Estate Planning Ideas: Transfer Wealth by Helping Your Children Buy a Home

People commonly think of estate planning as only being relevant after you have passed, but there are many tools for transferring wealth during your lifetime. This article will summarize three ways that you can transfer wealth to your children through helping them purchase a home.

Lend money as an intrafamily loan. 

  • A family loan can greatly benefit family members purchasing a home because they can avoid the high interest rates that are currently market standard.  
  • One common challenge is that a loan to one family member may strain relationships with other family members who were not given the opportunity for an intrafamily loan. 
  • Another challenge to be aware of is the complication of a intrafamily loan to a married family member who may subsequently get divorced.

Give money as a gift. 

  • A gift can be used outright or in the form of loan forgiveness. 
  • The lifetime gift exemption is cumulative and applies to all recipients, and under federal life that amount is $12.92 million per person, or $25.84 million for a married couple. (Numbers scheduled to change in 2026.)

 Co-sign a loan. 

  • Another common way for a parent to assist is to act as a guarantor or co-signer on a loan. 
  • This helps a child who may not have established credit and may help the child secure a better loan. 
  • The risk is that the parent is likely obligated under the terms of the loan if the child does not pay. 

Contact an Experienced Estate Planning Attorney

If you are interested in learning more about methods and tools for transferring wealth during life or after death, contact us at the Law Office of David Knecht. We have extensive experience with estate planning and can help update an old plan or create a new one that meets your needs. Contact us today at 707-451-4502. 



Filed Under: Estate Planning, Estates

Final Chapter in Kevin Costner California Divorce?

In previous articles, we have following the legal divorce battle between Hollywood legend, Kevin Costner, and his wife of nearly 19 years, Christine Baumgartner. Now the couples has reportedly reached an amicable settlement,  and this article summarizes what appears to be the final chapter of the divorce saga as reported by USA Today.

 

The terms of the divorce settlement were not disclosed. 

  • The terms of the divorce settlement were not publicly disclosed, but it likely included terms relating to child support and legal fees. 

 

 The settlement resolved a contentious court battle. 

  • Baumgartner reportedly requested $175,057 in child support payments during a two-day Santa Barbara court hearing in August, according to People Magazine. 

 

  • The couple shares two sons, age 14 and 16, and a 13 year-old daughter. 

 

  • In the end, per People (see above), Kevin was ordered to pay $63,209 in monthly payments. 

 

 What is next for Christine?

  • During the child support hearing, Christine testified that she was going to have to find a job outside the home to support herself and her children. 

 

  • Although at the hearing, she did not specify the job that she planned, there are reports that she is considering a role on the Real Housewives. 

 

 Divorce lessons from Kevin and Christine.

  • Even with a prenuptial agreement in place, a divorce is not necessarily simple or inexpensive. 
  • As reported by Insider, Kevin was ordered to advance his wife $200,000 for attorney fees and $100,000 for expert costs. 

 

 

 

  • Some experts speculated that the money and the publicity were reasons why Kevin and Christing may have settled. The take-home lesson is that the cost and other downsides of litigation may be important factors in any divorce. 

Contact an Experienced Divorce Attorney

Whether your divorce is a high-profile, contentious litigation or a simple, more amicable split, we can help you here at the Law Office of David Knecht. We have extensive experience with family law, so we have can help you regardless of the issues that you face in your California divorce. Contact us today at 707-451-4502. 



Filed Under: Divorce Advice, Divorce Lawyer

Uncertain Times Call for Creative California Estate Planning Strategies

For many people, today’s uncertain times can be a source of anxiety, with inflation, international conflict, and political uncertainties creating a question about whether decisions today will still be wise in future years. Estate planning in these uncertain times calls for thoughtful and creative estate planning. This article will summarize thoughts on how to do this as published at Kiplinger.com, see 

 

Recognize that regulatory frameworks can change. 

  • The Tax Cuts and Jobs Act of 2017 increased the estate tax exemption.

 

  • The Secure Act 1.0 and 2.0 made changes to inherited IRA’s, minimum distributions, trusts and more. 

 

  • The 2024 Presidential Election may have implications for your estate plan. 

 

  • Navigating these changes can create challenges for your estate plan, but it can also create real opportunities for strategic and advanced planning. 

 

Creative Estate Planning Requires an Understanding of How the System Works

  • Many tax-advantaged estate planning strategies involve giving up some control of your money to protect it. 

 

  • After spending years accumulating money and property, it may be difficult to give up that control, especially when times of turmoil may have decreased its value or may make you worry about future drops. 

 

  • One strategy is to focus on long-term planning and concentrate on the signals (for example, markets generally rise), and not the noise (daily fluctuations in value). 

 

 What Is the Focus of Effective Strategies 

  • Flexibility is the key to long-term planning. Know what your goals are to make sure that your documents are drafted in a way to accomplish your goals and provide flexibility to adjust for changes in those goal. 

 

  • Balance is a second key to long-term planning. Be reactive but not over-reactive. Many proposed changes do not come to fruition, so be aware that you may need to silence some of the media noise of proposed changes that may never be realized. 

 

  • Staying diligent is the third key to long-term planning. Many people wish that estate planning were a one-time event that they could check off their list, but the most effective estate plans are re-evaluated regularly. Revisit your estate plan regularly to make sure that it is still aligned with your goals and regulatory changes. 

Contact an Experienced Estate Planning Attorney

At the Law Office of David Knecht, we make it our business to stay up-to-date on regulatory changes that impact estate planning. We will customize a plan to help you find creative solutions to meet your estate planning goals, and we will work with you to keep it current and responsive to regulatory changes. Contact us today at 707-451-4502. 



Filed Under: California Estate Plan

Divorce in California and Children with Special Needs

Divorce for parents who have children with special needs can be challenging because issues of child custody, visitation, support and property division can be more complex to negotiate. This article will discuss some important considerations for divorce when children with special needs are involved.

 

 Special needs child custody.  

  • The custody arrangement may need to differ from those of a typical case because children with special needs often require more specialized care and attention. 

 

  • Special needs will likely impact the parenting plan and visitation schedule.

 

  • The non-custodial parent may need to provide additional financial support to cover the costs of any therapy or medical treatments. 

 

Legal custody for special needs children. 

  • Finding the right legal custody plan may be more challenging with a child with special needs because the special needs child may never grow into an ability to make decisions for themselves. 

 

  • For this reason, the legal ability to make decisions for the child’s welfare, such as medical, educational and religious choices may be much longer lasting for a child with special needs than for a typical child. 

 

 Challenges with special needs adults living at home. 

  • Divorcing couples may need to think through how potential challenges will be handled, such as a special needs child being aggressive or noncompliant with taking medications. 

 

  • If the special needs child is high functioning, divorcing parents may want to discuss future issues such as working, driving, access to money, etc.

 

  • Another issue that needs to be considered is how to handle respite care if one parent is taking regular care of the special needs adult, and how to pay for that care. 

 

 Estate planning. 

  • Special needs children may outlive both parents and still need care, so life insurance for the parents and other financial planning for the support of the special needs child is an important consideration in divorce. 

Contact an Experienced Divorce Attorney

At the Law Office of David Knecht, we have extensive experience with both family law and estate planning, so we can help ensure that all the issues are covered for a divorce involving special needs children. Contact us today at 707-451-4502. 



Filed Under: Divorce Advice, Divorce Attorney

How to Change a Custody or Parent Time Order

Sometimes circumstances change after a divorce is final, and one or both parents may want to make change a custody or parent time order. If both parents agree to the change, then the process is to file a stipulation. If the parents do not agree, then the parent who wants the change must file a request for order. The court will also set a mediation date prior to the court date to give the parents an opportunity to come to an agreement. This article will summarize the information published by the California self-help website.

 

Step 1: Fill out a Request for Order form

  • The first step is to fill out a Request for Order form, which can be found here: 

 

  • This is where you tell the judge what the request is and why it is in the best interest of your child/children. 

 

  • If you are asking to change an existing order, make sure you use the original number.

 

Make copies. 

 

  • Make 2 copies of your forms. 

 

 Attach documents to support your case.  

  • Attach any documents that support your case, which could be anything from your work schedule, to school grades, to a list of extracurricular activities your child does, etc. 

 

  • Black out any information that is private and sensitive, such a social security numbers, birthdates, or other private information. 

 

  • You may want to include a witness statement. Go here for more information about witness statements: 

 

 File your forms and serve the other party.  

  • File the original and two copies and pay the fee (or get a fee waiver.)

 

  • The clerk will stamp the forms, write a hearing date, keep the original and give the copies back to you.

 

  • The next step is to serve the document on the other party. 

Contact an Experienced Divorce Attorney

If you need help making a modification, contact the Law Office of David Knecht. We have extensive experience with family law, so we can help you assess whether your modification is likely to succeed, and help you prepare the evidence to be successful in the getting the change that you want. Contact us today at 707-451-4502. 



Filed Under: Divorce Advice

The Importance of Full Disclosure in California Divorce Cases

A June 2023 unpublished opinion from Los Angeles County reaffirms the importance of full disclosure in divorce cases. This article will summarize the case and highlight the takeaways for divorce law in California.

What were the basic facts of Frausto v. Frausto?

  • Although this was an unpublished case, it provides an interesting case study on the issue of undisclosed assets in a divorce. 
  • Over 20 years after the court entered a final judgment, the ex-wife filed a petition to adjudicate the ex-husband’s pension, which had not been disclosed. 
  • As per the California Family Code, there is no time limit on the court’s jurisdiction to adjudicate assets that were not disclosed.
  • The court affirmed the order granting the ex-wife an interest in the pension. 

What are the takeaways from this case for a California divorce? 

  • Failure to fully disclose assets in a California divorce will not prevent an ex-spouse from later winning a claim against the undisclosed assets. 
  • The court will not impose a time limit on a former spouse’s claim to undisclosed assets. 
  • The family court has continuing jurisdiction of undisclosed assets, and that continuing jurisdiction can last a long time (20 years in the Frausto case!).  

What are my options if I think that my spouse his assets, but my divorce is final?

  • This case shows that one option if you think an ex-spouse has hidden assets is to petition the court for a share of the asset.
  • An important consideration is to bring your claim as soon as possible. As this case shows, a delay in pursing a claim against an undisclosed assets is not fatal to your claim (the court held that it was not compelled to consider the defense of laches in the Frausto case). However, you can anticipate that your ex-spouse may raise equity as a defense if there is an unreasonable delay in pursing your claim against the undisclosed asset.  

Contact an Experienced Divorce Attorney

Whether you are just beginning your divorce, in the middle, or have post-judgment issues to resolve, at the Law Office of David Knecht, we are here to help you! We have extensive experience with family law which includes all matters concerning divorce in California.  Contact us at 707-451-4502. 



Filed Under: Divorce Attorney, Divorce Lawyer, Divorce Planning

5 Common Estate Planning Mistakes to Avoid

It’s a famous phrase that failing to plan is the same as planning to fail, and this anecdote is especially true in the realm of estate planning. The most important step you can take with an estate plan is the first one: getting started, and therefore, the most important estate planning mistake of all would be to do nothing. But what are the other common mistakes people make in estate planning? This article will summarize typical estate planning mistakes to avoid with source material based on.

Failing to prepare for incapacity. 

Many people only think of an estate plan as how to divide their assets after they die, but preparing for incapacity is very important, as you never know whether disease, accident or age may take away your ability to care for yourself. It should identify the people you want to authorize to make important decisions on your behalf with regard to your money, your healthcare, your end of life wishes, etc., and then the estate plan should enable them to do so. 

Not including funeral and burial wishes. 

Don’t assume your family members know your wishes. If you have strong feelings about certain issues, such as cremation vs. burial etc., those wishes need to be communicated in your estate plan. 

Not considering tax implications of transferring property. 

The famous saying that nothing is certain except death and taxes is true, but different estate planning tools have various tax consequences, so it’s important to think through the tax implications when your estate plan is created.

Not naming contingency decision makers. 

The unexpected happens, so you need back-up decision makers in your plan. You and your spouse may perish in an accident together or a child may predecease you. Don’t assume that your family will remain unchanged as your estate plan ages. 

Not keeping track of beneficiary designations. 

It is important and can be somewhat challenging to make sure your estate plan matches the information in all your accounts and assets. Make sure that you keep the information relating to each specific asset matching your intentions. 

Contact an Experienced Estate Planning Attorney

An excellent way to avoid making estate planning mistakes is to use the services of an experienced estate planning attorney. Here are the Law Office of David Knecht, we have extensive experience with estate planning and will help you think through the potential challenges or various scenarios that may arise to create a plan that will accomplish your goals. Contact us at 707-451-4502.

Filed Under: Estate Planning

Pets and Divorce in California Courts

Many people consider a dog or a cat to be a member of the family, so the custody of the beloved pet, emotional support or service animal can be one of the highest priorities in a California divorce. This article will summarize how the law treats the custody of pets.  

Where can I find the California law related to pet custody?

In 2019, a new California law changed the way pet custody is handled in California divorce cases. See California Family Code §2605.

Before this law was enacted, the courts treated animals as property to be awarded to one party or the other. Judges did not have a lot of guidance and had wide discretion on their decisions relating to animals. 

What are the legal standards for pet custody?

  • A judge can make temporary pet custody orders while the divorce is pending, which do not impact the final order
  • The judge has the power to award custody of the pet jointly to the spouses or to one spouse exclusively. The judge must consider which spouse has provided care for the pet, which includes food, medical, shelter and protection.
  • The judge can make a joint custody order where the pet “parents” will share time and medical decisions or the judge can award the pet to one of the spouses exclusively. 

How can you bolster your pet custody case?

Every case is unique, but some general principles in bolstering your pet custody case are the importance of caring for your pet and documenting your involvement. 

  • Keep a record of your care of the pet, including walking, feeding, grooming, and caring for your pet’s needs. 
  • If you have not been the primary caretaker of your pet, increase your involvement in meeting the pet’s daily needs. 
  • Consider what witnesses you may have to document your involvement with your pet. 

Contact an Experienced Divorce Firm

Family law is a unique subset of the law, so you need an attorney who has experience to help you navigate the system. If you need help with a pet custody issue or any concern relating to divorce or family law, contact the Law Office of David Knecht.  We have extensive experience with family law and can help you succeed. Contact us at 707-451-4502. 

Filed Under: Divorce Advice

Long Term Care Insurance as an Estate Planning Tool

Long term care insurance is one of the many estate planning tools that may be considered as you prepare for the future. Although it typically isn’t the best tool for most people, it is an option you can consider and discuss with your estate planning attorney. At the Law Offices of David Knecht, we customize your estate plan to your needs, and we are happy to discuss the pros and cons of many estate planning tools. This article will provide an overview of what long term care insurance is, how it is used, and cost factors with information summarized from an article published by smartassets.com.  

What is long-term care insurance?

  • Long-term care insurance helps cover the costs of long-term care services, such as an assisted living facility, adult daycare or a nursing home when you can no longer perform independently, the basic activities of daily living. 

Why would someone consider long-term care insurance?

  • Of that group, 20% will need it for more than 5 years. 
  • Often health insurance does not cover these costs and Medicaid and Medicare have limitations that can impact your savings and assets.

 What are the pro’s of long-term care insurance?

  • Asset preservation – An insurance policy may protect your savings, but keep in mind that the policy typically does not cover everything.
  • More care options – the goal here is to enable you to pay for the type of services that you need when that time comes. 
  • Family concerns – you may want to prepare to avoid putting a burden on your family to care for you in the future.

How much does long-term care insurance cost?

  • An example illustrates the high cost: 55 year old man in the U.S. can expect to pay a premium of $2,220 per year according to a 2022 price index survey conducted by the American Association for Long-Term Care Insurance.
  • In the example, the coverage would be $165,000 in benefits when the policyholder takes out the insurance and $400,500 at age 85.
  • Long-term care insurance costs vary widely depending on factors such as health condition and age. 

How should I plan for long-term care?

  • Planning for your long-term care needs in not simple. The best plan will consider your specific assets, health, circumstances and family needs. 

Contact an Experienced Estate Planning Firm

If you have questions about 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 for estate planning with you to create the best plan for you and your loved ones.  Contact us at 707-451-4502. 



Filed Under: General

California Divorce: Lessons from Hollywood

A recent Hollywood divorce, Kevin Costner’s divorce from Christine Baumgartner, is an interesting case study of issues that can arise in a California divorce. This article will provide divorce takeaways, supported by a summary some of the interesting facets of this high-profile divorce with facts sourced from news reported by usmagazine.com. 

If you were blindsided by a divorce, you are in good company with Kevin Costner.

  • Costner and Baumgartner were married for over 19 years when she filed for divorce. 
  • A few months prior to the divorce filing, Costner posted his regrets for having to miss the 2023 Golden Globes and stated that his wife had a beautiful dress and he was looking forward to walking down the read carpet with her.  
  • An anonymous source cited by US said that Costner was “deeply saddened” and was “blindsided by the split.”

A prenuptial agreement may not keep you out of court. 

  • Costner and Baumgartner reportedly had a prenuptial agreement, but this did not prent a court battle over where Baumgartner would live and personal possessions. 
  • Costner alleged in June 2023 court documents that in spite of a prenuptial agreement requiring her to move out within 30 days of filing for divorce, Baumgartner was refusing to move out of the marital home. 
  • The court subsequently ordered Baumgartner to vacate the marital home. 

It is not uncommon for a spouse to withdraw assets just prior to a divorce. 

  • Usmagazine.com cited court documents where Costner claimed that his estranged wife withdrew from his bank account and charged to his credit card a total of $95,000 for her divorce attorneys and accountant. 

One spouse may be more impacted financially by divorce than the other. 

  • Baumgartner claimed in June 2023 court documents cited by Us that she has no personal income and argued that she should not be ordered to leave the family home because she does not have enough money to ensure the children can maintain similar standards of living in the parties’ respective homes. 

One or both parties may be petty during the divorce process. 

  • According to Usmagazine.com, Baumgartner filed court docs in July 2023 claiming that Costner was worries she was going to take too many pots and pans when she moved out. 
  • The magazine also reported that Baumgartner alleged that Costner was kicking his children out of the home and was not willing to commit to paying an appropriate amount of child support.
  • As per Usmagazine.com, Costner reportedly denied he was kicking is children out of their home and claimed to be requesting the Christine vacate the separate property home and find alternative living arrangements.   

Contact an Experienced California Divorce Attorney

If some of these challenging circumstances from Hollywood divorce feel familiar to you as you contemplate or continue the divorce process, you are not alone. If Kevin Costner and Christine Baumgartner are emotionally and financially challenged by the divorce process, then it isn’t surprising that most other people have struggles with divorce. At the Law Office of David Knecht, we are here to help you! We understand the emotional and financial challenges that you will face, and we will use our extensive experience with family law to help support you and walk you through the legal challenges. Contact us today at 707-451-4502. 



Filed Under: Divorce Advice
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