Newly appointed trustees often share a version of the same admission with me: they agreed to serve because it felt like the right thing to do, and only afterward did they realize how many rules come with the role. Trusteeship is manageable, and it requires deliberate attention, informed judgment, and consistent adherence to fiduciary duties. Serving as a trustee carries significant legal responsibility. Under the California Probate Code and general […]
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Tax Implications of Selling Artwork How artwork is taxed depends largely on who is selling it and why they owned it. If an artist sells their own artwork, that income is treated as ordinary income. 26 US Code §1221(a)(3)(A). This is because artwork created by the artist, under tax law, has been explicitly excluded from the definition of “capital asset”. As a result, the sale proceeds are taxed at ordinary […]
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A Gentle Guide to Trust Administration in California A trust is designed to avoid probate, but it still requires thoughtful and active administration after its creator passes away. Creating a trust is similar to preparing an architectural blueprint: the framework is carefully planned, the specifications clearly defined, and the intended result mapped out in advance. Once the designer is no longer present, however, someone must interpret those plans, apply them […]
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Probate. You’ve heard this term tossed around by attorneys and finance professionals. Everyone says it’s annoying, time-consuming, and that you need to avoid it. But what is it? Probate is the court-supervised legal process of validating the will (if one exists) of someone who passed away, paying their debts and taxes, and distributing their remaining assets to heirs or beneficiaries according to the will or state law. Probate court is […]
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Trusts are powerful tools used in estate planning to protect and distribute assets according to a person’s wishes. But what happens when something goes wrong? What if someone’s left out, the rules aren’t followed, or the money disappears? Litigation might become the answer. Unlike probate, trust litigation involves disputes over trusts that often avoid probate and can arise at various stages, focusing on issues related to trustee conduct and trust […]
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July 4, 2025, President Donald Trump signed the “One Big Beautiful Bill” (OBBBA), a big reconciliation bill that made some tax changes to the Tax Cuts and Jobs Act (TCJA). While most of the bill extends existing tax provisions, there are some important updates – especially for businesses and high income earners. Below we break down the changes and what they mean for you. As always, our team of transaction […]
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California’s probate landscape has undergone significant changes, creating new opportunities for streamlined estate transfers. The passage of Assembly Bill No. 2016 (AB 2016) on September 21st, 2024, signed by Governor Newsom, modernizes procedures for property transitions, including certain provisions that benefit estates of varying sizes. While the bill’s main change raises the small estate threshold for primary residences to $750,000, its broader reforms to affidavits, petitions, and notice requirements offer […]
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Choosing the right trustee is one of the most critical decisions when establishing a trust. The trustee ensures the grantor’s wishes are fulfilled and safeguards the beneficiary’s interests. For those creating a trust as part of their estate plan, understanding the trustee’s role and responsibilities empowers informed decision-making, helping to ensure that your wishes and intent are carried out. What Does It Mean to Be a Trustee? A trustee is […]
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There are many nuances to consider when it comes to the statutes of limitations and deadlines involved in an inheritance claim. In the case of California state law, deadlines can range from 120 days from the moment you are notified of a testator passing away, to essentially none, depending on the circumstances, with the whole process typically taking around 9 months. That’s why knowing what is involved is critical to […]
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Being a trustee and beneficiary of a trust is a complex role that needs to be balanced to keep it fair and legal. A trustee manages and administers the trust assets and must be impartial and in the best interest of all beneficiaries and not self-serving. A beneficiary gets benefits from the trust like distributions or use of assets and has the right to make sure the trust is managed […]
Read MoreOn the latest episode of The Probate Realtor Show Matias Baker Masucci had Kevin Bayley, an attorney at KJMLAW Partners on the show to talk about complex trust administration. What is Trust Administration? Trust administration is the process of managing and distributing a deceased person’s assets according to their trust. While the goal of setting up a trust is to avoid the long and expensive probate process, trust administration still […]
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Probate court can be a complex and daunting process, especially when it involves managing the financial affairs of a lost loved one. One of the most critical components in this process is estate accounting. This article demystifies estate accounting in probate court, outlines the steps involved, and provides guidance on how beneficiaries and executors can navigate this essential aspect of estate administration. Why a Beneficiary Might Need an Accountant Beneficiaries […]
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A trustee, whether an individual or a corporate entity, is appointed to manage and oversee the assets held within a trust for the benefit of the beneficiaries. The trustee role carries significant responsibility and potential legal liabilities. Understanding trustee liability is essential for anyone serving as a trustee or considering taking on this role. This knowledge helps navigate the complexities of trust administration and ensures fiduciary duties are met. Missteps […]
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How Can a Trust be Challenged? As California lawyers, the attorneys at KJMLAW Partners are often asked about how to challenge a trust or how to create a trust that will withstand a challenge. Trusts are powerful legal instruments designed to protect assets, provide for beneficiaries, and facilitate estate planning. However, like any legal arrangement, trusts can be subject to challenges under certain circumstances. Whether due to suspicions of undue […]
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On April 16, 2024 the Canadian Federal Government issued its 2024 Budget that announced key changes in taxation coming into effect on June 25, 2024. These changes particularly impact the taxation of estates and will likely have a profound impact on estate/succession planning for both Canadian residents and non-residents with investments/assets located in Canada going forward. Capital Gains Taxes Imposed By The Canadian Federal Government Following Death Unlike the United […]
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There is a significant regulatory development that may impact your business operations—the Corporate Transparency Act (“CTA”). Enacted as part of the National Defense Authorization Act for Fiscal Year 2021, the Corporate Transparency Act introduces new reporting requirements for beneficial ownership information (“BOI”), aimed at enhancing corporate transparency and preventing financial crimes. Overview of the Corporate Transparency Act The Corporate Transparency Act mandates that certain entities disclose BOI to the Financial […]
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What is An Omitted Spouse? When a spouse dies, the will or trust most commonly provides that their surviving spouse will receive all or most of their property and assets. The presumption that a surviving spouse should receive something is so strong that California law protects the surviving spouse even if they aren’t mentioned in the will or trust. Under California law, such a spouse is considered to be an “omitted spouse.” […]
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We’ve all heard horror stories about families that fall apart after the death of a parent. Siblings stop talking with each other or even end up suing each other. A son or a daughter cuts a parent out of his or her life. Obviously, the reasons for such breakups vary. But in my experience, the primary reason is that the death of a parent almost always raises difficult and emotional […]
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This past year, Ontario, Canada drastically changed its succession laws in relation to how separations and marriages affect the validity of wills and the rights of surviving spouses. Now, under the laws of Ontario, separated spouses will not inherit under their former partner’s will or from a former partner’s intestate estate provided the couple was separated on or after January 1, 2022. Furthermore, marriages on or after January 1, 2022 […]
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When someone passes away, we have a sense of whom we expect to inherit the bulk of their property and other assets. When those expectations do not come to pass, the law sometimes intervenes and overturns the expressed desire of the person who passed away, as reflected in their will, codicil, trust, and related documents. The idea that specific provisions of a will or trust should not be carried out […]
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