If there is one thing that awaits us all, it is death. But what awaits our assets and property is less certain. In California, however, there is one fate less desirable than others, especially when it comes to costs and conflicts: probate. This article will explain what the probate process is, as well as: Reasons to avoid the probate process, especially in California. Three easy-to-implement estate planning tools to avoid probate for property in California. The perils and the consequences of trying to navigate California probate on your own. What Is Probate And What Triggers Probate In California? Probate is a court process that distributes your assets after your death. It is required to transfer assets out of your name and into those of your beneficiaries. It operates according to one of two procedures. If you have a will, then the procedure will be for a ‘testate’ death. If you die without a will, you die “intestate”, and the procedures are different. Every state has what's called intestacy statutes which determine where your assets will go by state law if you don't have a will. If you die with a will, the probate court follows the directions in it. After all, a…Read More
As we age, thinking about death and how our legacy will be passed on is important. It is natural and normal to wonder about how to ensure our assets will be protected and passed on, which is what the field of estate planning is all about. But estate plans are also designed to take care of us as we age and ensure the end of our lives are comfortable with the medical care we need and deserve. With key advice from experienced estate planning attorneys, this article will help you understand: Why you might not want to choose your children for fiduciary roles, even if you trust them. How to plan your estate with aging parents or your own aging health care needs in mind. Three reasons why everyone in California should avoid probate (and one estate planning trick for doing so). Who Can Aging Parents Trust To Ensure A Smooth Transition Of Wealth To Their Heirs Through Estate Planning? While it can be natural to think first of your children when choosing who to nominate for fiduciary or trustee roles in your estate plan, it might not always be the best choice. While kids can perhaps be trusted, they are…Read More
As we age, it becomes increasingly important to implement careful estate planning. Yet discussing death and passing is rarely easy, and there are crucial elements of estate plans that are of particular importance for the elderly, and to plan for your old age before you get there and find your estate plans lacking. After all, estate plans are about more than just what happens after your death. This article discusses: How to help aging parents plan their estates, including for healthcare concerns while they are alive. California Medicaid and Medicare details that need to be taken into account when planning your estate. How the goals of parents and their children may not align when it comes to estate planning objectives. How Can I Help My Aging Parents Ensure Proper Estate Planning For Their Needs? While discussing estate plans with aging parents is never an easy situation, it is one we hope for everyone. It is also a complicated legal field, which is not always easy to understand or implement. There is even a subfield of estate planning called elder law. The first step is to go over the estate plan with plenty of questions to make sure there are no gaps…Read More
Estate planning, like any area of the law, is not a domain to take lightly. Dealing with your earthly possessions and belongings after your death is something that can profoundly impact families, and not always in a good way. Misunderstandings can lead to errors and mistakes, which in turn can snowball into financial hardships, emotional conflicts, and a tarnished legacy. This article dives deep into three such areas where mistakes are likely to happen and informs you how to avoid them. Ultimately, however, the only foolproof solution is to work with an attorney. It covers: The specificity of your will or other estate planning tools about the sources of assets. What happens when you fail to update a previous will, including from another state. What happens when trusts and wills conflict over handling certain assets. How Detailed Does Identifying Information Need To Be When Drafting A Trust? One of the most frequent and tricky estate planning questions arises when lawyers are working with clients concerned about the level of specificity and detail they need to include about assets being bequeathed. When you do a revocable living trust estate plan, it is imperative that the documents say what you want them to.…Read More
The Perils And Problems Of Drafting Your Last Will And Testament Wills, also known as Last Will and Testaments, are often perceived as the be-all, and end-all, of estate planning. So much so that many individuals simply jot one down, with the preconception that it will be adequate and sufficient, when in reality, this may not at all be the case, especially in California. In this article, we will discuss: Some of the difficulties in drafting your own estate planning documents, such as wills or trusts. Some of the difficulties in drafting your own estate planning documents, such as wills or trusts. What assets cannot, or should not, be left in a will in California. The best of four ways that assets not included in your will can be passed on after your death. Can I Draft My Own Will In California? Technically, in California, as in any other state, you can do any legal work you want on your own. You are never obligated to retain an attorney. You can litigate your own lawsuits, plaintiff or defense side, and even defend yourself without an attorney in a criminal action. And, of course, you could certainly draft your own will. But…Read More
The following article will cover: The importance of setting up an estate planning document as soon as possible, regardless of age, to avoid leaving behind a financial and legal mess for your family. The need to review estate planning documents annually and make necessary changes or updates based on significant life events or legislative changes. The value of hiring an experienced estate planning attorney rather than relying on online services. When Is The Best Time To Set Up An Estate Planning Document? The best time to set up an estate planning document is now, irrespective of your age. The future is unpredictable, and accidents or unforeseen events can happen anytime, leaving you incapacitated. By setting up an estate plan, you can prevent your family from having to clean up a financial and legal mess. Popular country singer Kenny Chesney famously said, "Everyone wants to go to heaven, but no one wants to go now." This sentiment seems to resonate with many people, especially the young, who often perceive themselves as invincible. When I started my own law firm, I expected most of my clients to be people like me - in their mid-30s with young children. However, reality proved otherwise.…Read More
The following article will cover: The important components that should be part of every individual's estate plan. Strategies to minimize potential conflicts among heirs in estate planning. The possibility of asset protection from creditors and lawsuits both during an individual's lifetime and after their death. What Important Components Should Be Part of Every Individual's Estate Plan? An essential, comprehensive estate plan in Arizona should consist of several key documents: Pour-Over Will: This specific type of last will and testament instructs that, upon your death, any assets held in your name should be transferred into your trust. This can help to avoid full probate, as the personal representative would simply need to request a court order to retitle the probate asset (like a house) to the trust. Revocable Living Trust: This instrument serves as your primary probate avoidance tool and provides a means to manage your estate if you become incapacitated. The type of trust you select will depend on your personal goals and the nature of your assets. Financial Power of Attorney: Despite some potential limitations, this document, which assigns another individual the authority to manage your financial assets, remains a crucial part of every estate plan. Medical Power of Attorney: This authorizes a chosen individual…Read More
The following article will cover: The difference between a living trust and a living will. Planning for possible incapacity during one's lifetime through the use of a financial power of attorney or a living trust. The necessity of consulting with an estate planning attorney to determine the most appropriate estate planning documents based on individual circumstances and state laws. What Is The Difference Between A Living Trust And A Living Will? Living trusts and living wills serve different purposes and are thus completely distinct documents. A living trust is an estate planning document. It's akin to a contract where you, the creator (often referred to as the grantor, trustor, or settlor), are also the trustee during your lifetime. The trustee is in charge of managing your estate and has a fiduciary responsibility to do so. The main purposes of a living trust are to avoid probate, manage your estate during periods of incapacity, distribute your assets as per your instructions, and maintain privacy. Privacy is maintained because unlike a will, which must be filed with the probate court and thus becomes part of the public record, a trust is a private contract. On the other hand, a living will is an end-of-life directive where…Read More
The following article will cover: An overview of the most common types of trusts used in estate planning. The necessary documents needed to provide care for minor children in the event of parental incapacitation or death. The healthcare-related documents that should be included in an estate plan. What Are The Most Common Types Of Trusts Used, And What Are Their Purposes? In the realm of probate avoidance and estate planning, the most common trust is likely a simple probate avoidance trust. There are several types of Revocable Living Trusts, with the three most common being: Simple Probate Avoidance Trust: This is a basic living trust. If you're a married couple, the trust continues for the benefit of the surviving spouse with no changes when the first spouse dies. Disclaimer Trust: This is the same as the first trust, but it provides the option to disclaim assets upon the death of the first spouse. The surviving spouse has nine months to decide whether they want to create an irrevocable trust and fund it with a portion of the deceased spouse's assets. They then become the beneficiary of it during their life. They can't touch the principal, but the income from it goes to them.…Read More
The following article will cover: The importance of estate planning in order to distribute assets according to one's wishes and avoid the default distribution determined by intestacy statutes. The consequences of dying without proper estate planning documents. An explanation of a will as a foundational estate planning document. What Is Estate Planning And Why Is It Necessary? An apt statement I once heard from an attorney is, "If you don't have an estate plan, the IRS and the state have one for you, but you probably won't like it." This is because, in the absence of an estate plan, state law's intestacy statutes determine how your assets are distributed, and this may not align with your wishes. So, what is estate planning? In simple terms, estate planning is the creation of a roadmap for distributing your assets after your death. However, it is much more than that. An effective estate plan also designates who will manage your finances and estate when you can no longer do it yourself. This is crucial considering the increasing prevalence of conditions like dementia and Alzheimer's. If you have a fully funded revocable living trust and such a condition arises, your successor trustee can step up to…Read More
