Estate Planning

This information was provided by Richard H. Hallstrom, Attorney At Law, for Plan-My-Estate.com. An estate plan is comprised of one or more documents that provide you with control over the decisions about your loved ones and financial affairs in the event of your death or incapacity. Such documents include wills, living trusts, powers of attorney, and living wills. A good Estate Plan has three main goals: (1) to pass your property to the people you choose, (2) to reduce or eliminate expenses, taxes, court interference and wasted time during the transfer of the property, and (3) eliminate the ability for others to interfere in your decisions. Click here for Frequently Asked Questions about Estate Planning. If you are considering having an Estate Plan created for you or your family, we recommend that you first read this article about Estate Planning Fraud before you select who will assist you with your needs.

Do I Need an Estate Plan?

Many people believe that only the very wealthy need an Estate Plan. However, anyone who owns any property - a home, a car, bank accounts, stocks and bonds, jewelry, clothing, household goods, etc., or has minor children or has a desire to ensure that your loved ones and financial affairs are taken care of needs an estate plan. Your age, marital status, or wealth doesn't matter when considering whether or not you need to plan your estate. Whatever the size of your estate, you should designate the person who, in the event of your incapacity, will have the responsibility for the management of your assets and your care, including the authority to make health care decisions on your behalf. How that is accomplished is discussed below in this pamphlet. If your estate is small in value, you may focus simply upon who is to receive your assets after your death and who should be in charge of its management and distribution. If your estate is larger, your lawyer will discuss with you not only who is to receive your assets and when, but also various ways to preserve your assets for your beneficiaries and to reduce or postpone the amount of estate tax which otherwise might be payable on your death. If one does no planning, then, for example, California law provides for the court appointment of persons to take responsibility for your personal care and assets. California also provides for the distribution of assets in your name to your heirs pursuant to a set of rules to be followed if you die without a will; this is known as "intestate succession." Contrary to popular myth, if you die without a will, everything does not automatically go to the state. If you have any relatives (whether through your own family or that of your spouse), regardless of how remote, they will be your heirs ahead of the state. Nonetheless, they may not be the people you would want to inherit from you; therefore, a will is the preferable approach. Although Federal law stays the same, state laws can vary from state to state, therefore it is best to have an attorney's advice.

What are the Benefits of an Estate Plan? Eliminate expensive probate Eliminate court interference Provide a quick distribution of your assets Reduce or eliminate estate taxes Designate guardians for your children Ensure privacy of your financial affairs Inexpensive and east to set up The Basic Estate Plan For most people, the basic Estate Plan consists of the following: "Pour-Over" Will Revocable Living Trust Durable Power of Attorney for Health Care Advance Directive to Physicians - Living Will Durable Power of Attorney for Property Certifiction of Trust Transfer Documents Most Estate Planning Attorneys Offer The Following Services Wills Revocable Living Trusts Irrevocable Trusts Powers of Attorney Living Wills Health Care Directives Life Insurance Trusts Charitable Remainder Trusts Family Limited Partnerships Asset Protection Limited Liability Company (LLC) Corporations Estate Planning Information The Estate Planning Process Dictionary of Estate Planning Terms What is a Revocable Living Trust? How to Calculate Your Net Worth Advantages of Having a Will What is Asset Protection? When Should You Change Your Will? Family Business Succession Planning California Estate Planning Laws Callifornia Probate Code Intestate Succession Power of Attorney - General Power of Attorney - Health Care Wills Trusts