Trustees have a duty to defend the Trust in actions and lawsuits filed against it (Cal. Prob. Code § 16011; Hawaii Revised Statutes 554A-3). State Trust law also recognizes no contest clauses in Trusts that disinherit beneficiaries who unsuccessfully challenge the Trust. (Hawaii Revised Statutes 560:3-905; Cal. Prob....
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The legal formalities required to create and amend a Will versus a Trust are not the same. In most states, including California and Hawai’i, a Will must be signed by the Testator and witnessed by two people. Exceptions apply. For example, both states allow for a Will to be handwritten...
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Business owners frequently find themselves in position where they need to value their business: succession planning; buy/sell agreements; estate and gift tax requirements; sales, mergers and acquisitions; shareholder or partnership buyouts; tax reporting; insurance purposes; obtaining financing - to name but a few. Despite the frequency of this requirement, most business owners...
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Arbitration can be an efficient method of resolving differences for both parties to a dispute. Like all contract provisions, arbitration clauses must be carefully crafted, or courts will not enforce them. Certain claims, by state and federal laws, are not subject to arbitration. When an arbitration agreement broadly includes language that would...
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If you have a comprehensive insurance package for your business, chances are it includes business interruption coverage. And if you suffered the devastating effects of the COVID-19 pandemic, you may have already discovered that your coverage does not extend to communicable diseases. For those of you without such coverage who are now...
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Many estate plans contain both a Will and at least one Trust. When a Trust is involved, typically the Will is a pour-over Will. The Will may contain many things, like the designation of guardians, or it may simply “pour-over” any estate property, not already titled in the name of the Trust,...
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June 24, 2020
How to Start the Estate Planning Discussion
As is the case with most things in life, getting started can be the hardest challenge. Now couple that challenge with a project that involves planning for your eventual passing. Most people don’t view estate planning...
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INTRODUCTION
When a person (Testator) signs a Will, he/she anticipate the persons named to receive a portion of their estate (Beneficiaries) will outlive them. So what happens if one or more Beneficiaries predecease the Testator? Or survives the Testator, but then passes before the bequest can be passed to...
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Firing employees can be a minefield of legal issues. Done poorly, it can lead to wrongful termination claims; loss of company property and confidential information; bad publicity and damage to your company’s reputation; and loss of morale and poor performance by other employees. Conversely, if your company has decided it’s time for...
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As the world continues to flatten, what once was a challenge (for Trustees to administer a Trust with Beneficiaries located in different states within the United States) has now become a challenge to observe the many laws of both the United States and other countries. It is no longer uncommon to find...
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