An important part of financial planning includes creating a Living Trust. It means that your family will inherit your assets as you have planned.

Another kind of financial planning: Investing that aligns with your values
To assess sustainability based on Environmental, Social and Governance (ESG) factors, investors look at a broad range of behaviors:

• Environmental criteria include a company’s energy use, waste, pollution, natural resource conservation and treatment of animals.For example, are there issues related to its ownership of contaminated land, disposal of hazardous waste, management of toxic emissions, or its compliance with environmental regulations?

• Social criteria may look at the company’s business relationships. Does it work with suppliers that support the same values? Does the company donate a percentage of its profits to the local community or encourage employees to perform volunteer work. Is there salary equity between men and women?

• Governance may examine whether or not a company uses accurate and transparent accounting methods and that stockholders are given an opportunity to vote on important issues. They may also want assurances that companies avoidconflicts of interest.

What’s next for SRI?

• Climate change is a big focus for President Joe Biden, which could further boost ESG funds, experts say.

• There has been a rise in assets in SRI, to $12 trillion at the beginning of 2018, up from $8.72 trillion at the beginning of 2016, according to a US/SIF Foundation report on investing trends.

• According to Morningstar, ESG funds captured $51.1B of net new money from investors in 2020, a record that more than doubled from 2019.

Financial planning and your Living Trusts
We service the entire East Bay and North Bay areas

Another kind of financial planning that has grown dramatically over the last few years is socially responsible investing (SRI). Also called impact-, sustainable- and values-based investing, SRI is a investing that helps people and/or organizations align their investments with their personal values.

A Morgan Stanley survey found that 75% of individual investors and 86% of millennials are interested in sustainable investing. But it’s not just a millennial thing, and it’s not just about politics. Things like climate change and equality transcend politics. Last year tied for the warmest on record, and Black Lives Matter protests sprang up across the U.S. following George Floyd’s death.

There are good reasons for SRI. It ensures that you’re not putting your money toward something you oppose for moral or religious reasons. SRI is a mature field with decades of history, but until recently it’s been relatively small and stable. The last few years have brought a significant increase in visibility, demand and a proliferation of new, sustainable investment products.

People are asking questions about corporations’ social impact. Many companies and fund managers are now publishing a Corporate Responsibility Report. This means that companies are self-reporting on their efforts to have a positive impact on the environment, social causes and culture.

Our Living Trust package includes a Power of Attorney and Advance Healthcare Directive. Having these legal documents in place now can help avoid confusion later on. We learned an important lesson from Covid: Once patients were infected with the virus, they were in no condition to be signing legal documents. We guide you through the process, and we prepare the legal documents. Schedule an appointment with Guideway today.

Berkeley, El Cerrito, Richmond, Pinole, Alameda, San Leandro, Castro Valley Newark, San Lorenzo, Concord, Alamo, Danville, Lafayette, Orinda, Moraga, Pleasant Hill, Martinez, Pittsburg, Antioch, Brentwood, Oakley, Discovery Bay, Pleasanton, San Ramon, Livermore, Tracy and Fremont. Our clients also live in the Napa Valley, Benicia, Vallejo, Martinez, Fairfield.

Trust Update: 25 Years Later, a Completely New Document

Oakland resident “Henry” came in to update his Living Trust after his wife died. Their Trust was amendable by the survivor, and he wanted to make some changes. Henry and his wife had created their Trust 25 years ago, and while it named their five children as beneficiaries, it did not address the fact that two of their now-adult children had special needs.

A lot had changed in 25 years, including the addition of new grandchildren

Henry wanted to add his five grandchildren as beneficiaries—all had been born after the Trust’s creation. Henry was active and in good health, but his wife’s death had made him aware of his own vulnerability, and he wanted someone to help him manage the Trust’s assets immediately. His son, John, was a CPA, and while Henry was closer to his artist daughter, Kate, he knew that John would be the better choice to help manage his estate.

As often happens, we discovered real property that had not been moved into the Trust

There’s a reason why we urge our clients to review their Trusts periodically or after important life events. A lot changes in 25 years. When we investigated the status of his real properties, we found that they were no longer in the old joint Trust. Since these were the only assets they had originally deeded into their Trust, and they were no longer in it, Henry decided that the old trust was so dated that it made sense to start from scratch, creating a new Trust and moving all of the appropriate assets into it. He would also address the life changes that had taken place since the first Trust some 25 years before, including adding his new grandchildren and making accommodation for his two special-needs children. Henry completed the appropriate workbooks for us, including those to establish two Special Needs Trusts as well as the transfer of his three properties into the Trust.

Another obstacle: Incorrect Deeds which needed to be unraveled

When we were preparing the Deed transfers to go into his new Trust we could see that the property descriptions for two of the properties were incorrect. After exploring this with him, we found out that more than 20 years ago, he had split one property into two. No new property descriptions had been written, and the last recorded Deeds were incorrect. With the help of the county assessor, we were able to discern what needed to be done to help him correct the property descriptions and transfer the properties into his Trust. This was important because Henry was leaving one of those properties to his son.

Important features of the new Living Trust

• John was immediately named as co-Trustee; if Henry became incapacitated or simply needed help with Trust assets, his son could take over without requiring the involvement of doctors.
• Two Special Needs Trusts put the beneficiaries’ shares in the hands of the Successor Trustee to manage so his children did not lose the public benefits to which they are entitled.
• After Henry’s death, shares for Henry’s five grandchildren will be controlled by the Successor Trustee who, at his discretion, can use the funds if needed for their welfare or education until they reach an age Henry designated.

California Document Preparers prepared the new Trust, an updated Power of Attorney, and Advance Health Care Directive and called Henry when it was time to sign them. He was immensely relieved to have these documents brought up to date.

How long has it been since you prepared your Living Trust? Like Henry, there’s a very good chance that there have been significant changes to in your life. Call California Document Preparers at one of our three Bay Area offices today to schedule an appointment to amend your Trust. We’re helpful, compassionate and affordable.