Too often, people who don’t have children don’t have a will or other estate planning documents in place. However, in many cases, these are the people who need them the most. Even if you don’t have children, you likely would prefer that other family members, favorite charities or even close friends get all of your money rather than have the government take a big chunk out of it, which could happen if you die without a will.

Even if you’re married, there’s no guarantee that your spouse won’t predecease you. You should have contingency beneficiaries if he or she is no longer alive when you die. The question to ask yourself, as one California certified public accountant puts it, is “If today were your last day on earth, who would get your stuff?”

Beyond designating who will inherit your assets, it’s also essential to have a health care directive in place as well as a durable power of attorney to carry out that directive. This may or may not be the same person you choose to be your POA for financial matters. Again, if you don’t have children, it’s particularly important to ensure that someone you trust will be taking charge of these matters. A health care directive allows you to lay out your wishes for your care if you’re not in a position to give direction yourself. It can and should include matters like what lifesaving measures you want taken (or not) and whether you wish to donate organs.

Along with your health care directive, your estate plan should include a Health Insurance Portability and Accountability Act form that allows your health care POA to easily access your medical records. This makes things more convenient for that person and prevents unnecessary delays and costs for the person overseeing your health care.

An experienced California family law attorney can work with you to help ensure that you have all of the documents in place to detail your wishes, as well as agents designated to carry them out. It’s important to have alternates in case the person you designate is unable to carry out that job. By having a detailed estate plan in place, you also help prevent inconvenience, expenses and often conflict for your loved ones in the days, weeks and months after you’re gone.

Source: U.S. News & World Report, “No Kids? You Still Need an Estate Plan,” Molly McCluskey, Oct. 14, 2016

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Estate documents are essential to uphold your voice on important matters and your family’s future after you have passed on. These documents should stay safe and easily accessible to your family when you can no longer be there to guide them. There is no point in having an  estate plan if no one will be able to find it. Here is what you should know.

Make copies of your estate documents

Over the years it is easy for papers to slip into the trash or be forgotten in a dusty box; that is why you should give copies to involved parties. Photocopies are better than nothing for reference. When you are signing the estate plan with your lawyer then you might as well create a couple more official copies.

Give the copies to your spouse and family members who will take over a majority of the estate once you are gone. Most importantly your executor and lawyer should have a copy of your estate plan. They will be able to distribute copies to anyone in the family whom is involved in the estate and also will have the power to enforce your wishes.

Store the original copy in a safe yet accessible location

Many people store their estate plan in the safest place possible without realizing that others might have trouble accessing it in the future. Some possible places to store your estate plan are:

Safety deposit box: A safety deposit box is one of the more popular options for estate planning documents. Many people do not know that if the account is only under their name that no one will be able to access it after they pass on without a court order. Only store your estate documents in a shared account. Make sure that your spouse or a family member has access.

Locked safe: Another great place for your estate plan is a locked safe at home. Make sure the safe is both fire and water proof. It must be bolted to the ground or wall so that it cannot be stolen. If the box requires a lock combination then make sure to share that information with someone you trust.

If you have not yet created an estate plan then contact an attorney experienced in estate planning. They will be able to help guide you through the process and keep your documents safe.

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Most single parents have little time to think about estate planning. If they’re relatively young and healthy, many do not. However, things can change in the blink of an eye. That’s why it’s essential to ensure that you’ve made arrangements not only to ensure that your children are properly cared for, but that your assets go to the beneficiaries you wish.

It’s also essential to have legal documents in place to stipulate who will make health care and financial decisions for you if you are incapacitated and unable to speak for yourself. If you had an estate plan in place when you were married, that likely needs to be changed, unless you want your ex-spouse to make those decisions for you.

At the very least, everyone should have a will to stipulate whom you want to care for your children and how your assets will be divided. Don’t just assume that those things will be decided as you wish them to be. When someone in California dies without a will, these things end up being decided by courts, and the whole process can get messy and expensive for family members left behind.

Besides a will, if you’re single, it’s probably advisable to have a health care directive in place that details your wishes about who will make medical and end-of-life decisions. A durable power of attorney is the document you use to grant authority to someone to manage your financial obligations and assets if you’re unable to do so.

An experienced California estate planning attorney can help you determine which documents you should have based on your own unique situation. He or she can also provide advice on other actions that you should take to ensure that your wishes are carried out and that your family is saved time, money and conflict after you’re gone.

Source: Conejo Valley Happening, “The Money Savvy Mommy: Why You Need a Will,” Mira Reverente, accessed Oct. 13, 2016

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While most individuals are familiar with the secular features of an estate, they may not realize that their religious concerns can be addressed during estate planning. Religious practices and beliefs can serve as a guide in choosing fiduciaries, distributing funds and resolving disputes.

Here are three ways in which religious affiliation may be addressed in the estate:

1. Choosing fiduciaries

Those selected to promote the best interests of the estate and its beneficiaries can be chosen for adherence to a religious institution. Individuals with close ties to beneficiaries should be considered for the role because the fiduciary is responsible for keeping the beneficiaries fully informed of estate matters. Should the fiduciary be given the role of the trust protector, he can apply knowledge of religious practices to disburse funds or resolve conflicts along religious lines.

2. Disbursing funds

As a trust protector, the fiduciary may designate which funds will be used for tuition for parochial schools, mission trips, scholarships or donations to an organization that supports the goals of the religious institution. Additionally, he can determine which funds should be distributed according to religious requirements, such as tithing. Certain faiths have established protocol for disbursing an inheritance. Directions can be incorporated into a will to reflect religious directives.

3. Conflict resolution

Should conflict arise over the fund or asset disbursement, religious mediators can be used to resolve issues. Such intermediaries are responsible for resolving conflicts along three lines: the technical, humane and spiritual. Technical knowledge of mediation is used to guide the proceedings. The mediator also needs to be aware of the impact that emotional and personal issues have on the problem. While acknowledging the human element, the faith-based mediator ultimately relies on religious guidelines to establish a just outcome. For those of the Hindu, Jewish, Christian, Mormon or Islamic faith, the resolution of conflict will vary according to accepted religious laws.

Religious beliefs can also guide the drafting of living wills and investment protocols. Those interested in incorporating faith-based instructions in their estate should seek the advice of a knowledgeable attorney.

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Most of us have heard stories of young people who were left a considerable amount of money by their parents, and therefore never felt the drive to succeed on their own merits. Too often, it doesn’t end well for them.

That’s why many people who have a considerable estate choose to leave it to other beneficiaries, like charities. They want their children to work for what they have, just as they did. They know the satisfaction and self-esteem that this can bring.

It’s certainly laudable to leave a considerable portion of your assets to charities and others who are doing good work in the world. However, there are other options if you want your children to make their own way in the world and become financially and socially responsible citizens. One is to designate that they will not receive their inheritance until their retirement years.

One financial advisor explains that by leaving them money for their retirement, you’re still requiring them to strive for success, manage their money carefully to buy a home and put their kids through college. However, you’re also taking some of the burden of saving for retirement off of their shoulders.

As with all estate plans, it’s important to discuss this type of plan with your children. They should understand what your goals and wishes are for them. You don’t need to tell them exactly how much money their inheritances will involve.

Depending on how the money is invested, it could be worth considerably more once they receive it than it does at the present time. However, knowing that they’ll have a comfortable nest egg can help them spend more of their earnings to have a more comfortable lifestyle leading up to their retirement.

Your California estate planning attorney can help you draft or change your estate plan to help your children and other loved ones benefit from the assets you’ve accumulated while working to help ensure that they don’t derail their opportunity for an independent, productive future.

Source: Kiplinger, “How to Help Your Children Financially Now Without Giving Them Any Money,” Bruce S. Udell, accessed Sep. 28, 2016

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It’s a reality of life: you watch your parents age, and as they do so, they become less able to do things on their own. If your parent is also dealing with dementia or Alzheimer’s, it can be heartbreaking to watch. Not only is their physical ability declining as they age, but their cognitive functioning is becoming less and less strong. You worry about keeping him or her safe, and wonder if a nursing home with 24-hour care would be the best for his or her health.

Some parents can be stubborn and refuse to go to a nursing home, especially if they are at the point of incapacitation, when they don’t understand the decision at all. It may be helpful to have a conversation with their doctor to fully understand their medical state, and then decide what is best for them. If you need to begin making their health care, personal and financial decisions for them, an attorney can help you set up a conservatorship.

A conservatorship is set up when an adult is unable to take care of him or herself or their own finances. A court can appoint you or another family member as the conservator, which is the person who manages your parent’s living arrangements, medical needs and decisions, personal care and other things like financial decisions.

Where can I start if I am interested in setting up a conservatorship for my parent?

Your parent’s doctor can evaluate his or her ability based on age, disability or disease such as Alzheimer’s. A geriatric psychiatrist may also need to give an opinion. The report from the doctor or doctors can be submitted to the judge handling the conservatorship case, on a form called a “capacity declaration.” The declaration includes the doctor’s opinion on your parent’s lack of physical ability or mental capacity. Sometimes, a judge does not need a doctor’s report in order to see that your parent has lost his or her capacity.

A probate or estate planning attorney can help you find out what other initial steps to take to get the ball rolling in doing what’s best for your parent. Although it can be difficult to think of your parent’s declining abilities, there is hope for you to be able to give them the best scenario for their care and living arrangements.

What are the benefits of setting up a conservatorship?

Because your parent has lost his or her capacity to perform basic life functions or manage his or her care or finances, there are many advantages to them in having you become their conservator. In addition to helping you get them into a safe and caring nursing home, other benefits are:

• Improving the quality of life for your parent
• Doing what’s best for your parent’s personal affairs
• Staying on top of your parent’s finances so there are no negative financial consequences due to their incapacitation
• Protecting your parent’s assets and estate
• Protect your parent against elder abuse

Putting your parent in a nursing home can be one of the toughest decisions you make, even though you know it is what is best for them and their health. Retaining an attorney who is skilled in the area of conservatorships can make the process much less stressful, so you can focus on you and your parent’s health and happiness.

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When you sit down with your estate planning attorney to draft your will and other estate documents, you may go in with the presumption that you will leave each of your children an equal share of your estate. However, equal isn’t necessarily fair.

There are many reasons why you may determine that it’s appropriate to leave some children more than others. For example, you may choose to leave one child more money, property or other assets if that child has:

— Taken a larger role in caring for you and/or your spouse as you’ve gotten older

— A larger family to care for or has had to struggle more to make ends meet

— Special needs that require caregivers and/or other treatment

— Participated in building a family business, perhaps for little pay in the early days

— Received more financial help from you over the years than the others

Sharing your wealth with your children doesn’t have to wait until you’re gone. If you’ve got enough saved up for your own retirement and care, you may choose to disburse some of your funds to your kids earlier.

You may start out with an equal amount designated for each child, both during your life and as an inheritance. If one child needs money earlier, you may choose to provide them some of that allotment sooner rather than later.

Every family is unique. It’s best to discuss your wishes for your adult children and their needs with your California estate planning attorney. He or she can help you determine the best way to fulfill your goals for your family.

Source: Green Bay Press-Gazette, “Dividing your estate: Equal isn’t always fair,” Carissa Giebel, Sep. 26, 2016

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Over the next three decades, Americans will transfer more wealth than ever before — an estimated $6 trillion dollars — as the World War II generation and Baby Boomers reach the end of their lives. Sadly, too many people aren’t prepared to deal with a significant inheritance. It’s estimated that 70 percent of assets transferred to the next generation are lost. Ninety percent don’t make it to the generation beyond that.

Even people who are responsible about developing an estate plan often fail to discuss the importance of saving and investing that money wisely with their heirs. Even fewer discuss how they’d like to see their life savings be used by their families after they’re gone so that the values they cherish are honored.

Of course, financial literacy begins in childhood. As kids get older and start to earn their own money, that education needs to continue. Parents can include them in family budget planning meetings so that by the time that kids are out of college and living on their own, they should know how to make a budget for themselves.

However, inheriting a significant windfall of cash can be an entirely different matter. If you’re going to be leaving your kids a good deal of money, it’s best that they are introduced to wealth planning professionals and financial advisors to help them make that money last.

Some people include what’s called an “ethical will” in their estate plan. The contents of an ethical will vary with each individual. Some people use it to pass on family stories, perhaps about how your parents built a family business from scratch, that help your children understand the genesis of your money. Other people use it to pass along values that they hope their heirs will model and continue to pass on to future generations

It’s important to note that ethical wills aren’t legally binding documents, as traditional wills are. Therefore, if you want part or all of your estate to go to specific organizations, the best way to ensure that is to name those organizations as beneficiaries. Further, if you’re concerned that your children aren’t prepared to handle a large inheritance, you can work with your California estate planning attorney to plan for a gradual release of assets. Your attorney can help you determine how best to leave the legacy you desire.

Source: Spotlightnews.com, “Inheritance and the passing along of financial values,” John McIntyre, accessed Sep. 21, 2016

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Sometimes family members need guidance in their lives from a guardian or conservator. These type of court ordered relationships are set in place to aid a young person or adult with their health and finances. In many states the term guardianship is blanketed over all age groups, but California has a different set of terms.

Guardianship is appointed for minors

Guardianships are appointed by a court, ordering an adult to have custody over a child and/or responsibility of their estate. A minor is appointed a legal guardian for help managing their health and affairs. A guardianship is typically set in place when the parent is no longer able to be the legal guardian. Guardianship is supervised by the court and is not the same as adoption. In a guardianship the parent still has parental rights.

Guardians must be responsible for the child’s welfare, including major responsibilities such as:

• Living arrangements
• Medical needs and decisions
• School arrangements
• Mental health care

Conservatorship is appointed for adults

Conservatorships are court cases in which a judge appoints a person responsible for another adult. The conservator will be responsible for the adult’s affairs and finances. These types of court appointed relationships are necessary when a family member has become incapacitated without signing powers of attorney for their finances and health care. There are options to become a conservator of a person and conservator of an estate.

Conservatorship of a person will come with important decisions to keep the loved one healthy and happy. Some responsibilities include:

• Health care decisions
• Living arrangements
• Personal care
• Much more

Conservatorship of an estate also comes with some major decisions. Be prepared to handle all the finances. Conservator of an estate will be responsible for:

• What to do with real estate: this includes any houses or land the conservatee may own. Also any personal property on the estates
• What to do with any liquid assets
• Taking care to pay the adult’s loans, bills, and taxes
• Deciding on the conservatee’s living arrangements
• Any additional financial obligations

Conservatorship comes with a lot of responsibilities but can greatly benefit an adult who has become unable to take care of their affairs. Becoming a conservator can help your family member make the best decisions for their future. If you are interested in becoming a conservator then contact an experienced conservatorship attorney.

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For many people, estate planning isn’t something they want to think about when they’re healthy. No one enjoys contemplating death. However, that means that many Californians wait until they’re at the end stages of their lives to make wills and other financial preparations.

If that’s the situation for yourself or a loved one, there are some considerations to ensure that your wishes are carried out and your affairs are in order. These can help you minimize unnecessary work and costs for your loved ones.

If you anticipate being incapacitated and unable to make decisions for yourself, it’s essential to designate one or more trusted persons as powers of attorney to handle your financial matters and your health care decisions. You can provide instructions for your health care power of attorney so that he or she knows your wishes regarding life-saving or resuscitative measures.

Review your life insurance policy to ensure that it’s current and paid up. If the value is adequate, you may be able to reduce or stop further payments based on your current life expectancy. However, make sure that this won’t endanger the payout to your loved ones. You may also be able to sell it to an irrevocable life insurance trust. Whatever you decide, ensure that your beneficiary designations are current.

Also confirm that the beneficiary designations on your retirement accounts, investments and annuities are accurate. Many people think that the beneficiaries named in their wills apply to all of their accounts. However, they don’t. You need to make those designations separately for certain types of accounts.

Consider making your final charitable donations while you’re still alive. Many people leave a substantial part of their estate to non-profit organizations that do work they want to support. If your estate is large enough to be subject to estate taxes ($5.45 million for a single person and twice that for a married couple), this can save your heirs those taxes. However, even if your estate isn’t at that level, making these donations while you’re alive can still provide tax savings to those who inherit your estate.

These are just a few of many things to consider if you are doing your estate planning near the end of your life. Your California estate planning attorney can advise you on other options to help more of your estate go to your heirs and beneficiaries and less to the government.

Source: NASDAQ, “6 Estate Planning Tips for Those Approaching Death,” John M. Goralka, accessed Sep. 15, 2016

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