Many times, obtaining life insurance is an important part of a person’s estate planning strategy. However, in some cases, just simply having life insurance is not enough for California residents. Those with large estates or who have beneficiaries who are not good at managing money may also want to consider creating trusts to go along with their life insurance policies. There are many ways in which a trust can help with administering and managing a life insurance policy and its benefits.

Most people will be fine with simply listing individuals, such as children or spouses, as beneficiaries on their life insurance policies. On the other hand, there are various situations in which it may be better to create a trust and name the trust as the beneficiary of a life insurance policy. This may be a particularly useful strategy if one’s estate’s worth exceeds the federal exemption amount. Meanwhile, some may be looking to protect assets from creditors, while others may have children with special needs.

Choosing the type of trust one wants to create is also important, as each type of trust offers different benefits, as well as different disadvantages. There are simple types of trusts that can be created for the average individual. Those with larger estates may require more complex trust-planning strategies. However, in order to choose the correct type of trust, one needs to understand the laws that govern trusts and be able to apply them to his or her specific situation.

Along with trust planning, there are a variety of other aspects to estate planning that one should consider in California. Each person will have his or her own goals when it comes to estate planning. Estate planning strategies should be tailored to that person’s specific situation.

Source: dailyfinance.com, “How to Supercharge 4 Types of Trusts with Life Insurance”, Jeff Rose, May 7, 2015

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Most Californians with estate plans in place make arrangements concerning the disposition of their money and physical assets after they pass away. However, many of these people forgot to consider their digital assets in their estate planning efforts. This can cause some significant problems when it comes to time to administer the estate.

The problem is that the law is not clear as far as how to deal with digital assets in general. This is especially true after a person passes away. Therefore, it is important to take action while one is alive in order to prevent problems following an unexpected death.

In doing so, it’s typically beneficial to read all of the relevant fine print from social media sites, such as Instagram, Twitter or Facebook. Usually, consumers regularly consent to various terms without actually reading the legal documents to which they are agreeing. Within these terms and agreements, the policies on how to deal with an account after a person has passed away are detailed. Some accounts will allow another person to cancel the account, while other social media accounts do not.

New laws are currently being created in California in order to bring more clarity to estate planning for digital assets. Understandably, it is important to be aware of the latest applicable laws when it comes to digital assets. This is important for physical assets as well, since any change in the law can affect various aspects of estate planning. An attorney with experience in handling probate and estate administration issues can provide valuable insight and support while considering these matters.

Source: news8000.com, “Digital estate planning, how to manage your assets before you die“, Keely Arthur, May 3, 2015

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Although parents usually love all of their children equally, their children are not always equal in their financial positions. There may be one adult child that is more established financially than his or her siblings. When this is the case, California parents sometimes make estate planning choices that are fair but not necessarily equal.

Many times parents distribute their assets equally among their children. However, parents may want to consider the details of each child’s circumstances when making plans for the distribution of their estate. One adult child may have a lower income or more family members to support. Therefore, a parent may want to leave more assets to this child than to a more financially secure child.

Other times, the role an adult child plays in helping the parents may be taken into consideration when dividing assets in an estate plan. If a child decides to assist in caring for aging parents, the parents may decide to compensate the child by leaving a larger inheritance in exchange for the care received. Another example would be if an adult child is a part of a family business and has been working without compensation. In cases like this, parents may want to leave the entire family business to the child who has been involved in running the business.

On the other hand, besides deciding how to divide assets between children, there are various other concerns that may warrant attention when making estate planning decisions in California. As every person’s estate planning goals are different, each estate plan will require the use of different legal instruments. Therefore, it is best to customize every estate plan to fit a particular individual’s situation.

Source: greenbaypressgazette.com, “Fair doesn’t mean equal in estate planning“, Carissa Giebel, April 27, 2015

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It is generally better to avoid problems in the first place rather than having to find a solution to problems once they arise. This is especially true for estate planning in California. Being aware of some of the most common estate planning mistakes can help to sustain one’s assets in order to ensure intended beneficiaries receive all of what was intended for them.

One of the most common mistakes in estate planning is to not do any estate planning at all. Some people tend to do this because they feel they do not need it. Usually, these individuals believe they are too young or do not own enough assets worth protecting. However, it is not necessary to be elderly or rich in order to benefit from estate planning.

Another misconception about estate planning is the belief that a will takes care of everything. However, this is far from the case. For instance, some financial accounts will have named beneficiaries attached to the accounts which typically override whatever beneficiaries are listed in one’s will. Therefore, it is a good idea to make sure that estate plans are comprehensive and take into consideration more than just a last will and testament. It will be necessary to account for all assets and make certain the proper documentation has been executed in accordance with the wishes of the individual planning his or her estate.

Other important estate planning instruments to consider include trusts, power-of-attorney documents, life insurance and other considerations. However, each situation is different, which means each estate plan must be customized with particular estate planning goals in mind. Understanding the laws surrounding estate administration and having an experienced attorney to assist in the process will be essential in formulating an effective estate planning strategy in California.

Source: consumerreports.org, “6 costly estate-planning minefields, and how to avoid them“, April 14, 2015

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Planning a California estate does not only include dealing with how assets are distributed after one’s death. Estate planning also includes managing assets while living. For those with a significant amount of wealth, it is important to protect assets from creditors as well as other potential risks.

Each individual situation is unique, and a careful evaluation will be necessary to develop the correct asset protection plan. Some people who have low risk of facing a claim may decide that just having insurance and declaring a homestead is enough to protect one’s home. Others may wish to create an offshore trust or separate business entity for certain assets. Of course, no plan for protecting assets is perfect and one may have to adjust strategies as circumstances warrant, including changes in applicable laws.

Many times, a person may decide to divide one’s assets with a spouse. This may be a good idea if one has greater exposure to possible liabilities than the spouse due to that person’s business or occupation. This individual may wish to maintain ownership of income and business assets while the spouse takes ownership of investments and other assets of value. Typically, creditors can only reach assets in a debtor’s name.

While creating an asset protection plan while still alive is important, it is also essential to consider how assets will be administered after one’s death in California. Failure to do so can cause intended beneficiaries significant problems. This will require relying upon someone with knowledge of applicable estate planning laws and the experience to apply this knowledge to one’s specific situation and estate planning goals.

Source: thespectrum.com, “Asset protection in estate planning“, Brent Shakespeare, April 2, 2015

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Losing a loved one can be an extremely challenging and emotional time for anyone. This is why one should make sure to take care of estate planning as soon as possible in California. On top of emotional struggles, one’s family and loved ones will also have to deal with the administration of one’s estate during this difficult period. Therefore, making sure the proper documents are in place is essential for alleviating the burden for loved ones as much as possible.

Although there are many legal and financial documents necessary in order to administer an estate, one of the most important documents is the financial inventory list. This lists all of one’s financial accounts, as well as contact persons. Having this handy can save one’s executor significant time in making sure one’s wishes are followed. The list can also help in the case of incapacitation.

Having this document readily available for one’s executor will make the search for an estate’s assets less troublesome. It will also ensure that all liabilities and existing insurance policies will be easily located. This can save time during the administration process, which will ultimately save the estate money that can then be passed along to intended beneficiaries. All types of financial accounts, including credit card accounts, mortgage documents and other types of loans should all be included in the financial inventory list.

Along with the financial inventory list, those doing estate planning should also include various other important documents as well. Many of these will be legal documents that will help intended beneficiaries avoid a lengthy probate process in California. These documents include a will, power-of-attorney and trusts, among others. However, these documents should be individualized to meet each person’s estate planning goals.

Source: news-leader.com, “Estate planning: Your financial inventory“, Dr. James Philpot, March 28, 2015

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Planning an estate is about more than just dealing with assets. Estate planning is also about managing and dealing with other people. Along with having the proper legal and financial instruments in place, ensuring a smooth administration of one’s California estate will require communicating important details to loved ones.

This can prove to be a challenge since loved ones may not feel comfortable talking about death. Also, many may not be financially savvy, while some may lack organizational skills, which can make talking about estate administration stressful. Having a conversation with loved ones will allow a person to determine which individuals would be best suited for dealing with administration of an estate.

Some of the things that a person should discuss with loved ones and intended beneficiaries are where important legal and financial documents are located. This will include documents related to IRA accounts, as well as life insurance policies. Also, informing loved ones of the location of one’s will, trust documents and power-of-attorney documents is also essential in ensuring a successful estate administration process.

On the other hand, it is just as important that the estate planning documents themselves are properly drafted without mistakes. Failure to do so can lead to future legal problems for intended beneficiaries in California. It can even result in intended beneficiaries being unable to obtain assets during the estate administration process. Additionally, failure to provide the correct legal language in estate planning documents can cause loved ones to have to go through an expensive and lengthy probate process.

Source: Forbes, “The Single Most Important — And Unconventional — Estate Planning Tip You Will Ever Get“, Charles Sizemore, March 19, 2015

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Technology and the Internet have made many things in life easier, more convenient and efficient. However, they have also made estate planning more difficult in a number of ways. More and more California residents have found that they must consider the disposition of digital assets when engaging in the estate planning process.

Before the Internet, it was significantly easier to administer an estate and tend to the unfinished business of a loved one. This could usually be accomplished by following the paper trail. Doing so made it easier to find bank statements and unpaid bills. However, nowadays people have designed their lives around the Internet, which has made the process of estate administration more challenging.

It is a good idea to take the digital estate into consideration when creating a will or making plans for possible incapacitation. The digital estate includes social media accounts, email accounts, online banking and even online video game accounts. Failure to protect online and digital assets can result in various negative consequences, such as electronic bills not being paid or valuable digital possessions being lost. Some individuals may also have embarrassing accounts or online secrets which they do not want accessed by others.

In order to properly implement digital estate planning in California, it is important to have a complete understanding of the applicable laws. This can be challenging since laws pertaining to digital assets are relatively new and are constantly changing. However, failure to do so can create an even bigger challenge for intended beneficiaries when they are attempting to settle the estate of a loved one.

Source: dispatch.com, “Guide to Life: How to handle online accounts during estate planning“, Hannah Yang, March 13, 2015

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There is always a certain amount of uncertainty when it comes to the future. No one can plan for every possible situation. However, one can do something to make sure that loved ones are taken care of in the case of something unexpected happening. Therefore, it is important for California residents to not procrastinate when it comes to estate planning.

Although many may see estate planning as a complex and confusing endeavor, in reality, planning an estate is simply making plans about what to do with one’s possessions after death. Despite most people’s reluctance to think about their own deaths, estate planning is essential for those who wish to protect their heirs’ inheritances. Failing to plan will leave important decisions about assets in the hands of the probate court.

Having to go through the probate process will make it more difficult for loved ones after a person’s death. This can be especially burdensome during an emotionally challenging time. Putting an estate plan in place will allow loved ones time to grieve. while also reducing stress related to administering an estate. It can also save on tax liabilities, which will leave more assets and money to be distributed to heirs.

Proper estate planning in California will require the essential legal documents to be in place. For most, this means a will; however, other estate planning documents, such as trusts and powers of attorney, may be necessary as well. As each person has his or her own unique situation that will require customized estate planning documents aimed at achieving specific estate planning goals, the assistance of an estate planning professional may be beneficial.

Source: cheatsheet.com, “A Beginner’s Guide to Estate Planning“, Brian Wu, March 3, 2015

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Planning an estate is something that one should not procrastinate in completing. However, there are several common reasons why people tend to avoid estate planning in California. Some of these reasons are psychological while others are based upon a lack of knowledge concerning the appropriate steps.

One of the most common reasons for procrastinating in planning an estate is that most people do not want to think about their own demise. Despite it being an uncomfortable subject matter, there are many other important people in a person’s life that will be depending upon an estate plan being in place in the case of something unexpected occurring. For instance, having a custody plan in place can ensure that one’s children are safe. Also, having an estate plan in place will help one’s family more easily distribute estate assets and money, which allows the family to deal with an emotionally challenging time.

Many people may be intimidated by planning an estate because they do not understand how to go about it. The legal and financial considerations may seem intimidating and confusing at first. Seeking the right professional help can go a long ways toward making proper estate planning decisions.

Nevertheless, there is not a one-size-fit all solution to estate planning in California. Therefore, the relevant laws will need to be applied to the particulars of each person’s circumstances. Each individual has his or her own concerns and considerations. An estate planning strategy can be established to conform with individual wishes and achieve the intended goals.

Source: The Huffington Post, “Why We Avoid Estate Planning“, David A. Dedman, Feb. 26, 2015

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