Dedicated to the safekeeping of your family, your business and your future


Attention Business Owners – IRS Issues 199A Proposed Regulations

young businessman calculates taxes at desk in office
  On August 8, 2018, the IRS issued proposed regulations for the new Section 199A.  199A allows many sole proprietorships, partnerships, trusts, and S corporations to deduct 20% of their qualified business income. Qualified business income includes domestic income from a trade or business.  However, wages, capital gains, interest income, and dividend income do not constitute qualified business income. Eligible business owners can claim the 199A deduction for the first time with respect to their…
Read more

Are You a Designated Trustee? Do You Need to Hire a Lawyer?

  If you have been designated as the successor trustee of a trust, it is recommended that you meet with an attorney to find out what your duties are.  As a trustee, you have fiduciary duties, duties to account, you may need to file one or more tax returns, and some of these duties and obligations have deadlines. You will also need to send a copy of the trust to beneficiaries.  But which ones?  All…
Read more

When Is Your Trust Taxable in California?

california trust tax
  Generally, a trust is taxable in California if a fiduciary or beneficiary (other than a contingent beneficiary) is a resident of California under California Revenue and Taxation Code 17742.  This is true even if the original settlor was not a resident of California. This means even if a non-California resident settlor creates a trust outside of California, with all non-California resident beneficiaries, the trust could still eventually be subject to taxation in California. How…
Read more

What is Probate and What Does It Entail?

signing paperwork with a fountain paperwork
  Probate is the process of transferring assets from a decedent to an heir.  For those who die in California with assets over $150,000 and without a trust, or perhaps with an improperly funded trust, the only way to transfer title from a decedent to a beneficiary is through the probate process. The first step is to file a petition for probate in California Superior Court and have a personal representative appointed.  If the decedent…
Read more

California Irrevocable Trusts

old bank sign
  Irrevocable trusts can help to provide long-term asset management.  Although irrevocable trusts are not suitable for everyone, they can be an important estate planning tool for some. While irrevocable trusts are by title inflexible, some states, including California, allow for modifications to an irrevocable trust in some situations. Irrevocable trusts can be helpful for individuals with taxable estates, those who do not want additional personal income for tax reasons, and they also help to…
Read more