What Are the Essential Parts of Effective Estate Planning?
Estate planning can be daunting. Your family does not need to go through the process alone with the help from The Singh Law Firm. A consumer protection attorney can guide you through estate planning.
It can be challenging to think about the future after you’ve gone, and no one wants to imagine their loved ones in pain over their absence. A well-considered estate plan is a gift of love that will ease some of the transition difficulties for your family. One of the most critical parts of effective estate planning is an examination of your current and future financial goals. This will allow you to preserve your wealth and assets and leave your estate in the best possible position for your loved ones.
It’s impossible to predict the future, but the estate law team at The Singh Law Firm will ensure your goals are upheld and your family is cared for the way you determine. We are known for the depth of our knowledge and the compassion and empathetic, client-based approach we bring to every case. Call us today for a free consultation at 510-901-5375
What is the Uniform Transfers to Minors Act (UTMA)?
The Uniform Transfers to Minors Act is a tool available to California residents for estate planning. It is a type of trust that allows you to transfer any kind of property to a minor. An adult custodian will manage the property until the minor reaches the age of 18. In the case of lifetime gifts, the transfer may be delayed up to the age of 25 or 21.
There are many advantages to a UTMA transfer. The estate law team at Singh Law Firm can help you determine if a UTMA transfer is right for your family. Some of the advantages are:
- Ease of creation- The UTMA transfer can take multiple forms. The property can be transferred in a will, trust, beneficiary designation, or lifetime gift. The numerous options make it one of the most straightforward transfers to set up.
- No Court involvement- It does not require any involvement of the probate court to transfer the property, so that you will save time and financial resources
- Tax benefits—These types of transfers have tax benefits. Your attorney can further detail how they apply to your estate.
- Flexibility- As the transferor, you can choose the custodian who will manage the property.
- Freedom- The custodian does not need to wait for the court’s approval to spend the money associated with the transfer as long as it is for the benefit of the minor
Are There Instances When a UTMA is Not the Best Option?
This is a complex decision, and there are multiple factors to consider. The UTMA also has some disadvantages. Your estate planning attorney is always your best resource for guidance. One of the most significant disadvantages of a UTMA transfer is that the resulting account is treated as an asset for financial aid. If you are transferring property to a college-aged beneficiary who may otherwise need financial assistance for their educational goals, this is something to keep in mind. There are some further restrictions that your team at Singh Law Firm can discuss with you to determine if the UTMA is right for your family’s needs.
Can a UTMA be Changed?
The short answer is yes; a UTMA can be changed once established, but it can be tricky. You will require the signature of the initial custodian and the minor child in order to adjust it, and any changes will require the court’s involvement. Before deciding whether this is the route you want to take, discussing all your options with a qualified and knowledgeable estate planning attorney is always pertinent. At Singh Law Firm, we will consider all your needs and help you determine the best way to protect your wealth and assets.
How Do I Choose a Custodian?
Choosing a custodian to oversee the UTMA account is an important decision that should be made with seriousness. There are many things to consider when selecting someone to carry out these responsibilities. A few things to consider:
- Trustworthiness: Assigning this task to someone who has demonstrated honesty and integrity throughout your relationship is imperative.
- Proximity: Acting as a custodian can take a significant amount of time. Considering the person’s location before asking them to undertake this responsibility is essential. A California estate planning lawyer can help you determine if the person you select meets all of the state’s requirements..
What Are the Responsibilities of a UTMA Custodian?
The responsibilities of a UTMA Custodian will vary depending on the circumstance, the type of property you wish to transfer, and the responsibilities you determine are necessary for managing it. The estate law team at The Singh Law Firm can help you assess your assets and determine a plan of action. We will review the property you wish to transfer to your beneficiary and help you determine the role and responsibilities the custodian will need to undertake.
When Should I Call an Estate Planning Attorney?
It is difficult to imagine being unable to make your own decisions or what to do in the case of your death, but preparing for these circumstances before they arise can relieve some of the burden from your loved ones, should the worst occur. A skilled California estate planning lawyer from The Singh Law Firm can help. Call 510-901-5375 to schedule your free consultation.
