ESTATE PLANNING IS NOT JUST FOR THE RICH AND FAMOUS 

Estate Planning is for everyone, not just the upper class. In fact, almost everyone can benefit from proper estate planning. 

Estate Planning is the process of managing and placing a person’s family and financial affairs in order. The goals involve maximizing the person’s enjoyment of his or her estate (property and all other assets) during his or her lifetime and the beneficiaries’ (heirs, children, family, friends and church/charity) enjoyment of the estate after the person has passed away. Essentially, the objectives of Estate Planning include the following: 

1. Provide for the needs of the client and his or her family members;
2. Appoint a person or guardian to care for his or her children;
3. Provide desperately needed cash to pay for funeral, court, financial and legal expenses;
4. Provide for the children’s and grandchildren’s education;
5. Provide for surviving spouse;
6. Holding and transferring real estate and other assets during lifetime and after one passes away;
7. Planning for healthcare decision-making in the event of a person’s incapacity;
8. Planning for financial and business decisions in the event of a person’s incapacity;
9. Structuring business, investment, retirement and life insurance arrangements; and
10. Minimizing estate and income taxes. 

Failure to implement an estate plan can have serious consequences. Without a written estate plan, the disposition of decedent’s assets is subject to the provisions of applicable California Law. For example, without a will, someone not of your choosing may be appointed to care for your children. As a result, relatives will have to petition the court to determine who will care for the children. Moreover, a disabled child may not receive special attention. Furthermore, funds desperately needed may be held in probate court for months or even more than a year. In addition, a deceased person does not have control over who will receive assets without a will because distribution will be determined by California Intestate Rules. Finally, a substantial portion of the estate may be taxed for estate and income taxes without proper planning. 

In conclusion, without an implemented estate plan, (1) one’s children may be temporarily misplaced; (2) cash and assets may be tied up for months or over a year; (3) the assets may be substantially levied by taxes; and (4) there may be significantly less assets to distribute to loved ones.