In California, only a licensed attorney can give legal advice. If you don't understand any information in this blog or if you have trouble filling out any of the forms located here, see an attorney for help.
The Los Angeles Superior Court has a self-help website. The web site provides help with Probate matters in general and pays special attento to areas where people represent themselves without an attorney to help them. The self-help site is not supposed to be a do-it-yourself guide and is instead intended to help you help yourself through the court system and probate matters.
The Los Angeles
Probate Guardianship/Conservatorship Information Sheet
Transfer Of Small Estates Without Probate
Links To Other Probate Self-Help Web Sites
Still need help? Call a qualified probate attorney. In Los Angeles call Mitchell A. Port at (310) 559-5259.
]]>But, to probate a lost will you may introduce evidence that the will was not destroyed. The sort of evidence that is allowed must satisfy the probate court that the will wasn't destroyed. If the evidence suggests that the will wasn't destroyed, then it will be admitted to probate. For example, you look for a copy of the will and any reason as to why that copy should not be valid.
California Probate Code 6124 says that: “If the testator's will was last in the testator's possession, the testator was competent until death, and neither the will nor a duplicate original of the will can be found after the testator's death, it is presumed that the testator destroyed the will with intent to revoke it. This presumption is a presumption affecting the burden of producing evidence.”
Let's assume there's no copy, and that the California will is just lost. Most likely what's going to happen is the property will probably pass intestate, meaning it will go equally to whomever the natural objects of the bounty are, the natural heirs or lineal descendants.
For probate help, call Mitchell A. Port at (310) 559-5259.
]]>California Wills, living trusts, durable powers of attorney for property management and the advance health care directive are usually prepared by lawyers. There are many forms available for free online but it is often inadvisable to use them.
Speak with an estate planning attorney about your own situation. Call Mitchell A. Port at 310.559.5259.
]]>A Congressional bill was recently introduced the title to which tells it all: “Repeal of the Partial Payment Requirement on Submissions of Offers in Compromise”. If this is enacted into law, the struggle with your tax debts may be a bit easier.
If you have a tax problem and need a tax lawyer, call Mitchell A. Port at (310) 559-5259.
]]>The Los Angeles Times ran a good article discussing this in more detail.
]]>Discuss your will, living trust and other estate planning needs with a qualified tax attorney. Call Mitchell A. Port at (310) 559-5259.
]]>The fee is calculated based on a percentage as follows:
4% of the first $100,000 of probate property pays a fee of $4,000
3% of the next $100,000 of probate property pays a fee of $3,000
2% of the next $800,000 of probate property pays a fee of $16,000
1% of the next $9,000,000,000 of probate property pays a fee of $90,000
0.5% of the next $15,000,000 pays a fee of $75,000
If the estate exceeds $25,000,000 in value, the court will determine the amount of the fee for the excess.
Using this fee structure, an estate worth $1 million pays a fee of $23,000 ($4,000 plus $3,000 plus $16,000).
When more than one attorney is involved for the same estate, the fee is split between the lawyers. For example, if three attorneys handled the same $1 million estate, the maximum statutory fee is $23,000 which is divided among the lawyers in any way that they agree.
When an executor fires the first attorney during the probate proceeding, the next attorney has to negotiate his share of the statutory fee with the first lawyer. The stage of the probate proceeding at which this occurs will impact the discussion between the attorneys. If the new attorney is hired by the executor late in the proceeding, his or her fees negotiated with the prior attorneys probably will be relatively small; it may be difficult to hire a new attorney at this stage since the fee may be too small.
Speak with a competent California probate lawyer about this. Call Mitchell A. Port at (310) 559-5259.
]]>The liability described in the tax lien is based on Internal Revenue Code Section 6721 entitled "Failure to File Correct Information Returns".
The Massachusetts Democrat said the IRS mishandled payroll tax forms that he said were correctly filed by his campaign in 2005.
Avoid this tax problem. Speak with a qualified tax attorney in Los Angeles from anywhere in the U.S. about your situation. Call Mitchell A. Port at (310) 559-5259.
]]>Whether paying taxes with a timely filed tax return, or filing late and paying taxes late after receiving a bill from the IRS (and the bill is correct), LA's taxpayers are encouraged to pay the taxes they owe in full.
Prevent the IRS from levying bank accounts, wages, or other income, or taking other assets. Prevent the IRS from filing a Notice of Federal Tax Lien that may have a detrimental effect on your credit standing.
If you don't file your tax return, the IRS will file a substitute return for you, which will not include any additional exemptions or expenses you may be entitled to and may overstate your real tax liability. Once the tax is assessed the IRS will start the collection process, which can include placing a levy on wages or bank accounts or filing a federal tax lien against your property.
Call a tax professional - call attorney Mitchell A. Port.
]]>The IRS offers free tax assistance in person, by telephone, computer and by fax. The IRS can assist taxpayers with obtaining forms, publications and answers to a wide range of tax questions. The IRS can also help find free tax preparation for those who qualify.
In Person
Taxpayers needing face-to-face help solving individual or business tax problems can get help every business day in every IRS Taxpayer Assistance Center.
By Phone
Call the toll-free customer service line at 1-800-829-1040.
Use Your Computer
Through the Internet, you can access a wealth of free tax information on the IRS Web site. Taxpayers can check out links such as Forms and Publications to download necessary forms, instructions or publications; get the FAQs (Frequently Asked Questions) to get answers to questions
By Fax
You can receive faxed forms and publications by calling 1-703-368-9694 (not a toll-free call). Simply follow the directions from the prompts.
Be careful when providing the IRS with your information while you are trying to information from them. Hire a tax professional if you are concerned you might inadvertantly disclose information you may not want the IRS to have at this time.
]]>The IRS is recruiting hundreds of Internal Revenue Agents with a minimum 30 hours of college-level accounting coursework for openings around the country. To apply for these and other IRS jobs, go to the IRS job search on USAJOBS.
]]>Sometimes, however, the beneficiary you designate may not be the actual person you wish to receive the IRA or life insurance. In one particular situation, a woman designated her sister as the beneficiary before the woman was married and never changed the beneficiary designation to name her husband after she was married. As a result, when the husband tried to claim the money, neither the IRA administrator nor the insurance company would pay him since he was not the designated beneficiary despite more than two decades of marriage. Here’s the story.
Similarly, if an IRA or insurance beneficiary is named and dies before the IRA owner or the insured, and if there is no secondary beneficiary named, then those assets must go through a probate in California before the money is distributed. So, when certain items of property ordinarily avoid probate because the law of contracts usually applies, California probate is required when the beneficiary designation no longer works.
Avoid probate in California. Consult with an estate planning attorney – call Mitchell A. Port at (310) 559-5259.
]]>California Probate Code Section 11420 contains a priority list of which creditors are paid and in what order they are paid. The short answer is that the IRS is paid before the probate attorney is paid. The long answer can't be more clear:
California Probate Code Section 11420 states:
11420. (a) Debts shall be paid in the following order of priority among classes of debts, except that debts owed to the United States or to this state that have preference under the laws of the United States or of this state shall be given the preference required by such laws:
(1) Expenses of administration. With respect to obligations secured by mortgage, deed of trust, or other lien, including, but not limited to, a judgment lien, only those expenses of administration incurred that are reasonably related to the administration of that property by which obligations are secured shall be given priority over these obligations.
(2) Obligations secured by a mortgage, deed of trust, or other lien, including, but not limited to, a judgment lien, in the order of their priority, so far as they may be paid out of the proceeds of the property subject to the lien. If the proceeds are insufficient, the part of the obligation remaining unsatisfied shall be classed with general debts.
(3) Funeral expenses.
(4) Expenses of last illness.
(5) Family allowance.
(6) Wage claims.
(7) General debts, including judgments not secured by a lien and all other debts not included in a prior class.
(b) Except as otherwise provided by statute, the debts of each class are without preference or priority one over another. No debt of any class may be paid until all those of prior classes are paid in full. If property in the estate is insufficient to pay all debts of any class in full, each debt in that class shall be paid a proportionate share.
Need help with probate? Call Mitchell A. Port, an attorney in Los Angeles, for help. Call (310) 559-5259.
]]>If you have authority over or own a foreign financial account, including a brokerage account, unit trust, mutual fund, bank account or other types of financial accounts, then you may be required to report the account yearly to the IRS. Under the Bank Secrecy Act, each United States person must file a Report of Foreign Bank and Financial Accounts (FBAR), if
1. The value of the account exceeds $10,000 at any time during the calendar year, and2. The person has financial interest in, signature authority (or other authority that is comparable to signature authority) over one or more accounts in a foreign country.
The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
A United States person is not prohibited from owning foreign accounts. The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions.
What is an FBAR?
Who must file an FBAR?
When is the FBAR due?
Where are FBAR forms available?
What are the exceptions to the FBAR filing requirement?
How do foreign account holders report their accounts to the IRS?
Where do account holders file the FBAR?
How long should account holders retain records of the foreign accounts?
What is a United States person?
Would a foreign athlete or entertainer that occasionally visits the U.S. in order to compete or perform in an event, be considered a United States person for FBAR purposes?
What is a foreign country?
What is a financial account?
Does more than one form need to be filed for a husband and wife owning a joint account?
What constitutes signature or other authority over an account?
What does “maximum value of account” mean (for Box 15 on the FBAR)?
Is an FBAR required if the account generates neither interest nor dividend income?
How does an FBAR filer amend a previously filed FBAR?
What is the statute of limitations for assessing civil penalties for violations of the FBAR requirements?
What happens if an account holder is required to file an FBAR and fails to do so?
An American citizen, X, gives a person who is a citizen or resident of the U.S. power of attorney to X’s Canadian bank accounts. X files an FBAR form annually. Does the power of attorney also need to file an FBAR?
A fiduciary who is a U.S. person has control as a trustee for an IRA with a foreign account. Should an FBAR be filed?
Does the term “other authority over a financial account” mean that a person, who has the power to direct how an account is invested, but who cannot make disbursements to the accounts, has to file an FBAR?
Must a U.S. person file an FBAR on a Eurodollar account in the Cayman Islands?
A N.Y. corporation owns a foreign company that has foreign accounts. The corporation will file an FBAR for the foreign company’s accounts. Do the primary owners of the U.S. Company also have to file?
A company has over 25 foreign accounts. What should they enter in Part ll of the FBAR?
A person is a non-resident alien and only visits the United States to manage his personal interests, such as rental property. Does that person have to file an FBAR?
Reporting and Filing Information
A person who holds a foreign account may have a reporting obligation even though the account produces no taxable income. Checking the appropriate block on Form 1040 Schedule B, and filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, satisfies the account holder’s reporting obligation.
A foreign account holder must mail the Form TD F 90-22.1 on or before June 30 of the following year to:
U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621.
The FBAR is not to be filed with the filer’s Federal income tax return.
The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR. There is no extension available for filing the FBAR.
Account holders who do not comply with the FBAR reporting requirements may be subject to civil penalties, criminal penalties, or both.
Exceptions to the Reporting Requirement
There are exceptions to the reporting requirement. These exceptions include:
1. Accounts in U.S. military banking facilities operated by a United States financial institution to serve U.S. Government installations abroad are not considered to be accounts in a foreign country for purposes of the reporting requirement.2. An officer or employee of a bank that is subject to the supervision of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, or the Federal Deposit Insurance Corporation, is not required to report having signature or other authority over a foreign account if the officer or employee has no personal interest in the account.
3. An officer or employee of a domestic corporation whose equity securities are listed on a national securities exchange or which has assets exceeding $10 million and 500 or more shareholders of record, is not required to report having signature or other authority over a foreign account if the person has no personal financial interest in the account, and the officer or employee has been advised in writing by the chief financial officer of the corporation that the corporation has filed a current report that includes the foreign account.
The IRS has launched a "tax amnesty" for those who turn themselves in within the next 5 months. It is critical that clients be made aware of this program, and be counseled on whether it is in their best interest to participate. The issues are complex, and require a balancing of a number of financial, tax and criminal considerations including the non-applicability of the federal authorized tax practitioner privilege. The "amnesty" will expire on September 22, 2009, so time is of the essence. Current year FBARs are due June 30th.
The pilot will be restricted to petitioners and practitioners in good standing with the Court who have registered for eAccess, agreed to its Terms of Use, and consented to eService. The pilot applies to all cases first calendared for trial or hearing after August 31, 2009.
For example, if you have registered for Practitioner Access, consented to eService, and your case is first calendared for trial or hearing on September 21, 2009, you may eFile in that case during the pilot, but not if the case was set for hearing or trial before September 1, 2009. You can also participate in the pilot if your case has not been set for trial. If your case is set for trial or hearing before September 1, 2009, you may not eFile in that case during the pilot.
Please note that eFiling in a particular case can be commenced only after the petition has been filed with the Tax Court in that case. All petitions must be submitted to the Court in paper form.
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