Estate planning is an essential element of both asset protection and allocation. However, an estate plan is not just for the wealthy. An estate plan is simply a tool to ensure your assets are protected and distributed in such a way that works to your advantage and your family’s interests. By partnering with a California estate planning lawyer, you can ensure that your wishes are carried out.

What Is an Estate Plan?

Your estate includes your bank account, stocks, retirement fund, real estate, personal property, and life insurance policy. Essentially, it encompasses anything of value that you own.

The basics of estate planning include the following:

• Allocation of assets and care of children
• Creation of a living will
• Designation of a durable power of attorney

If a family member dies without an estate plan, this will complicate the grieving process of their loved ones. In addition to dealing with the loss, they will have to contend with probate court, disagreements over the decedent’s wishes, and the succession laws of the state. Your loved ones will enter into a costly and time-consuming process involving lawyer fees, court costs, and probate.

In order to prevent these difficulties for your loved ones, you will need to have a legal estate plan in place. A Vista estate planning attorney can assist you in the creation of an estate plan to secure your legacy. Remember, only you can create an estate plan and living will, which must be completed while you are alive and competent. Once you become incapacitated, it is too late to make these arrangements.

What Documents Do I Need to Create an Estate Plan?

To create an estate plan, you will need to procure the following documents, where available:

• Financial statements for bank accounts, stocks, and bonds
• The appraised value of any real estate you own
• Valuations for any expensive property, like artwork, jewelry, and collectibles
• Any former wills or estate plans
• Divorce settlements
• All current debt, including mortgages and credit card debt
• List of contact information for doctors and family members
• Documentation designating individuals for trustee, executor, and power of attorney

Once you have gathered the appropriate documents, you and your attorney can begin creating a comprehensive estate plan. An estate plan can vary in complexity but will usually include:

• Living WillKnown as an Advance Health Care Directive, a living will details your wishes for care should you become debilitated. This directive outlines the care you authorize. The living will also assigns a principal person to act and make decisions on your behalf. The living will must be created while you are both alive and capable of making decisions. The absence of a living will can complicate your care should you become incapacitated or unable to make decisions for yourself.
• Last Will and TestamentYour will outlines your wishes for the care of your children and your plans for the distribution of your property and assets. This blueprint will enable your plans to be carried out. If your children are minors, the will names their guardians and any instructions as to the care they will receive.

  The absence of a will will cause the court to appoint guardians for the children. Similarly, the absence of a will may also result in the allocation of your assets with no regard for your wishes. Creating a will is essential to see that your wishes are honored.

• Durable Power of AttorneyYou will designate a person to make financial decisions on your behalf in the event you become incapacitated. A person with power of attorney could also make health or medical decisions on your behalf, if you so designate. This person will generally manage taxes, real estate commitments, and any other financial issues.
• Creation of a TrustA trust is a legal entity that holds assets for a beneficiary for a particular period of time. It determines how and when the dispersal of assets will occur. A trustee will be designated to oversee the assets according to your wishes. A trust may either be put into effect during your life or set up to be put into effect after your death.

FAQs

Q: What Are the Inheritance Laws in California?

A: According to California’s succession law, when someone dies, 50% of that person’s property will normally go to the surviving spouse. The remaining 50% will be dispersed to that person’s children and other relatives like siblings and parents. When there is no immediate family, like a spouse, children, grandparent, or sibling, the inheritance passes to aunts and uncles, then nieces and nephews.

Q: How Much Does an Estate Have to Be Worth to Go to Probate in California?

A: In California, an estate worth $184,500 or more is required to go to probate. This amount includes all assets, such as real estate, bank accounts, stocks, retirement funds, life insurance, and any valuable possessions. As such, many cases will have to go to probate. Probate will always be required for estates without a will but may also be required even with a will if the property owned was subject to probate.

Q: Who Inherits Separate Property in California?

A: Separate property is that which you owned outside of marriage or received as a gift or inheritance. If you were married with no children, your spouse would inherit 100% of your community property but only 50% of your separate property. Your parents or siblings will inherit the other 50% of your separate property.

Q: What Is the Average Cost for Estate Planning in California?

A: The average cost for estate planning in California is between $250 to $7,500. The cost will be dependent on the complexity of the plan. Some attorneys offer flat fees for completing particular components of an estate plan like a living will or trust. A complete plan will include a will, a trust, an Advance Care Directive, and designation of trustees, guardians, and durable power of attorney.

You work hard to create a lasting legacy in your life. Protect your assets and ensure that your loved ones will be taken care of by creating an estate plan with an experienced attorney. Contact the law office of Paul V. L. Campo Attorney At Law, to guide you through the process of protecting your family’s well-being.