JKZ LLP FindLaw IM Template 2026-10-14T09:29:24Z https://www.jkzllp.com/feed/atom/ WordPress /wp-content/uploads/sites/1504338/2024/11/cropped-New_Logo_Fav-32x32.png On Behalf of JKZ LLP <![CDATA[Inheriting a Parent’s Home in California: How Prop 19 Affects Your Property Taxes]]> https://www.jkzllp.com/?p=52822 2026-10-08T07:27:04Z 2026-10-14T07:17:15Z Losing a parent is hard enough. Now, what happens to the family home? Here is how the rules work and how your family can plan. If you inherit a parent's home in California, you may be able to keep all or part of your parent's lower taxable value, but only if the home becomes your primary residence within one year and you file the required claims on time. Since February 16, 2021, Proposition 19 (“Prop 19”) has limited the parent-child exclusion to a family home or family farm and capped how much value can be excluded. Rentals and vacation homes generally no longer qualify. Now, what if you want to keep the family home? Can you afford it? When property is inherited, the general rule is that the value is reassessed for property tax purposes. Key takeaways
  • Prop 19 governs parent-child transfers on or after February 16, 2021, and for an inheritance the transfer date is generally the date of death.
  • The home must have been your parent's principal residence and become yours within one year, and you should file the exemption and Form BOE-19-P claims on time.
  • For transfers from February 16, 2025 through February 15, 2027, market value above your parent's taxable value plus $1,044,586 is added to your taxable value.
  • Trusts, sibling buyouts, and entity ownership can change the result, so plan early.

What changed when Proposition 19 took effect?

Under Proposition 13 (“Prop 13”), property is generally reassessed to market value when ownership changes, and annual increases in assessed value are then capped at 2 percent. As a result, a longtime owner's taxable value is often far below market value. Before Prop 19, Propositions 58 and 193 let parents pass a principal residence to their children with no value limit, plus up to $1 million of factored base year value in other real property per parent. 

Who qualifies for the parent-child exclusion under Prop 19?

A family home can qualify when:
  1. Eligible relationship. A parent and child, including stepchildren, sons- and daughters-in-law, children adopted before age 18, and certain foster children.
  2. Parent's principal residence. The home was your parent's principal residence.
  3. Your principal residence within one year. You move in within one year of the transfer.
  4. Exemption claim within one year. You file for the homeowners' or disabled veterans' exemption within one year, or relief generally starts only in the year you file.
  5. Exclusion claim. You file Form BOE-19-P with the assessor in the county where the home is located.
The exclusion lasts only while the home remains an eligible child's principal residence. If it becomes a rental, then starting with the next January 1 lien date it is taxed on its market value from the original transfer, adjusted for inflation. If siblings inherit together, only one needs to live there, and another eligible sibling can move in within one year of a move-out (and file for the exemption) to keep the exclusion.

How do you calculate your new taxable value?

  1. Start with your parent's factored base year value (the taxable value just before the transfer).
  2. Add the exclusion amount for the transfer date. The Board of Equalization (BOE) set it at $1,044,586 for transfers from February 16, 2025 through February 15, 2027, up 2.15 percent from $1,022,600. BOE adjusts it every other year using the Federal Housing Finance Agency's House Price Index for California.
  3. If market value on the transfer date is at or below that total, you keep your parent's factored base year value.
  4. If it is higher, the excess is added to that value.
Example: a San Francisco home. Your parent passed away in 2026, leaving a home with a factored base year value of $400,000 and a market value of $1,800,000. You moved in and filed on time.
Step Amount
Parent's factored base year value $400,000
Plus exclusion amount $1,044,586
Value limit $1,444,586
Market value at date of death $1,800,000
Excess above the limit $355,414
New taxable value ($400,000 plus $355,414) $755,414
Without the exclusion, your taxable value would be $1,800,000. At the 1 percent general tax rate alone, the $1,044,586 difference is roughly $10,446 a year, before voter-approved bonds and local charges. These figures are illustrative only. Compare that to about $4,000 per year if the parent to child exclusion had been applied.

What happens to rentals, vacation homes, and family farms?

Rentals and vacation homes. Unless it qualifies as a family farm, a parent's rental or vacation home is generally reassessed to market value when a child inherits it. Family farms. Property under cultivation, used for pasture or grazing, or producing an agricultural commodity can qualify. No one needs to live there, and the value limit applies separately to each legal parcel. Entity-owned property. The exclusion covers real property, not interests in an LLC, partnership, or corporation. Factor this into any entity formation planning for family real estate.

How do trusts and siblings affect the result?

Transfers through a trust can qualify, because the assessor looks through the trust to the beneficial owner. Deadlines generally run from your parent's date of death, not from when the trustee deeds you the home, and the same is true in probate. Transfers between siblings are not excluded, so if you buy out a sibling's share, that share is generally reassessed. Trust language matters. BOE says Proposition 19 did not change the property tax rules for trusts that divide assets "share and share alike." Under that guidance, a trustee with non-pro rata distribution authority may be able to allocate the home to one child, up to that child's share, while siblings receive other assets. But if the child keeping the home pays siblings with personal funds, BOE treats that as a purchase. Get advice before signing a distribution agreement during trust administration.

Can grandchildren use the Prop 19 exclusion?

Only in limited cases. All of the grandchild's parents who are children of the grandparents must have died by the transfer date. The same residence, value limit, and filing rules apply, using Form BOE-19-G.

How is the base year value transfer for homeowners 55 and older different?

A separate Prop 19 benefit, operative April 1, 2021, lets eligible homeowners move their own taxable value to a replacement primary residence anywhere in California. It covers homeowners 55 or older or severely disabled (up to three times each) and owners whose home was substantially damaged or destroyed by wildfire or a Governor-declared disaster. The replacement must be bought or newly built within two years of selling the original. The taxable value carries over unchanged if the replacement's market value is no more than 100 percent of the original's (bought before the sale), 105 percent (first year after), or 110 percent (second year); otherwise, it is increased. Claims (Forms BOE-19-B, BOE-19-D, or BOE-19-V) go to the replacement's county assessor within three years. A parent who sells a home to a child using the parent-child exclusion cannot also transfer that taxable value to a replacement home.

What should families do now?

  • Keep records. Save recent tax bills, proof of your parent's homeowners' exemption, and proof of your move-in date.
  • Calendar deadlines from the date of death. File the change in ownership statement (Form BOE-502-D) within 150 days, or by the time the inventory and appraisal are filed in probate. Move in and file the exemption within one year, then file BOE-19-P promptly. If a supplemental bill arrives first, qualifying heirs who file on time can receive a refund or cancellation for that period.
  • Review titling and trust terms. Revisit your estate planning and wealth transfer plans, including whether your trustee can allocate the home to the child who will live there.
  • Look beyond property tax. Lifetime gifts or sales to a child raise gift tax and capital gains questions, so involve your tax advisor.

Frequently asked questions

Do I have to live in my parent's home to keep the lower property tax value? For a family home, yes. It must become your principal residence within one year of the transfer (for an inheritance, generally the date of death), and you should file for the homeowners' or disabled veterans' exemption within that year. Family farms have no residence requirement. What is the Prop 19 exclusion amount in 2026? For transfers from February 16, 2025 through February 15, 2027, the amount is $1,044,586. Market value above your parent's factored base year value plus $1,044,586 is added to your taxable value. BOE's next adjustment is scheduled for February 2027. Can siblings inherit the home together if only one lives there? Generally yes. Only one eligible child needs to live in the home. If one sibling later buys out another, the purchased share is reassessed. When is Form BOE-19-P due? File it with the county assessor within three years after the transfer or before the property is transferred to a third party, whichever is earlier. It is also timely within six months after a supplemental or escape assessment notice for the transfer. A late claim generally brings relief only from the year you file. Does Prop 19 apply if my parent died before February 16, 2021? Generally no. Inheritances on or before February 15, 2021 fall under the older Proposition 58 and 193 rules. If no claim was filed, a late claim may still bring relief for future years if the property has not gone to a third party.

How JKZ LLP can help

JKZ LLP helps California families plan and complete transfers of homes and other property with the property tax consequences in view. We prepare estate plans, advise on titling, and guide trustees and heirs through trust administration and probate, including Prop 19 claims. A majority women owned, LGBTQ+-affirming firm, we serve clients from offices in San Francisco, San Diego, Santa Cruz, and Chico in English, Spanish, Russian, Arabic, and French. Call [nap_phone id="LOCAL-REGULAR-NUMBER-1"] or contact us online. This article is for general information only and is not legal or tax advice. Reading it does not create an attorney-client relationship.]]> On Behalf of JKZ LLP <![CDATA[Legal Separation vs. Divorce in California: How to Decide What’s Right for You]]> https://www.jkzllp.com/?p=52816 2026-10-08T07:16:10Z 2026-10-08T06:35:14Z In California, a divorce (legally called a dissolution of marriage or domestic partnership) ends your marital or registered domestic partnership status. A legal separation does not: you stay legally married or partnered, but you and the court can still divide your property and debts and make orders about support, custody, and parenting time. The biggest differences between divorce and legal separation are status, timing, and agreement. Only a divorce lets you remarry. A divorce has a residency requirement and a six-month minimum waiting period, while a legal separation has no minimum residency period or waiting period.  In addition, the court cannot grant a legal separation without both parties’ consent, unlike a divorce. If you are facing this choice, it can feel like a lot at once. This guide takes it one step at a time. Key takeaways
  • A divorce ends the marriage or partnership. A legal separation keeps it in place, so neither of you can remarry or register a new domestic partnership.
  • Both processes can resolve property, debts, support, child custody, and parenting time.
  • A divorce usually requires that one of you lived in California for six months (and in the filing county for three), and it has a six-month minimum waiting period. A legal separation has no minimum residency period and no waiting period.

What issues are decided in both?

Whether you choose legal separation or divorce, the same California rules apply to:
  • Property and debts. Unless you agree otherwise, the court divides the community estate equally. See property division.
  • Support. The court can order child support and support for a spouse or domestic partner. See child and spousal support.
  • Children. The same laws govern child custody and parenting time.
The grounds are also the same: irreconcilable differences that have caused the irremediable breakdown of the marriage, or permanent legal incapacity to make decisions (Family Code section 2310).

Legal separation vs. divorce: side-by-side comparison

Issue Legal separation Divorce
Ends the marriage or partnership No Yes
Free to remarry No Yes, once the judgment is final
Divides property and debts Yes Yes
Support, custody, and parenting time orders Yes Yes
Residency requirement No minimum time, but one spouse must live in California Six months in California and three months in the county, with exceptions
Minimum waiting period None Six months before marital status ends
Other party must consent to the judgment Yes, if they appear in the case No
Forms to start Petition (FL-100) or joint petition (FL-700) Petition (FL-100) or joint petition (FL-700)

How are legal separation and divorce different?

Residency To file for divorce, one of you must have lived in California for the last six months and in the filing county for the last three months (Family Code section 2320). There are two exceptions:
  • If your domestic partnership is registered in California, the usual residency rules do not apply to filing here.
  • Same-sex spouses who married in California but live somewhere that will not dissolve their marriage may file in the county where they married. Learn more about same-sex divorce.
A legal separation has no minimum residency period, though one spouse must live in California, according to the courts' Self-Help Guide on legal separation. If you have not lived here long enough for a divorce, you can file for legal separation and later amend your petition to request one (Family Code section 2321). Waiting period Your marital status cannot end in a divorce until at least six months after the other party is served or first appears in the case, whichever comes first (Family Code section 2339). A legal separation has no waiting period. Consent A court cannot enter a legal separation judgment without both parties' consent, unless the other party has not made a general appearance in the case (Family Code section 2345). Why do some couples choose legal separation? Depending on your situation, some parties choose legal separation for the following reasons:
  • Religious or personal beliefs.
  • Health insurance. Some plans may let a legally separated spouse or partner stay covered, but it depends on the plan.
  • Social Security. Benefits on a former spouse's record generally require a marriage of at least 10 years before the divorce is final. If you are near that mark, ask Social Security or a financial adviser about timing.
  • Immigration timing. If an immigration status or application depends on the marriage, talk with an immigration attorney before filing.
  • Family reasons, such as wanting more time before a permanent decision.
Legal separation may also change things you expect to stay the same. For federal tax filing status, the IRS considers you unmarried for the whole year if, on the last day of the year, you are legally separated under a separate maintenance decree, and state law determines whether that applies (IRS Publication 501). Ask a tax professional how this affects you.

Why does the date of separation matter?

Your date of separation is when a complete and final break in the marriage occurred, shown by both a spouse's expressed intent to end the marriage and conduct consistent with that intent (Family Code section 70). It matters equally in a legal separation and a divorce:
  • Property. Earnings and property acquisitions with these earnings after that date are generally separate property (Family Code section 771).
  • Spousal support. Marriage length is measured to the date of separation, and a marriage of 10 years or more is presumed to be of long duration, which can affect how long the court keeps authority over support (Family Code section 4336).
Read more about determining your date of separation.

Is there a simpler way if you both agree?

  • Joint petition. Since January 1, 2026, spouses and registered domestic partners who agree on all final terms can file one joint petition (form FL-700) for divorce or legal separation. You cannot request temporary orders this way, and either of you can revoke the joint process before the judgment is final.
  • Summary dissolution. This simplified divorce is limited to couples who meet strict conditions, including a marriage of five years or less at separation, no children together, no real estate (apart from certain leases), limited property and debts, and a spousal support waiver. Residency rules and the six-month wait still apply.
  • Registered domestic partners who meet similar conditions may instead end a California partnership by filing a notice with the Secretary of State, effective six months after filing.

How do you start a divorce or legal separation in California?

  1. Choose your request. The same Petition (form FL-100) is used for both, and you indicate whether you want a divorce or a legal separation.
  2. File the Petition with a Summons (form FL-110) and, if you have children under 18, a child custody jurisdiction declaration (form FL-105).
  3. Serve your spouse or partner. The Summons explains that they have 30 days to file a Response (form FL-120).
  4. Follow the orders on the Summons. While the case is pending, standard restraining orders limit certain financial changes, such as changing beneficiaries on insurance, though you can still make or change a will.
  5. Resolve the issues by agreement with counsel, third party neutrals, or with the court's help, then request a judgment.

Update your estate plan either way

  • In California, a final divorce or termination of a registered domestic partnership generally revokes gifts in your will to the former spouse or partner, and their nomination as executor or trustee, unless the will says otherwise (Probate Code sections 6122 and 6122.1).
  • A legal separation does not end the relationship, so those automatic revocations do not apply. Gifts to your spouse or partner in an existing will may stay in effect.
  • Beneficiary designations, trusts, powers of attorney, and health care directives also deserve review. Because some changes are restricted while a case is pending, coordinate the timing with your attorney.
For more, see updating your estate plan when going through a divorce.

Frequently asked questions

Can I get a legal separation if my spouse wants a divorce? Usually not. If your spouse or partner makes a general appearance in the case and does not consent, the court cannot enter a legal separation judgment (Family Code section 2345). They can respond by asking for a divorce, which can move forward once the residency requirement is met. Is there a residency requirement for legal separation in California? There is no minimum residency period, though one spouse must live in California. A divorce requires that one of you lived in California for six months and in the filing county for three months. If you recently moved here, you can file for legal separation and later amend your petition to ask for a divorce. Can a legal separation be changed to a divorce later? Often, yes. If you decide before the legal separation is final, you may be able to amend your case to request a divorce. If a legal separation judgment has already been entered, you are still married, and ending the marriage would require a divorce judgment, so talk with an attorney about next steps. Do these rules apply to registered domestic partners and same-sex spouses? Yes. Registered domestic partners follow the same procedures and have the same rights as spouses in a divorce or legal separation, with limited exceptions (Family Code section 299). Partnerships registered in California are not subject to the usual residency rules for filing here, and same-sex spouses married in California who live where they cannot divorce may be able to file in the county where they married.

How JKZ LLP can help

Choosing between legal separation and divorce is deeply personal, and you do not have to decide alone. Our family law attorneys offer compassionate, practical guidance to spouses and registered domestic partners, including same-sex couples, whichever path you choose. With offices in San Francisco, San Diego, Santa Cruz, and Chico, we serve domestic and international clients in English, Spanish, Russian, Arabic, and French. Call [nap_phone id="LOCAL-REGULAR-NUMBER-1"] or contact us online. This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship.]]> On Behalf of JKZ LLP <![CDATA[Form 3520: How to Report Gifts and Inheritances From Abroad (2026 Guide)]]> https://www.jkzllp.com/?p=52780 2026-10-02T18:31:52Z 2026-09-10T18:23:41Z If you are a U.S. citizen or resident and you receive more than $100,000 in gifts or bequests from a nonresident alien individual or a foreign estate during a tax year, you generally must report it to the IRS on Form 3520. The gift or inheritance itself is usually not taxable income to you. The real risk is missing the filing, because the penalty can reach 25% of the amount received. These transfers often arrive at meaningful moments, like a parent helping with a first home or an inheritance after a loss. Here is what to know for 2026. Key takeaways
  • Gifts and inheritances from abroad are generally not taxable income to the U.S. recipient, but large ones must be reported.
  • Form 3520 is required when gifts or bequests from nonresident alien individuals or foreign estates total more than $100,000 in a tax year, counting gifts from related people together.
  • For gifts from foreign corporations or partnerships, the 2026 threshold is more than $20,573.
  • Form 3520 is generally due April 15, or October 15 with an income tax extension.
  • Penalties for failure to file can be huge: late reporting can cost 5% of the gift per month, up to 25%.
  • California has no gift tax or inheritance tax.

Is a Gift or Inheritance From Abroad Taxable in The United States?

Usually not. Federal law excludes gifts, bequests, and inheritances of foreign assets from foreign persons from U.S. estate and gift taxes and from gross income, and California's Franchise Tax Board likewise tells taxpayers not to include them in income. California also has no gift or inheritance tax on today's transfers. According to the State Controller's Office, those taxes are collected only for gifts made, or deaths that occurred, before June 8, 1982. Two caveats apply. Income the assets earn after you receive them, such as interest, dividends, or rent, is taxable. And gifts from a covered expatriate follow a separate federal tax rule, explained below.

Who Must File Form 3520?

Form 3520 is filed by U.S. persons: U.S. citizens and U.S. residents for tax purposes, such as green card holders. The donor's status matters, not where they live. A foreign gift comes from someone who is not a U.S. person, so a gift from a parent who is a U.S. citizen living overseas does not go on Form 3520. Thresholds depend on who made the gift, as the IRS explains on its gifts from foreign persons page:
Who made the gift or bequest Report when the year's total is What you itemize
Nonresident alien individual or foreign estate More than $100,000 Each gift or bequest over $5,000
Foreign corporation or foreign partnership More than $20,573 for 2026 ($20,116 for 2025) Each gift
The $100,000 threshold is fixed. The corporate and partnership threshold is adjusted for inflation each year.

What Counts Toward the $100,000 Threshold?

You count amounts received during the tax year that you treat as gifts or bequests, including an inheritance from a foreign estate. Gifts from related people are combined. You must add together gifts from nonresident aliens and foreign estates if you know, or have reason to know, that they are related to each other or that one is acting as a nominee or intermediary for the other. Relatives include spouses, parents, grandparents, siblings, children, and grandchildren. If your mother gives you $75,000 and your father gives you $40,000 in the same year, the $115,000 total must be reported. Some payments are not reportable gifts. Qualified tuition or medical payments made on your behalf are not treated as gifts, and a distribution from a foreign trust is reported as a trust distribution instead.

When is Form 3520 Due?

For calendar-year individuals, Form 3520 is due on the 15th day of the 4th month after the tax year ends, generally April 15. For gifts received in 2026, that is April 15, 2027.
  • With an income tax return extension: October 15, 2027.
  • If you live and work outside the United States and Puerto Rico (or are on military duty outside them): June 15, 2027, with a statement showing you qualify.
  • For 2025 gifts, if you extended your 2025 return: October 15, 2026.
The current Form 3520 instructions direct filers to mail the form to the IRS Service Center in Ogden, Utah.

What is The Penalty For Not Filing Form 3520?

If you fail to report a foreign gift on time, the IRS may determine the income tax consequences of the gift and impose a penalty of 5% of the gift amount for each month the failure continues, up to 25%. On a $200,000 inheritance, that could mean a $50,000 penalty. Failure to report distributions from foreign trusts generates even steeper penalties. An unreported foreign trust distribution can bring an initial penalty of the greater of $10,000 or 35% of the distribution's gross value. Under the IRS instructions, no penalty applies if the failure was due to reasonable cause and not willful neglect. If you think you missed a filing, speak with a qualified tax professional promptly.

What Form 3520 Does Not Cover, But Still Matters For The Reporting

Income after the transfer. Interest, dividends, rent, and gains earned after you receive the assets are taxable, federally and in California. Inherited foreign accounts. If you have a financial interest in, or signature authority over, foreign financial accounts worth more than $10,000 combined at any time during the calendar year, you generally must file an FBAR (FinCEN Form 114). It is filed electronically with FinCEN, not with your tax return, and is due April 15 with an automatic extension to October 15. You may also need Form 8938, filed with your tax return. For an unmarried taxpayer living in the United States, it generally applies when specified foreign financial assets exceed $50,000 at year-end or $75,000 at any time. Higher thresholds apply to joint filers and people living abroad, and Form 8938 does not replace the FBAR. Foreign trusts. While distributions from a foreign trust are reported in Part III of Form 3520, a foreign trust with a U.S. owner has its own annual information return, Form 3520-A. Foreign investment funds. A foreign corporation is a passive foreign investment company (PFIC) if 75% or more of its gross income is passive or at least 50% of its assets produce, or are held to produce, passive income. Some foreign investment funds organized as corporations can meet this test, and PFIC shareholders may need to file Form 8621. This is a non-exhaustive list that highlights some of the complexities with foreign cross-border transactions.

Gifts From a Covered Expatriate: Section 2801 and Form 708

A covered expatriate is generally a former U.S. citizen or long-term resident who met certain tax liability, net worth, or compliance certification tests when expatriating. Under Section 2801, a U.S. citizen or resident who receives a covered gift or bequest owes a 40% tax on the amount above the annual exclusion ($19,000 for 2025 and 2026). Final regulations (T.D. 10027) took effect January 14, 2025, and the IRS released Form 708 and its instructions in January 2026. Form 708 is due on the 15th day of the 18th month after the calendar year of receipt. For 2025 receipts, the IRS instructions give a due date of June 15, 2027.

How Can Families Plan Ahead for Gifts From Abroad?

  1. Document every transfer and the donor's status. Keep wire confirmations, gift letters, and estate papers showing who gave what, when, and how much, and whether the donor is a nonresident alien, a U.S. citizen, a foreign company, or a covered expatriate.
  2. Consider the type of asset. A donor who is a nonresident and not a U.S. citizen may owe U.S. gift tax on gifts of real estate or tangible property located in the United States, and may need to file Form 709-NA if those gifts to one person exceed $19,000 in 2026.
  3. Coordinate advisers in both countries. Your CPA or tax preparer, your attorney, and the donor's advisers abroad should talk before a large transfer, not after.
  4. Plan for the assets once they arrive. Update your estate plan for what you received. In California, property held in a living trust can generally be transferred without going to probate court. Families with ties to more than one country may also benefit from non-citizen and international estate planning and wealth transfer planning.
For more answers, visit our international estate planning FAQ.

How JKZ LLP Can Help

JKZ LLP helps international families plan for gifts and inheritances that cross borders. Our focus is planning and compliance: clarifying your reporting obligations, updating your estate plan for newly received assets, and coordinating with your CPA or tax preparer in the United States and your advisers abroad. We serve clients in English, Spanish, Russian, Arabic, and French from offices in San Francisco, San Diego, Santa Cruz, and Chico. Call [nap_phone id="LOCAL-REGULAR-NUMBER-1"] or contact us online. This article is for general information only and is not legal or tax advice. Advice varies based on clients’ specific needs and facts. Reading it does not create an attorney-client relationship.]]> by JKZ LLP <![CDATA[A New Look, an Enduring Commitment – Introducing the Refreshed JKZ LLP]]> https://www.jkzllp.com/?p=51845 2025-01-21T16:57:11Z 2025-01-21T16:57:11Z On Behalf of JKZ LLP <![CDATA[JKZ in San Diego!]]> https://www.jkzllp.com/?p=51591 2025-04-24T08:37:25Z 2024-07-26T04:13:15Z On Behalf of JKZ LLP <![CDATA[Celebrating The LGBTQ+ Community For Pride Month]]> https://www.jkzllp.com/?p=50212 2024-06-06T14:26:53Z 2024-06-05T16:23:22Z A couple celebrates in front of San Francisco City Hall on the day same-sex marriage was legalized.[/caption]   At JKZ LLP, we see Pride Month as an opportunity to celebrate LGBTQ+ individuals and to reaffirm our ongoing commitment to the LGBTQ+ community in San Francisco and beyond. Pride Month occurs every June, the anniversary of the Stonewall uprising of 1969 in Manhattan, in which LGBTQ+ people fought back against police raids of a popular gay bar. This is considered a critical juncture in the fight for the rights of the LGBTQ+ community. As active members of this community, we work hard to protect the rights of all LGBTQ+ individuals. We volunteer our time, money and support to a wide range of organizations, including LAMBDA Legal, the National LGBT Bar Association, the National Center for Lesbian Rights (NCLR) and the Transgender Law Center, among many others. Our attorneys have spoken at a variety of events, informing audiences about current issues facing LGBTQ+ individuals. We employ many LGBTQ+ individuals and we encourage members of the LGBTQ+ community interested in pursuing a career in law to review our job postings. We provide guidance to LGBTQ+ individuals and couples in many legal matters, from creating estate plans and trusts to adopting children, from pre-nuptial agreements to trust administration and litigation. While the fight for equal rights for LGBTQ+ individuals is ongoing, we take this month to celebrate everything the community has achieved and the impact the community has had worldwide. We wish all members of the LGBTQ+ community and our allies a safe and happy Pride Month.  ]]> On Behalf of JKZ LLP <![CDATA[The Corporate Transparency Act (CTA) may affect you]]> https://www.jkzllp.com/?p=51407 2024-01-04T20:28:21Z 2024-01-02T18:04:53Z
  • identifying information on the company legal name, trade name and “DBA,”
  • address for principal place of business of the company,
  • jurisdiction in which the company was formed (or, for a foreign reporting company, the state, territory or tribal jurisdiction where it first registers),
  • the company’s EIN, and
  • information pertaining to the company’s beneficial owners and, if applicable, to the company’s applicants: (a) their respective legal names, (b) their date of birth, (c) their current address, (d) ID number (passport, driver’s license, etc.), and (e) image of document with ID,
    • For purposes of the CTA a “beneficial owner” is an individual who, directly or indirectly, either (1) exercises substantial control over a reporting company, or (2) owns or controls at least 25% of the ownership interests of a reporting company. This definition is broad and can include anyone who has the authority to appoint or remove certain officers or a majority of directors or who has direction or substantial influence over important matters at the reporting company. Note that while trusts (other than trusts created by a filing, such as statutory or business trusts) are themselves not required to report directly under the CTA, trustees or other trust fiduciaries, grantors retaining certain powers and certain trust beneficiaries could fall under the umbrella of beneficial owners with respect to 25% ownership interests in all reporting companies the trust owns. A “company applicant” is any individual who files an application to form or register an entity under the laws of a state, including the person who directed the filing. The company applicant reporting applies exclusively to new reporting companies formed after January 1, 2024. Note that individuals may also apply and obtain “FinCEN identifiers,” which can then be provided to FinCEN on a BOI report in lieu of the required information about the individual. For reporting companies already in existence prior to January 1, 2024, the BOI initial report will be due by January 1, 2025. Proposed regulations issued on September 27, 2023, extend the period for which reporting companies formed on or after January 1, 2024, and before January 1, 2025, must file their initial BOI report to within 90 days of the company’s formation. Reporting companies formed on or after January 1, 2025, must file an initial BOI report within 30 days of the company’s formation. Failure to report the information required by the CTA can result in substantial civil and/or criminal penalties. On January 1, 2024, FinCEN will launch its cloud-based beneficial ownership information technology system to securely collect, process, and store that information and FinCen should start accepting the BOI reports. FinCEN is separately working to stand up a dedicated beneficial ownership contact center to respond to inquiries about the beneficial ownership reporting requirements, and to provide assistance to users encountering technical issues with the BOI reporting. While no reporting under the CTA is required prior to January 1, 2024 and for most existing business entities the reporting deadline is January 1, 2025, business owners, asset managers, institutional investors, board of directors and limited liability companies’ managers should promptly commence initial CTA reviews in order to determine whether they are required to lodge the BOI reports in the first place and to identify beneficial owners and applicants and start collecting required information. For more information and updates on the reporting requirements and implementation of the CTA please visit the FinCEN dedicated website at https://www.fincen.gov/boi. Please also feel free to contact the attorneys at JKZ should you have additional inquiries.]]>         On Behalf of JKZ LLP <![CDATA[Could your parenting plan benefit from a modification?]]> https://www.jkzllp.com/?p=50888 2024-01-04T20:58:58Z 2023-01-20T19:45:13Z If you are co-parenting in California, it is highly likely that your relationship with that co-parent is governed in part by a parenting plan. Depending on when the original order was put into place, you may have been operating under the same set of terms for years.  If your family’s circumstances have changed significantly and your child’s best interests are no longer accurately met by the expectations laid out in your original parenting plan, it might be time to modify it. You will need to consider different approaches to modification based on whether you and your co-parent can agree to any alterations that you may have in mind. 

    If you can reach an agreement

    You and your co-parent are empowered to modify the terms of your parenting plan, provided that these modifications honor your child’s best interests and provided that you can agree to the specific alterations in question.  You will simply want to make sure that you take steps to file your modification with the court. Otherwise, these modifications will not be legally enforceable. That oversight could leave you vulnerable to accusations of a breach and to an inability to hold your co-parent accountable for breaching the new terms.

    If an agreement cannot be reached

    If your co-parent does not agree to your proposed modification, you will need to file a formal request for the court to modify it. You will need to be prepared to explain why your request should be granted as a reflection of your child’s current best interests. You will also need to be prepared to explain how your circumstances have fundamentally changed – resulting in the need to modify your agreement – since the order was first handed down.  Carefully considering whether your current co-parenting arrangement could benefit from a child custody modification may be an effort that is worth your time. As your child grows and your family’s needs evolve, making adjustments to this consequential document could result in any number of positive consequences. ]]>         On Behalf of JKZ LLP <![CDATA[Why Should I Update My Estate Plan After A Divorce?]]> https://www.jkzllp.com/?p=50741 2024-01-04T20:49:28Z 2022-10-21T09:55:49Z change your estate plan after the end of your marriage?

    Your spouse is probably your primary beneficiary

    While at least to some extent under California law once the divorced is finalized your spouse is automatically removed as beneficiary and decision maker with respect to your estate plan, you want to be proactive in making the necessary changes and updates. Unless you structured your estate plan specifically to leave resources to charity or support your minor children, then the chances are very good that your estate plan primarily protects and benefits your spouse. They may be the main recipient of any assets that you have in your name when you die and also the beneficiary named on your life insurance paperwork. Reviewing all of your documents, from your beneficiary designations with your insurance provider to your actual will or trust documents can help ensure that your ex will not receive most of your property when you die or be in a position to challenge your estate plan.

    Your spouse could have legal or financial authority

    If you drafted powers of attorney or advance directives to address the possibility of incapacitation, you may have named your spouse as the individual with the authority to access your private bank accounts or make decisions about your medical care. Obviously, you don't want someone who will fail to act in your best interests having control over your health care or your finances while you are incapable of asserting yourself. Removing your spouse from powers of attorney, trust documents and advance directives will help guarantee that people you trust will be the ones managing your care or your resources in an emergency scenario. Finally, if the two of you share children, revising your estate plan can help guarantee there is an appropriate guardian to take care of your children and that your ex won't be able to misappropriate any resources you need for your children when you die if your children are still minors when you die. Careful and thorough estate planning will be an important step to take for your own protection following the end of your marriage.  ]]>         On Behalf of JKZ LLP <![CDATA[How To Pick An Executor For Your Will]]> https://www.jkzllp.com/?p=50739 2022-10-17T19:24:12Z 2022-10-14T03:40:28Z Choosing a person to be the executor of your will and the rest of your estate is one of the most important estate planning decisions you will make. However, too many people – particularly those who don’t have a spouse -- tend to choose one of their children, siblings or friends to serve as executor. They may be the best person for the job – or they may not be. Close family members don’t always make the best executors. For one thing, they’ll likely be dealing with their own grief and not in a position to take on the responsibilities and decisions that are required. 

    The job entails a multitude of responsibilities

    There’s a lot more to do besides make sure your assets are distributed as you designated. They’ll need to pay bills, file tax returns, deal with the probate court, manage disputes among beneficiaries and numerous other tasks large and small. Executors are generally paid a portion of the estate because it’s a job. It’s always a good idea to broaden your search a bit – at least for an alternate executor in case the one you name can’t do it. Let’s look at some of the important qualities you would want to consider. Ideally, an executor should be someone who:
    • Is responsible and organized
    • Has a clean financial record of their own (California requires executors to be bonded.)
    • Is ideally younger than you (or at least has sufficient capacity and experience to handle the job)
    • Is able and willing to deal firmly but tactfully with pressure from loved ones as well as third parties like creditors and ensure that your wishes are carried out
    An executor doesn’t have to live nearby. However, if they don’t, it’s best if they’re able to travel. They may have to maintain and otherwise deal with your home and other property. They’ll need to make sure everything is secure until it can be sold or otherwise distributed.

    You may want to consider a professional

    If you don’t have friends or family who fit the bill or whom you want to ask to take on such a large responsibility, there are professionals you can hire. Financial institutions often have trust departments, for example. There are also private professional fiduciaries who are often hired to handle estate administrations.   It’s a lot to think about. Just make sure that you have the permission of whomever you designate and that they understand what it entails. Remember that thorough estate planning with sound legal guidance can help make your executor’s job easier and leave less room for mistakes that could derail your legacy.  ]]>