Who Needs an Estate Plan?
Estate planning makes sense no matter what size your estate is. Of course, if your estate is large enough to be subject to estate tax on your death, one part of the planning process will be looking at different ways to reduce or postpone estate tax. But whether your estate is large or small, planning makes sense. Estate planning lets you to decide who will manage your assets, take care of your personal affairs, and make health care decisions for you if you become incapacitated in the future.
If you are a parent, an important part of the planning process is choosing who will take care of your children if you die.
Estate planning lets you control who will receive your property on your death and how they will receive the property. If you die without a will or trust, California's intestacy laws control who inherits your property. Without a plan, property passing to minor children goes to them outright when they turn 18. With an estate plan, you can make sure your property is held in trust for the benefit of the child until a particular age or even for the child's lifetime.
For most clients, the fundamental building block of their estate plan is the revocable living trust. A revocable living trust avoids probate on your death because the assets held in the trust can be "administered" without a formal probate.
The State Bar of California has published a pamphlet about the planning process called "Do I Need Estate Planning?" It is a helpful resource if you are wondering whether now is the time to get your own estate plan started.
