Archives for May 2022

If the Market is Down, is it the Right Time for a Roth Conversion?

A Roth conversion is a tool for transferring money from one investment tool into a Roth IRA. When the stock market is down, investors can consider whether the conversion makes sense for their tax planning, investment goals, and estate planning needs. This article is not intended to provide legal or financial advice, but will summarize information published online which may assist you in working with your legal or financial advising professional to create a plan that is right for you. 

 

  • What is a Roth conversion?

 

Why might a Roth conversion be appealing when my stock portfolio is down?

  • With a Roth conversion, the account owner has to pay income tax on the money they convert. 
  • If your stock is down, the amount calculated for income tax will be lower. 
  • For example, if you purchased stocks for $100,000, but now they are only worth $75,000, then a Roth conversion at that time would only involve income tax on the $75,000 amount. 

 

 Why might a Roth conversion be appealing for estate planning in California purposes?

  • The Roth IRA conversion is a strategy to pass IRA assets to non-spousal beneficiaries either directly or as continent beneficiaries upon the death of a surviving spouse. 
  • It is a way to prepay taxes for the beneficiaries. 
  • For more discussion about this strategy, consult these resources:

 

Where can I find information on the other pros and cons of a Roth conversion?

 

 

 

 

Consult the Law Office of David Knecht

At the  Law Office of David Knecht,, we have extensive experience with estate planning and can help you understand and evaluate the various tools for effectuating your wishes and efficiently preparing for the transfer of your estate. We will perform a one-on-one evaluation to help you create an estate plan that is customized for your needs. Call us at 707-451-4502.

 

Filed Under: Estates

Avoiding Living Trust Mills: A Warning from the Office of the Attorney General for California

The State of California Department of Justice provides information to consumers on estate planning scams on its website:  https://oag.ca.gov/consumers/general/living_trust_mills

This article will summarize the information published by the Attorney General on this website about how to identify and avoid estate planning fraud. Although in depth information will be provided below, one good way to avoid fraud is to only do business with reputable estate planning service providers. At the Law Office of David Knecht, all attorneys are licensed by the State Bar of California. We have extensive experience with estate planning and you can trust us to provide honest and accurate information. Contact us at 707-451-4502.

 

  •  What is a living trust?
  • A living trust is an estate planning tool that allows you to control your money and property during life and then have it distributed to your desired recipients (people or organization), when you pass away. 

 

 

 

  • Why do you need to be careful in choosing someone to help you create a living trust?

 

  • Estate planning involves important legal, financial and personal decision-making. If estate planning documents are not properly created and executed, the consequences may be that your wishes are not properly followed or there may be tax or other unintended consequences.

 

 

  • What should you look for in filtering through choices of estate planning professionals?

 

  • Confirm whether the person who claims to be licensed actually is licensed.
  • Obtain identification from the professional you are working with to confirm that they are who they profess to be. 
  • Be wary of any professional who is pushing selling you one single product rather than helping you consider a variety of options. 
  • Watch for scare tactics to try to motivate you to jump into something without a lot of time and thought. 
  • Look for someone who is trying to sell annuities as well as trusts. Seniors can find themselves trapped in an annuity that doesn’t pay out until a far future date. 
  • Know your cancelation rights. For more information on cancelation rights for sales that occur in your home, go to https://www.dca.ca.gov/publications/legal_guides/k_9.shtml

 

 

  •  What are some signs of a living trust mill?

 

  • Scammers working for “living trust mills” may try to sell you an unnecessary living trust oryou’re your financial information to sell you products that are inferior to your current investments. 
  • Scammers often target seniors with “free” seminars at assisted living facilities, churches, vacation resorts and any other places where seniors gather. 
  • Be wary of “one size fits all” approaches to estate planning. Not every person needs a living trust, and if the professional you are working with is not taking time to find our your particular assets and needs, then that is a red flag. 

Consult the Law Office of David Knecht

At the  Law Office of David Knecht,, we understand the importance of creating an environment of trust and confidence. We will perform a one-on-one evaluation to help you create an estate plan that is customized for your needs. Call us at 707-451-4502.

 

Filed Under: Estate Planning

Can I Sue My Ex for Defamation?

If you follow Hollywood news, you’ve probably heard a lot about the legal battle between Jonny Depp and Amber Heard. He is suing her for 50 million dollars for defamation for a 2018 op-ed piece in the Washington Post that alleged she was a “public figure representing domestic abuse.” She has counterclaimed for 100 million dollars, alleging that Depp and his former lawyer conspired to defame her by calling her allegations a hoax.  https://www.foxnews.com/entertainment/johnny-depp-may-lose-defamation-case-amber-heard-flops-stand-legal-experts-say

This article will provide an overview of defamation and California law to help explain how and when an ex can be sued for defamation. 

 

  •  What is defamation? 

 

  • Defamation is a broad term for statements that malign someone’s reputation. 
    • A statement made verbally is slander.  
    • A statement made in writing is libel.

 

  • What are the elements?

 

  • The statement must be false. A truthful statement, even if harmful, is not defamation. 
  • The statement must be presented as fact, not opinion, and be misleading intentionally, recklessly or negligently. 
  • It must be published, which means that someone besides you heard or read it. 
  • It must have actually hurt the reputation of the victim. 
  • It must have brought harm to the victim, such as a lost job or lost opportunity. 

 

  • Can statements made during my divorce trial or divorce settlement negotiations be defamation?

 

  • No, statements made during settlement negotiations would be made to your ex and their attorney, so they would almost never rise to the level of defamation. 
  • No, statements made during trial would not be defamatory because your purpose in going to trial is to tell the judge your side of the story. 

 

  •  Where can I find the laws relating to California defamation, i.e. libel and slander?

 

  • This is the link to the statute for slander: 

 

https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=46.&lawCode=CIV

 

Consult the Law Office of David Knecht

If you have questions about defamation and divorce or any family law question, please contact us at the  Law Office of David Knecht. We have extensive experience with divorce and family law issues and can answer your questions. Call us at 707-451-4502.

 

Filed Under: Divorce Attorney

Top 5 Reasons for Divorce According to Research

If you are considering divorce in California, you may be curious as to how your marriage stacks up with your peers and whether your reasons for getting divorced are similar to others in the same situation. This article will summarize some of the research in the area of why people get divorced. 

 

  •  Money 

 

 

 

  • Struggles with money can manifest themselves in many ways:
  • Challenges with debt
  • One spouse feeling like they contribute more financially to the other
  • Control over decision-making with the money
  • Communication about money

 

 

 

  • Lack of sympathy, respect or trust

 

 

 

 

  • No sex, bad sex or lack of sexual compatibility 

 

  • According to one study, an estimated 15% of couples have not had sex in the last year. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5889124/

 

  •  Growing apart, falling out love

 

 

  •  Cheating

 

Consult the Law Office of David Knecht

If you are considering divorce. please contact us at the  Law Office of David Knecht. We have extensive experience with divorce and family law issues and can answer your questions. Call us at 707-451-4502.

 

Filed Under: Divorce Advice