However, the truth is that everyone needs estate planning. If you have any assets, and you intend to give those assets to a loved one, you need to have a plan.
Forbes’s article, “Reviewing Your Financial And Estate Planning Checklist,” examines some important topics in estate planning.
The first of topic is a durable power of attorney for property, finances and health care (also known as an Advanced Health Care Directive). This document allows you to designate a trusted individual to make decisions and take action on your behalf with matters relating to each of the three areas above.
In addition to the importance of having all powers of attorney readily available, in case you become incapable of making decisions, beneficiary designations should also be looked at frequently to update any changes to family situations, like a birth or adoption, death, marriage or divorce.
Another topic to address is a trust. A trust will give direction regarding where and how the assets are dispersed when you die. A great reason to use a living trust is that the assets in a trust do not pass through probate court, which can be an expensive and time-consuming process.In California, if your assets exceed $150,000, then they could be subject to probate at your death.
Another area is digital assets. It’s critical for your heirs to have access to digital files, passwords and documents. This can be easy to overlook. Create a list of your digital assets, including social media accounts, online banking accounts and home utilities you manage online. Include all email and communications accounts, shopping accounts, photo and video sharing accounts, video gaming accounts, online storage accounts, and websites and blogs that you manage. This list should be clear and updated for your heirs to access.
If we fail to plan for these somewhat uncomfortable topics, the outcome will be stressful and expensive for our heirs.
One of the main goals of our law practice is to help families like yours plan for the safe, successful transfer of wealth to the next generation. Call our office today to schedule a time for us to sit down and talk about your estate plan, where we can identify the best strategies for you and your family to ensure your legacy of love and financial security. Our office is located in Santa Ana, CA but we serve all of California including Irvine, Orange, Tustin, Newport Beach, and Anaheim.
Reference: Forbes (January 4, 2019) “Reviewing Your Financial And Estate Planning Checklist”