Estate PlanningWhat is Estate Planning?
Your “estate” simply refers to all the stuff you own. This includes your car, your home, bank accounts, investment accounts, life insurance, and personal possessions. If you’re like most people, you probably want to control how those things are given to the people or organizations you care about most after you die. To ensure your wishes are observed, you need to provide instructions stating how and to whom your possessions should be distributed after you die. When this happens, you will, of course, want to minimize the amount paid in taxes, legal fees, and court costs. |
That is estate planning in a nutshell — making a plan in advance and naming whom you want to receive the things you own after you die.
However, good estate planning is much more than that. It should also:
Estate Planning is for Everyone.
Many people mistakenly believe that estate planning is something only for the very wealthy. While individuals who have accumulated substantial wealth certainly have a strong interest in passing on their legacy, families with modest assets often benefit even more from estate planning because they can afford to lose the least.
It is also a common misconception that estate planning is only for retired people. Because life tends to be unpredictable, the best time to take care of your estate planning is now, while you are healthy and competent. This is especially true if you are married, have children, or own real estate.
What are the benefits of having an estate plan?
Avoid Probate
In California, if you die without a proper estate plan in place and own assets in excess of $150,000, your estate will generally be subject to probate. This is true even if you have a will. Probate is the name given to the legal process by which the court oversees the distribution of property belonging to a deceased person and the payment of that person’s debts.
Probate proceedings are generally complex, time-consuming, and expensive. When your estate is subject to probate, your privacy is also greatly compromised because much of your personal information is made public.
Reduce Estate Taxes
Based on current law, most individuals and couples won’t have estates that are subject to estate tax due to the high federal estate tax exemption currently in place. However, laws can and often do change. For this reason, proper lifetime planning is important, particularly if you own substantial assets.
Specify Who Gets Your Stuff
In California, if you die without a will or living trust, the court will distribute your property to your legal heirs based on the statutory “law of intestate succession.” This default distribution is done without taking into consideration the nature of your relationship with your legal heir or other specific circumstances that are unique to your family.
However, proper estate planning allows you, rather than the State, to decide who receives your property. The ability to control how and to whom your property should be distributed is particularly important for families with minor children, children with special needs, or children who, for whatever reason, may not be responsible enough to receive an inheritance all at once.
Minimize Burden on Loved Ones
The loss of a parent, spouse, or other loved one can be one of the most traumatic experiences in a person’s life. The grieving process is often long and overwhelming. It goes without saying that at such a trying time, the last thing your loved ones will want to do is deal with banks and courts. An effective estate plan can greatly streamline the process of transferring your property to your loved ones and reduce or eliminate the red tape involved.
What is the cost of an estate plan?
Flat Fee Pricing:
Because we do not believe in surprises, we charge a flat fee for our estate plans and will tell you what the cost will be during our initial consultation. Each estate plan is customized and includes different levels of complexity based on your unique situation. For that reason, we cannot give an exact cost until we learn about your particular circumstances, needs and objectives.
When is Payment Expected?
Upon retaining us to prepare your estate plan, half the cost will be due, and upon completion of the document drafts, the balance will be due.
House Calls/Weekend or Evening Visits:
These appointments may be arranged upon request at an additional charge.
However, good estate planning is much more than that. It should also:
- Include clear instructions for your care should you become disabled or incapacitated.
- Designate a trusted individual to manage your financial affairs when you’re unable to do so.
- Appoint a legal guardian for your minor children.
- Provide for family members with special needs in a way that does not interfere with their public benefits.
- Provide for the transfer of your business upon your retirement, disability, or death.
- Minimize estate taxes, court costs, and attorney’s fees.
Estate Planning is for Everyone.
Many people mistakenly believe that estate planning is something only for the very wealthy. While individuals who have accumulated substantial wealth certainly have a strong interest in passing on their legacy, families with modest assets often benefit even more from estate planning because they can afford to lose the least.
It is also a common misconception that estate planning is only for retired people. Because life tends to be unpredictable, the best time to take care of your estate planning is now, while you are healthy and competent. This is especially true if you are married, have children, or own real estate.
What are the benefits of having an estate plan?
Avoid Probate
In California, if you die without a proper estate plan in place and own assets in excess of $150,000, your estate will generally be subject to probate. This is true even if you have a will. Probate is the name given to the legal process by which the court oversees the distribution of property belonging to a deceased person and the payment of that person’s debts.
Probate proceedings are generally complex, time-consuming, and expensive. When your estate is subject to probate, your privacy is also greatly compromised because much of your personal information is made public.
Reduce Estate Taxes
Based on current law, most individuals and couples won’t have estates that are subject to estate tax due to the high federal estate tax exemption currently in place. However, laws can and often do change. For this reason, proper lifetime planning is important, particularly if you own substantial assets.
Specify Who Gets Your Stuff
In California, if you die without a will or living trust, the court will distribute your property to your legal heirs based on the statutory “law of intestate succession.” This default distribution is done without taking into consideration the nature of your relationship with your legal heir or other specific circumstances that are unique to your family.
However, proper estate planning allows you, rather than the State, to decide who receives your property. The ability to control how and to whom your property should be distributed is particularly important for families with minor children, children with special needs, or children who, for whatever reason, may not be responsible enough to receive an inheritance all at once.
Minimize Burden on Loved Ones
The loss of a parent, spouse, or other loved one can be one of the most traumatic experiences in a person’s life. The grieving process is often long and overwhelming. It goes without saying that at such a trying time, the last thing your loved ones will want to do is deal with banks and courts. An effective estate plan can greatly streamline the process of transferring your property to your loved ones and reduce or eliminate the red tape involved.
What is the cost of an estate plan?
Flat Fee Pricing:
Because we do not believe in surprises, we charge a flat fee for our estate plans and will tell you what the cost will be during our initial consultation. Each estate plan is customized and includes different levels of complexity based on your unique situation. For that reason, we cannot give an exact cost until we learn about your particular circumstances, needs and objectives.
When is Payment Expected?
Upon retaining us to prepare your estate plan, half the cost will be due, and upon completion of the document drafts, the balance will be due.
House Calls/Weekend or Evening Visits:
These appointments may be arranged upon request at an additional charge.