Who Needs Estate Planning?

  • Who needs estate planning?
    • If you do not have an estate plan when you die, the State of California has one for you. It is called “intestacy.” The laws of intestacy set out who will receive your assets and who will manage those assets after your death, which may be what you want, but may not be. Writing an estate plan gives you the power to control who receives your money on your death and who will have the authority to oversee that process.
    • Parents of minor children
      • If you wish to name a guardian for your minor child, you will need to do that in writing. Typically parents of minor children nominate a guardian in a Will.
    • The charitably-minded
      • Intestacy laws give your assets to your family members on your death. If you wish to give money to your church, a political organization or other charity, you will need to write that down in a Will or Trust.
    • Blended families
      • If you want to protect your children so that they receive an inheritance from you, or if you want to distribute money in unequal amounts to your loved ones, you will need to have that written down in either a Will or Trust.
      • If you wish to provide for your spouse during your spouse’s lifetime and then have your assets pass to your children on your spouse’s death, you will need to have that written down in a Trust.
    • Anyone with assets over $166,000
      • If you are a California resident and you die with more than $166,000 in probate assets (including all real estate in your name alone, tangible personal property and bank accounts without a Beneficiary), your loved ones will need to go through a court-supervised probate. If you do not have a Will, your assets will be distributed according to California intestacy laws, and your loved ones will need to go through the probate process in order to distribute them. Even if you have a Will, your assets will be distributed according to the Will, but your loved ones will still need to go through the probate process in order to distribute them.
    • Everyone
      • Life is uncertain, and even if you are able to manage your finances, make your own health care decisions and support yourself, at some point you may not be able to do those things for yourself any longer. At that point, you will need someone else to step up and manage your finances and make your health care decisions. If you do not have a valid Power of Attorney and an Advance Health Care Directive, your loved ones may need to go to court to get a court order enabling them to make decisions for you. It is much easier and less expensive to do the planning for yourself before the need arises.
      • If you want to make life easier for your loved ones on your death, it is better to have your wishes written down in a legal, enforceable document.
  • What is estate planning?
    • Estate planning is the act of preparing written documents that give instructions about what you want done with your assets when you are no longer able to manage them. This includes who you want to manage your assets and who you want to receive your assets.
    • The most common estate planning documents are Trusts, Wills, Financial Powers of Attorney and Advance Health Care Directives.