California Wills & Trusts: February 2006 Summary

Legal Developments

Increased Federal Tax Exemptions (effective January 1, 2006)

Applicable Exclusion Amount: $2,000,000

GST Exemption Amount: $2,000,000

Acknowledgement Language Modified (effective January 1, 2006)

Civil Code §1189(a) has been amended, effective January 1, 2006, to require the inclusion of the name and title of the officer in an acknowledgement form.  Specifically, the use of the phrase "the undersigned notary public" is no longer sanctioned.  You will now be prompted to provide the officer’s name and title.  New California Wills & Trusts Questions 1212 and 1213.  Question Help added at Questions 909, 910, and 938.  Optional acknowledgement added for Community Property Declaration (New Questions 1148 and 1149) and Nomination of Guardian (New Questions 1181 and 1182).  New California Irrevocable Trusts Questions 469 and 470.  New Rev. Proc. Charitable Remainder Trusts Questions 47 and 48.

Social Security Numbers are No Longer Included in a Statutory Durable Power of Attorney for Assets (effective January 1, 2006)

Probate Code §4401 has been amended, effective January 1, 2006, to delete the line for a social security number from the statutory durable power of attorney for assets form.  The intention is to help thwart identity theft.  The amendment requires that the form now include a provision that a third party may seek identification.

On August 22, 2005, the IRS issued eight new Revenue Procedures Addressing the Use of Unitrusts in Charitable Remainder Trusts

These new documents do not change any specific laws, but are a welcome guide for counsel drafting charitable remainder unitrusts.  The full text is provided in Revenue Rulings and Procedures in Resources in the California Wills & Trusts title. They are briefly summarized as follows:

1.  Rev. Proc. 2005-52; 2005-34 IRB 326 One Life Unitrust

2.  Rev. Proc. 2005-53; 2005-34 IRB 339 Term of Years Unitrust

3.  Rev. Proc. 2005-54; 2005-34 IRB 353 Two Life Separate Property Unitrust

4.  Rev. Proc. 2005-55; 2005-34 IRB 367 Two Life Joint or Community Property Unitrust

5.  Rev. Proc. 2005-56; 2005-34 IRB 383 Test. One life unitrust

6.  Rev. Proc. 2005-57; 2005-34 IRB 392 Test. Term of Years Unitrust

7.  Rev. Proc. 2005-58; 2005-34 IRB 402 Test. Two Life Separate Property Unitrust

8.  Rev. Proc. 2005-59; 2005-34 IRB 412 Test. Two Life Joint or Community Property Unitrust.

Rev. Proc. Charitable Remainder Trusts: Question 1.

Updated Product Features

"How To" Added for Special Trusts

“How To” is the first choice at Question 1.  It provides useful instructions and helpful suggestions on many areas of Lawgic use.  One of the most frequently consulted options is “Create various trusts on death.”  A section on “Special Trusts” has been added for greater clarity.  Questions 13.

New Ability to Add Custom Articles

You have always been able to add custom sections to many articles.  Now you can add an unlimited number of custom articles, each with an unlimited number of custom sections.  New Questions 854 through 867.

Upgraded User Interface

Lawgic's user interface now incorporates the latest version of Java, which improves both stability and appearance.  You will notice a new title initialization progress bar as answer files are loaded.  If your mouse has a wheel you will now be able to use the wheel to scroll.  More questions are now visible at one time in the Navigator.  In general you will see a greater consistency of font and dialog box appearance.  Before Lawgic is launched the system is checked for misplaced or corrupted files, and the user is alerted if corrections are needed. The consistency and function of accelerator and shortcut keys has also been improved.  To make sure that all your answers are saved the Tab key has been disabled where multiple questions appear on the same screen – to advance to the next question you should either click Continue or place the cursor in the next field with the mouse.  Finally, there is now a direct link to the Lawgic web site on the menu bar labeled Connect.