3 months into 2015... already. If your New Year's Resolutions or list of to-dos for 2015 included creating an estate plan, now is the perfect time. As an attorney, I'm often asked why it is important to create an estate plan. Unfortunately, many people have misconceptions about estate planning and believe they don't own enough so they don't need to plan. However, almost all Californians need some sort of estate plan. Estate planning is important for those with $100,000 in assets just as much as it is for those with million dollar estates. Additionally, estate planning isn't just about money - everyone can use a Power of Attorney, a Health Care Directive and a few other disability planning documents. My goal is to help you determine what exactly you need, whether it be simple or complex. Below are my top 5 reasons to create an estate plan:
TOP 5 REASONS TO CREATE AN ESTATE PLAN
1. You own a home - California real estate is expensive. Even if this your only large asset, it is enough in and of itself to create a probate issue
2. You have children - If you have minor children you need to nominate a guardian for them if something should happen to you and/or your spouse. If you want to leave money to a child you likely want to state at what age they can receive an inheritance and for what purpose the money can be used for. Don't leave it up to the state - if you don't plan money left to a minor child goes into a custodial account which they will receive in full at 18 years of age
3. Privacy - Probate is a public proceeding, meaning anyone can view probate records. Creating a living trust avoids court involvement and prying eyes
4. Cost - While many people struggle parting with money for an estate plan, the cost of a full customizable, comprehensive estate plan is significantly less than letting your estate go to probate. I'll be posting a blog post soon regarding the difference in cost of an estate plan versus probate
5. Disability planning - Everyone, regardless of gender, ethnicity, financial status, etc, needs to create a Power of Attorney, Advanced Health Care Directive and HIPAA form. These documents allow agents to act for you when you are unable to do so. Failing to create documents while you still have capacity will cause your loved ones to endure unnecessary, and costly, fees and time delays to set up a conservatorship - and the person nominated to care and act for you might not be the person you want
Don't plan for yourself. Plan for your loved ones and the issues they will have to deal with if you don't plan.
If you are interested in more information, contact the Law Office of Heather Miller. Consultations are always free and we would love to speak with you and educate you on estate planning and the appropriate plan for you and your family.