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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Many Americans, including here in California, do not have a will or a trust. This is typically because they simply have not found the time to make one. Wills and trusts are a crucial part of estate planning. Without one in place before you die, surviving family members may have to confront some thorny problems in order to arrange for the lawful distribution of your estate.

A last will generally includes specific details concerning your intentions and how you want your assets and belongings to be distributed among your surviving heirs. Many do not think it is necessary to go into serious detail in creating a will or trust. However, the problems that have recently arisen regarding Robin Williams’ estate suggest otherwise. 

One of the best ways to be as specific as possible to ensure that the right person receives the right piece of property is to take photographs of the items and clearly indicate on the photograph who is to receive it. For example, if someone with two Persian rugs executes a will stating only that one rug will go to one daughter and the other rug will go to the other daughter, then the daughters may fight over which rug each one of them will get. By taking photos of the rugs and labeling which daughter is to get which rug, the fighting is essentially eliminated.

It’s true that this may take a little more time when preparing a will or a trust, but the extra effort will be well worth it in the long run. You will be able to rest easy knowing that you have drafted a document that will keep your family out of the courtroom and limit the arguments over who gets what. California residents will likely benefit by ensuring that wills and trusts are as detailed as possible in order to make the estate planning process easier on themselves and their loved ones. Working with an experienced estate planning attorney is an appropriate place to start.

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There are many different things which must be considered when dealing with planning an estate. Due to the many things that must be included, many people in California often forget to consider digital assets when estate planning. Facebook has recently attempted to help address this problem by making key changes to the social media site’s account policies.

Previously, Facebook was faced with issues related to the accounts of deceased users. There were limited options available provided by the social media site for dealing with this type of situation. However, the company recently added a new solution to make it easier to manage a decedent’s user account.

Facebook now allows the designation of a “legacy contact.” This is a person who would be allowed to post messages on a decedent’s timeline, as well as update profile pictures and cover photos, and respond to friend requests. One may also allow the chosen legacy contact to download archived posts and photos.

On the other hand, this person would not be allowed to log in as the decedent or view any private messages. One may also decide to tell Facebook to delete one’s account upon one’s death. Prior to this recent change, Facebook had allowed memorial accounts that could be viewed. However, a person was not allowed to access the account after the user died.

On the other hand, Facebook accounts are not the only digital assets that may need to be addressed during estate planning in California. There may be various other social media accounts and email accounts that need to be included in an estate plan. Also, one should consider relevant laws regulating social media accounts after a person is deceased. This can be challenging since it is a relatively new area of estate planning; therefore, the law may not be exactly straightforward concerning this issue.

Source: ajc.com, “Include digital assets in estate planning”, Feb. 16, 2015

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Research suggests that many Americans have taken the steps necessary to ensure that their estate planning needs are adequately met. In fact, one study asserts that as many as 71percent of individuals have not addressed the creation of wills or trusts. Many in California and elsewhere hold false assumptions concerning how their assets would be handled upon their death, and the result of such misbeliefs could be a long and difficult probate process for those who are left behind.

When asked, approximately 20 percent of respondents stated that they believed that their assets would immediately pass to their spouse or surviving family at the time of their death. This is not accurate, however, and overlooks the issue of probate. This is the legal process by which a court determines how assets should pass on when an individual dies intestate, or absent a will.

State laws vary, but in a general sense, the probate process will result in one’s spouse receiving all assets. If there is no surviving spouse, children are next in line, followed by parents, siblings, and then on to extended family members such as nieces and nephews. This may be in line with the wishes of some individuals, but it is often not the distribution of assets that may have been intended.

For example, if an individual has children and later remarries, passing away without a will in place could mean the unintentional disinheriting of one’s children. In addition, not only will the spouse inherit assets such as cash, investments and other financial instruments, all of the decedent’s personal belongings will also pass to the spouse. If there is not a good relationship between children and their stepparent, the result can be the loss of many sentimental items that could have been cherished and passed down to grandchildren.

The best way to ensure that an individual’s wishes are carried out upon his or her death is to create a will. These legally binding documents will allow the family to avoid the probate process, which is both stressful and time-consuming. Assets and belongings can be passed down to the intended recipients in the manner that one intends. Even though drafting wills and trusts may be an uncomfortable proposition for many in California, the benefits make it well worth the time and effort.

Source: nowitcounts.com, “Estate Planning Tips“, Michael Lazar, Jan. 30, 2015

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