A good plan never hurt, and indeed it has helped many individuals go through a challenging situation more easily. Estate planning may sound like overkill to those who don’t have millions to distribute after their deaths, but in fact, a good estate plan can make everything crystal clear and also reduce the amount of your assets that are lost to court costs and confusion. California residents have the ability to estate plan at any age, and they may find some good reasons for doing so.
An estate plan, such as a will, can help the individual to name names and decide who will benefit from their accumulated assets upon death. A will can be challenged, however, so many individuals choose to begin giving away some of the assets before death. Tax laws enumerate the amounts that can be given without taxation, so a person may be inclined to research the law before giving too much away.
Trusts are another way to distribute assets, and there are several types of trusts. A person is able to put their home into a trust, or to form a charitable remainder trust that can benefit one’s favorite charity as well as the family. Each type of plan has its own pros, cons and costs associated with it, and some make more sense for certain individuals than others.
Estate planning can help a person guide assets exactly where they should go. In California, a person may wish for help in creating an estate plan. Some people choose to hire an estate planning attorney for guidance on the best approach for their individualized situations.
Source: tickertape.tdameritrade.com, “Estate Planning at Any Age: Consider Getting An Early Start,” Dec. 20, 2017
