Many California residents were shocked and saddened when Prince passed away in April 2016. The iconic performer was only 57 years of age when he died of an accidental drug overdose, and, like many younger people, he failed to put an estate plan into place or even write a last will and testament.
Married couples in California with substantial assets may want to consider the benefits of setting up an AB trust. While AB trusts are not for everyone, they can significantly lower the tax burden on some estates.
When people die, their property is transferred to their heirs and beneficiaries in a process called probate. Probate can be contested by heirs who disagree with the nature of their inheritances or believe that wills were created improperly, but most estates are uncontested.
Wealthy California residents and those who own family businesses are not likely to be in favor of proposed IRS regulations that would change the way estate taxes are calculated by significantly limiting asset discounts.
Thinking about making a will is useless if the actual documentation of one's final wishes never occurs. Dying intestate could result in the California courts having to identify the decedent's heirs and make decisions about how resources will be distributed.
Angel investors in California may use estate planning in order to maximize the returns that both they and their families can enjoy. By using trusts, angel investors may take the value of the assets out of their estates so that they can protect them from creditors and divorces while making certain that they are preserved for others.