Important: the california attorney general does not give legal advice to individuals.
If you are trying to decide how to provide for the distribution of your assets or care of your children after you die and you need legal assistance, you should hire your own lawyer. For more information, go to attorneys/lawyers page or visit the california state bar website. Generally, if you die without a
will
, trust, or other provision for the distribution of your money and property, that money and property will be distributed according to california law. This is a complicated process, but essentially the state will determine who gets the property based on their relationship to you.
I like the way my "friends talk money" podcast co-host pam krueger put it when describing estate planning in our new episode about it: "i hate the words estate planning. It's just planning. "credit: adobe stock she's right. Some people get scared off by the term " estate planning " because they think it sounds like something only the wealthy need to do. Truth is, one of the greatest gifts you can make for your loved ones is leaving instructions for both your wishes after you die and for if you can't make health or financial decisions while you're alive.
When you think of estate planning, you might be thinking to yourself, “i need an estate first!” but estate planning isn’t just for the rich and famous. (point of fact: many famous people neglect to make a plan! see prince ). An estate plan is all about making sure that if something happens to you, your family knows what to do. It’s not about how much money you have, or how many assets you own. It’s about planning ahead, so your family can grieve in peace knowing that they are carrying out your wishes. If you die without an estate plan, the state will kick off an often lengthy and expensive process of deciding who gets what--your spouse, children, other relatives--with no regard to any wishes you may have had.
What is Estate Planning?
Estate planning involves making decisions about how you want your assets and belongings to be distributed after your death.
It is a process that allows you to ensure that your wishes are carried out, minimize taxes, and provide for your loved ones. Here are some estate planning basics to consider:
will: a will (also known as a last will and testament) is a legal document that outlines how you want to distribute your assets upon your death. It allows you to name beneficiaries, appoint a personal representative (aka executor) to manage your estate, and designate guardians for minor children, if applicable.
Estate planning is one of those tasks that makes almost any other job look appealing, no matter how lowly—cleaning the filter on the vacuum cleaner, setting up a password manager, you name it. First, you may wonder if your assets are substantial enough to warrant an estate plan. Moreover, estate plans are usually drafted by lawyers, and that means dollar signs. And then there's the obvious issue: do you really want to spend time contemplating your own death or disability, which is what estate planning requires you to do? the good news is that you've probably already done a little bit of estate planning—you just may not be aware of it.
In our planning process, we subscribe to the following definition of “estate planning”: to control my property while i am alive and well; to provide for me if i become disabled; and to give whati have, to whom i want, when i want, the way i want; all at the lowest possible overall cost. We have found this to be a broad comprehensive definition which encompasses our clients and their families’ hopes, dreams, aspirations, and peccadilloes and allows us to design a unique estate plan for each client that works when coupled with a regular updating program that insures that the plan is current and all assets are properly titled.
Estate planning may seem daunting, but it really doesn't have to be. The hardest part is often just overcoming the mental hurdle to start. Planning for the future is a smart and caring thing to do. Formulating your estate planning basics brings peace of mind and reduces any anxieties you may have about what lies ahead. The basics of estate planning is to ensure your wishes are followed when you're no longer around. Plus, you don't have to be super wealthy to benefit. Estate planning benefits anyone who wants to make life easier for their family and friends after they're gone.
Stace caseria is a professional writer who specializes in finance and technology. Writing a will is the most basic step in estate planning, regardless of the size of your assets and the extent of your property. Why have a valid will? distribution of your assets: do you want an officer of the court deciding who gets your money, jewelry, possessions, and real estate? probably not. That’s what will happen without a will in a process called “probate,” which can be time consuming and may leave your heirs with higher court costs and legal fees than would be the case if you had a will.
“will be appreciated by those with modest estates who want a quick overview. ” library journal “one of the simplest and best overviews of the estate-planning process. ” the wall street journal “ a search of more than a dozen books in my reference library uncovered a mention of the stepped-up basis in all, but only estate planning basics…makes it clear that the basis of inherited property is adjusted up or down. ” florida sun-sentinel.