Estate planning is seldom a happy topic. It's not pleasant to contemplate ones' death in California, or any other state for that matter, and it's good to keep in mind that one can't foresee becoming incapacitated. Planning for such an eventuality can make life easier for family and loved ones, and trust preparation can clarify one's wishes for such an eventuality.
In 2017, opioid-related overdoses were the leading cause of death for Americans under 50, and 12 percent of families acknowledged that they have a drug-dependent relative. In California and elsewhere in the country, this is becoming an issue of significant concern for families putting together estate plans. While families want to provide for the well-being of their family members, they are aware of the pitfalls of giving money directly to a substance abuser. The answer may be a fund that is set up as a trust. The trust administration is also an important component.
Estate planning can be a complex process, especially when considering the care and support of a loved one well into the future. California families seeking to provide for loved ones who are unable to care for themselves may consider taking specific steps, particularly drafting a special needs trust. Trust preparation requires thoughtful consideration of future needs and appropriate guidance.
Thanks to healthier living and better medicine, people are living longer in California. However, the mind does not necessarily stay sharp into old age. A loss of mental capacity can leave a person financially vulnerable. This is particularly true if the individual has a significant amount of money and does not have a trust in place. A decision to transfer assets into a trust could ensure that a person's estate is handled according to his or her wishes should one become incapacitated.
Many people wish to make the distribution of their estate assets as easy as possible for their family and friends. There are options to ensure that loved ones receive their fair share after one passes away. To transfer assets quickly, privately and to avoid probate, many individuals in California select a revocable living trust.
Some individuals have questions about what assets should be included in their trusts. Certain financial accounts such as CDs and money market accounts can be placed into the trust or left separate. While, sometimes, there may be a good reason for leaving certain accounts out of the trust, it is usually good practice to fund the trust with all of one's financial accounts. In California, doing so can be a part of trust preparation.
Some people cannot imagine their lives without the companionship and affection provided by the family pet. In order to show their love and appreciation for the pet, many people choose to include the pet in their estate planning. In California, it is possible -- with a little planning -- to transfer assets to provide for a pet's needs after one's own passing.
A disabled individual faces certain unique struggles in saving money for his or her needs. For the disabled individual who has been disabled for his or her entire life, a parent may wish to transfer assets to that person upon death and ensure that he or she will have all needs provided for in the future. In some cases, however, a large pool of assets can jeopardize the disabled person's benefits and may not be worth the risk. California residents have several options when choosing to save for the benefit of disabled individuals.
For many people, preparing for the future means making an estate plan. Instead of a will, some people choose to use a trust as a way to protect assets for heirs. One common trust preparation mistake is forgetting to transfer the title of assets into it. A trust is like a storage tote -- it only protects your valuables if you put them in it. California residents looking to offer the most benefit to their successors may find this reminder quite useful.
When it is time to plan for the passing of funds and property to others, many people wonder about their options for doing so. Some choose a will, but another option to transfer assets is the trust. Trusts are documents that can help a person determine how and to whom certain assets are disbursed, and they also have specific benefits for those California residents who choose to create one.