Posted by & filed under Estate planning, Retirement Planning, taxes.


California May Soon Require Employers To Offer Retirement Benefits To Their Private-Sector EmployeesBy Special Guest Nick Gizzarelli, CPFA, QPA, QKA

The Golden State has finalized regulations for the implementation of a state-run automatic Roth IRA plan, becoming the third state to create an auto-IRA program for the private-sector.

Recently renamed CalSavers (formerly California Secure Choice), this program will require employers with five or more workers to either offer an employer-sponsored retirement plan or enroll their staff in the state-run program. Scheduled to take effect by the end of 2018, CalSavers will grant 12 months for businesses with 100 or more employees to comply, and will gradually phase in smaller businesses over the subsequent two years.

 

“Regardless of socioeconomic status, the hard-working people of California who have made our state a global economic powerhouse deserve a measure of financial security in their golden years,” said Senate President Pro Tem Kevin de León, who authored the legislation designed to introduce a retirement savings program to the 7.5 million Californians not covered by an employer-sponsored plan.


The Role of the Employer

As written, the regulation will require employers with at least five employees and who do not offer an employer-sponsored plan to setup automatic IRA payroll deductions for both part-time and full-time employees within 30 days. Only employees working in California will be eligible for the program. Employers must determine if and when CalSavers will impact their business and register with the state by the deadline. For employers wanting to opt-out of the state-run program, they will want to adopt an employer-sponsored retirement plan before the same deadline.

Employers will be responsible for identifying eligible employees, distributing required notices, setting up automatic payroll deductions, and transmitting the funds to CalSavers. Penalties and fees will apply for failure to enroll eligible workers or properly execute the employer’s administrative duties.

Because CalSavers is a state-run Roth IRA program, some employees may not be eligible to contribute as eligibility to participate in a Roth IRA is based on an individual’s adjusted gross income. It is unclear whether the employer or individual will be responsible for determining whether or not the worker is eligible to participate in a Roth IRA.

The plan will not allow the employer to make discretionary or employer matching contributions. Only employee IRA deductions will be allowed.

 

Who Pays for the Plan?

CalSavers is intended to be self-sustained, funded by fees deducted from employee account balances. California will not impose any direct fees to the employer during or after registration, however third party vendors, such as banks or payroll companies may impose fees to setup the deductions and funds transfer to the state.

When determining the financial impact on a business, the employer should carefully consider how to allocate internal resources to comply with the new regulation. While technically not considered an employer-sponsored plan, the employer will still be responsible for many of the ministerial functions related to enrollment, contributions, and employee communications. Failure to fulfill these duties may result in penalties or fees to the business.

 

No Qualified Plan, No Federal Tax Credit

Because CalSavers is not an employer-sponsored plan, the employer will not be eligible for the retirement plans startup costs tax credit, which reimburses employers for a portion of the costs related to implementing a new retirement plan. Currently, employers who setup a new employer-sponsored plan are eligible to receive tax credits of up to $1,500 to offset implementation and administrative fees.

 

Employers Have Options

California has started the countdown for businesses who do not yet offer retirement benefits for their staff. Employers scrambling to meet this deadline, should carefully research all available retirement options. Undoubtedly, more details about CalSavers will become available as we near the expected rollout date.

Keep informed by visiting www.treasurer.ca.gov/scib/ or by contacting Nick Gizzarelli at nick@thomasdoll.com.

 

Nick Gizzarelli-California May Soon Require Employers To Offer Retirement Benefits To Their Private-Sector EmployeesAbout Nick Gizzarelli, CPFA, QPA, QKA

Nick Gizzarelli is a Retirement Plan Specialist at Thomas Doll, an employer-sponsored retirement provider located in Walnut Creek, CA. Nick and his team have worked for over three decades to bring Fortune 100 level retirement plan services to the small- and mid-employer space. Nick is a current member of the American Retirement Association and National Association of Plan Advisors, as well as former member of the National Institute of Pension Administrators.

Posted by & filed under Estate planning, Pet Trust, Trusts.


A pet trust is a legally sanctioned arrangement providing for the care and maintenance of one or more companion pets in the event of a grantor’s disability or death. The “grantor” (also called a settlor or trustor in some states) is the person who creates the trust, which may take effect during a person’s lifetime or at their passing. Typically, a trustee will hold property (cash, for example) “in trust” for the benefit of the grantor’s pets.  Payments to a designated caregiver(s) will be made on a regular basis. (ASPCA)


Are You Asking Yourself “How Can Care be Provided to My Pet When I No Longer Can?”

 

Thinking Ahead

 

It’s never pleasant to think about one’s own passing or catastrophic health problems, but the only way to ensure your animal’s future is to make arrangements before tragedy strikes. Cats and dogs can live up to 20 years or more so depending on your own age, your companion could outlive you. Even if you’re young, you could still fall victim to an accident or illness. In the U.S., animals can be fully protected in one of two ways: a “Pet Trust” or a “Companion Animal Trust.” While there are other options, (Pet trusts in California are typically included in your living trust) AnimalWellness recommends these are the best options for your pet. Both go into effect immediately upon your passing or disability and ensure that your companion will receive proper care for the remainder of their days.

 

Choosing Your Plan

 

There are many ways to assure yourself that your animal will receive the appropriate care after your death. One option, like a will, are not recommended due to many inherent problems. AmericanBar provides a detailed list on why to avoid a will for your pet’s care. Instead consider a Pet Trust or Companion Animal Trust; they are better suited because of the ability to contain all the relevant options for your fur-baby’s care. It’s a simple, legally binding document that covers everything from naming a guardian to the pet’s day-to-day routine, to what funding will be provided, and they’re valid in all 50 states. According to AnimalWellnes, The Companion Animal Trust  kicks in immediately when you find yourself unable to care for your pet because of death, injury or illness. There is no waiting period or court involvement.

 

Approaching the Trust Like a Love Letter

 

Think of the trust as a document of affection and protection. So consider your pet’s daily routines, favorite treats and personal history. Many ideas for the specifics of a pet trust will spring from your close knowledge of your pet. These details in turn, can help establish an adequate level of care. According to VetStreet, by describing the specifics of your current pets, you can also cover the needs of other pets that you might have in the future. The wording should read, ‘This is the standard of care that I want for my animal.’ The emotion you bring to it, the way you treat your animals now, can be the same for later pets. The next time that you’re going through the motions — feeding your cats, taking your dogs for a walk — make a precise list of what you’re doing. What time do your dogs usually go to the park? Does your cat get a specific brand of treats? Do you scratch their ears when they lie down for a nap? Whatever may be second nature to you could be helpful information for a future caregiver.

 

Are You Ready To Assure Your Companion Receives Appropriate Care For Life?

Lifetime care planning for pets doesn’t have to be complicated, expensive, or overwhelming. That’s why at  The Law Offices of Joel A Harris, we offer the best guidance for animal trusts catered to your individual needs. Throughout the process, we explain everything and patiently answer every question you may have. Since 1993, The Law Offices of Joel A Harris has worked tirelessly to assure individuals receive the most beneficial Animal Trusts for their companions. We love our pets too! Feel free to reach out to us at (925)757-4605.

 

Sources

  1. Animal Wellness, Barbara Nefer https://animalwellnessmagazine.com/setting-up-pet-trust/
  2. ASPCA https://www.aspca.org/pet-care/pet-planning/pet-trust-primer
  3. American Bar, Rachel Hirschfeld https://www.americanbar.org/newsletter/publications/gp_solo_magazine_home/gp_solo_magazine_index/petestateplanning.html
  4. LifeHacker, Dave Greenbaum https://lifehacker.com/set-up-a-financial-trust-for-your-pet-if-you-die-no-se-1656070383
  5. vetStreet, Jennifer Paull http://www.vetstreet.com/our-pet-experts/5-innovative-ideas-for-owners-who-want-to-set-up-pet-trusts
  6. Whole Dog Journal, CJ Puotinen https://www.whole-dog-journal.com/issues/15_4/features/Setting-Up-A-Pet-Trust_20495-1.html

Posted by & filed under Estate planning.


Don’t Hide Your Estate PlanEstate Planning is the process of making a plan in advance and naming whom you want to receive the things you own after you pass away. Estate Planning is not just for “retired” people. Although people tend to think about it more as they get older. Unfortunately, we can’t successfully predict how long we will live, and illness and accidents happen to people of all ages. When creating an Estate Plan there’s many things to consider, one of them is should I make my estate plan private or public?


Five Reasons To Make Your Estate Planning Public

  • If your documents aren’t found, the state takes over

    Life is very unpredictable. We should always plan for the worst, and hope for the best. One of the worst things that can occur after death is your hard earned assets not being properly distributed. This can be due to the fact that you were the only person to have the only original document of your estate plan.

 

    To avoid having your documents lost after your death, you can share copies with the right people, including your attorney and your Executor or Trustee. You should also let your Executor or Trustee know where your original documents are kept. If you use a safe deposit box, your Executor or Trustee should have their name on the box, and access to a key.

 

    For our trust clients, we always prepare a summary of your trust called an “Abstract”. Some trusts will come with a similar document called a “Certification”. We recommend providing copies of the trust summary, together with your attorney’s business card or contact information, to your successor trustees.

 

    In California, if nobody can find your original Will, the presumption will be that you either did not leave a will or you intended to destroy it. According to the balance, Your assets will pass to your closest kin in an order set by state law rather than by the terms you set out in your estate plan if your documents aren’t found.
  • Keeping it “In a Safe Place” might require a court order to later retrieve your document

    An Estate document is very important, but sometime keeping it too safe is counterintuitive. Many people think that their safe deposit box is the best place to store their original estate planning documents, but this isn’t always the case. According to the balance, In many states, your family will need a court order to open up the box and locate your documents if it’s in your sole name without a joint owner. Your loved ones won’t have immediate access to your estate plan if you become disabled or after you die, at least not without that court order. If you still believe that a safe box is the best way to keep your document safe. Consider adding the names of your executors or successor trustees to your safe deposit box, and make sure they have access to a key!
  • Natural Disasters can create a headache – if you’re not prepared

    Keeping your original estate plan in your home is perfectly okay. Keeping the ONLY original estate plan document in your home on the other hand is very risky. Natural disaster cannot be avoided, and when they do arrive – grabbing your estate documents is not your first priority. Allowing your Attorney to retain signed copies of all paperwork relating to your estate is crucial. So in case your house undergoes a natural disaster,  you know that your attorney will be able to recreate everything. Apart from your Attorney, your Executor or Trustee can also retain signed copies. Your executor will be able to proceed with the papers at their fingertips without any issues.

Our office actually prepares signed duplicate originals for our clients “just in case”. This was a great relief for our clients affected by the recent Napa/Sonoma area fires.
  • California maintains an Advance Directive Registry.

    California maintains an Advance Directive Registry. By filing your advance directive with the registry, your health care provider and loved ones may be able to find a copy of your directive in the event you are unable to provide one. You can read more about the registry, including instructions on how to file your advance directive, at http://www.sos.ca.gov/registries/advance-health-care-directive-registry/

You may also want to save a copy of your form in an online personal health records application, program, or service that allows you to share your medical documents with your physicians, family, and others who you want to take an active role in your advance care planning.

 

  • Are You Asking Yourself “Is My Estate Plan Ready & Is It Perfectly Distributed?”


An Estate document has a vast amount of personal information. You should be able to count on the people that retain your documents. At The Law Offices of Joel A. Harris, we can help you build your estate plan, answer any questions, help you distribute your documents to right people, and properly protect your signed estate plan. Throughout the process, we explain everything & answer every question you may have. Since 1993,
The Law Offices of Joel A. Harris has worked tirelessly to assure individuals receive the most beneficial estate planning. Feel free to call us at (925)757-4605!