DO I NEED A LIVING TRUST?

A Living Trust is a written legal document that partially substitutes for a will. With a living trust,  assets  such as your home, bank accounts and stocks are put into the trust, administered for your benefit during your lifetime, and then transferred to your beneficiaries upon your death.Most people name themselves as the trustee in charge of managing their trust’s assets. This way, even though your assets have been put into the trust, you can remain in control of your assets during your lifetime. In the alternative, you can name a successor trustee who will manage the trust’s assets if you ever become unable or unwilling to do so yourself.

Your living trust agreement will:

• Give the trustee the legal right to manage and control the assets held in your trust.
• Instruct the trustee to manage the trust’s assets for your benefit during your lifetime.
• Name the beneficiaries (persons or charitable organizations) who are to receive your trust’s assets when you die.
• Give guidance and certain powers and authority to the trustee to manage and distribute your trust’s assets. The trustee is a fiduciary, which means he or she holds a position of trust and confidence and is subject to strict responsibilities and very high standards. For example, the trustee cannot use your trust’s assets for his or her own personal use or benefit without your explicit permission. Instead, the trustee must hold and use trust assets solely for the benefit of the trust’s beneficiaries

One of the most frequently asked questions our office receives is whether one still needs a will if a living trust is already in place? Generally, your will affects any assets that are titled in your name at your death and are not in your living trust or some other form of ownership with a right of survivorship. If you have a living trust, your will would typically contain a pour over provision. Such a provision simply states that all such assets should be transferred to the trustee of your living trust after your death. (This does not mean, however, that your beneficiaries can avoid going through probate for these assets.) Additionally, with a will, you can nominate guardians for your minor children as well. Any assets held in a trust for your children would still be managed by the trustee.

For more information on planning for your future, contact our office at 626-288-8823 for a free consultation.

WHY YOU NEED UNINSURED MOTORIST INSURANCE

 

All drivers in California are required to have automobile insurance. However, despite California law, staggering statistics from the Insurance Research Council reveal that over 4.1 million of California motorists do not have any insurance.

An individual may be considered an uninsured motorist when: 1) the individual has no insurance at all; 2) has insurance but it is less than the state-mandated minimum limits of coverage; 3) someone who has insurance and causes an accident, but his or her insurance company denies the claim or is not financially able to pay it; 4) A hit-and-run driver who leaves the scene of the accident without leaving sufficient information to identify himself or herself, is also considered an uninsured motorist for purposes of bodily injuries.

An underinsured motorist is someone who has at least the bare minimum of coverage as required by law, but the limits of their policy is insufficient to pay for all of the damaged caused by the accident.

Uninsured insurance coverage (UM) and underinsured insurance coverage (UIM) is coverage you buy from your own insurance company. It pays for bodily injury losses to you and your passengers if you get into an accident caused by a driver who does not have insurance, or has insurance but the limits are insufficient to cover all of the injuries and damages. Although California law does not require that you have uninsured/underinsured coverage, but it is definitely something that you should think about obtaining. If you do not have UM coverage and get into an accident caused by an uninsured motorist, the chances are that you are going to have to bear the brunt of the expenses to treat your injuries and fix the damage to your car out of your pocket.

Underinsurance means that the driver has the minimum limits of coverage required by law, but those limits are insufficient to compensate you fully for your injuries. When a claim is made under an underinsure motorist policy, your insurance kicks in only after the other driver’s insurance is exhausted and is deducted from your limits. For instance, say you have an insurance policy with bodily injury limits of $100,000, the driver who hit you has only the minimum of $15,000, but your damage comes to $115,000. Can you combine the other driver’s $15,000 with your policy’s limits of $100,000 to receive a total of $115,000? No. The other driver’s insurance is deducted from your underinsurance limits, so that the most you can recover is $100,000, the limits of your underinsured policy.

Uninsured/underinsured covers your medical expenses, lost wages, loss of earning capacity, pain and suffering, disfigurement, and other damages resulting from the accident, up to the limits of your policy. Both UM and UIM apply to you and your passengers, and also covers you and other persons named in your insurance policy (such as family members) if you are injured in other cars.

Besides uninsured/underinsured motorists’ coverage for bodily injury, you may consider getting insurance coverage for the property damage to your vehicle caused by an uninsured or underinsured motorist. If you have collision coverage, it may not be necessary to get UM or UIM coverage for property damage. If, however, you do not have collision coverage, you may consider getting UM/UIM property damage insurance at a reasonable price. The deductible for the UM/UIM property damage coverage is generally lower than the deductible for collision coverage with the same limits. However, you should be aware that uninsured property damage does not apply to hit-and-run accidents. The reason for this is that, because the deductible for UM property damage is usually less than the deductible for collision coverage, drivers may be tempted to tell the insurance company that the car was damaged in a hit-and-run when that is not the case. There is also the possibility that the motorist will purchase uninsured motorist property damage but not collision coverage. For this reason, you may wish to have collision coverage on your insurance policy.

Uninsured/underinsured coverage is generally inexpensive, considering the protection you get. You should have UM/UIM insurance to the same limit as your bodily injury limits. The legal limits for mandatory insurance of $15,000 maximum per person to a maximum $30,000 per accident and $5,000 for property damage were set decades ago but today the are usually insufficient to fully cover anything more than a minor fender bender. At a minimum, you should have limits of $100,000 per person, $300,000 per accident, and $25,000 in property damage. If you have substantial assets, you should have a policy of at least $300,000 per person, $500,000 per accident, and $50,000 property damage. You should also seriously consider buying an “umbrella” policy that will protect you for $1 million or more. To obtain an umbrella policy, you usually need to have your automobile insurance policy and homeowner’s policy with the same company. Talk to your insurance agent if you wish to learn more about the benefits and costs of an umbrella policy.

If your insurance company refuses to pay you under an uninsured or underinsured motorist coverage, you may be able to sue the insurance company for breach of contract on the basis it did not live up to your agreement created when you purchased the uninsured or underinsured motorist coverage. Your insurance policy may, however, require that you arbitrate the claim rather than give you a right to sue in court. If you are successful and the insurance company had no reasonable basis for denying your claim, you may be able to sue your insurance company for “bad faith” denial of your claim. In a successful bad faith claim against the insurance company, not only would you be entitled to recover the damages you suffered from the accident, but also any and all damages you incurred as a result of the insurance company’s bad faith refusal to pay your claim. You would also have the right to ask for “punitive damages” from the insurance company for their callous actions, resulting in a possible award in the hundreds of thousands of dollars, even millions, against the insurance company.

Let’s look at the issue from the other side of the coin. Suppose you were the driver who was uninsured and were injured in an accident caused by an insured driver. Can you recover money for your injuries and damages from the insured drive? Partly. You are entitled to recover your so-called “economic damages,” such as medical bills and lost wages. You are not allowed to receive compensation for your “non-economic damages,” such as pain and suffering, inconvenience, physical impairment, disfigurement, and other “nonpecuniary” damages. The limitation does not apply, however, if the person who caused the accident was convicted of driving under the influence. Also, you are entitled to sue for punitive damages where the facts indicate the person who hit you intended to do so, was driving under the influence, or was recklessly operating his or her vehicle without due regard for other motorists on the road, even though you have no insurance yourself.

If you are injured by an uninsured or underinsured driver and will be making a claim against your own insurance company, do you need a lawyer to represent you? Yes. Just because you have uninsured/underinsured insurance coverage does not mean that your insurance company is going to pay you for your damages (up to the limits of your policy) without question. Your insurance company will want to pay as little as possible to settle the claim without due regard for the extent of your damages. Your insurance company may attempt to say that you were all or partially at fault for the accident and try to reduce the amount they pay you accordingly. The insurance company may also dispute the extent of your injuries, or take the position that you could have gone back to work a lot sooner than you actually did. In other words, when you make an uninsured or underinsured claim against your own insurance company, an adversarial relationship often arises. A lawyer can represent you and negotiate with the insurance company on your behalf to get you maximum recovery. Studies consistently show that you end up with more money in your pocket even after paying your attorney than you do if you try to do it yourself.

 

HOW YOUR PERSONAL INJURY CLAIM CAN BE IMPACTED BY FACEBOOK

 

The two most important aspects when involved in a personal injury claim are proving and confirming that your injuries are related to an accident. Undoubtedly, the popularity of social media such as Facebook, YouTube and Instagram make sharing your stories and your comments with the world easy and instant. However, while these sites serve as a tool to connect people, they can also create issues, especially when someone is involved in a personal injury case.

If you are using social media while you have a claim that is being processed by the court, you could be harming your case without even knowing it. Insurance companies and investigators can easily find your personal pages and use that information against you. For example, injuries from an accident will most likely be realized days, weeks or even months after an accident. It could be harmful to your case if you post a comment immediately after an accident stating: “Despite the bad accident, I am just fine.” You may come to regret that very post when you wake up 2 weeks later with a pain in your neck realizing that very pain was a result of your accident. Such comments could be used as a tool to argue against your claims.

Additionally, posting photos may be equally as harmful as your comments on social media. Posts and updates about vacations or any activities that can prove your injuries are not as serious as you claim and can also be used against you. Individuals involved in ongoing claims should also be very careful about photos their friends upload that include them in the photo.

Our top four tips for individuals involved in personal injury claims:

1. Consider stopping use of social media sites during your case.

2. Add filters and change account’s privacy settings so only people they know and trust can view your profiles.

3. Do not accept friend requests from people you do not know personally as the request could be made from someone investigating your claim.

4. Do not sign any documents consenting to giving access to your social media accounts.

Should you have any questions regarding the use of social media after an accident, contact an attorney for advice. We at the Law Office of Peter C. Lee would be happy to assist and advise you through your personal injury claim.

Disclaimer: The information contained in this article does not constitute legal advice and does not create an attorney- client relationship.