Why do Estate Planning?
- It is not just for the wealthy
- Anyone older than 18 would benefit
- If you are married or single and have children or no children this will help
- Regardless of the value of your estate, you can and will benefit
- You will have peace of mind, maintain control and avoid family disputes
- Maintain privacy where everything is not public record
- You will protect Assets for yourself and your loved ones
- Protect against Estate Taxes, protect your beneficiaries from creditors and help persons with special needs
- You could avoid Probate
What is Estate Planning?
- This is the process of memorializing your affairs – personal, health and financial in case you become incapacitated or die
- Choosing how the assets you have worked so hard all your life will be distributed at your death (personal and real property), bank accounts, IRA’s, etc.
- Your goals and desires will be met, not somebody elses, not another family member you do not want to have that authority and not the State of California
What are Common Estate Planning Devices? Planning for death:
- Last Will & Testament
- Intervivos Trust
- Testamentary Trust
- Business Succession Plan
- Guardianship nomination for your children under 18
- Advance Healthcare Directive
- Living Will
- HIPAA Declaration
- Durable Power of Attorney
What happens if you DON’T do Estate Planning?
- Your estate could very well end up in Probate with years of battling and fighting among relatives
- California law will kick in and issue it’s own “default Estate Plan” called intestate succession
- Ex-spouses might get property
- Children might inherit at 18
- Assets could be distributed to distant relatives and relatives you don’t like
- It will be costly, public and take time
- You could become incapacitated and your wishes will not be followed, your financial affairs could become public with somebody or a Court appointed person making those decisions and your end of life decisions would not be followed since you do not have any Estate Plan designating them.
Key Issues that mandate you should do an Estate Plan?
- Are you expecting to live longer?
- Do you have children?
- Do you have a blended family?
- Are you a business owner?
- Do you own real estate?
- What kind of legacy do you want to leave?
- Are you prepared for a catastrophic event?
- Do you ant your estate to incur the cost, delay and public nature of a probate?
- If you have done nothing, how will you protect your family and assets?
Do you need to Review your Estate Plan?
- Have you received an inheritance?
- Change in your financial circumstances?
- Started a business?
- Are you a business owner?
- Your retiring?
- There has been a death of a beneficiary?
- Birth of a child or grandchild?
- New son-in-law or daughter-in-law?
- New Spouse or Divorce?
Why do you need incapacity planning?
- Without it, the Court will have to appoint a conservator you may or may not know?
- This will be in effect only while you are alive?
- You can designate who will take care of your financial affairs while you are incapacitated?
- You can state how your incapacity will be determined?
- The third parties will be able to get information and give information to the person you designate for your financial affairs?