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Recent changes in estate planning law California

California Estate Planning Law Updates 2023

Table of Contents

California’s estate planning scene is changing a lot in 20231. New laws and court decisions mean people and families need to keep up. They must manage their assets, trusts, and who gets what after they pass away. Super Attorneys Of Irvine, a top estate planning law firm in California, has listed the main changes for 2023. These changes include higher probate limits, updates to gift and estate taxes, and new rules for estate planning in California. They also cover anti-isolation orders and important court cases. Super Attorneys Of Irvine offers expert advice and tailored solutions for these changes. If you’re wondering how these updates might affect your assets and loved ones, call them at 949-996-9546 or visit their website at businesslawyersirvine.com.

Key Takeaways

  • Increased probate thresholds for California, with the threshold rising to $184,500 for real estate and $61,500 for other assets1
  • Significant changes to gift and estate tax laws, including increased exemption amounts and tax rates2
  • New anti-isolation restraining orders to protect vulnerable adults in California1
  • Notable court cases highlighting the importance of professional estate planning assistance1
  • Expanded reporting requirements for businesses under the Corporate Transparency Act1

Increased Probate Threshold

California has updated its probate laws, raising the threshold for needing a probate proceeding. As of April 1, 2022, the probate value threshold is now $184,500, up from $166,2503. If your estate’s value is over $184,500 when you pass away, it will go through probate before your heirs get their inheritance3.

Probate Cut-Off

There’s also a new rule for real estate. If your property is worth more than $61,500, it will lead to a probate proceeding unless it’s in a revocable living trust3. For estates under $184,500, without real estate, the small estate process is a cheaper and quicker option3.

Probate can take a long time, often 9 months to 1 ½ years or more4. It includes steps like filing a petition, notifying people, making an inventory, appraising property, paying debts, and distributing the estate3. It’s a complex process, so knowing California’s probate laws and options is key.

Probate threshold California

Staying updated on California’s probate laws helps you plan your estate better. This way, you can avoid the long and costly probate process4. Whether planning your estate or settling one, knowing about probate and alternatives is crucial43.

Gift and Estate Tax Updates

In 2023, there have been big changes to gift and estate tax laws in California and the U.S. The gift tax exclusion amount went up from $16,000 per person ($32,000 for married couples) in 2022 to $17,000 per person ($34,000 for couples) in 20235. Also, the Federal Estate and Gift Tax exemption increased to $12.92 million per person (or $25.84 million for couples), from $12.06 million in 20225.

But, this big exemption will go back down to $5 million (adjusted for inflation) on January 1, 20265. People with big estates should think about giving gifts now to use the higher exemption amounts before they drop5. This is especially important for California residents, since the state’s estate tax exemption matches the federal one5.

Looking forward, the 2024 gift tax exclusion will jump to $18,000 per person, the highest ever6. For married couples, it will be $36,0006. Also, the 2024 estate tax exemption will be $13.61 million for individuals and $27.22 million for couples6.

Gift and Estate Tax Updates

Even with these increases, estate taxes will hit less than 0.2% of the U.S. population in 20246. But, the sunset provision at the end of 2025 could cut the estate tax exemption in half, to about $7 million for individuals and $14 million for couples6. People should keep up with these changes in gift tax exclusion California, estate tax exemption California, and federal estate tax laws to be ready for what’s next56.

Recent changes in estate planning law California

California has seen big changes in estate planning laws, like a higher probate threshold and updates to gift and estate taxes. A major change is the Corporate Transparency Act (CTA), starting on January 1, 20247. This law makes certain companies like LLCs and corporations reveal who owns them to FinCEN7. It’s to fight against illegal money activities by making company ownership clear7.

Corporate Transparency Act

The Corporate Transparency Act changes how businesses work in California7. Companies must share info about their owners, like names, birth dates, and addresses7. This info goes into a FinCEN database to stop the use of secret companies for crime7.

This law affects estate planning a lot in California7. Owners and advisors must think about privacy, protecting assets, and planning for the future7. Knowing and following the CTA rules is key for Californians soon7.

California’s estate planning has seen more changes, like updates to the Probate Code and court decisions87. It’s vital to keep up and work with experts to make sure your wishes are followed and your assets are looked after87.

New Anti-Isolation Restraining Orders

California has passed a new law to protect vulnerable adults from being alone. Starting January 1, 2023, Assembly Bill 1243 lets people close to a vulnerable adult ask for anti-isolation restraining orders9. This change aims to stop abusers from cutting off seniors from their loved ones, especially during hard times like the COVID-19 pandemic9.

Now, judges can step in to help seniors keep their social ties. This is a big step to keep California’s elderly safe from abuse and harm9. The law through Assembly Bill 1243 gives more legal help to seniors, showing the state’s care for its most vulnerable citizens9.

California is taking action against elder abuse and loneliness by letting people ask for anti-isolation orders. This law shows the state’s dedication to keeping its seniors safe and connected9.

This new law is a big win for California’s elderly against abuse and mistreatment. As the state deals with more seniors, laws like this will be key in protecting their rights and well-being9.

Notable Court Cases

California’s estate planning has seen many important court cases lately. In Bruno v. Hopkins (2022), a daughter lost a lawsuit against her mother and sisters over trust documents. She was ordered to pay over $925,000 in legal fees because the court found she acted unfairly10. Also, in Logan v. Country Oak Partners, LLC (2022), a court ruled that an advance healthcare directive only covers healthcare decisions, not financial ones10. Lastly, Balistreri v. Balistreri (2022) showed that a trust amendment was invalid because it didn’t have a notarized signature10.

More cases have followed, like Meiri v. Shamtoubi (2022), which stressed the need to file a trust contest within 120 days to avoid a no-contest clause10. The Meiri case also said that a trust contest without probable cause is not valid10.

Other cases, such as Autonomous Region of Narcotics Anonymous v. Narcotics Anonymous World Services, Inc. (2022), talked about standing to enforce charitable trusts10. Royals v. Lu (2022) explained that a right to attach order is possible in elder abuse cases, but strict rules must be followed10.

The California estate planning scene keeps changing, with courts making new rules. These cases help estate planning experts and their clients understand the complex legal world10.

Over the years, California courts have made many important decisions in estate planning and elder abuse. In 2015, Conservatorship of Moore showed that lawyers can be held responsible for not protecting elderly clients11. That year, Estate of Duke changed the rule on using outside evidence to change a will11.

In 2014, Bounds v. Superior Court proved that even actions by potential buyers can lead to elder abuse claims11. The next year, Donkin v. Donkin looked at the validity of no-contest clauses in wills11.

Other key cases include Beckwith v. Dahl (2012), which introduced a new tort in California, and Andersen v. Hunt (2011), which discussed trust document capacity11. King v. Johnston (2009) and In re Conservatorship of Hume (2006) also made big contributions to trust law and conservatorship11.

These cases have greatly influenced California’s estate planning and elder abuse laws, setting important precedents for professionals and clients1011.

Case Year Key Takeaway
Bruno v. Hopkins 2022 Daughter ordered to pay $925,000 in fees for suing over alleged trust forgery
Logan v. Country Oak Partners, LLC 2022 Advance healthcare directive only gives power over healthcare decisions, not financial
Balistreri v. Balistreri 2022 Trust amendment deemed invalid due to lack of required notarized signature
Meiri v. Shamtoubi 2022 Direct trust contest must be filed within 120 days of notice to avoid no-contest clause
Autonomous Region of Narcotics Anonymous v. Narcotics Anonymous World Services, Inc. 2022 Discussed special interest standing in charitable trust enforcement and revocability impact
Royals v. Lu 2022 Right to attach order available in financial elder abuse, but strict compliance required
Conservatorship of Moore 2015 Attorneys surcharged for not safeguarding elderly clients’ well-being and finances
Estate of Duke 2015 Rule against using extrinsic evidence to reform unambiguous wills abrogated
Bounds v. Superior Court 2014 Prospective purchasers’ acts led to Elder Abuse Act liability, allegations impact
Donkin v. Donkin 2015 Enforceability of no-contest clauses under Probate Code § 21311 examined

These notable California court cases have significantly shaped the state’s estate planning and elder abuse laws. They’ve set important legal principles and guided professionals and clients through complex legal issues1011.

Conclusion

California’s estate planning scene has seen big changes in 2023. These include updates to probate rules, gift and estate tax laws, and new laws like the Corporate Transparency Act and anti-isolation restraining orders12. These changes could affect how assets are valued, how property is divided among heirs, and how lawyers handle estate planning13.

At Super Attorneys Of Irvine, we urge people and families to keep up with these changes. It’s important to talk to a skilled California estate planning lawyer to make sure your plans are current and protect your assets, trusts, and those you care about14. Working with an expert can help you make smart choices to protect your legacy.

For the latest on estate planning in California or to set up a meeting, reach out to Super Attorneys Of Irvine at 949-996-9546 or visit their site at businesslawyersirvine.com.

FAQ

What are the recent changes in estate planning law in California for 2023?

Super Attorneys Of Irvine, a top estate planning law firm in California, has listed the main changes for 2023. These changes include higher probate thresholds, updates to gift and estate taxes, new rules like the Corporate Transparency Act, and important court cases on estate planning and elder abuse.

How has the probate threshold changed in California?

Starting April 1, 2022, California’s probate threshold went up from 6,250 to 4,500. Now, if your assets total more than 4,500 when you pass away, your estate will go through probate. This is necessary for your heirs to get their inheritance.

What are the updates to gift and estate tax laws in 2023?

The gift tax exclusion has risen from ,000 per person (,000 for married couples) in 2022 to ,000 per person (,000 for couples) in 2023. Also, the Federal Estate and Gift Tax exemption has jumped to .92 million per person (or .84 million for couples), up from .06 million in 2022.

What other notable updates have there been to estate planning law in California?

Other changes include the Corporate Transparency Act starting in 2024. It requires certain entities to show who their “beneficial owners” are. There’s also a new California law that broadens the Elder Abuse Act. Now, interested parties can ask for anti-isolation restraining orders.

What are some of the notable court cases related to estate planning in California?

Important cases include Bruno v. Hopkins (2022), where a daughter had to pay over 5,000 in fees for acting unfairly. Logan v. Country Oak Partners, LLC (2022) ruled an advance healthcare directive doesn’t cover financial decisions. Balistreri v. Balistreri (2022) found a trust amendment invalid because it lacked a notarized signature.

Source Links

  1. https://www.dhtrustlaw.com/top-estate-planning-law-changes-for-2023/
  2. https://natlawreview.com/article/2023-year-end-estate-planning-advisory
  3. https://kmsdlawoffice.com/an-overview-of-californias-new-probate-limit-and-how-a-trust-can-help-you-avoid-the-process/
  4. https://www.courts.ca.gov/8865.htm
  5. https://www.pillsburylaw.com/en/news-and-insights/estate-tax-planning-2023-update.html
  6. https://www.kaveshlaw.com/blog/2024-estate-and-gift-tax-updates.cfm
  7. https://modernwealthlaw.com/2024-legal-updates/
  8. https://www.dhtrustlaw.com/estate-planning-law-changes-2024/
  9. https://www.jdsupra.com/legalnews/elder-abuse-restraining-orders-may-4889689/
  10. https://www.dailyjournal.com/mcle/1224-top-5-trusts-and-estates-cases-of-2022
  11. http://www.elderabuselaw.com/resources/notable-recent-case-law/
  12. https://www.stout.com/en/insights/article/ab-2245-californias-new-law-its-impact-estate-planning
  13. https://higgslaw.com/recent-changes-california-family-code-estate-planners-care/
  14. https://www.thetaxadviser.com/issues/2021/oct/recent-developments-estate-planning-1.html
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