San Fernando Valley Probate & Estate Administration Law Blog

When California residents begin their duties as the executive of a loved one's estate, they may expect to fill out paperwork and distribute assets. They may not, however, consider the tax duties that come with this position.

The executor of an estate usually files a tax return for the deceased. The Internal Revenue Service says that the executor usually needs to report any income the deceased earned before his or her death. This tax return typically also needs to include deductions and credits. The executor is also responsible for making sure income taxes are paid. Sometimes the estate administrator may find out that the deceased has not filed an income tax return for several years. In this situation, he or she is generally responsible for filing these tax returns and paying any money the deceased owes.  

Like many other California residents, you understand that it is important to have your estate planning in order for the benefit of your loved ones. However, what about taking charge of your own medical and financial needs if you become disabled? If you are unable to work due to a permanent disability, you may need to rely on Medicaid and other forms of government assistance, but your assets may prevent you from being eligible.

This does not necessarily mean you need to get rid of your assets. You may still be eligible for benefits if you fund a special needs trust with your estate. As the National Law Review explains, special needs trusts take care of the health care and financial interests of disabled people while letting them remain eligible for government benefits.

At the Law Offices of Alice A. Salvo in California, we realize that sometimes a will challenge is the proper thing for you to do. We also realize, however, that to win a will challenge, you must not only be an “interested party,” you must also allege the proper grounds. You cannot challenge a will simply because you believe the decedent should have named you in his or her will but failed to do so. In addition, you should know that the vast majority of will challenges fail, and your chances of prevailing in one are quite low.

As APeoplesChoice.com explains, in California, only an interested party may mount a will challenge. This means that the deceased person must have been one of your family members or that you had some other valid reason for expecting to inherit from him or her.

As you are making estate planning decisions in California, there are many things you need to consider. You not only need to think about what happens after your death, but you also need to make decisions regarding end-of-life issues. While it may be unpleasant to think about these concerns, it can save your loved ones a great deal of distress if you make these decisions now. 

According to FindLaw, a power of attorney grants someone the power to make health care decisions for you in the event that you become incapacitated and cannot make those decisions for yourself. However, if you have specific wishes regarding health care directives, organ donation or similar concerns, it is to your advantage to put those wishes in a living will. The person that you designate in your power of attorney will have the ability to make wide-ranging decisions in regard to your health care, but he or she will not be able to make any decisions that contradict anything in your living will. For example, if you state in your living will that you do not want to receive dialysis, blood transfusions, respirators or other life-prolonging medical treatments at the end of your life, your power of attorney designee cannot order these treatments for you.