Estate Planning Lessons to be Learned from the Matthew Perry Trust

Matthew Perry, the beloved Friends actor who played Chandler Bing, passed away more than four months ago, and now details about his estate are emerging. This article will highlight some of the interesting aspects of the late actor’s estate, and suggest helpful takeaways that can be learned from this high profile trust example. See for more details: https://people.com/matthew-perry-will-names-executors-estate-1-million-trust-named-after-woody-allen-character-8607717

You can personalize your trust.

  • One lesson that can be learned from the Perry Trust is that you can personalize your trust to send a message to loved ones.
  • People reports that his wishes were that his trust be called the “Alvy Singer Living Trust.”
  • He named his trust after Allen’s alter ego in “Annie Hall,” which had special meaning for Perry because he once recalled that watching “Annie Hall was one of his favorite memories with his mother.

 A trust can be used to protect the privacy of the value of the estate.

  • One of the advantages of a trust is the privacy that it affords the deceased and the family of the deceased.
  • Documents valued Perry’s personal property at about $1 million dollars, but that figure excludes the assess that were already in the trust.
  • This means that his true wealth was kept private from the public, which can be important for anyone who wants to protect their privacy.

 Estate planning can include “obvious” provisions just to be sure.

  • Perry’s estate plan has an example of including a provision that is somewhat obvious just to be sure.
  • He did not have any biological children.
  • However, his will reportedly included a provision that any biological children would not be entitled to anything. We can only speculate why he included that in there, but one might guess it would be to shut down the incentive for any false claims from someone claiming to be a child.

Even though a trust is typically more convenient to administer than a will, it may still require some processing.

  • A trust is often used because it avoids probate proceedings, so it can be faster and less hassle than a will. However, as the Perry case shows, there may be some time and administration involved.
  • Perry died on October 28, 2023 in his Los Angelous home, and detailsa re just emerging in March of 2024.
  • Perry’s executors are reportedly Lisa Ferguson and Robin Ruzan, and they have had to roll over $1 million dollars of personal property into the living trust. 

Contact an Experienced Estate Planning Attorney

For Matthew Perry friends and fans, his early death was a great loss, but from all appearances he successfully planned a smooth transition of his assets to loved ones so that his wishes could be carried out now that he is gone. At the Law Office of David Knecht, we want to help you prepare for the unexpected. We have extensive experience in estate planning and can help you create a plan that is right for you and your loved ones.  Contact us today at 707-451-4502.

Recent Celebrity Divorces Part 2

If you are splitting up with a significant other, you are probably going through a range of emotions, and learning about others going through the same challenges can help you navigate and deal with your divorce or break up. This article is Part 2 of a list of famous couples who have split up in the last year. See https://www.cosmopolitan.com/uk/entertainment/g44441257/celebrity-break-ups-divorces/.

Hugh Jackman and Deborra-lee Jackman.

  • The divorce announcement shocked many Hugh Jackman fans because they were separating after 27 years of marriage.
  • They met in 1995 and got married a year later. They share two children.
  • Hugh is 13 years younger than Deborrah-lee.
  • In a joint statement they attributed the split to a journey now “shifting” and said they wanted to pursue their individual growth.

Natalie Portman and Benjamin Millepied.

  • Reports of their split surfaced in August 2023 when Natalie was spotted without her wedding ring.
  • They met in 2009 while working on the movie Black Swan, and were married 11 years.
  • They share two children: son, Aleph 12, and daughter Amalia, 6.

Sofia Vergara and Joe Manganiello.

Ariana Grande and Dalton Gomez.

  • TMZ reported that they have been separated since January 2024.
  • They married in secret in 2021.

Kevin Costner and Christine Baumgartner.

  • News broke in May of 2023 that Christing had filed for divorce.
  • They had been married for almost 19 years, so the divorce was highly publicized.
  • They have two sons and a daughter.
  • Kevin is reportedly staying positive in spite of the messy split. See https://www.yahoo.com/entertainment/kevin-costner-kept-positive-outlook-143455880.html

Contact an Experienced Divorce Attorney

Divorce is never easy for anyone, but we are experienced family law attorneys ready to take away the stress and fear you may feel when facing the divorce process. At the Law Office of David Knecht, we have extensive experience in family law and can help you understand and litigate your California divorce. Contact us today at 707-451-4502.

Recent Celebrity Divorces Part 1

If you are considering divorce or currently in the process, you may be wondering what famous couples are also in your same boat. This article will list five famous couples who have split up in the last year, and some of them may surprise you. See https://www.cosmopolitan.com/uk/entertainment/g44441257/celebrity-break-ups-divorces/.

Mariah Carey and Bryan Tanaka.

  • They were together seven years.
  • Mariah is 54 and Bryan is 40, and they are said to have attributed the divorce to their different stages in life, where he wants to start a family, and she is in a different place.
  • Mariah shares twelve year old twins with her ex-husband Nick Cannon, and Bryan does not have his own children.

Cardi B and Offset.

  • The couple got together in 2017 and were secretly married thereafter.
  • Both 31 years old.
  • They share two children, ages 5 and 2.
  • Cardi confirmed in an Instagram story that she has been single “for a minute now” after fans noticed that the couple had unfollowed each other.

Meryl Streep and Don Gummer.

  • Meryl and Don were married in 1978.
  • They share four children, with the youngest age 32.
  • They have reportedly been separated for more than six years, but the long separation was only recently announced by a spokesperson in October of 2023.

Jada Pinkett Smith and Will Smith.

Sophie Turner and Joe Jonas.

  • They were married in 2019.
  • They released a joint statement in September 2023 confirming that they had mutually decided to amicably end their marriage.
  • They share two daughters.

Contact an Experienced Divorce Attorney

If you are considering divorce or if you need representation, we are here for you. At the Law Office of David Knecht, we have extensive experience in family law and can help you understand and litigate your California divorce. Contact us today at 707-451-4502.

Family Law Legislative Updates

Family law is ever changing as new laws are proposed or passed that impact how these challenging cases are decided. This article will provide an update on legislative changes that impact family law.

Piqui’s Law, educating judges to reduce risk of children from dangerous parents.

  • Piqui was the nickname of a child who was murdered by his father in 2017 soon after his father had won partial custody rights.
  • The Law requiresjudges to go through training to better assess family custody cases where the child could be at risk if allowed to be with a dangerous parent.
  • The law also prohibits family court judges from ordering what’s called “family reunification treatments” such as camps, particularly when it involves reconnecting a child with a parent suspected of being abusive.
  • For more information, see: https://abc7.com/piquis-law-gavin-newsom-bill-signed-aramazd-piqui-andressian-jr/13911339/

 AB 665, equalizing mental health care for youth.

  • The purpose of this law was to make mental health care equally available to low income youth.
  • The existing California law allowed youth ages 12 and older to consent to outpatient mental health counseling, but previously teens using Medi-Cal had to meet a higher acuity than peers who had private insurance coverage.
  • This law corrects that problem to eliminate the inequity between those covered by Medi-Cal and those with private insurance.
  • For more information, see: https://healthlaw.org/news/governor-signs-ab-665-into-law-increasing-mental-health-care-access-for-low-income-youth/

 AB 1148, the Stable Parents Stable Children Act extending grace period from incarceration to child support payments due.

SB 343, Child Support Federal Rule Compliance.

Contact an Experienced Family Law Attorney

If you need an experienced family law attorney, we are here TO HELP YOU. At the Law Office of David Knecht, we have extensive experience in family law and can help you understand and litigate your California divorce. We are ready to listen and help you achieve your goals. Contact us today at 707-451-4502.

 Psychological Evaluation in a California Divorce, Part 2

If a divorce involves children, then a court or a parent may request a Child Custody Evaluation, which is also known as a 730 Evaluation. In our previous article, we explain more about the custody evaluation process and the various data collection methods. This article will focus on the psychological testing portion, in particular the commonly used test, the MMPI-2. Today we will identify some of the red flags that the MMPI-2 is seeking to test for, but with the caveat that one of the flags that the test is supposed to identify is honesty in answers. 

Thus, this article gives information on some of the factors that are tested, but for most people, the best practice is to answer all questions as honestly as possible and not try to “beat the test,” since the test is trying to measure for people who are gaming it. This article is a very generalized summary of a complex test, so the information is intended only for general educational purposes and not as a guide on how to take the test. The source for this article can be found here: https://psychtest.net/mmpi-test-result/.  

What is the MMPI-2?

  • MMPI-2 stands for Minnesota Multiphasic Personality Inventory-2. 
  • It is a 500+ questionnaire of true and false questions that individuals answer for themselves, and the responses help mental health professionals evaluate symptoms of mental illness or personality disorders. 

What were the recommendations explained in more detail in the first article?

  • Answer all of the questions, do not be surprised to see health related questions as this test is not used exclusively for divorce cases. Do not try to trick the test by answering all true or all false. Be aware that the test may have the same or similar questions early and later in the test to try to flag people who are answering inconsistently. 

 Psychopathic Deviate Testing. 

  • Some questions are designed to identify people who are impulsive, strive for immediate gratification, are impatient, easily frustrated, have poor judgment, high risk-taking, are self-centered and selfish. The psychopathic deviate has a paradigm of using others for their own purposes.  

 Paranoia. 

  • Some of the questions are designed to flag people who show psychotic behavior, disturbed thinking, delusions of persecution, or ideas of grandeur. They look for people who are impulsive, impatient, have poor judgment and risk taking and who feel mistreated and picked on, angry and resentful, who harbor grudges and use projection as a defense. 

 Other flags to watch for:

  • Anxiety – sleep difficulties, worries, poor concentration.
  • Fears – many specific fears such as blood, germs, high places animals, natural disasters, etc. 
  • Obsessiveness – difficulty making decisions, counting a lot, saving unimportant things, worrying a lot, being overwhelmed easily. 
  • Depression – depressive thoughts, feeling sad, being uninterested and uncertain in the future, being unhappy, crying easily, feeling hopeless and empty. Thoughts of suicide or wishing they were dead. Thinking people have unpardonable sins. 
  • Health concerns – many physical systems across several body systems.
  • Bizarre Mentation – any type of hallucination, feeling plotted against, thinking someone is trying to poison them. Thinking they have special powers or a special mission.
  • Anger – hothead, impatient, grouchy, feeling like being violent. 
  • Cynicism – expecting the worst of others, thinking people are not trustworthy, generally negative attitudes about people.
  • Antisocial practices – behavior problems in the past, trouble with the law, belief that it is ok to break the law. 

Contact an Experienced Divorce Attorney

At the Law Office of David Knecht, we are very familiar with the custody evaluation process and the psychological testing aspect of the 730 Evaluation. We have extensive experience in family law. We can help you feel confident in achieving your goals in a California divorce. Contact us today at 707-451-4502. 

How to Beat the Mind Games Narcissists Play in a California Divorce, Part 2

Does this sound familiar? You thought being married to a narcissist was all mind games, until only to sadly realize that divorce they are worse in a divorce! The process only amps up your ex’s fervor to gaslight you, blame you and play the victim!  In a previous article, we discussed strategies to combat those tactics, and this article is part two of this exploration on how to identify the mind games narcissists play and how to fight back.

Manipulative Bargaining.

  • Narcissists use manipulative tactics such as threats or emotional blackmail to gain advantage in divorce negotiations. 
  • Combat this tactic by consulting with an experienced family attorney before making any decisions relating to finances, custody arrangements or settlement. Your attorney can analyze your specific circumstances to help you assess what is reasonable and what is ridiculous, and the knowledge can be very powerful in helping you avoid being manipulated. 

 Financial Abuse.

  • Narcissists use money as a weapon to exert control and gain power over the other person, which can include hiding assets, depleting joint accounts, or otherwise using money against you. 
  • Combat this tactic with evidence and organization. As soon as possible, and before filing if you are still contemplating a divorce, document everything. Know where every asset is. Screenshot or save evidence of where the money is located and how much is there. Consult your attorney about any specific strategies that may be used to prevent financial abuse in your situation.

  Parental alienation. 

  • This game is one of the hardest to cope with, as the narcist attempts to undermine the relationship between you and your child, perhaps with lies, false accusations, or subtle behaviors to manipulate your children’s perception. 
  • Combat this tactic by focusing only on you are your children, which is very, very difficult. The more you love your children, and give them your time, attention and devotion, the stronger your bond with them will be. Have confidence that will days, months and years, your love and kindness to your children will be recognized and the manipulations of your ex will be revealed to them. 

 Legal bullying and Smear Campaigns.  

  • Narcissists commonly engage in legal bullying with excessive litigation for control and intimidation to harass you, drain your financial and emotional resources, and prolong the divorce. They engage in smear campaigns of false information or rumors to try to get people to turn against you or to gain advantage in the divorce. Their goal is to exhaust you into giving up. 
    • Combat this tactic with an experienced divorce attorney. If you find someone who regularly practices family law, then they will likely have forms and experience to leverage to reduce the cost and help you stay strong and fight back against legal bullying. 

 Boundary violations.

  • Narcissists tend to ignore boundaries by invading your space, accessing your confidential information or attempting to control you in other ways. 
  • Combat this technique with effective planning, deciding ahead of time what your boundaries are, and enforcing them. Protect your personal information with new passwords or other safeguards. Put communications in writing to create a paper trail. You may even need to arrange for third parties to be present as witnesses or protection if you anticipate that an event or an exchange will be highly confrontational.  

Contact an Experienced Divorce Attorney

Dealing with a narcissist is typically challenging, but at the Law Office of David Knecht, we have extensive experience in family and understand the tactics used by narcists to manipulate you and to try to manipulate the legal system. We will help you fight these tactics and successfully navigate the challenges of your California divorce. Contact us today at 707-451-4502. 

 

How to Beat the Mind Games Narcissists Play in a California Divorce

If you married a narcissist, you might think that a divorce would release you from the trap of all the mind games, but your divorce litigation might be the perfect playground for a narcissist to get under your skin. This article will summarize five strategies to successfully navigate the challenges of divorcing a narcissist.

Gaslighting

  • Narcissists often distort the facts and events and distort their own behavior. 
  • Combat this tactic with evidence. Save videos, texts, emails and other hard evidence that corroborate your version of the facts. 

Blameshifting

  • A common tactic used by narcissists is to blame others for their own faults or for things that are beyond anyone’s control. 
  • Combat this tactic by ignoring the noise. The battlegrounds of a divorce are typically children and money, and the ex-spouse’s blame for issues relating to the marriage are largely irrelevant and a tactic to try to get you to react in a way that takes away your peace or logic to fight the important battles. For this reason, an effective way to beat this game is often to tune it out. 

Victimhood. 

  • If you have lived with a narcissist for very long, you are probably used to their victim mentality. They try to get sympathy or support from others by portraying themselves as innocent. 
  • Combat this tactic by being confident in your own self and standing your ground with friends and family. Think through a clear, strong and short message about why you are getting a divorce and how your position is fair and stick with that short and to the point story. Do not allow the narcissist to draw you into a spiral of guilt in your own mind, or a dithering story to others. 

Triangulation. 

  • A narcissist will often try to introduce a third party into the situation to gain support. This could be a family member, friend, religious leader or even one of your children. 
  • Combat this tactic by gently but firmly asking the third party to stay out of the divorce. Effective communication is key to helping others understand why their input is not helpful and can actually be harmful to the resolution of your divorce. 

 Hoovering. 

  • Hoovering is deliberately manipulative behavior intended to pull a person back into a cycle of abuse. This can play out with affirmations of love, excessive flattery (often known as love bombing), and promises to change. 
  • Combat this tactic by becoming whole in yourself so that you do not need the narcissist’s false love. Get therapy, focus on a new hobby, dedicate more time to friends and family, or set goals for exercise. Do whatever helps you become a satisfied and complete person who is not susceptible to fake overtures of affection.

Contact an Experienced Divorce Attorney

At the Law Office of David Knecht, we understand that divorcing a narcissist can be extremely challenging emotionally and complex legally, but we will help you fight these tactics and successfully navigate the challenges of your California divorce. Contact us today at 707-451-4502. 

 Psychological Evaluation in a California Divorce, Part 1

If a divorce involves children, then a court or a parent may request a Child Custody Evaluation, which is also known as a 730 Evaluation. A custody evaluation can consist of interviews with the parent and the children, psychological testing of the parents of the children, interviews with interested third parties such a teachers or babysitters, and a review of relevant documents, such as court records or criminal history.  The evaluator makes recommendations to the court about what is in the best interest of the children based on the totality of the data collected and reviewed. 

There are a variety of psychological tests that can be administered, but the MMPI-2 is commonly used in California.  This article will focus on the psychological testing portion, in particular the commonly used test, the MMPI-2. It is a true/false paper test that is used to assess a parent’s mental fitness and ability to parent effectively.  

Thus, this article gives information on some of the factors that are tested, but for most people, the best practice is to answer all questions as honestly as possible and not try to “beat the test,” since the test is trying to measure for people who are gaming it. This article is a very generalized summary of a complex test, so the information is not legal advice and should be used only for general educational purposes and not as a guide on how to take the test. 

What is the MMPI-2?

  • MMPI-2 stands for Minnesota Multiphasic Personality Inventory-2. 
  • It is a 500+ questionnaire of true and false questions that individuals answer for themselves, and the responses help mental health professionals evaluate symptoms of mental illness or personality disorders. 

Answer all of the questions. 

  • If you do not answer all of the questions, this is a red flag for this type of test. If you fail to answer a substantial number, then the test may not even be valid. 

 Do not be surprised to see health related questions. 

  • This test is not used exclusively for divorce, and it is also commonly used for personal injury or disability claims. For that reason, there are a number of health-related questions that may seem irrelevant to a divorce but be sure to answer them. 

 Do not try to trick the test by answering all false or all true. 

  • For other types of tests, a strategy might be to answer all the questions as true of all the questions as false. This strategy will not work for the MMPI-2, and answering all the questions one way is a big red flag for this test that you are trying to game the system. 

 Be consistent throughout the test in your answers. 

  • The test measures consistency, so do not be surprised to see the same or similar questions early in the test and later on. The purpose of this is to see whether you are consistent in your answers. Be aware that inconsistency may be measured as dishonesty. 

Contact an Experienced Divorce Attorney

At the Law Office of David Knecht, we are very familiar with the custody evaluation process and the psychological testing aspect of the 730 Evaluation. We have extensive experience in family law. We can help you feel confident in achieving your goals in a California divorce. Contact us today at 707-451-4502. 

Medicaid Asset Protection Trusts

A Medicaid Asset Protection Trust (MAPT) can be a useful estate planning tool. The decision to transfer assets to this time of trust is a complex one. The purpose of this article is to provide an overview of what a MAPT is and why you might consider one, to help provide a foundation for further discussion with your estate planning attorney or financial advisor. This article summarizes a recent Yahoo Finance article on this topic

 

What is a Medicaid Asset Protection Trust?

  • It is a trust that you might set up if you believe you or your spouse may need long term care at some point in the future.
  • In order for Medicaid to pay for your care, you have to qualify, which in general requires certain requirements for income and assets.
  • Transferring assets to a MAPT may allow you to preserve your savings and qualify for Medicaid to pay for long-term care. 

 

 How does a Medicaid Trust work? 

  • A Medicaid Trust is an irrevocable trust. 
  • This means that once you transfer assets in, you cannot transfer them back out. 
  • You can transfer assets such as a qualified retirement account, vehicles, personal assets, certain life insurance policies and even your home. 
  • A trustee is named to manage trust assets and the trust can have on eor more beneficiaries. 
  • The purpose of transferring the assets is to help you to avoid the spend-down requirements to qualify for coverage.

 

What are some concerns to keep in mind when considering a Medicaid Trust?

 

  • Medicaid has a look-back period. 
  • If you transfer withing the look-back period, the purpose of the trust may be frustrated.
  • Because the trust is irrevocable, you need to be very certain that the transfer of assets is the right decision for you. 
  • Establishing the trust takes some amount of cost and time and another estate planning tool may be better suited to accomplish your financial planning goals.  

Contact an Experienced Estate Planning Firm

If you have questions about planning for long-term care of any estate planning issue, we are here to help. At the Law Office of David Knecht, we have extensive experience with estate planning and look forward to exploring all your options with you to create the best plan for you and your loved ones.  Contact us at 707-451-4502. 



Will Terminating an Irrevocable Trust Affect my Taxes?

A common question relating to trusts is whether terminating the trust will affect taxes.  The termination of irrevocable trusts can be a complex legal topic.

When does an irrevocable trust automatically terminate in California?

  • There are some circumstances where the trust terminates by law:
  • The term of the trust expires.
  • The purpose of the trust is fulfilled.
  • The purpose of the trust becomes unlawful or is impossible to fulfill. 

When can an irrevocable trust be dissolved?

  • When all beneficiaries consent to termination. 
  • If continuing the trust is necessary to carry out a material purpose of the trust, it can’t be terminated unless a court determines that the reason for doing so outweighs the interest in accomplishing the purpose of the trust. 
  • When the Fair market value of the principal of the trust has become so low in relation to cost of administration that continuation under the existing terms defeats accomplishment of its purposes.  
  • For other reasons beyond the scope of this article. 

What are the potential tax consequences of terminating an irrevocable trust?

  • When trust assets are liquidated and distributed those transactions may trigger taxes. 
  • If the trust is a grantor trust, then the person who created the trust is considered the owner of the assets and is responsible for taxes. 
  • If the trust is a non-grantor trust, it gets taxes as a separate entity, and the trust itself and beneficiaries are the ones who will pay the tax bill on distributions. 

What are some general principles for trusts and income taxes, capital gains and estate taxes?

  • An irrevocable trust may hold assets such as stocks or bank accounts that generate income and these gains are taxed as ordinary income. This tax applies to the profits, not the principal. 
  • Assets in the trust that increase in value are subject to capital gains taxes when the profits are distributed, and the beneficiaries will pay the tax rate that equates with their income level. 
  • When assets are transferred to an irrevocable trust, they lower the person’s estate tax liability when they die, but keep in mind that this is something most people do not need to consider since only large estates are subject to the federal estate tax in 2023. 

Contact an Experienced Estate Planning Attorney

This article contains general information about the tax consequences of terminating an irrevocable trust, but consulting a professional about the specific tax liabilities and strategies involved is highly recommended. At the Law Office of David Knecht, we can help you understand the tax consequences of the various tools available for estate planning, and we can customize a plan that is perfect for your goals and your family. Contact us today at 707-451-4502.