Template and generic estate plans are usually not a good idea. It is important for a California resident to have an estate plan customized for one’s specific situation. Many people, once they have created an estate plan, will leave it and forget it. However, it is always a good idea to periodically update one’s estate planning strategy in order to take into consideration any significant life changes.

This is definitely important if one is married and is concerned about one’s spouse being taken care of after one unexpectedly dies. For instance, most married individuals will leave most, if not all, of their assets to the surviving spouse. However, many have not considered what to do if the surviving spouse needs nursing care later in life. Or, in some cases, the spouse may have since begun requiring nursing care after the estate plan was already created without this situation in mind.

Without updating estate planning strategies and documents to reflect this change in circumstances, the spouse may be put in a difficult situation. The surviving spouse may need to use his or her assets as well as inherited assets in order to pay for nursing care. If the surviving spouse was receiving benefits from Medicare or any other government assistance program, it is possible these benefits would be lost.

On the other hand, a person can update one’s estate planning strategy in order to make sure a surviving spouse’s nursing care needs will be provided for. One way to do this in California is through a special needs trust. However, each situation is different, which means every person will require his or her own customized estate plan with the correct legal instruments aimed at fulfilling specific estate planning goals.

Source: greenbaypressgazette.com, “Review estate plan often to protect beneficiaries“, Carissa Giebel, June 29, 2015

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Creating an estate plan can be a considerable task for just about anybody in California. This is why many people tend to avoid starting the estate planning process. However, estate planning can be even more challenging for those who happen to own businesses. Many business owners may be quite busy running the daily operations of the business that are important to sustain the company.

On the other hand, not having an estate plan can actually be a danger to sustaining the company in the case of something unexpected happening to the business owner. It may be questionable what will happen to a business if the business owner is incapacitated or dies suddenly without an estate plan in place. A good estate plan for a business owner will have a plan for business succession.

However, each situation will require varying solutions that are dependent upon a person’s estate planning goals regarding his or her business. One option is to have the business be sold in the case of an owner’s death and then have the proceeds from the sale of the business go to specified beneficiaries. Others may wish to have a spouse or possibly an adult child continue business operations following a business owner’s retirement or death.

There are various ways in order to ensure a business continues operations in the case of a business owner passing away or becoming incapacitated. However, in order to ensure whatever method one chooses for business succession to work, it is necessary to have the proper estate planning documents with the correct legal language in place. This will require a thorough understanding of estate planning and business laws in California.

Source: yourhoustonnews.com, “Estate planning for business owners“, July 3, 2015

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People are busy with their daily lives, worrying about work and earning a living. This is why many California residents simply never get around to doing any estate planning. Even when people do complete estate plans, many times they fail to update their estate plans regularly. This can cause significant problems for intended beneficiaries in the future.

After creating estate plans, many people fail to account for major life changes that they would want reflected in their estate-planning strategies. This is understandable since many people do not even think about updating their estate plans more than once every five years or so. Therefore, it is common for many individuals to forget to adjust their estate plans to account for divorce or remarriage. Some may even wish to disinherit a son or daughter but fail to update their estate plans to implement such desires.

When a person neglects to factor these major life changes into his or her estate plan, it can leave the person’s assets up for grabs. Often a legal battle will ensue, which can quickly drain the estate of the assets one wants to go to intended beneficiaries. Many times it may be useful to put all estate assets into a trust. This can potentially help to shield assets and loved ones from a prolonged probate process.

However, no estate planning strategy is right for everybody in California. It is important to take into consideration the circumstances that are unique to a person’s situation and estate-planning goals. Therefore, a customized estate plan made to fit one’s individual needs is generally the best option.

Source: thestreet.com, “5 Biggest Estate Planning Mistakes You Can Make“, Jason Notte, July 13, 2015

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After losing a loved one, it is important for a family to be there for each other in order to provide emotional support. However, without a proper estate plan in place, family members may end up being confused as to who should inherit which assets. Therefore, it is best for individuals in California to not procrastinate in starting the estate planning process.

According to some estate planning professionals, most people who fight over an estate will find it to be a financially detrimental endeavor. This is due to the unnecessary litigation in probate court which can be costly. Many times these costs end up eating away a large portion of the inheritance, which is probably not how one would want his or her estate assets to be distributed.

However, it is also important to discuss one’s estate administration plans with loved ones while one is still alive. This can be especially important for those with more than one child, since assets are usually divided between the siblings. Sibling rivalries can become an issue if a will or trust distributes assets unevenly between siblings. Many times the surprise of finding out that assets are being distributed unevenly can result in siblings dealing with their hurt feelings in court.

Therefore, estate planning is not just about the legal documents in California. It is also about communication and being straightforward with one’s family and loved ones. On the other hand, without the properly crafted legal instruments, one’s estate plan can be easily challenged in probate court. This can result in intended beneficiaries being deprived of some or all of their inheritance.

Source: mainstreet.com, “Here Are the Worst Estate Planning Mistakes You Can Make“, Jason Notte, July 13, 2015

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For most people, death is not a fun topic, and it is a subject that many tend to avoid as much as possible. This means estate planning is also a subject that is commonly avoided in California since it entails contemplating one’s own death. A study conducted by Fidelity in 2014 confirmed this after concluding that families struggle having difficult conversations surrounding finances. The study also found that those who have had conversations regarding finances lacked adequate details.

If one has not yet talked with his or her parents about estate planning, it may be a good idea to do this as soon as possible. One never knows when something unexpected may happen. It may be a good idea to start the conversation in a casual tone and broach the subject by saying, for instance, that something was said about estate planning on the radio or television. This can provide a smooth transition into asking one’s parents about their own plans for estate administration.

Sometimes a person’s parents will not have even started making an estate plan. In this case, one can begin talking to them about some of the key components of a good estate plan. These will include various legal instruments, such as a last will and testament, which will direct how one’s assets should be distributed among intended beneficiaries. A power-of-attorney document will come in handy if the benefactor has become incapacitated and cannot make decisions for himself or herself.

However, these two estate planning documents are only a part of creating a thorough estate plan in California. Trusts can play a key role in plans to minimize estate tax liabilities. However, not everyone is the same, and each person will have his or her own unique needs. Therefore, an estate plan should be customized in order to fit one’s individual estate planning goals.

Source: boston.cbslocal.com, “Estate Planning“, Dee Lee, June 19, 2015

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Planning an estate is about more than just money and assets. Estate planning is also about creating a legacy for many in California. This means keeping in mind what a person will leave behind for beneficiaries, as well as for the benefit of society. This is why many have decided to incorporate charitable giving into their estate plans.

It is important to be strategic in choosing charities when creating an estate plan. This will ensure that one’s charitable donations will go to organizations that will be likely to have a significant positive impact on society. It will be necessary to thoroughly research potential charitable organizations in order to have a better understanding of how one’s donated money will be utilized. Some charitable organizations spend more money on administrative costs than they spend on actually helping the causes they are supposed to be supporting.

Of course, another common reason people include charitable giving in their estate planning is the tax benefits. Donations can be deducted from the assets counted as part of one’s estate. This can help to reduce estate tax liabilities, which can allow intended beneficiaries to receive more assets. However, in order to create an effective estate tax strategy, a person will need current information on the latest estate tax laws, which change from time to time.

Charitable donations are only one part of estate planning in California. In order to make sure one’s estate is administered properly one will have to have the correct legal instruments in place. These may include a last will and testament, trusts, powers of attorney and more.

Source: thestreet.com, “Why Charitable Donations Are Great for Your Retirement and Estate Planning“, Jason Notte, June 12, 2015

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Most people do not look forward to planning an estate. Many are reluctant to stop their busy lives to create an estate plan because of the time, energy and the perceived costs required to do estate planning in California. However, estate planning may not be so daunting of a task and can broken up into several specific tasks to accomplish.

One of the first steps a person should make when putting an estate plan in place is to purchase life insurance. This is important to make sure one’s family is taken care of in the case of one’s unexpected death. Benefits received from life insurance can help a family stay in the family home. It can also ensure that one’s children will be able to afford to attend college.

One important estate planning document is a will. The will provides instructions as to how assets are to be distributed among intended heirs. If a person dies without a will, estate administration will be regulated by state laws, which may not provide assets to the heirs that one would have chosen.

A person may also want to consider a living trust as a part of an estate plan. This legal instrument puts a person’s assets in the trust account which can allow the heirs to obtain assets without an expensive and time-consuming probate process. There are various other benefits to a living trust, and it can be customized to fit one’s specific situation and estate planning goals.

On the other hand, a person will need to ensure one’s estate planning documents are legally enforceable in California. These issues are best handled by an experienced probate and estate administration attorney. Even after creating an estate plan, it should be reviewed periodically, at least every few years. Individual circumstances, estate planning goals and/or applicable laws could change, necessitating adjustments in the estate planning documents and instruments.

Source: ahwatukee.com, “Financial Focus: Step-by-step approach can ease estate-planning process“, Joseph B. Ortiz, June 7, 2015

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When it comes to planning an estate, people have a multitude of options and strategies and various legal documents and instruments available in order to achieve their estate planning goals. With so many options available, it can be confusing to many people in California on how best to proceed. For instance many people may be confused about what exactly a trust is and in what situation a trust can be a useful estate planning tool.

Trusts fall into two basic types for estate planning purposes. One type of trust is known as a living or inter-vivos trust. This type of trust is created while a person is still alive. The other type of trust is known as a testamentary trust, which is established after a person’s death.

A trust is a separate legal entity which is used to hold assets to accomplish various estate planning goals. One common aim of a trust is to reduce estate tax liabilities. Trusts may also allow for more efficient management of assets and cash in the case of someone becoming disabled. Sometimes people use trusts to ensure a certain amount of funds or assets are donated to specific philanthropic causes.

On the other hand, a trust is only one legal instrument available for estate planning in California. What other estate planning documents a person utilizes will depend upon his or her situation. Also, everyone’s goals are different and will require varying estate planning tools to achieve those goals. Therefore, understanding estate planning rules and regulations thoroughly will be essential in implementing a successful estate plan.

Source: insideselfstorage.com, “Financial Planning for Self-Storage Owners: Using a Trust to Guarantee Your Legacy“, Steven C. Anderson and Jerry Jones, May 27, 2015

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Many times planning an estate is not as straightforward as one might think. It is possible for different estate planning documents to seemingly contradict each other when it comes to directions on how to administer an estate’s assets. In this case, applicable estate planning laws in California will decide which estate planning instrument holds more weight.

This type of problem commonly occurs when a person’s will names particular beneficiaries that are different than the beneficiaries named in other financial instruments and accounts. For example, a person’s will may name his or her current spouse as the sole beneficiary of all of this person’s assets. However, if the person’s life insurance policy does not match what the will says this can cause a problem.

Many surviving spouses have been surprised by this after realizing that the beneficiaries named on life insurance policies override the beneficiaries named in wills. This means that if a person forgot to change the beneficiary designations on a life insurance policy after remarrying, the former spouse may end up receiving the balance of the life insurance policy rather than the person’s current spouse. Also, along with life insurance policies, there are various other types of estate planning instruments that would trump the beneficiary designations of a will. These include traditional and Roth IRAs, qualified retirement plans, employment contracts, and various other legal instruments and financial accounts.

Therefore, it is a good idea to regularly update one’s estate planning documents, and, in particular, maintain current beneficiary designations for all financial and legal instruments. This will help ensure one’s intended beneficiaries will actually receive the estate’s assets in California. However, beneficiary designations are just one aspect of estate planning people should consider. This is why it is important to have a comprehensive understanding of estate planning laws.

Source: wmur.com, “Money Matters: The trump card of estate planning“, Marc Hebert, May 21, 2015

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Clarity is what one should aim for when planning an estate. Lack of clarity in estate planning can result in future legal problems for intended beneficiaries. This can require significant amounts of time and resources being spent in a prolonged probate court proceeding in California. Therefore, it is essential that people have their wills and trusts in place as soon as possible.

A probate process will include examining one’s testamentary will. This is a legal instrument used in transferring assets in one’s estate. It is also utilized to appoint guardians for one’s minor children, as well as select an executor of a person’s will. A will can also set up trusts for the benefit of surviving heirs.

On the other hand, trusts can also play a vital role in planning for estate administration. A trust is a legal entity which maintains ownership of property and assets. A person or entity will be named the trustee and will be in charge of controlling the distribution of assets held in the trust. The trustee will administer assets according to the terms detailed in the mandates of the trust document, which should be customized to the trustor’s wishes.

However, before creating wills and trusts, people will need to understand the laws regulating these documents in California. This knowledge will ensure a person’s will and trust are legally enforceable. Also, there are a variety of other estate planning documents, such as a power-of-attorney, that one should consider as part of a complete estate plan.

Source: investopedia.com, “Will vs. Trust — The Difference Between The Two“, Matthew Jarrell, May 13, 2015

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