Estate planning has its own vocabulary that consists of words like wills, living wills, medical directives, probate and trusts, just to name a few. Trusts allow one to keep the details of an estate private and can simplify the process of transferring assets in California. Understanding trust preparation and probate and the impact on the transfer of one's estate can be key to successful estate planning.
As people age they may realize the need for estate planning and the creation of a will in California. Having a will helps one to transfer assets, establish guardianship for minor children and facilitate the passing of one's belongings on to one's heirs after death. While a will is a help, there are other factors that may need to be considered when establishing one's estate plan.
In creating an estate plan for a sizable estate that will eventually be left to one's children, people frequently make use of trusts that enable them to control the distribution of the estate after one's death. This is frequently done to ensure that children are old enough and responsible enough to manage the assets received. For a trust to be carried out successfully in California, close attention should be paid to the trust administration.
Wills and trusts are common terms when discussing estate planning in California. The differences are not always clearly understood. Where a will can transfer assets only after one's passing, a trust can do more.
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.