When it comes to estate planning, many people assume they can wait until later. However, this is a legal task that you should handle as soon as possible. A good estate plan does a lot more than decide who gets your savings after you die. It can actually assist with everything from paying your mortgage while you’re in the hospital to picking a school for your child after you pass away. By taking the time to settle on an estate plan now, you can ensure you and your loved ones are protected.
Did you know that only a third of Americans have a will? Estate planning is an often overlooked part of your life. However, it’s very important. A good estate plan helps you prepare for any emergency. Whether you get in an accident or experience a sudden illness, an estate plan can help.
Estate plans ensure that your loved ones are cared for if you pass away. They clear up a lot of potential legal issues, so your grieving descendants don’t have to waste time discussing things in court. A good estate plan can even reduce taxes, so your heirs don’t face any untimely financial burdens. This type of legal service also assists with things like medical care and financial assistance if you’re incapacitated.
Many make the mistake of assuming they only need to bother with estate planning if they’re wealthy, ill, or have a lot of dependents. The reality is that estate plans can be useful at any stage of life. It gives you peace of mind just in case anything goes wrong. Whether you’re young, old, sick, or healthy, it’s essential to start an estate plan as soon as possible.
Keep in mind that estate planning comes in many forms. There’s no “one size fits all” solution. Instead, your California estate planning lawyer can help you craft a plan that suits your needs. Depending on your situation, you might need one or more of the following documents.
Of course, one of the first things to tackle is your will. If you aren’t going to have any other estate planning documents, this is a good place to start. Your will lets you discuss how you want properties to be distributed after you pass away. A valid will in California is simply a written document that you signed and dated in sound mind and that was signed by two witnesses.
The main challenge when writing a will is just being clear. For example, a will that just says, “I want to leave all my assets to my children,” can lead to court battles about which child gets to inherit the treasured family heirloom. If you want to ensure your heirs don’t end up dealing with lawsuits, try to clearly list each item and name the person it will go to.
Make sure to update your will as any life changes occur. When you get married or divorced, adjust your will to ensure it lists actual names instead of titles like “my spouse.” If you have children, make new friends, or welcome new people to the family, you might also want to adjust your will to include them.
Trusts are a unique and very powerful type of legal document. A trust consists of a group of assets that are governed by a set of rules you put into place. Depending on the type of trust, the assets may only be for a specific use, or they can be spent at the discretion of a trustee. The trustee is a named administrator who can decide things like how much money is spent and who gets the money. Trusts can also consist of assets like homes, pets, or vehicles, and the trust can govern how the property is cared for. There are many types of trusts. Irrevocable trusts have terms that can’t be changed while revocable trusts can be adjusted as needed. Living trusts are a trust that a living person sets up and runs until they pass away.
Trusts can be very useful because they give you a little more control than a will does. In a will, you cannot easily dictate what the beneficiaries do with your assets. For example, you can’t easily use a will to leave money to your child with the instructions, “Use this money to care for your mother at home instead of in a nursing home.” However, you can set your child up as the administrator of a trust that will pay for your wife’s living expenses.
You might also want to consider a trust due to its flexibility and convenience. Since you can set them up ahead of time, trusts make it easier to transfer assets. With a trust, you can do something like put your real estate in a trust and make both yourself and your child trustees. On your death, your child doesn’t have to pay as many taxes or wait for probate to end before they take possession of the property.
A durable power of attorney document isn’t actually about who your lawyer is. Instead, this document is essentially about who is authorized to act on your behalf. In a power of attorney document, you pick a person to handle your affairs for you. This named administrator can act in your place whenever you are incapacitated. A well-written power of attorney document will clearly explain when your agent has the power to act, when they will be replaced, and what they can do during your period of incapacitation.
Power of attorney documents are very useful for situations that a normal will or trust won’t cover. Most people like to have one in place just in case they experience an accident. You can also draft them before situations where you plan to be incapacitated. If you’re diagnosed with dementia or about to have a procedure with a long recovery time, a power of attorney document is useful.
The most common type of power of attorney document is a healthcare power of attorney. This authorizes someone to make healthcare decisions on your behalf. For example, if you got into a car accident, were in a coma, and needed surgery, your agent could sign the consent forms for you. Another common option is the financial power of attorney document. This lets your agent manage all your financial affairs. They can file your taxes, deposit your checks, make decisions about investment accounts, or even sell your property. This can give a very wide range of power, so you need to make sure you name an agent you trust implicitly.
If you want to ensure your minor children or other dependents are properly cared for, you need to set up a formal guardianship. This provides more protection than simply leaving your children money and assuming your closest relative will care for them. Guardianships name who will care for your child or your loved one with a mental disability, and they can also discuss what sort of care you want the person to get.
Keep in mind that you can set up multiple guardianships. Personal guardianship designates the person your children will live with. This guardian is responsible for things like making meals, taking the child to school, and caring for their everyday needs. Meanwhile, financial guardianship picks a person to handle your child’s money. This can be particularly useful for children who inherit a lot or for situations where you trust a person’s child-rearing capacity but not their money-management skills.
As you can see, there are a lot of details that go into estate planning. Though it’s certainly complex, it doesn’t have to be confusing. The right estate planning lawyer in California will guide you through the whole process. When you’re looking for lawyers, try to find one who is comfortable discussing your options, offering advice, and helping you find the right solutions for your situation.
It is also essential to make sure your estate planning attorney is highly experienced. California has some of the strictest estate planning laws in the nation. For example, it’s very easy for your descendants to challenge a will that has even slight irregularities. If you want to guarantee that everything is as airtight as possible, select a lawyer who has a lot of training and practice in their field.
Ready to get started on your estate plan? Avian Law Group is here to help. Our expert team has years of experience handling the complex details of estate planning. We’re also available to assist with personal injury lawsuits and other legal matters. To learn more about our service, schedule a free consultation with Avian Law Group today.