Seniors
CASTRO VALLEY FORUM
Wednesday, August 18, 2021
5
What You Should Know About Are We Careless About COVID? Naming Minors as Beneficiaries By Matilda Charles SENIOR NEWS LINE
Q. I would like to name my young grandchildren (ages 3–10 years) as beneficiaries of my estate and my life insurance. Is there anything I should know about this plan? By Gene L. Osofsky, Esq. SPECIAL TO THE FORUM
A. Yes. Your wish to do so is commendable, but it is important to make a plan that does not involve leaving assets directly to them while they are minors, i.e. under the age of 18. Here’s why: First: Assets cannot be left directly to a minor under California law. If you were to do so, it is likely that a court would need to appoint a guardian to hold and manage their money. The court proceeding, itself, will cost your estate, and the court-appointed guardian may not be someone whom you would want to oversee your grandchildren’s money. Further, the guardian may have to file annual accountings with the court, generating more costs and fees. Second: Each minor will be entitled to the funds from the guardian when he or she reaches age 18. There would then be no limitations on what the money could then be used for; so while you may have wanted the money to go toward college or a down payment on a house, your grandchild may have other ideas. That said, there are basically two ways to do this properly under California law: 1) Name a Custodian for the Minor under CUTMA: Under the law in California, and many other states as well, you can leave a gift to a minor by using the California Uniform Transfer to Minors Act (“CUTMA”). You would do so by expressly reciting that the gift is made pursuant to CUTMA with appropriate recitals to that effect, and name an adult Custodian for the minor(s). The recitals are in the form of a simple Declaration, and banks and brokerage houses usually have forms for this purpose readily available for use. The key portion of those declarations would recite the name of the Custodian (and/or alternate custodian, if desired), the name of the minor beneficiary, and the key words, “I hereby transfer to [name of adult] as custodian for [name of minor] under the California Uniform Transfer to Minors Act, the following
P05 SENIORS 08-18 copy.indd 1
If you read the news, you know there are serious questions about how well the vaccines we’ve been taking actually protect against COVID. Especially worrisome is the protection they offer against the Delta variant that’s sweeping the world. Those in authority seem to be flipping a coin each day, depending on who you listen to. Some days we can throw caution to the wind and go about our business, and other days we need to continue to beware. Now we’re back to the indoor mask mandates, and that’s likely one step away from again limiting the number A MINOR MISTAKE: It is important to make a plan of people allowed in stores at that does not involve leaving assets directly to beneficiaries while they are under the age of 18. one time, or so I imagine. If those things happen, it in one lump sum at, say, age ...[description of custodial won’t be like it was in March 25, or it could be in stages to property]. 2020. Back then we were all correspond with their antici You would then sign and scared to death. We’d spread date the form. Note that under pated needs as they begin their out in the grocery aisles, CUTMA, you cannot defer the own careers, e.g. 1/3 at age 21, staying far away from other another portion at age 25, and people. We wore that mask at actual ownership of the gift beyond the minor’s age 21, as the balance at age 30. you could if you opted to leave If you do create a trust, your bequests in trust. remember to name the trust 2) Leave the Gifts in Trust: as beneficiary of any life insurance or retirement plans. You could leave the gifts to Living Trusts & If you forget to take that step, your minor beneficiaries by Trust Administration creating (or modifying ) a trust, the money may be distributed and designating the Trustee to directly to the minors, negating Probate • Wills hold and manage the gifts until the work of creating the trust. Real Estate • Litigation each of your grandchildren To create (or modify) a trust reaches the age at which you to accomplish your wishes, — Give Us a Call — would like them to have full consult with your attorney. Most Initial Consultations access. Unlike a gift using Gene L. Osofsky is an Elder Are Free CUTMA, in your trust you Law and Estate Planning at(510) 357-3403 can be creative as to when torney in the East Bay. Visit his 1883 East 14th Street each grandchild receives their website at www.LawyerForSSan Leandro gift. Examples: it could be all eniors.com.
WINKLER LAW
Thinking About a Reverse Mortgage but Unsure How They Work?
• 24 Hour Care • Socializing • Activities • Chef Prepared Meals • Housekeeping • Laundry • Quality of Life • Independence • Legacy
Private and Shared Apartments Available! Call today for a Free Yes, we are Lunch & Tour Pet Friendly! 510-276-2872 License#015601501
21000 Mission Blvd., Hayward CA 94541
CALL TODAY! Pursue the simple pleasures in life, with the peace of mind in knowing that helping hands are never far away. Call today about this summer move-in special. 19960 Santa Maria Ave. Castro Valley, CA 94546
NMLS ID 291773
510-244-3338
“I pledge to provide straight forward information and excellent service.” Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. #4130937 NMLS#7147. Equal Housing Lender. NMLS Consumer Access: www.nmisconsumeraccess.org. This Material is not from HUD for FHA, and was not approved by HUD, FHA or any other government agency.
Senior Residential & Assisted Living
Rates as low as $3,195 plus Community Fee & 1 month's RENT FREE. Move In By September 30th!
• Setting up a Line of Credit • Paying off an existing mortgage and or other debt • No Monthly Mortgage Payments required
C A L L TO D AY 510-583-8123
(c) 2021 King Features Synd., Inc.
SUMMER SPECIAL
Servin the Bay A g rea!
Borrower to remain current on their property taxes and homeowners insurance and HOA fees, occupy home as primary residence and maintain property.
it will be even more dangerous than it was last year, because we’ve gotten too casual, careless and passive about our safety. My short to-do list involves buying new masks and more hand sanitizer, renewing my grocery curbside pickup account... and saying no to an invitation to join a dance group. How about you? Are you ready for what’s likely coming?
Live Life the Way You Want
CALL TODAY TO GET THE RELIABLE INFORMATION YOU DESERVE! If you are 62 or older, and qualify, a reverse mortgage may be able to provide you with greater financial peace of mind and increase your monthly cashflow by:
all times when out and about, and we respected all those 6-foot markers on the floor. We certainly didn’t sit down at a restaurant table for four and take off our masks, or head to the gym. Now, having lived through that whole horrible year, people are tired of it all, and we’re eager for a normal life. We think that because so many people have had the vaccination, that surely we’ll be safe. I fear that this time, however,
CarefieldCastroValley.com RCFE #019200685
*Limited time offer, based upon availability. Contact the community for more details.
8/17/21 9:30 AM
