The Thatcher Law Group

There are various types of property that transfer without probate.

Right of Survivorship

This type of property can either be held as joint tenants or as community property.  Essentially when two people hold title (“own”) property together as joint tenant or community property with rights of survivorship, when one owner passes away, the other owns all of the property.  No court action is required, although a form must be submitted to the county clerk with a copy of the death certificate.

While both owners are alive, each has an equal (undivided) ownership interest.

Transfer on Death

In a transfer on death account (or property) one person owns the property, but registers an instruction with the account holder to transfer the property to a selected individual upon the owners death.

Bank accounts can be held as transfer on death.  Also, in California (as well as other states) vehicles can be registered with a transfer on death clause.  The process is explained here.

While the owner is alive, the beneficiary does not “own” the property.

Beneficiary Accounts

There are many different types of beneficiary accounts.  Essentially all share a common feature, the owner will designate someone to whom the account is to be transferred on the owners death.

Two examples of beneficiary accounts are life insurance and retirement accounts.

Assets held in trust

The most common type of trust is a revocable “living” trust.  A simple analogy for a trust is a toy box in which people keep their stuff.  The “toy box” comes with a list if instructions on what should be done with the stuff in the box.

I have a picture of Grant Wood’s painting “American Gothic” in my office.  Which of the following objects in prominently depicted in the painting:

a) castle

b) pitchfork

c) bowl of fruit

d) river

e) gargoyle

Post your answer to the puzzle in the comments.  To enter, do the following:  1) Like The Thatcher Law Group on Facebook; 2) Share the Twister on Facebook, 3) Comment with an answer attempt/guess.  The prize drawing will be held next Tuesday and the winner will be posted on Facebook.

Probate. n. The process of legally establishing the validity of a will before a judicial authority.

Source:  YourDictionary.com

In law, the process of proving in a court (probate court) that an instrument is the valid last will and testament of a deceased person. The term also refers broadly to the process of administering an estate. Unless it is contested or shown to contain obvious anomalies, a document purporting to be a will requires little authenticating proof for certification (admission to probate). Probate courts also often supervise the administration of estates by executors and oversee the guardianship of minors and others lacking capacity under the law.

Probate can be a long, tedious process.  Not to mention expensive.  In California, the probate fees are determined by statute and are based in the GROSS vales of the assets in the deceased’s probate estate.  Only certain types of property are included in probate, and if an estate is valued at less than $150,000, the fees below do not apply.

Typical fees in California (as of June 1,2013)

Fees paid to the Court $435 to file the Petiton for Probate

Publish Notice of Probate You are required to use only certain newspapers, and their charges will vary. Expect the notice to cost anywhere from $100 to $450.

Attorney Fees.  Attorneys fees for probate are set by statute in California.  California Probate Code §10810

4% of the first $100,000

3% of the next $100,000

2% of the next $800,000

1% on the next $9,000,000

0.5% on the next $15,000,000

A reasonable fee thereafter

Many of my clients often tell me that the only thing they own is their house, and it has little equity.  However, according the California’s probate statute, their estate is valued WITHOUT taking the mortgage into account.  Thus, the following is a typical example of probate fees:  the only asset in an estate is a $500,000 house, and there is a $400,000 mortgage on it. The statutory fee would be $13,000 based on the full $500,000 value:

4% of the first $100k = $4,000

+ 3% of the next $100k = $3,000

+ 2% of the remaining $300,000 = $6,000

Total: $13,000

Fees paid to the executor.   The executor is entitled to charge the same fee as the probate lawyer charges, although this fee can be waived by the executor who is frequently a family member.

The good news is, as mentioned above, only certain types of property are included in a probate estate.  In addition, there are a number of ways to minimize the transfer of probate though the probate process.  Non probate property transfers will be discussed in our next post.

In the coming weeks, we will be reviewing many options in our Wednesday Words series.  In the meantime, if you have any questions, or would like to discuss your estate plan, please contact Laura L. Thatcher, or a qualified estate planning attorney in your area.

This question comes from a middle school quiz.

Which two agencies are most likely to investigate a mid-air collision?

1)     FEMA and NOAA

2)     FEMA and FBI

3)     IRS and SEC

4)     NTSB and FAA

5)     CIA and FAA

Post your answer to the puzzle in the comments.  To enter, do the following:  1) Like The Thatcher Law Group on Facebook; 2) Share the Twister on Facebook, 3) tweet a link to this twister and  4) Comment with an answer attempt/guess.  The prize drawing will be held next Tuesday.

Remember:  it is not necessary to get the correct answer to win!

Intestate Succession  The method by which property is distributed when a person dies without a valid will. 

Source:  Nolo Plain English Legal Dictionary

Each state’s law provides that the property be distributed to the closest surviving relatives. In most states, the surviving spouse or registered domestic partner, children, parents, siblings, nieces and nephews, and next of kin inherit, in that order.

If there is no next of kin, then property will “escheat” or revert to the state.

Only “probate-able” assets (that would have passed through your will) are affected by intestate succession laws.

How your assets are distributed in California depends upon who your closest relatives are when you die.  California Probate Code §§6400-6414 determines the order of inheritance.  The following some of the more common examples are illustrated here:

Parents and siblings survive you, but you have no spouse or children  — Parents receive 100% of all property[1]

Siblings survive you, but you have no spouse or children – Siblings split equally 100% property[2]

Spouse and parents survive you, but you have no children – Spouse receives 100% of community property[3] and 50% of separate property and your parents receive 50% of separate property[4]

Spouse and siblings survive you, but you have no children or parents — Spouse receives 100% of community property and ½ of separate property and your siblings split equally 50% of separate property[5]

Spouse and one child survive you –  Your spouse receives 100% of community property and 50% of separate property[6]

Spouse and multiple children survive you –  Your spouse receives 100% of community property and 1/3 of separate property AND you children split 2/3 of separate property[7]

Children, but no spouse –  Your children split 100% of all property[8]

There are some additional factors that affect intestate inheritance as well,

Survivorship period. To inherit under California’s intestate succession statutes, a person must outlive you by 120 hours. So if you and your brother are in a car accident and he dies a few hours after you do, his estate would not receive any of your property.[9]

Half-relatives. “Half” relatives inherit the same as if they were related by whole blood. [10]

Posthumous relatives. Relatives conceived before (but born after) you die inherit as if they had been born while you were alive.[11]

Immigration status. Relatives entitled to an intestate share of your property will inherit whether or not they are citizens or legally in the United States.[12]

There are numerous estate planning options that can be used to change the “default” intestacy rules.

In the coming weeks, we will be reviewing many options in our Wednesday Words series.  In the meantime, if you have any questions, or would like to discuss your estate plan, please contact Laura L. Thatcher, or a qualified estate planning attorney in your area.

Announcing the return of Tuesday Twisters following my recovery from spinal surgery!

What can travel around the world while staying in a corner?

Post your answer to the puzzle in the comments.  To enter:  1) Like the post on Facebook, 2) Share the post on Facebook, 3) Comment with an answer attempt/guess.  I’ll post a hint on Friday in case you are struggling.  The prize drawing will be held next Tuesday.

Remember:  it is not necessary to get the correct answer to win!  Although entries will only be given for people who have “liked” The Thatcher Law Group on Facebook.

What is the answer to the following math problem?

5 + 4 x 2 – 3 + 4 x 5

Post your answer to the puzzle in the comments.  Entries will be given for each of the following:

1. Like the post on Facebook;
2. Share the post on Facebook;
3. Comment with an answer attempt/guess;
4. Have the correct answer.

A total of 4 entries are possible.  I’ll post a hint on Friday in case you are struggling.  The prize drawing will be held next Tuesday.

Remember:  it is not necessary to get the correct answer to win!  Although entries will only be given for people who have “liked” The Thatcher Law Group on Facebook.

I love holidays.  I love the months of celebrations that we get to enjoy from the start of Halloween in early October, to trick-or-treating, (to over eating the kids candy loot).  To the celebration of Thanksgiving with good friend and family (my mother’s favorite holiday because it is about family and not gifts) to Christmas, New Years and finally my birthday at Epiphany (also known as the 12th day of Christmas.  Technically my birthday is the 11th day of Christmas, so if any one wants to give me 11 Pipers Piping, I won’t complain!)

This year may family is focusing less on the material aspect of Christmas and more on the family.  We will be spending time together making gifts, caroling at retirement homes, and enjoying one another.  (Don’t worry there will still be presents).

At the start of the Christmas season I want to wish all of you a Merry Christmas in a typically Thatcher Law Group Friday Funny style.  I found this “legal brief” album cover on the website LawTunes and I thought that I would share it with you!

Happy Holidays!  Wishing you Peace!

This week’s Tuesday Twister tests your knowledge of the geography of the western United States.  As always, feel free to play this one with your kids!

“Explore my Wyandotte Cave near Leavenworth and bathe in mineral springs at my French Lick resort.:

• A.)     Michigan
• B.)     Missouri
• C.)     Illinois
• D.)     Indiana

Post your answer to the puzzle in the comments.  Entries will be given for each of the following:  1) Like the post on Facebook, 2) Share the post on Facebook, 3) Comment with an answer attempt/guess; 4) have the correct answer.  A total of 4 entries are possible.  I’ll post a hint on Friday in case you are struggling.  The prize drawing will be held next Tuesday.

Remember:  it is not necessary to get the correct answer to win!  Although entries will only be given for people who have “liked” The Thatcher Law Group on Facebook.

Use the clues to rearrange the letters of the bold print anagrams to reveal words and phrases connected with Thanksgiving.  Ignore punctuation in the anagram.  Spelling counts!

1.  Grim lips.  Rearrange no
smiles and name the
group that, along with Native Americans, participated in the first American Thanksgiving.

2.  Versatile.  Change flexible to the kinfolk who come together to celebrate Thanksgiving.

3.  Me no verb.  Really, it’s not about a verb. It’s the name of the month that brings Thanksgiving.

4. Mr. Sid Tuck.  Convert Sid’s name to a popular part of the Thanksgiving turkey.

5. Oh, me! Start with an exclamation and end with the place where everyone wants to be for the holidays.

6.   Ear closes.  Unscramble not listening and reassemble into a special container for baking a mixture of ingredients such as green beans, cream of mushroom soup, and French fried onions.

7.  Bow shine.  Regroup glistening archery so that it names the part of the turkey said to have the power to grant a wish to the person who walks away with the longest portion.

8.  Prattle.  It’s not really idle chatter at all, but rather the large oval plate that holds the turkey.

9.  Dear Pa.  Reconstruct a greeting to one’s father to form a large public procession of a festive nature, usually held to celebrate a holiday or special event.

10.  Beard.  Alter facial hair and regroup it as a food made of flour or meal mixed with milk or water and formed into a dough for baking.

11.  Fir fact.  Begin with evergreen statistics and end with one of the things that travelers deal with on their way to visit with relatives.

12.  Leafy worm.  Unscramble a strange legless, creeping animal and reassemble it as the name of the Pilgrim’s famous ship.

Post your answer to the puzzle in the comments.  Entries will be given for each of the following:  1) Like the post on Facebook, 2) Share the post on Facebook, 3) Comment with an answer attempt/guess;  4) Have the correct answer.  A total of 4 entries are possible.  I’ll post a hint on Friday in case you are struggling.  The prize drawing will be held next Tuesday.

Remember:  it is not necessary to get the correct answer to win!  Although entries will only be given for people who have “liked” The Thatcher Law Group on Facebook.