MDS Law – Law Office of Matthew D. ScottYour Source For Effective Estate Planning Solutions2026-09-29T02:36:54Zhttps://www.matthewscottlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1604194/2021/11/cropped-site-icon-32x32.pngOn Behalf of MDS Law - Law Office of Matthew D. Scott<![CDATA[How does a trust improve an estate plan?]]>https://www.matthewscottlaw.com/?p=478242026-09-29T02:36:54Z2026-09-29T02:36:54ZYou may want to consider creating a trust if you have a high-asset estate. There are many benefits a trust can offer that a will cannot. For example, the right kind of trust can protect your assets from estate taxes, debt collection and disputes. You can also use a trust to skip the probate process and distribute assets directly to beneficiaries.
There are several different kinds of trusts that might be of benefit, depending upon your needs.
5 types of trusts that could be useful
You can draft a unique trust to accomplish different goals. A few common types of trusts include the following:
Revocable trust: You can use this trust to distribute assets to beneficiaries. A revocable trust can be altered or revoked at any time.
Irrevocable trust: This kind of trust typically cannot be altered or revoked once created. A revocable trust becomes irrevocable when you pass away.
Charitable trust: You can use this trust to distribute funds to a charity. Trust funds can be distributed for several years to support an organization.
Spendthrift trust: You can use this trust to limit access to trust funds. A spendthrift trust can help limit misuse and prolong the value of the trust.
Generation-skipping trust: You can use this trust to distribute assets to a later generation. Some people use generation-skipping trusts to create generational wealth by distributing funds to grandchildren or great-grandchildren.
Before drafting a trust, it is important to consider the goals of the legal document. You can obtain professional legal guidance to learn about your options to build an estate plan that is customized to your family's needs and your goals. ]]>On Behalf of MDS Law - Law Office of Matthew D. Scott<![CDATA[Why a will alone may not be a complete estate plan]]>https://www.matthewscottlaw.com/?p=478172026-09-20T19:23:55Z2026-09-20T19:23:55ZA will may not cover every asset you own
Some assets pass outside the will. Life insurance, retirement accounts, payable-on-death accounts and some jointly owned property may transfer according to beneficiary designations or ownership rules. Even with a will, your beneficiary designations and how your property is titled should be consistent with your overall estate planning goals.
A will cannot plan for incapacity
Planning for incapacity is an important part of estate planning. You want to know that someone you trust can step in to manage your financial affairs or make health care decisions if you become unable to do that for yourself.
A will generally cannot provide that authority because it takes effect only after your death. Without proper planning, your family may have to turn to the court for authority to manage certain financial or personal matters on your behalf if you become incapacitated.
Your family circumstances may require more than a will
A will may not give you the flexibility to determine how and when certain assets should be distributed or managed after your death. For instance, leaving property outright to a young beneficiary through a will may produce a very different result than placing that property in a trust with specific instructions for how and when it should be distributed. A trust can establish rules for managing property after your death, unlike a will.
If you’re looking to craft a comprehensive estate plan, reaching out for professional estate planning guidance can help you look beyond a will and build a plan that reflects your assets, family circumstances and wishes.]]>On Behalf of MDS Law - Law Office of Matthew D. Scott<![CDATA[What happens when an estate has assets in multiple counties?]]>https://www.matthewscottlaw.com/?p=478062026-09-16T09:20:56Z2026-09-16T09:20:56ZOne probate case may cover several counties
California usually handles probate in the Superior Court of the county where the person lived when they died. If the person lived outside California but owned property in the state, the case may take place in a county where the property sits.
One probate case can often address real estate in several California counties. The court must have authority over the estate and the property.
Not every asset requires probate. For example, a person may have placed property in a living trust. Some jointly owned property may also pass to the surviving owner. Certain financial accounts may pass directly to a named beneficiary.
What the personal representative must do for each property
The personal representative must find each property and confirm how the person owned it. This step matters because ownership can affect how the property transfers after death.
Under California law, the personal representative must also handle property values and required records. A county assessor may require forms after a person's death when ownership changes.
For example, a person might own a home in Roseville, an investment property elsewhere in Placer County and land in another California county. The personal representative must account for each property during the estate process.
Key steps when an estate has multiple properties
Find deeds, trust records and other ownership documents.
Confirm how the person owned each property.
Determine which assets must go through probate.
Identify mortgages, liens, taxes and other debts.
Obtain property values for estate purposes.
Review local property records and required filings.
Confirm whether court approval is required for a sale or transfer.
What this means for families managing a California estate
Multiple properties do not automatically mean multiple probate cases. The way each asset was owned often matters more than the number of counties involved. Families can better understand the administration process by identifying every asset, confirming ownership and keeping complete records from the start.]]>On Behalf of MDS Law - Law Office of Matthew D. Scott<![CDATA[5 community property traps that can affect your estate plan]]>https://www.matthewscottlaw.com/?p=478042026-09-14T13:38:21Z2026-09-14T13:38:21ZCommingling separate and community property
Separate property includes assets owned before marriage or assets received as a gift or inheritance during the marriage. Trouble begins when separate property mixes with community property. For example, placing an inherited sum into a joint bank account makes it hard to prove the money is yours alone. A court may then treat those funds as community property.
Forgetting to review beneficiary designations
Many people do not realize that beneficiary designations can override their will. Life insurance and retirement accounts go directly to whoever you name as the beneficiary. If your spouse has community property rights to an account, an old designation can trigger disputes. As a rule of thumb, life events like marriage, divorce or a new child call for a review of these designations.
Choosing the wrong title for your property
How you hold title shapes how property transfers at death. Joint tenancy and community property with right of survivorship are not the same. Joint tenancy skips probate but removes key tax benefits. Community property with right of survivorship recalculates the property's value based on its current market value when one spouse passes. This can reduce the tax burden on your heirs.
Ignoring community property debts
Community property covers debts, not just assets. Any debt from the marriage is often a shared debt. Creditors can go after community property to collect on those debts. Without a plan, your heirs may receive debts along with assets.
Overlooking quasi-community property
Moving to California from another state introduces additional considerations. Property acquired while living in a non-community property state may count as quasi-community property once you move here. At death, the law treats it like community property. As a result, your surviving spouse may have rights to half of it.
Take action to protect your estate plan today
Estate planning is not just about deciding who receives your assets, it also involves understanding how those assets are classified. Reviewing how your property is structured can help you spot potential issues. This can reduce the risk of unexpected complications and keep your estate plan aligned with your wishes.]]>On Behalf of MDS Law - Law Office of Matthew D. Scott<![CDATA[What to do when your chosen successor backs out?]]>https://www.matthewscottlaw.com/?p=477992026-09-07T13:20:00Z2026-09-07T13:20:00ZReview your governing documents
Your company’s governing documents may address what happens if a proposed successor declines the management role or does not complete the planned ownership transition. These rules may explain how to designate an alternate successor or begin an ownership. If the governing documents do not include a backup plan, you may need to amend them using the procedure required for your business and entity type.
Identify alternate candidates within your organization
Look for people who already know the business and share your goals. A senior manager or longtime employee may be a potential management successor, while an ownership transfer may require separate financial, contractual and legal planning.
Consider outside succession options
If no one inside the company is ready, an outside buyer or management group may be an option. A private equity buyer may acquire the business and, depending on the deal, retain some existing managers or employees. You may also decide to sell to a competitor or industry buyer, subject to the transaction's valuation, confidentiality requirements and other applicable restrictions.
Business counsel can help you structure the transaction and update the governing documents. They can also help you prepare for other changes you did not expect.
Build primary and alternate succession options
Naming primary and alternate successors can provide a defined backup if your first choice declines the role. You can also build flexibility into the timing of the transfer. Review the plan often so you can spot problems before they slow down your exit.
A written backup plan makes it clear who takes over if your first choice cannot. A California business lawyer can help you update your plan so your documents are accurate.]]>On Behalf of MDS Law - Law Office of Matthew D. Scott<![CDATA[Understanding the CUDTA and the benefits of directed trusts]]>https://www.matthewscottlaw.com/?p=477942026-08-30T00:18:55Z2026-08-30T00:18:55ZThe role of the trustee when there’s a trust director
When there’s a trust director, the trustee or successor trustee (one who takes over from the original trustee, often upon their death) can focus on other things -- like administrative and tax responsibilities, managing all or part of a family business and communications with the beneficiaries as well as carrying out the trust director’s instructions.
Both the trust director and the trustee have fiduciary responsibilities to the trust and the beneficiaries of that trust. Appointing a trust director can still provide valuable added oversight of the trust assets for the beneficiaries that wouldn’t be there if a trustee was solely in charge of the trust.
The CUDTA itself details the “duties and responsibilities of the trust director and … directed trustee, including specifying what powers may be given to a trust director and the information required to be exchanged by the trust director and the directed trustee.”
Not every Californian with significant assets in a trust needs a trust director. However, it’s important to know that the option of a directed trust is available and what advantages it can provide to those who want to preserve, grow and distribute their wealth intelligently long after they’re gone. Having sound estate planning guidance can help individuals determine whether this opportunity is right for them.]]>On Behalf of MDS Law - Law Office of Matthew D. Scott<![CDATA[Why estate planning is a must-do for new grandparents]]>https://www.matthewscottlaw.com/?p=477912026-08-25T15:21:48Z2026-08-25T15:21:48ZWhy a simple will is not enough
In California, relying on your current Will can trigger expensive, public and time-consuming probate court proceedings. It is also crucial to review your outdated beneficiary designations, especially if you need to update it to per stirpes language to include your grandchild. Inaction can potentially lead to the restriction of assets intended for your grandchild if no formal trust is in place.
Balancing assets between two generations
You can ensure your adult children have the resources they need to raise their new family while allocating wealth that goes directly to your grandchild. You can carve out specific assets like stocks, real estate or cash specifically for the newborn.
However, proper planning and timing is essential to avoid common tax and transfer pitfalls. You may also be able to leverage the appropriate tax exemptions to help move wealth down two generations efficiently.
The advantages of a minor’s trust
A properly structured minor’s trust can help ensure that assets are not left directly to a minor. It allows a successor trustee to manage and protect the inheritance until your grandchild is ready.
You can set it up to provide for staggered distributions at key ages such as 25, 30 and 35 years old to support financial maturity. Moreover, including spendthrift provisions can help shield the inheritance from future creditors or divorce later in your grandchild’s life.
California-specific considerations
Proposition 19 can strongly affect California grandparents who want to leave real estate to their grandchildren. Transferring property can trigger a property tax reassessment, which may greatly raise taxes for the next generation. As a result, careful planning is important before leaving California property to heirs.
One effective way to do so is through a revocable living trust. It can keep family matters private and help avoid the delays and costs of probate court. You also have a flexible way to manage and pass on assets according to your wishes.
The starting point of your legacy
A well-structured estate plan helps ensure your new grandchild can also receive financial resources and the protection and guidance to use them wisely. A lawyer can help you update your documents while creating a strategy to effectively manage a smooth multi-generational wealth transfer.]]>On Behalf of MDS Law - Law Office of Matthew D. Scott<![CDATA[California expanding use of virtual representation in trust matters]]>https://www.matthewscottlaw.com/?p=477892026-08-15T20:48:02Z2026-08-15T20:48:02ZUnderstanding virtual representation
A key element of the law, which is actually a modification of the California Probate Code (CPC), is that it expands the use of “virtual representation.” That means that when an action or proceeding regarding a trust is going to take place, a beneficiary may be allowed to receive notices of actions for one or more other beneficiaries who have a “substantially identical interest with respect to the particular question or dispute.”
This is in addition to virtual representation that is allowed for those unable to participate. For example, parents can represent minor and unborn children (instead of having to get a guardian ad litum) and conservators and guardians can represent those for whom they have decision-making authority.
Trustees may choose not to rely on virtual representation
This change in the law doesn’t require trustees and their legal representatives to rely on virtual representation. They may still want to ensure that they notify all beneficiaries of any potential action – especially while the law is still new. This can help minimize the chances of litigation and other potential conflicts later if someone claims they weren’t notified or that the person who “virtually represented” them had a conflict of interest.
It’s important for trustees to understand California probate law as it pertains to the type of trust they’re administering. It’s even more important to have experienced legal guidance as they carry out their duties, not least because a misstep could potentially lead to personal liability, even as the law aims to make their jobs easier.]]>On Behalf of MDS Law - Law Office of Matthew D. Scott<![CDATA[Key steps for business owners naming a successor]]>https://www.matthewscottlaw.com/?p=477882026-08-14T09:03:58Z2026-08-14T09:03:58ZRunning a business often means making decisions that affect more than the present. For California business owners, choosing who will take over can shape the company’s future, employees’ jobs and the value passed to family members.
A successor may be a child, business partner or key employee. However, choosing someone simply because of a family connection may not be enough. Considering the person’s skills, experience and ability to lead can help create a stronger transition plan.
Starting with the right successor
Nearly two-thirds of family businesses do not have a succession plan that is both documented and communicated. That gap can create problems when an owner steps away and family members, employees or business partners have different expectations about who should take control.For California business owners, choosing a successor involves more than naming a relative. Considering the person’s experience, leadership skills and knowledge of the company can help determine whether they are prepared to manage employees, make financial decisions and maintain customer relationships. For example, a child who has worked in the business for years may know its operations well but still need management experience before taking over.Starting these conversations early can also give a potential successor time to build the skills needed for the role.
Putting the plan in writing
After identifying a potential successor, documenting the transition plan can help reduce disputes later. Several parts may need attention, depending on the business structure and the owner’s goals:
Buy-sell agreements can establish who may purchase an owner’s interest and how the purchase will work.
Valuation terms can provide a method for determining what the business interest is worth.
Funding arrangements can help provide money for a buyout without forcing the business to use operating cash.
Estate planning documents can help coordinate the transfer of business interests with the owner’s broader estate plan.
Reviewing these documents together can help keep the succession plan consistent. Legal assistance can also help identify conflicts between business agreements and estate planning documents before a transfer occurs.
Planning for what comes next
Naming a successor is only one part of preparing for a business transition. California owners may also need to consider what happens if the owner dies, becomes disabled, retires or leaves the company unexpectedly.Starting the planning process while the business is operating normally can provide more time to train a successor, address funding concerns and update documents as circumstances change. A clear plan can give the next owner a better chance of keeping the business moving forward.]]>On Behalf of MDS Law - Law Office of Matthew D. Scott<![CDATA[Charitable giving is possible with proper estate planning]]>https://www.matthewscottlaw.com/?p=477872026-08-26T10:12:35Z2026-08-06T00:51:27Zcharitable trusts that can allow you to take care of your loved ones and the charities of your choice: a charitable lead trust and a charitable remainder trust. Both types of charitable trusts can be set up to distribute income from assets, principal assets or both.
It is important to ensure that any charity that you name is classified as a charity by the Internal Revenue Service so you can receive a tax deduction for the portion of the assets that will be donated.
What’s the difference between charitable trusts?
A charitable lead trust is one that distributes part of the trust to the named charity. This is typically handled by setting a term limit for the distributions. Once that time passes, the remainder of the trust is handed down to other beneficiaries in accordance with the terms you set in the trust.
A charitable remainder trust is the exact opposite. This type of trust distributes assets to your named beneficiaries first, typically for a specific amount of time. Once that time expires, the trust is distributed to the charity in accordance with your instructions.
Charitable trusts are irrevocable, so you can’t change this type of trust once you’ve established and funded it. And while a charitable trust is something many people choose to establish, it’s not a substitute for a comprehensive estate plan. You still need to consider other assets, end-of-life plans and any other final wishes you may have. Seeking personalized legal guidance can help you to get started.]]>