Dying without a will  or trust is called dying “intestate;” and, the intestacy laws of your state of residence, at your death, will determine who inherits from you and in what percentages.  If you die with a well constructed and comprehensive will or trust plan, you get to decide who benefits from your estate.  Typically, state intestacy laws don’t match decedents’ wishes.

Furthermore, if you die with assets in more than one state, especially real estate, your assets would be subject to two (or more) sets of intestacy laws; so, you could actually have two different sets of beneficiaries.  This also means that you would have probate in two or more states, mandating two or more probate attorneys, two or more courts, two or more sets of probate fees, and the like.

In addition, if you die without a will or trust, you haven’t appointed a personal representative (i.e. executor) or successor trustee to settle your estate.  As a result, the probate court must step in and appoint a personal representative (called an “administrator”) to wind down your financial life.  This person has access to your personal and financial information.  If you want to choose who has this confidential access, you need to name a personal representative in your will or successor trustee in your trust.

Wills are also used by the parents of minor children to nominate guardians.  Both guardians of the child and of the assets left for the benefit of the child must be named.  In a trust-based plan, you can name a trustee to manage assets for a young person’s inheritance. If you don’t, the court will.  If you’re like most parents and you’d like to be the one to choose who raises your child, if you can’t; you need a will or trust.

If intestacy laws determine that your minor child is a beneficiary, and they will, your child cannot legally inherit.  The court will appoint a guardian to be in charge of the assets until your child attains the age of 18.  This requires court reporting and associated court and legal fees which eat away at your child’s inheritance.  Plus, you may not want your 18 year old to inherit outright, without any protections.

Dying, without a will or trust, costs a lot of money and is a total loss of control.  If you have not executed a will or trust, consult with a qualified and experienced estate planning attorney to determine whether a will or trust is the best solution for you.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

While almost anyone can create and use a power of attorney, not everyone needs to grant an agent to handle their affairs. However, you can always create a power of attorney that will take effect in the event it is needed. If you are a person in any of the following categories, you should talk to your estate planning attorney to create a power of attorney.

• Seniors. Aging often requires us to give others the ability to help us manage your affairs. Your estate plan should includedifferent kinds of powers of attorney, e.g., health care and financial powers, so your family isn’t left scrambling if the time when they are needed ever arises.

• Parents. Whether you are a single or married parent, you will want a power of attorney in case something happens to you. If you’re married, you and your spouse should coordinate your powers of attorney so there are no potential conflicts.

• Business Owners. If something happens to you, who will run your business? A power of attorney can ensure emergency situations are properly planned for and allow for an easy transition in an emergency.

• People with Chronic Diseases. If you have a medical condition that could eventually take your ability to make decisions, you need a power of attorney immediately. As long as you’re still capable of making your own choices, you can create a power of attorney to ensure your desires are met if you ever lose this ability.

To determine which types of powers of attorney you will need and what powers they should contain, consult with an experienced and qualified estate planning attorney.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

It can be heart wrenching to decide if a family member or friend you love can no longer safely live in their own home.  It can be scary for that loved one to think about his or her care needs and possible new living environments.  If you have concerns about a loved one , consider the following questions when determining care needs.  If you need help, consult with an experienced and qualified estate and elder care attorney.

• Does your loved one have medical needs that require special attention?

• Is your loved one unable to prepare meals?

• Does your loved one forget to purchase new food?

• Does your loved one have safety concerns?

• Is your loved one afraid to live alone?

• Does your loved one constantly have medical emergencies that require attention?

• Would your loved one benefit from a more organized daily schedule?

• Is your loved one constantly forgetting to take medication?

• Does your loved one frequently fall or slip in his or her home?

• Does your loved one forget how to handle simple tasks?

• Is your loved one afraid to ask for assistance?

• Is your loved one unable to handle household responsibilities such as cleaning?

• Does your loved one crave socialization and group activities?

• Has your loved one forgotten about important financial affairs?

• Does you loved one neglect his or her personal hygiene?

• Are you afraid that your loved one will have a medical emergency when no one is around?

• Are you and your family members unable to offer full-time supervision?

If you find yourself agreeing with several of the questions above, your loved one may need the supportive care of a care facility such as assisted living or a  nursing home.  If you have questions about your loved one’s care needs or if you need help choosing the place for the bestr care, consult with an experienced and  qualified elder care attorney.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

Probate can be an extremely costly, lengthy, and public process.  Many people take the time to carefully plan their estate in order to avoid probate.

If you’re looking to avoid probate, you will need to utilize the right techniques.  Take a look at some more great ways to avoid probate.  If you have any questions or if you’re ready to discuss your probate avoidance needs, meet with an experienced, qualified estate planning attorney.

• Gift during your lifetime.  If you’re able and willing to gift throughout your lifetime, you can begin to transfer ownership of your assets. This can be a useful way to avoid the probate process.  It’s important to only gift if you no longer need the assets.  You should also consider the gift tax and capital gains tax consequences of such gifts.  Seek competent tax advice before proceeding.
• Name your beneficiary for your life insurance policy.  This is one of the assets in which you will be required to name a beneficiary.  Designating a beneficiary will allow you to make sure that the right person receives your assets and will also avoid probate.  Your life insurance policy proceeds can’t be controlled by your will or other estate planning device.  Due care should be used in making the designation as it could cause problems with young, troubled or disabled persons named as beneficiaries.  If you have a living trust, it could be named as a beneciary. However, once again, there are numerous pros and cons to consider and competent, experienced legal advice, not just suggestions from an insurance agent, should be obtained.
• Designate your beneficiary for your retirement accounts.  This is another asset that allows you to designate a beneficiary with the use of a beneficiary designation form.  This asset isn’t subject to the probate process. Your retirement account funds can’t be controlled by your will or other estate planning device. As with life insurance, annuities and other assets which allow for beneficiary designations, one must carefully consider the correct designations as it could cause problems with young, troubled or disabled persons named as beneficiaries.  If you have a living trust, it could be named as a beneficiary.  However, there are pros and cons to consider and competent, experienced legal advice, not just suggestions from the benefits person, should be obtained.

Remember that by creating a will or choosing to ignore your estate planning needs altogether, your assets will be subject to the probate process.  Take the time to carefully plan so that your goals are met and your loved ones are able to receive their inheritances quickly.

If you have any questions about the probate process or if you’d like to utilize some probate avoidance techniques, consult with a qualified estate planning attorney.   You can avoid probate.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.

Friends, family, acquaintances, and the internet are a breeding ground for estate planning myths.  These myths can lead to a failure to plan or a plan that fails.  To set the record straight, we are dispelling 7 estate planning myths in this three part article.

5.  I don’t need a trust because I have a will.  Myth!!!

Most people would benefit from having a revocable living trust in addition to a pour-over-will.  While your will is necessary, it is only effective after you’re dead.  Therefore, it can do nothing to help you or your loved ones while you are alive.

A revocable living trust allows you to remain in control and provide instruction for what you want to happen should you become disabled.  For example, it gives instruction as to how you will be deemed disabled, who will serve as disability trustees, and what your disability trustees are authorized to do.

Even with a will, many persons whose estate exceeds $150,000 will have to endure the costs, delay and public scrutiny of formal probate proceedings.

6.   If you have a revocable living trust, you need not take further action.  Myth!!

A revocable living trust is not a magic document, you still need people to take action and follow trust instructions in the event the trust maker becomes disabled or dies.  If a trust maker becomes disabled or dies, be sure to contact a qualified, experienced estate planning attorney immediately.

In addition, your revocable living trust and all estate planning documents should be reviewed every few years or if a significant life event occurs.

7.  I am too Young to Need Estate Planning.  Myth!!

Unless you’re a teenager or a child, this is a myth.  Everyone age 18 or older needs an estate plan.  Those who are younger and have modest assets may not need a comprehensive trust-based plan.  However, to avoid the devastating consequences that could accompany an unexpected death or disablity, basic planning documents should be in place.

And, if you have any questions or concerns, consult with a qualified estate planning attorney.

Northern California Estate Planning Counselors, LLP is a member of the American Academy of Estate Planning Attorneys.