Law Offices of Lawrence H. Jacobson A Professional CorporationCalifornia Expert Witness | Expert Testimony | Consultant for Real Estate & Malpractice2026-08-28T10:20:04Zhttps://www.lawrencejacobson.com/feed/atom/WordPress/wp-content/uploads/sites/1103263/2021/05/cropped-LHJ-siteicon-512px-transparent-32x32.pngOn Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation<![CDATA[Is a trophy property an investment or a lifestyle asset?]]>https://www.lawrencejacobson.com/?p=488262026-08-28T10:20:04Z2026-08-28T10:20:04ZWhat makes a property a trophy asset?
A trophy property possesses qualities that are difficult to reproduce, such as exceptional acreage, architectural pedigree, panoramic views or historical significance.
Scarcity can contribute to long-term value. A buyer may be able to renovate an ordinary luxury residence, but recreating an exceptional lot, established setting or notable architectural history can be impossible.
Does a trophy home have to produce a financial return?
Traditional investments are usually judged by measurable returns. Trophy properties are different because owners may derive substantial value from using the asset rather than from generating income from it.
An estate may provide privacy for a public figure, space for entertaining business associates or a residence suited to a family's preferred lifestyle. Those benefits are difficult to capture on a balance sheet.
Does a trophy property fit into a wealth strategy?
This depends on the owner's broader financial position and objectives. Someone with a huge exposure to businesses or financial markets may view high-end real estate as another way to hold wealth in a tangible asset. Another buyer may place greater importance on exclusivity and personal use.
Before acquiring or selling a substantial property, it is worth working with financial and legal professionals to help weigh plans that can affect the property's role within a larger wealth strategy.]]>On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation<![CDATA[Preparing a California family business for the next generation]]>https://www.lawrencejacobson.com/?p=488222026-08-11T09:02:44Z2026-08-12T10:00:23ZA family business can bring people together, but planning for its future can raise difficult questions. Who should lead the company? Who should own it? Should family members have equal roles, even when their experience and goals differ? These questions can become more complex when personal relationships and business interests overlap. Without a clear plan, a change in ownership may create conflict when the family is already dealing with a major transition.
California business owners can use succession planning to prepare for that transition. A thoughtful plan can address who will take over, how ownership will change and what role each family member may have. Planning early also gives owners time to make important decisions before illness, death or another unexpected event forces the family to respond.
What should a family business succession plan cover?
A succession plan should reflect the needs of both the business and the family. The business structure also matters. California businesses may operate as corporations, limited liability companies, partnerships and other entities, and each structure can affect how ownership interests transfer.Owners should consider several key issues:
Leadership: Who has the skills and experience to manage the business?
Ownership: Who should receive an ownership interest after the transition?
Decision-making: How will family members handle major business decisions or disputes?
Buyouts: What happens if an owner wants to leave, becomes unable to work or dies?
Estate planning: How should business interests fit within a will, trust or other estate planning documents?
Ownership and leadership do not always need to pass to the same person. A child may inherit part of the business but have little interest in managing it. Another family member may have strong leadership skills but prefer a different role. A trusted employee may also have the experience needed to run the company without being part of the family.The succession plan should also work with the owner's estate plan. If these plans conflict, the family may face uncertainty about who should receive or manage the business. Coordinating the documents can help create a more consistent plan for the company's future.Ultimately, succession planning involves more than naming the next owner. It requires owners to consider how the business will operate, how family members will participate and what happens when circumstances change.
Give the next generation a clear path
Passing a family business to the next generation can affect both the family's finances and its relationships. Owners who begin planning early have more time to weigh their options, address potential disagreements and prepare for an orderly transition.A California attorney can review the business structure, ownership arrangements and estate planning documents and help develop a succession plan that fits the family's circumstances and long-term goals.]]>On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation<![CDATA[Protecting your legacy during the Great Wealth Transfer]]>https://www.lawrencejacobson.com/?p=488242026-08-11T22:30:49Z2026-08-11T22:30:49ZEstate plans and family communication are lacking
While nearly every adult should have an estate plan in place – at minimum, a will – too many Americans don’t. One study found that just 57% of the population has a will.
This lack of planning isn’t limited to those with few assets to hand down. Another study determined that over two-thirds of parents 55 and over who have at least $500,000 in investable assets admit that they haven’t discussed inheritances with their children.
How real estate assets can be lost
Approximately $2.4 trillion of that Great Wealth Transfer is in real estate. However, realtors and other housing experts warn that billions of dollars of that won’t get to its intended beneficiaries – or they won’t be able to keep it due to inadequate estate planning.
Oftentimes, people leave homes and other properties to adult children and other relatives without giving enough thought to whether they can afford it. Especially here in California, property taxes and insurance premiums alone are beyond many people’s budgets. If there’s a mortgage or other lien on a property, the beneficiary may not be able to get out from under it. Just maintaining a large property or one in an exclusive area can be costly.
When people inherit property, they can’t afford to maintain or don’t want, they can become the victim of predatory investors. California’s Uniform Partition of Heirs Property Act offers some protection for those who inherit property or land from someone who died without a will (intestate) so that they get a share of the proceeds if it’s sold. However, if it isn’t properly designated as an inheritance, it could be sold for far less than it’s worth.
Finally, a not-insignificant amount of inherited wealth can be lost in legal disputes among families when estate plan documents aren’t clear or don’t exist. At a minimum, lack of clear, codified inheritances can extend and complicate the probate process.
By getting experienced estate planning guidance, drawing up a comprehensive estate plan, keeping it updated and communicating your goals and wishes to your loved ones, you can help your loved ones to avoid the unnecessary loss of the assets you’ve worked hard to build and maintain.]]>On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation<![CDATA[How should your estate plan handle property in several states?]]>https://www.lawrencejacobson.com/?p=488202026-07-28T06:47:46Z2026-07-28T06:47:46ZWhen you own real estate in several states, your estate plan must account for the laws of each one, not just California. A Beverly Hills home, an out-of-state retreat and an investment property elsewhere can complicate more than travel. Knowing how multistate property moves through an estate helps you control where it lands.
Why out-of-state property may require ancillary probate
Probate is the court-supervised process of settling an estate and passing property to heirs. Real estate you own outside your home state generally falls under the authority of the state where it sits. Your executor may then need to open a secondary state proceeding, known as ancillary probate, before the property can transfer. Not every out-of-state asset triggers this. The requirement usually turns on whether the property is real estate and how it is titled.
How property titles carry the estate plan across state lines
How you hold title decides whether a property follows your estate plan or bypasses it. Property held in joint tenancy with right of survivorship generally passes straight to the surviving owner, whatever your will says. Assets in a trust follow the trust's terms instead. Because titling controls the result, aligning every deed with your broader estate strategy keeps your intentions intact across state lines.
Which ownership structures fit different types of property
Different assets call for different structures. A revocable living trust suits real estate well, since property in a properly funded trust generally avoids probate court, including ancillary probate elsewhere. A revocable trust lets you keep control during your lifetime, while an irrevocable trust removes assets from your estate in exchange for less flexibility. For investment or commercial property, holding title through a limited liability company (LLC) can streamline transfers and may avoid a separate proceeding.
What state-specific rules can change the planning approach
Each state sets its own rules, and those differences can reshape your plan. California is a community property state, so how you and a spouse hold title affects both transfer and taxes. States also vary on estate and inheritance taxes. California imposes neither at present, though a vacation home elsewhere could expose part of your estate to that state's tax. Some states allow a transfer-on-death (TOD) deed that passes real estate to a named beneficiary, while others do not.
When changes in the property portfolio call for another review
An estate plan built around today's property can drift out of alignment as your holdings change. Buying or selling real estate, moving to a new state or inheriting property can each open gaps the original plan never anticipated. Reviewing your plan after any major change keeps titling, trusts and tax strategy working together across every state involved. A plan that moves with your assets protects your wishes better than a patchwork of unfamiliar courts.]]>On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation<![CDATA[Negotiating CAM charges for a sustainable commercial lease]]>https://www.lawrencejacobson.com/?p=488182026-07-18T19:57:59Z2026-07-18T19:57:59ZUse should affect obligations
Frequently, landlords use a simple square footage formula to assign each tenant a certain percentage of their total CAM expenses. However, there is an opportunity to negotiate before signing the lease. Square footage does not necessarily correlate to wear and tear on facilities, parking demand or even the use of utilities.
If a business model is likely to generate less damage to the space or to use shared services, such as security and parking infrastructure, less frequently than other tenants in the same building, it may be possible to have a landlord reduce the percentage of responsibility assigned. It may also be possible to negotiate an agreement where the tenant pays a flat amount in CAM charges every month instead of fluctuating amounts depending on the costs the landlord incurs that month.
Negotiating commercial leases can be challenging, even for seasoned business leaders. A lawyer’s support can help executives and owners evaluate commercial leases and secure the best terms possible.
]]>On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation<![CDATA[Is forming an LLC enough to avoid personal liability?]]>https://www.lawrencejacobson.com/?p=488162026-07-16T16:39:53Z2026-07-16T16:39:53ZWhen launching a new business, many entrepreneurs choose a limited liability company (LLC) because they want to separate their personal assets from business risks. LLCs are often promoted as a simple way to shield yourself from business-related lawsuits, debts and financial setbacks.
However, forming an LLC is not a magic solution. While it can provide valuable protection, there are situations where you could face personal liability despite having an LLC in place.
An LLC is not an impenetrable wall
As mentioned, having an LLC does not guarantee complete immunity from liability. Courts look beyond the LLC’s existence and may examine how the business is actually operated. For instance, if you commit fraud, make intentional misrepresentations or engage in unlawful conduct, you can be held personally responsible for the resulting damages.Personal guarantees can also expose you to liability. Lenders, landlords, and other parties often require business owners to personally guarantee business obligations. If you pledge personal assets as security for business credit, you may be personally liable even if the business operates as an LLC.The same goes if you fail to maintain a meaningful separation between personal and business affairs. For example, using business accounts to pay personal expenses, mixing company and personal funds or failing to keep accurate records can create doubts over whether the LLC is truly operating as a separate legal entity.
Maintaining the legal protections your LLC provides
Creating an LLC is an important first step toward protecting yourself from business-related liability, but the work doesn't end there. You need a broader risk-management strategy to help preserve the liability protections the LLC is intended to provide. Seeking legal guidance can help ensure your business structure and practices work in tandem to provide the protection you expect as your company grows.]]>On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation<![CDATA[Modifying a business entity type when a pivot becomes necessary]]>https://www.lawrencejacobson.com/?p=488122026-07-01T03:08:55Z2026-07-01T03:08:55ZDissolution isn't necessary when making this change
If a business is currently a sole proprietorship or formal partnership, dissolving the business and starting a new one isn't necessary when converting the business to a limited liability company (LLC) or another type of business. It is possible to keep the existing organization intact while changing its entity type.
This process requires the submission of paperwork to the state and other regulatory authorities. The name of the business may need to change. Contracts with vendors, employees and landlords may require updates.
The exact documents required depend in part on the nature of the business and the changes planned. It’s crucial to complete and submit the correct paperwork to change a company's entity type and to update existing contracts.
Business leaders concerned about business formation, entity modification or even a prospective partnership buyout benefit from having experienced legal guidance to help ensure that they manage a complex process effectively. Working with the right business law attorney can help owners manage a complex and stressful process with minimal disruptions.]]>On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation<![CDATA[How can you protect an heir who is not ready to inherit?]]>https://www.lawrencejacobson.com/?p=488102026-06-19T06:53:49Z2026-06-19T06:53:49ZLegal tools for a structured inheritance
When you want more say over how an heir receives their inheritance, a trust often serves as the central tool. Rather than leaving property outright through a will, you can place it in a trust that holds and manages those assets for the beneficiary.
A revocable living trust is a common starting point, since it lets you direct what happens to your property after death without court-supervised probate. Within that framework, a beneficiary's share can stay in a continuing arrangement instead of passing in a single transfer.
You can also include a spendthrift provision, which limits an heir's ability to pledge or assign trust assets before they are distributed. Under California law, property held this way stays beyond the reach of many creditors while it remains in the vehicle. Even so, that protection has limits, and certain claims such as child or spousal support can still reach those funds.
Tailored terms for changing circumstances
A trust does not have to follow a single template. You can set terms that reflect what a particular beneficiary needs and when that person may be ready for more responsibility.
One approach spreads distributions over time, releasing portions at set ages or after milestones such as finishing school or holding a steady job. This lets a younger person grow into the role rather than face the full amount at once. Spreading the timing this way can also lower the chance that a single large payment is spent quickly or lost to a rushed decision.
If an heir lives with a disability, a special needs trust can hold an inheritance without disqualifying that person from need-based public benefits such as Medi-Cal or Supplemental Security Income. This can pay for goods and services that improve daily life while preserving that eligibility.
Trustee selection for ongoing oversight
A trustee manages the assets, interprets your instructions and decides how discretion is used over many years. Some people name a trusted relative or friend, while others prefer a bank or a licensed professional fiduciary who handles these duties for a living.
Whoever serves takes on fiduciary duties under California law, including a duty of loyalty and a duty to invest with reasonable care under the prudent investor standard. These obligations hold a trustee accountable for acting in the beneficiary's interest rather than their own.
It can help to name a successor trustee in case your first choice is unable to serve, and some plans add a co-trustee or protector for another layer of oversight. Pairing a relative with a professional, for example, blends personal knowledge with administrative experience.]]>On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation<![CDATA[Due diligence tips for multi-unit residential buyers]]>https://www.lawrencejacobson.com/?p=488072026-06-18T02:16:34Z2026-06-18T02:16:34Zdue diligence is essential to protecting your financial interests. Overlooking key details at this stage can turn a promising acquisition into an expensive mistake.
Validate income stability and rental documentation
Income figures are easy to inflate -- intentionally or not. Before you trust a single number, request actual leases for every unit, not just a summary spreadsheet. Compare lease terms against what the seller claims is being collected.
Pay close attention to whether leases are month-to-month or fixed-term, and whether rents align with local market conditions and applicable rent control rules. Your projected returns should account for any rent stabilization rules that may impose limits on rent increases over time.
You should also review vacancy patterns. Frequent turnover or long-term vacancies may signal deeper issues that are not immediately visible during showings.
Assess key legal and regulatory risks
Beyond the numbers, the legal and regulatory landscape surrounding the property demands careful attention. Title review, for example, should extend beyond ownership verification to include any liens, judgments, easements or recorded restrictions that may affect financing, usage rights or future marketability.
Zoning and habitability compliance are equally crucial. A building that functions as a multi-unit building may legally be zoned for single-family use, exposing you to fines or forced conversion after closing. Confirm the permitted use directly with the municipality rather than relying on how the property is currently operating.
Building and fire code compliance also matter. Multi-unit properties must meet requirements for fire separation, safe egress, smoke and carbon monoxide detection. Unresolved violations may translate into expensive retrofitting once you own the property.
Don’t leave anything to chance
Multi-unit acquisitions involve more moving legal parts than most buyers expect, and even minor oversights can have big consequences. Bringing in legal guidance before you close can help you better assess risk, anticipate any issues and protect the long-term value of your investment.
]]>On Behalf of Law Offices of Lawrence H. Jacobson A Professional Corporation<![CDATA[Succession: It’s more than a television show]]>https://www.lawrencejacobson.com/?p=488052026-06-04T15:19:37Z2026-06-04T15:19:37ZWhen many people hear the word “succession,” they immediately think of the popular television show about a wealthy family battling for control of a business empire. While the drama makes for entertaining television, real-life business succession involves far more practical concerns.
For business owners, succession planning is one of the most important steps in protecting the future of a company, employees and family members.
What is business succession planning?
Business succession refers to the process of planning for the transfer of ownership, leadership and management responsibilities when an owner retires, becomes disabled, passes away or otherwise leaves the business. Without a clear succession plan, even successful companies can face uncertainty, operational disruptions and internal conflict.Many owners spend decades building a business, but postpone discussions about what happens next. Some assume family members will naturally take over, while others expect a future sale to solve the issue. Unfortunately, failing to create a formal succession strategy often leads to confusion, disputes and financial losses when a leadership transition occurs.A succession plan typically addresses several important questions. Who will manage the business if the owner can no longer do so? Will ownership transfer to family members, key employees or outside buyers? How will the business be valued? What funding mechanisms will support ownership transitions? Addressing these issues in advance can help avoid costly disagreements later.Stable transitions often preserve business value and reassure stakeholders that operations will continue smoothly despite changes in leadership. An experienced business succession legal team can help owners identify goals, evaluate transition options and create documents that support long-term stability.Unlike television drama, effective succession planning is not about conflict or power struggles. It is about creating a thoughtful roadmap that protects the business, preserves relationships and helps ensure that years of hard work continue to benefit future generations.]]>