Studies that are conducted to gain an understanding of the estate planning preparedness of people around the country consistently yield some rather disturbing results. Most adults are going through life without any type of estate planning documents, and a very high percentage of younger folks are remiss. According to the American Association of Retired People, only 22 percent of individuals between the ages of 18 and 36 have a will or some other asset transfer vehicle in place. For people between 37 and 52 years of age, the figure is 36 percent.
Many adults that are under the age of 50 have dependent children, and a significant percentage of younger families rely on two incomes to make ends meet. People of all ages pass away in accidents every day, and devastating illnesses can strike at any time. It is very important for people of all ages to protect their loved ones financially, but there is also the matter of child guardianship.
If you and your spouse or partner have minor children, and you were to pass away together in an accident, who would care for your children? The court would have to get involved if you have no estate plan in place that includes the choice of a guardian. Granted, in many cases someone in the family will step forward, but there can be disagreements among relatives with regard to the choice of guardian. This can make a bad situation that much worse for everyone involved, especially the children.
On the other hand, if you choose a guardian when you are devising your estate plan, you can go forward with the knowledge that your minor children will be cared for by the person that you have chosen. Clearly, this is important to protect children with two parents, but the matter is magnified if you are a single parent.
In addition, comprehensive estate planning can avoid guardianships over a minor’s asset’s by authorizing a trustee to hold the assets until the minor sufficiently matures.
Adult Conservatorship
As an elder law firm, we help people prepare for the eventualities of aging. Everyone has heard of Alzheimer’s disease, but its widespread nature may come as a surprise if you have not looked into it. One out of every eight senior citizens has contracted the disease, and it strikes about 40 percent of elders that are 85 years of age and older. This is the most common cause of dementia among seniors, but there are others.
Once again, the court can be called upon to empower someone to manage your affairs if you become unable to make sound decisions on your own. The representative that would act on behalf of an adult is called a conservator here in the state of California. If a conservator or the estate and person was to be appointed by the court, this individual would manage your personal and financial affairs.
Choose Your Own Representatives
If you plan your estate correctly, you can appoint representatives of your own choosing to handle your affairs if you ever become incapacitated. This would eliminate the need for a costly, time-consuming and burdensome conservatorship. Legally binding documents including trusts, advance health care directives and durable powers of attorney are typically utilized for incapacity planning purposes. Since they are “durable,” these devices remain in effect even if the grantor becomes incapacitated.
You could execute two different durable powers of attorney. One of the documents would empower an agent to make financial decisions on your behalf, and you could add a durable power of attorney for health care decision-making. We should point out the fact that you could name two separate people to act as agents for these two different respective purposes if this is your choice.
For asset management, a trust may be a better solution for many individuals than a simple power of attorney
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These are a couple of the many different facets that should be addressed when you are planning your estate. You should certainly understand all of the facts so you can make fully informed decisions to protect yourself and interests of the people that you love.
Every situation is different, and this is why personalized attention is very important. If you work with our firm, we will get to know you, gain understanding of your family dynamic and your objectives, and we will explain your options to you. Ultimately, we can help you devise a plan that provides potential representation for you and your children if they are minors. It will also facilitate asset distributions to your loved ones after you are gone in precise accordance with your wishes.
If you are ready to get started, our doors are wide open. You can give us a call at 916-437-3500 to set up a consultation, and if you would prefer to reach out electronically, simply send us a message through the contact page on this website.
