchen1205 Broadly speaking you are correct. One human can give another human up to $18K in 2024 and not have to file a gift tax return. A “Crummey Power” permits a gift to a trust and still qualify for the annual exemption. If one human gives another human $18,001, then a Form 709 Federal Gift Tax Return must be filed.
What about if the children went on the deed with the mother so the mother could qualify to refinance the home? After the new loan is in place, the children deed the home back to the mother as sole owner. Would the property taxes change because of this?
The Preliminary Change in Ownership report in Part 1 Transfer Information box J “This transaction is recorded only as a requirement for financing purposes or to create, terminate, or reconvey a security interest (e.g., cosigner). If YES, please explain: _______” can be used to avoid reassessment. For example, dad could convey to dad and daughter as joint tenants, get the loan, then daughter reconveys (transfers) the property back to dad. THIS IS NOT LEGAL ADVICE! Get legal advice before doing any of this!! www.boe.ca.gov/proptaxes/pdf/sample-boe502a.pdf
If it is the community property of both spouses, or the separate property of the deceased spouse then yes. If it is the separate property of the surviving spouse then no. I hope this helps! *INFORMATION ONLY AND NOT LEGAL ADVICE.
This is correct. Although there is no charge for our RU-vid content, we do charge for our time. If you would like to receive a discounted consultation fee you may attend one of our many in-person workshops.
As Californian retiring from the Army soon, I've decided to return home to California for now. I still may leave if I do find another state, but unfortunately, most look unappealing, despite considering I'm a world traveler. And California has a great veterans program, too. Not many states can compare. Ultimately, the diversity in people, cultures, weather, and opportunities are the main reasons for my return. The only cons for me are the poor public schools and health care in rural or poorer communities. I don't have to worry about public schools or health care since I'm going to be a veteran, but I know these two topics are a big deal in a state as huge as California. Thanks for making this video. It's very informative.
California diverse???? I have no restaurants except taco , hamburger, and pizza places. Sorry, California sucks now. Ive lived in cali since 1965. It's overcrowded, expensive, liberal and getting worse.
California has some serious culinary diversity, and the roots of California Cuisine can be traced back to four foundational pillars: Colonization, nearby Mexican territories, immigration, and agriculture. Even the places around you are diverse, even if they may seem common to you. Tacos are considered Mexican food, Hamburgers come from here in the US, and pizza is Italian! That's pretty diverse, when you really break it down. I'd encourage you to check out this web page on Visit California if you're looking for more diversity: www.visitcalifornia.com/experience/how-experience-californias-delicious-culinary-diversity/
@CunninghamLegal unless you live it the Metropolitan areas...it is a wasteland. I grew up in San Diego and traveled extensively in Mexico. The Mexican food here in ventura County is mediocre AT best. I'm well aware of history and immigration. I grew up in southern California, and it is not a place I would suggest anyone move to. Overrated, over taxed, overfilled!!!
If you own or partly own an LLC, a partnership, or a corporation, you need to look into if you need to file a Beneficial Ownership Information report. We have more information here: www.cunninghamlegal.com/corporate-transparency-act-what-you-need-to-do-now/
If I were 72 and making $53 K per year from Social Security and a pension, Is it possible that if I needed to go into a long term care facility that I'd qualify for Medical assistance if I didn't have long term care insurance?
In California there is no longer an asset test. Your income (minus $35) forms your share of cost. As of January 1, 2024, Medi-Cal will no longer count assets to determine eligibility. This means that anyone, regardless of how much they own, may receive Medi-Cal benefits, including: Individuals in skilled nursing or intermediate care facilities or those who qualify for home and community based services; people who are 65 or over, blind or disabled, low-income persons with dependent children; children under 21; pregnant women; and SSI and other categorically-related recipients are also automatically eligible for Medi-Cal. canhr.org/overview-of-medi-cal-for-long-term-care/
It is all very easy to understand, the government gets all it can and the people get what the government wants to give them and only for a while but it always collects the taxes and decides on the amount. Loopholes after loopholes protect the ruling class who have control of the citizens government. Speaking of a loophole can a widow marry her son and when she dies there is NO transfer of property from wife to husband.
nm is bad state to live in for taxes. forget how low property taxes are. look at the state taxes and capital gains taxes. i was going to move there until i found out that i was going to have to pay 60 thousand dollars just on a capital gains tax that i have to pay soon when i sell some of my stocks etc... so now im going to move to a state that has no state tax or capital gains tax. these types of things are killing that state and people with money wont move there.
Come on in, Brian! We would be happy to take a look. You can fill out the form on our website or give us a call: www.cunninghamlegal.com/california-law-offices/contact/ (866) 988-3956
Even tho California has no asset limit for medi-Cal Beneficiaries, Medi-Cal requires you report 100% of your inheritance within 10 days. How can you do this within 10 days when it takes months? Covered California, on the other hand, says you don’t have to report when you receive and inheritance, but have to report when you sell an asset. Why the discrepancy?
so most people who move to CA is from the worst states? that is not a good thing...if you move from the worst state, then anything is better...i've lived in CA since i came in US, but with all the things i've seen since, i can tell you everything is going down...outdoor activities are getting more limited, budgets are down for public services, taxes are going up, more unqualified people to receive social services are getting them easier than legal tax payers, crime is higher each year, middle class is getting destroyed, tax payer is getting less out of their taxes...long term, retirees are better off some other state...i would keep my property in CA as second home because i still think it's got the best in overall living condition, but would rather live in middle class friendly states...the key i take here is that CA is good for low income earners which makes the point that CA hates middle class...who wants to stay in low income earner just to live in CA?
Here's a list in the video of all of the reasons someone might want to stay in CA, but I noticed that you had your own reasons for staying in this beautiful state: 04:46 Reasons to Retire in California (PRO: The Arts) 06:00 More Reasons to Retire in California (PRO: Education & Outdoors) 06:51 Even More Reasons to Retire in CA (PRO: Food & Recreation) 25:27 Retiring in California PROs 25:49 Prop 13 Protections (CA PRO) 27:35 No Income Taxes on SSI (CA PRO) 30:33 No Death Taxes (CA PRO) 32:41 Adjusted Cost Basis (CA PRO) 36:05 CA Can be a Good Place for Low Income Retirees
Give our office a call! That's something that depends on your circumstances and we would be honored to help you plan ahead: www.cunninghamlegal.com/california-law-offices/contact/
We like to say that retirement brings freedom. Here's some parts of the video I encourage you to check out: 10:25 Retirement Brings Freedom 27:35 No Income Taxes on SSI (CA PRO) 36:05 CA Can be a Good Place for Low Income Retirees
