Avoiding Common Mistakes in Estate Planning

As president of Ziebold Law Group in California, Mark Ziebold focuses on estate planning, tax planning, and related areas. Mark Ziebold has helped numerous clients to develop a strategy for distributing their assets after death.

Estate planning is a complicated process, and a person can easily make costly mistakes if he or she lacks the guidance of a qualified professional. For example, may people make an estate plan and then never look at it again. This can mean that when the person does pass away and the document becomes active, it may not reflect the most recent wishes of the decedent. It may also be based on superseded laws and procedures, which can interfere with the plan's execution and impact the beneficiaries in negative ways.

Experts recommend that estate owners review their estate plans at least every five years or when major changes occur in the tax laws. This allows them to change beneficiary designations as necessary and ensure that asset ownership meets current needs. A divorce or remarriage, for example, may cause an estate owner to need to change certain joint asset arrangements or power of attorney designations and in many states a divorce will automatically void some or all of the estate planning documents in place.

Estate owners may also make a point of discussing the plan with heirs. While some clients wish to keep things completely private and hidden from children and heirs, this creates the possibility of unrealized expectations in the children which can cause conflict after the client's death. Not discussing things with heirs and children can lead to emotional and even costly misunderstandings, or to a plan that fails to meet the needs and preferences of the parties involved, which costs everyone more in the long run.

Finally, it is important for all estate owners to keep detailed records of their assets and how they will be distributed. This step also gives the estate owner the opportunity to check the tax implications of each distribution, a potentially complicated process when different accounts, trusts, and other vehicles are involved. Doing so becomes much easier when an estate planning expert is involved, as he or she can provide explanations every step of the way.

Pass Through Strategies for Reducing Taxes as a Small Business Owner

Based in Orange County, Mark Ziebold leads a law firm that offers knowledgeable counsel in areas such as estate planning and corporate and partnership law. Among Mark Ziebold’s areas of extensive experience is in enabling small businesses to save money through avoiding the overpayment of income taxes.

One aspect of these tax minimization strategies has to do with the structuring of the business itself, with S-corporations or pass-through entities offering distinct advantages. In particular, the S-corporation allows a significant percentage of earnings to pass through the business and be distributed as distributions. Both the S-Corporation and partnership taxed entities such as a multiple member partnership also qualify for the new Section 199A decuction for qualified business income (subject to certain limitations depending on the type of business). 

This reduces exposure to the Federal Insurance Contributions Act (FICA), which requires that employers withhold Social Security and Medicare tax from wages paid to employees. Setting up payment through dividends decreases FICA-eligible wages, as the employer portion of FICA taxes is paid only on the income taken as salary.

Other strategies for reducing taxes through S-corporations, LLCs, and partnerships include charitable contributions. With the business contribution passed through to the business owner, the deduction can be claimed on the individual's tax return.

An Overview of Probate Law

Mark Ziebold is an Irvine, California-based attorney who has spent the last seven years as president of Ziebold Law Group, P.C. He also serves as a partner at Million Voorhees Ziebold, LLP. As an attorney, Mark Ziebold focuses on estate planning and probate law.

After an individual passes away, his or her estate is not immediately distributed to the decedent's heirs. Instead, if no trust exists to administer the estate, the will causes the estate to be subjected to a legal process known as probate. During probate proceedings, a court will determine whether or not the will is valid. Additional elements of probate including making an inventory of the author’s assets and property, appraising these items, paying off any relevant debts and taxes, and subsequently distributing all remaining assets as the will dictates. In lieu of a will, assets are distributed according to state law.

Probate can prove to be a lengthy and sometimes contentious process, particularly if there is no valid will in place. Furthermore, finances and assets named in a will may have to be used to cover court and legal fees, rather than being given to the individuals or organizations named in the will. Fortunately, most states provide various methods of avoiding probate processes, most notably joint tenancy filings and living trusts. To learn more about avoiding probate processes, contact an attorney experienced in probate and estate planning law.

Probate Proceedings in California

As president of the Ziebold Law Group in Irvine, California, and a partner in Million Voorhees Ziebold, LLP, in Costa Mesa, California, Mark Ziebold counsels clients in the preservation of assets. Mark Ziebold stands out as one of fewer than 100 attorneys in California to hold specialization certifications by the state bar of California in taxation as well as in estate planning, trust, and probate law.

In California, an estate must pass through probate if the total value of nonexempt assets is over $150,000. This excludes any assets that by their nature do not have to go through probate, such as assets held in joint tenancy, in a living trust, or as community property with rights of survivorship with a spouse. Assets having a designated beneficiary, through a beneficiary designation form, such as death benefits from a life insurance policy or assets held in an Individual Retirement Account (IRA) or 401(K) retirement account.

If there are other assets eligible for probate, the court will supervise the gathering and distribution thereof. The process begins with the delivery of the original will to the court and the filing of a petition for probate in the county where the deceased person lived. 

The court then schedules a hearing, during which it approves of the person responsible for distributing assets. This may be the executor named in the will or a court-appointed administrator, the latter being the case if no will was present. 

The confirmed individual must then prepare an inventory of assets, notify creditors, and pay the deceased person's final expenses. The representative must also file a final tax return for the decedent, ongoing tax returns for the estate for each year that it is open, and pay any taxes due, after which time he or she can file a petition for closure of the estate. 

Once all of the deceased's financial obligations are paid, the representative can seek court approval to distribute estate assets to the beneficiaries of the estate in accordance with the terms of the will. He or she shall then submit a court report that verifies the completion of this process. The executor's or administrator's duties are then complete, pending court approval.