BERYS LAW | Business, Real Estate, Wills/Trusts

Estate planning is not a one-and-done process. Life circumstances, legal changes, and evolving financial goals often necessitate revisiting and revising your estate plan. An outdated plan can lead to unintended consequences, such as disputes among heirs, unnecessary taxes, or your wishes not being honored. Below are ten key reasons to update your estate plan to ensure it remains relevant and effective.

1. Major Life Events

Life events like marriage, divorce, the birth or adoption of a child, or the death of a loved one can significantly impact your estate plan. For instance, a new marriage may require adding your spouse as a beneficiary or updating your will to include children from a previous marriage.

2. Changes in Assets

A significant increase or decrease in your wealth, acquiring new assets like a home or business, or selling valuable property necessitates an estate plan review. Ensuring that your new or existing assets are distributed according to your wishes is critical.

3...

A Spousal Lifetime Access Trust (SLAT) is an advanced estate planning tool designed to reduce estate taxes, provide asset protection, and allow for wealth transfer while retaining indirect access to trust assets. This trust is particularly appealing for high-net-worth individuals who want to take advantage of the lifetime gift tax exemption while maintaining some level of control over the gifted assets.

Key Features of a SLAT

Irrevocable Trust

A SLAT is an irrevocable trust, meaning once it is established, the grantor (the person creating the trust) relinquishes control over the assets transferred to it. This characteristic ensures that the trust assets are excluded from the grantor's taxable estate.

Beneficiary Spouse

The grantor's spouse is named as the primary beneficiary of the SLAT. This allows the spouse to access trust distributions for their needs, indirectly benefiting the grantor during the spouse's lifetime.

Wealth Transfer

While the trust benefits the spouse, it is o...

Renting a property can be a challenging process, and unfortunately, scammers often exploit the housing market to target unsuspecting renters. Awareness of common rental scams and knowing how to avoid them can save you time, money, and stress. Here are the top five rental scams and tips to protect yourself.

1. Fake Listings

One of the most prevalent rental scams involves fake property listings. Scammers copy legitimate listings and post them on different platforms at significantly reduced prices to lure renters. When interested tenants contact them, they claim they are out of town and request payment upfront to "secure" the property.

How to Avoid:

• Verify the listing by cross-checking it on multiple rental platforms.
• Research the property address to confirm its existence and ownership.
• Never send money before seeing the property and meeting the landlord in person.

2. Phantom Rentals

In this scam, the advertised property doesn’t exist, or the scammer doesn’t have the authority...

 Effective July 1, 2025, Assembly Bill 2801 (AB 2801) will bring significant changes to California's rental laws, particularly in how security deposits are handled. Designed to increase transparency and fairness, the bill aims to address long-standing issues between landlords and tenants over deposit deductions. Here’s a detailed look at what AB 2801 entails and how it will impact both parties.

Key Changes Under AB 2801

Photographic Evidence Requirement

AB 2801 mandates that landlords provide photographic documentation when deducting costs from a tenant's security deposit. This evidence must clearly show the damage or cleaning required beyond normal wear and tear. Additionally, an itemized statement of the deductions must accompany the photos.

This new requirement benefits both parties by:

• Giving tenants visual proof of the reasons for deductions.

• Encouraging landlords to document their claims thoroughly, reducing potential disputes.

Reinforced Timeline for Deposi...

A pet trust is a legally binding arrangement that ensures the care and well-being of your beloved pets in the event of your death or incapacity. It is a tool for pet owners who want to provide for their animals, guaranteeing they are looked after according to specific instructions and funded with adequate resources.

Many pet owners consider their animals family members, but pets are treated as property under the law. Without formal arrangements, your furry, feathered, or scaly companions could face uncertain futures. A pet trust offers peace of mind by creating a structured plan for their continued care.

How Does a Pet Trust Work?

A pet trust operates like other trusts. It involves three main components:

Grantor: The pet owner who establishes the trust and funds it.

Trustee: The person or entity responsible for managing the trust and ensuring the funds are used as intended.

Beneficiary: The pet(s) who will benefit from the trust.

When creating a pet trust, you outline detailed i...

Home title theft is a growing concern in the digital age, where cybercriminals can use sophisticated tactics to forge documents and take ownership of your property. Also known as deed fraud, this crime involves stealing your home’s title and using it to obtain loans or sell the property without your consent. It’s a nightmare scenario for any homeowner, but the good news is that there are effective steps you can take to safeguard your most valuable asset.

Understanding Home Title Theft

Home title theft typically occurs when fraudsters gain access to your personal information, such as your name, address, and Social Security number. They forge documents to transfer the title of your property into their name, and then they may use the property to secure loans or sell it to unsuspecting buyers. Homeowners often remain unaware of the crime until they receive foreclosure notices or legal disputes arise.

While title theft can happen to anyone, individuals who own homes outright (without a m...

The holidays bring families together, providing a rare opportunity for meaningful conversations. While festive gatherings are often associated with joy and celebration, they can also serve as the perfect time to address important matters—like your estate plan. Though it may seem like a serious topic for the holidays, discussing your estate plan during this time can ensure your loved ones are informed and prepared for the future.

Family Gatherings Allow for Open Communication

One of the most significant challenges in estate planning is ensuring everyone is on the same page. The holidays often bring family members together, creating a natural setting for open discussions. With many loved ones in the same room, it’s easier to address your plans, answer questions, and clarify your intentions.

Open communication can help prevent misunderstandings and disputes later. For example, explaining why certain decisions were made—such as designating an executor or allocating specific assets—can r...

Creating an estate plan might not seem urgent, but failing to have one can create significant complications for your family. An estate plan ensures that your assets, healthcare decisions, and personal wishes are honored after your death or if you become incapacitated. Without it, the state takes control, often leading to financial and emotional burdens for your loved ones.

Loss of Control Over Your Assets

When you pass away without an estate plan, your estate is considered "intestate." In this scenario, the distribution of your assets is determined by state law rather than your personal wishes. These laws vary but typically prioritize close relatives, such as spouses, children, or parents. While this may align with your desires, it leaves no room for nuance—such as providing for non-relatives, charities, or friends.

For instance, if you’re unmarried but in a long-term relationship, your partner may not inherit anything without explicit legal documentation. Similarly, minor children ...

Screening rental applicants is an essential part of a landlord's job. It helps ensure the tenant is a good fit for the property and protects the landlord’s investment. However, California has strict laws that govern what landlords can and cannot ask during the application process. By adhering to these legal guidelines, landlords can avoid discrimination claims and create a fair screening process.

Legal Questions Landlords Can Ask

Financial Stability and Income Verification

Landlords are allowed to inquire about an applicant’s financial stability to ensure they can afford the rent. Common questions include:

• What is your monthly income?
• Can you provide recent pay stubs, tax returns, or bank statements?
• Do you have other sources of income, such as government assistance or pensions?

California law prohibits discrimination based on the source of income, so landlords cannot reject an applicant solely because they receive funds like Section 8 vouchers.

Employment Status

Landlords...

Starting a corporation in California can be an excellent way to structure your business, protect your personal assets, and establish credibility. However, the process involves several legal and procedural steps, and mistakes can be costly. By understanding and avoiding common errors, you can ensure a smooth incorporation process and set your business up for success.

1. Failing to Choose the Right Business Entity

One of the most frequent mistakes is not evaluating whether a corporation is the best business structure for your needs. California offers various options, including sole proprietorships, partnerships, LLCs, and corporations, each with distinct advantages and limitations. A corporation may be the best choice if you seek limited liability protection and plan to issue stock, but it may not be ideal for small operations due to stricter compliance requirements. Consulting a business attorney or tax professional can help you make an informed decision.

Read more: How to Choose the...