welcome to dayton law firm

We Help Make People's Lives Easier in Times of Crisis

Helping California Families With Their Estate Needs

Estate Planning

We create and update estate plans that protect our clients’ futures.

Estate Administration

We guide families through the administration of trusts and other assets.

welcome to dayton law firm

Build A Plan That
Works For You

Anyone with assets can benefit from an estate plan. We offer options for people from all walks of life. Estate planning can save your loved ones from making difficult decisions after you pass away or if you become unable to make your own decisions. It can also ensure that your wishes for both your assets and your care will be met.

At The Dayton Law Firm, P.C., our team of San Jose estate planning attorneys is compassionate to families and individuals. We aim to help answer questions about your long-term planning options. We help with a variety of estate needs, including:

Why Choose Us?

We focus on our clients. While some firms seek the highest-value cases with disregard for the clients’ needs, we focus solely on what techniques are going to help you most.

Competitive Pricing

We strive to keep our hourly and flat fees accessible to as many families as possible.

Experience

We use our knowledge from planning and administering estates to achieve efficient legal solutions with a process proven to work.

Personalized Legal Work

By blending industry standards with custom in-house templates, we can advise and customize your plan to include your wishes to make sure it works how you want.

Free Consultations

We offer initial consultations at no charge so we can evaluate your legal needs before you ever receive a bill. Please call us at 408-758-5750 or email us to schedule an appointment.

Our firm is located in San Jose and serves the entire Bay Area. We also serve clients throughout California.

latest articles

Our Recent Blogs

When you get married, you and your spouse agree to support each other both emotionally and financially. While there are no laws dictating what constitutes emotional support, there are plenty of regulations dictating spouses’ obligations to financially care for each other, such as California’s community property laws. 

These laws impact your finances as long as you’re married and even after one of you passes on. In fact, they have significant implications for estate planning, affecting how property is classified and divided upon death. Here’s what you should know about how California’s community property laws may affect your estate plan. 

What Is Community Property?

In California, community property is any asset acquired or income earned by a married individual during the marriage. This does not include gifts, inheritances, or assets acquired before the marriage, which are considered separately owned. Community property laws dictate that each spouse owns an equal share of the marital assets.

These regulations are in contrast to those in “equitable division” states. In an equitable division state, spouses share ownership of the marital estate, but they are not necessarily owed exactly half its value. This can pose problems during probate, since the surviving spouse may face disputes over their right to the joint assets. While community property states are in the minority, they provide the strongest protections to lower-earning spouses both during marriage and after a death or divorce. 

Implications for Estate Plans

Most people associate joint property regulations with divorce, but they also have substantial implications for the estate planning and inheritance process. Some of the most important effects of these laws include:

1. Handling Equal Division of Assets

The requirement to divide the value of joint assets equally is not restricted to divorce. In California, when one spouse dies, half of the joint assets are automatically considered the surviving partner’s separate possessions. The other half is considered part of the decedent’s estate. It is subject to distribution according to their will or California’s intestate succession laws if no will exists. While this often means the surviving partner receives the majority of the joint assets they may have already been using, this is not guaranteed. 

2. Classifying Property Accurately

It’s necessary to divide the joint assets before addressing the rest of the estate, and accuracy is critical. Incorrect classification of assets can lead to disputes and unintended distribution. Couples should clearly document the nature of their assets for planning purposes.

3. Interpreting Wills and Trusts

Accurate property classification is fundamental to interpreting wills and trusts in accordance with the writer’s wishes. This is particularly true if you want to use trusts to minimize the impact of joint property laws on your plan.

Estate Planning Strategies in a Community Property State

California’s laws can complicate estate planning, but there are many options to address the potential issues. An experienced estate planning attorney can help better prepare for the future with strategies like:

  • Creating a Will or Trust: A will or trust should clearly define which assets are jointly owned and which are separate. This clarity helps in the smooth execution of your plan.
  • Considering the Needs of Blended Families: In cases of remarriage and blended families, communal property requirements can complicate inheritance. It’s essential to update your plans to reflect the current family structure.
  • Using Prenuptial/Postnuptial Agreements: Marital agreements can specify how assets are to be classified and distributed, providing clarity and protection for both parties in the event of death or divorce.
  • Understanding Tax Implications: Joint property may offer tax advantages in estate planning, particularly with regard to the step-up in basis for appreciated assets. Making use of those advantages in your plan can substantially reduce the tax penalties on high-value estates. 

Protect Each Other’s Financial Future With Strong Estate Plans

While community property can complicate your estate plan, these regulations can also protect your spouse during the probate process. If you live in California, it’s crucial to tailor your estate plan to account for state laws and achieve your goals for your assets and legacy. At The Dayton Law Firm, P.C., we can help you design a plan that fits your family and your preferences. Our qualified estate planning attorneys have decades of experience helping California couples create wills, trusts, and other planning documents that accomplish their goals. Learn more about how we can assist you with estate planning around community property laws by scheduling your consultation today.

Estate planning is a crucial process for high-net-worth individuals, especially in a state like California, where the legal and tax landscapes are complex and constantly evolving. 

As a California estate planning lawyer, my goal is to guide clients through creating a comprehensive plan that ensures their wealth is managed and distributed according to their wishes while also minimizing tax liabilities and avoiding legal pitfalls. Let’s break down some of the most important considerations for high-net-worth individuals like you when preparing your estate. 

The Impact of California Laws on Estates

California’s estate laws have unique provisions that can significantly impact high-net-worth individuals. For instance, the state’s approach to community property can affect how assets are divided and taxed. 

Similarly, state real estate transfer and tax laws can substantially alter your plan, especially if you have moved to California from elsewhere. Understanding these nuances is vital for effective estate planning. 

The Importance of a Tailored Approach

Every person’s situation is unique, but people with substantial assets share some traits that make a tailored approach to estate planning necessary. It’s not just about drafting documents; it’s about understanding your goals, family dynamics, and financial situation. Some of the key reasons you should work with an experienced attorney to develop a personalized plan include:

  • Complex Asset Structures: High-asset individuals often have diverse portfolios, including investments, real property, business interests, and international assets. A tailored plan can address the specific legal and tax implications of each asset type.
  • Family Dynamics and Succession Planning: Substantial estates often involve complex family dynamics and the need for strategic succession planning, especially if family businesses or multiple heirs are involved. A tailored plan can address these issues, ensuring fair and efficient distribution of assets and the continuity of family businesses.
  • Regulatory Compliance: People with substantial net worths often face more complex regulatory requirements. Tailored planning ensures compliance with all relevant laws and regulations, avoiding potential legal issues.
  • Privacy Considerations: High-asset individuals may require more privacy in their estate planning. Tailored plans can include measures to maintain privacy in the management and distribution of assets.

In short, the complexity and scale of your estate likely make a bespoke approach to estate planning necessary to ensure effective management, tax efficiency, legal compliance, and the fulfillment of your personal and family objectives.

Key Components of Estate Planning for High-Net-Worth Individuals

While no two plans will be the same, there are a variety of tools and considerations that are frequently found in well-off individuals’ plans. Some of the most critical things to address in your planning include:

  • Wills and Trusts: Essential tools for directing the distribution of assets. People with substantial assets often benefit from establishing revocable and irrevocable trusts, which offer flexibility and can provide significant tax advantages.
  • Tax Planning: California taxes, coupled with federal estate taxes, can take a substantial portion of an estate. Strategic planning is necessary to minimize these taxes. Tools like charitable remainder trusts, grantor-retained annuity trusts (GRATs), and family limited partnerships can be effective in reducing tax burdens.
  • Asset Protection: Protecting assets from creditors, lawsuits, and other risks is a critical concern for high-asset individuals. Proper structuring of ownership and the use of trusts can offer substantial protection.
  • Charitable Giving: Many high-asset individuals wish to leave a legacy through charitable contributions. Structuring these gifts through vehicles like donor-advised funds or private foundations can maximize their impact and provide tax benefits.
  • Business Succession Planning: For those who own businesses, planning for succession is a crucial part of planning. It’s important to ensure a smooth transition and minimize disruption to the business’s operations.
  • Life Insurance: Life insurance can play a key role in estate planning, providing liquidity to pay estate taxes and support dependents.

By addressing these concerns, you can mitigate the negative impact of state laws on your estate plan, protect your legacy, and ensure your dependents and beneficiaries have the support they need after you’re gone. 

Create Your Personalized Plan With The Dayton Law Firm P.C.

Estate planning for high-net-worth individuals in California requires a comprehensive, informed approach. With the right guidance and planning, you can ensure that your assets are managed and distributed according to your wishes, providing peace of mind for you and your loved ones.If you are a high-net-worth individual in California looking to develop or update your estate plan, don’t hesitate to get in touch with The Dayton Law Firm P.C. for a personalized consultation. Our expertise in California estate laws and dedication to our clients’ unique needs make us the ideal partner in securing your legacy.

When it comes to estate planning, one of the most crucial considerations for families with a disabled loved one is setting up a Special Needs Trust (SNT). This legal tool is designed to ensure that individuals with disabilities can receive financial support without jeopardizing their eligibility for vital government benefits like Medicaid and Supplemental Security Income (SSI). Let’s break down how SNTs work and how they can be established. 

What Is a Special Needs Trust?

A special needs trust is a specific type of trust created for the benefit of an individual with disabilities. It allows assets to be held in trust and used to enhance the quality of life of the beneficiary without disqualifying them from government assistance programs. In California, these trusts must be carefully structured to comply with both state and federal regulations.

The trust is managed by a trustee, who has the discretion to make distributions for the benefit of the disabled individual. These distributions can cover a wide range of expenses, such as medical and dental expenses, education, rehabilitation, transportation, and personal care. Importantly, the funds from an SNT should not be used for basic needs covered by government benefits, as this could affect the beneficiary’s eligibility.

The Three Types of Special Needs Trusts in California

Under California, there are three varieties of SNTs available. Each has its own requirements, and they are not equally useful in estate planning. 

  • First-Party SNT: This SNT may be funded with assets belonging to the person with disabilities, often arising from an inheritance, legal settlement, or personal savings. A first-party SNT funded with an inheritance is typically not established through an estate plan but rather through probate, and the process can be very complex. 
  • Third-Party SNT: This SNT is funded with assets from someone other than the beneficiary, typically parents or other family members planning for the future care of their disabled loved one. This is substantially more common in estate plans. 
  • Pooled Trusts: Managed by nonprofit organizations, these trusts allow multiple beneficiaries to pool their resources for investment and management purposes while maintaining separate accounts for each beneficiary’s needs. If you wish to support multiple disabled or incapacitated individuals, this may be a better solution. 

Setting Up a Special Needs Trust in California

The process of setting up an SNT California involves several steps:

  • Choosing the Right Type of Trust: Based on the source of the funds and the individual circumstances, decide between a first-party, third-party, or pooled trust.
  • Selecting a Trustee: The trustee must be responsible, trustworthy, and understand the beneficiary’s needs. They can be a family member, a professional trustee, or a management company.
  • Drafting the Trust Document: The trust document must be prepared in accordance with California law and should clearly outline the terms of the fund, including the trustee’s powers and the purpose of the fund’s establishment.
  • Funding the Trust: Once created, the SNT needs to be funded with assets. This could include cash, investments, real estate, or other assets.

An experienced attorney can assist you with accomplishing these goals without putting the beneficiary’s public assistance benefits at risk, if necessary. 

Legal Considerations and Challenges of SNTs

The creation of an SNT is a complex legal process that requires a thorough understanding of both state and federal laws. One of the key challenges is ensuring that the fund does not impact the beneficiary’s eligibility for public assistance programs, which takes legal care. 

Additionally, it’s crucial to consider the long-term needs of the beneficiary and the sustainability of the trust. By doing so, families can ensure that their loved ones with disabilities receive the care and support they need while preserving their eligibility for crucial government benefits.

Seek Experienced Legal Counsel to Establish SNTs in California

Setting up a special needs trust is a significant step in securing the financial future of a loved one with disabilities. By understanding the types of trusts available, the legal requirements, and the role of a skilled attorney, families in California can make informed decisions that protect and enhance the lives of their disabled family members.An experienced California estate planning attorney plays a pivotal role in setting up an SNT. They can provide valuable advice on the type of trust that best suits the family’s needs, ensure compliance with legal requirements, assist in selecting an appropriate trustee, and guide the process of funding and managing the trust. We encourage you to schedule a consultation with the experienced estate planning lawyers at The Dayton Law Firm, P.C., to learn more about how we can assist you with establishing an SNT as part of your plan.