Estate Planning
What is Estate Planning and why do I need one?
In the state of California, if a person has more than $150,000 in assets and he/she dies without an estate plan, such person’s estate will go through Probate process. The probate process involves getting a court order to distribute the person’s estate. It is typically a time consuming process and the person’s estate will be responsible for additional costs like court appointed Attorney and Executor’s fee. The fee varies based on the total value of the estate of the person.
In the state of California, if a person has more than $150,000 in assets and he/she dies without an estate plan, such person’s estate will go through Probate process. The probate process involves getting a court order to distribute the person’s estate. It is typically a time consuming process and the person’s estate will be responsible for additional costs like court appointed Attorney and Executor’s fee. The fee varies based on the total value of the estate of the person.
What documents are prepared as part of Estate Planning?
Estate Planning consists of preparation of following documents
Estate Planning consists of preparation of following documents
- Living Trust
- Pour-over Will and Guardianship - for clients with minor children
- Advanced Health Care Directive - Power of Attorney for Healthcare
- Durable Power of Attorney - Power of Attorney for Finances
What are the benefits of Estate Planning?
- Avoid the probate and associated delay & costs
- Avoid or minimize estate taxes
- Avoid conservatorship during incapacity
- Establish a smooth transition process for your loved ones
- Nomination of guardians for your minor children
- Privacy
What is a Living Trust?
A living trust is a legal document that contains a blueprint for what needs to be done to the assets when an individual(settlor) dies. A well planned Living Trust avoids probate process and ensures the distribution of properties to the loved ones as per the settlor’s instructions. During the settlor’s lifetime, he/she will be the trustee of the Living Trust and manage the assets. After the death of the settlor, successor trustee named in the trust takes over and manages the trust according to the instructions in the trust, including handling of taxes, distribution of assets etc.
What is a Pour-over Will?
In a Pour-over Will is also known as the Last Will or backup Will, the testator of the will typically designates living trust as the beneficiary of his/her will and also appoints executor of his/her estate and nominates a guardian for his/her minor children.
What is Advanced Health Care Directive?
Advanced Health Care Directive is a document, also referred to as Power of attorney for Health care, confers authority upon the Agent nominated in the document, so that Agent is authorized to make decisions in case of medical emergencies and/or incapacity as per your wishes described in the document.
What is Durable Power of Attorney?
The Durable Power of Attorney is similar to Advanced Health Care Directive, but it deals with assets and finances rather with healthcare needs during incapacity.
