Why Is Estate Planning Necessary For California Residents?

It is vital to have several primary estate planning documents regardless of where you live. These documents include a will, a power attorney for finances, and, of course, a medical derivative (medical proxy). However, you should start thinking about avoiding probate after passing away if you reside in California. Here is a brief look at the parts of a California Estate Plan and the consequences of not having one:

The complete parts of a California Estate Plan

You must be wondering what documents need to be signed and archived with utmost care so they can successfully be probated after your death. With the aid of an expert Estate Planning Law Firm, the complete California Estate Plan can be drawn up as quickly as possible while anticipating your every need and wish. A comprehensive California Estate Plan is a customized set of documents that includes a Living Trust, Durable Powers of Attorney for Property and Healthcare, as well as a Pour-Over Will. Moreover, a “HIPAA” authorization, a Living Will and Advance Healthcare Directive along with Deeds to your properties, IRAs, 401(k)s, Guardian Nominations for your under 18 children and perhaps even more.

What happens if you don’t have an Estate Plan and Living Trust?

Probate Court

Firstly, you need to understand is that it may be necessary for the deceased’s family to go through probate to settle that person’s estate after an individual’s death. Nevertheless, it may be possible in some instances to entirely bypass the court process, which is known as probate. The purpose of probate, which is essentially an Estate Plan, is to determine if a will is well-founded and takes care of any ultimate financial issues. Lastly, probate allows the transfer of property to the rightful heirs.

In such a case, where you do not have an Estate Plan and Living Trust, here’s what happens: your loved ones will most likely have to go through the process of what’s known as “probate court” to fight over their rights. This means they will have to fight for your bank accounts, investments and sometimes, even guardianship of your minor children along with any other dependents, and, last but not least, your house.

Decisions for you

Now, if you are still alive but incapacitated, the people you love may be forced to stand by your bedside and fight over who gets to take control of all those parts of your life. This includes making health and life (or rather, end-of-life) decisions for you.

Family relations and money

When and if any of your loved ones go to probate court for any of these reasons, it usually ends up costing a ton of money. So, not only are they sacrificing their precious time but a lot of money. The process can often take up months, even years. Besides that, somewhere along this process, the closest family relationships may be destroyed, resulting in a broken family.

The Bottom Line:

To care for your loved ones and your valuable assets, you need an estate plan. Get in touch with your Estate Planning lawyer and secure your legacy today!

This is a collaborative post.