A well drafted estate plan provides peace of mind now while planning for the future.

WILLS

A Will is the most common estate planning instrument.  The Will contains instructions for the distribution of your assets and may also include burial preferences, guardian information for minor children and plans for charitable giving.  In other words, a Will shall pay creditors and transfer property as you direct.  If an individual has life insurance policies, 401 Ks or annuities, those assets can be distributed directly to a beneficiary.  If your beneficiary designations reflect your wishes those assets may not have to go through probate.  For other assets, probate can be an efficient process when there is a Will.  When an individual dies without a Will or Trust, an intestate estate, the State of California directs how those assets will be distributed in the probate code.  The probate process with intestate estate can be an extensive ordeal.

LIVING TRUST

A Living or Revocable Trust is a legal entity once funded.  Because it is revocable, it can be amended to change the terms or terminated during your lifetime.  In other words, you remain in control of your assets.  Such a Trust is essentially a Will in which you, and your spouse if married, place assets.  During your lifetime it is administered for your benefit.  At death, the assets are transferred to your beneficiary or heirs.  Trusts offer a great deal of flexibility in estate planning and is a particularly useful instrument for couples with minor children.

PROBATE

The term probate means “to prove the Will.”  Probate is a court process that transfers the property, personal and real estate, from someone who has died to the individual’s heirs or beneficiaries.  The probate process is utilized if there is a Will or if the individual has died intestate.

TRUST ADMINISTRATION

Although with a Trust, the estate does not have to go through a formal probate court process, the estate still needs to be settled.  Thus, Trust Administration is the process of transferring the property held in the Trust to the beneficiaries.  If an asset was not transferred into the Trust, such as title to real estate, that particular asset may have to be probated.  Even though with a Trust the estate does not go through probate there are many legal requirements, such as providing formal notice to the beneficiaries, that must be complied with and professional legal guidance can be helpful.

ADVANCED HEALTH CARE DIRECTIVE

An Advanced Health Care Directive is an essential estate planning tool.  The directive can save your family from uncertainty.  It is best to complete the directive while you are in good health although some individuals go through the process when facing a terminal illness. The directive outlines your preferences should you become incapacitated by illness or trauma.  In the directive you appoint an agent, usually a spouse or trusted family member, who becomes authorized to make medical decision according to your own wishes expressed in the directive.  We recommend you give a copy of your Advanced Health Care Directive to your primary care physician.