Estate planning documents
Estate planning often gets pushed off until later. At the end of the day, though, estate planning isn’t so much about anticipating what’s to come as it is about addressing the things you can handle right now with clarity. An estate plan provides guidance for those you leave behind when there’s no one around to tell them what to do with your money, your possessions and your choices.
In Petaluma, CA, an estate plan should take into account state law, what you own and who might benefit or need someone in charge in the event something were to happen to you. A comprehensive estate plan can minimize issues, maintain confidentiality and ease the burden on those handling your affairs during a difficult time.
Planning Priorities
An estate plan isn’t simply a last will and testament. Rather, an estate plan is a group of legal documents that address what happens to your property, who can speak for you, and what you want done regarding health care if you’re unable to communicate your wishes.
An estate plan usually involves a few key considerations:
- Who should inherit your house, savings, other property or business?
- Who can handle your financial decisions if you’re unable to do so?
- Who can make health care decisions for you?
- Who should care for your minor children?
- Should anyone receive anything specific, or should anyone be excluded entirely from your estate?
The above sounds simple enough, but family ties, second families, previous marriages and co-ownership can affect the outcome. A discussion with an estate planning lawyer in Petaluma, CA can help you figure out where a seemingly harmless directive could cause issues later; the practical side of estate planning attorney in Petaluma, CA starts there.
Wills and Trusts
A last will and testament enables you to designate beneficiaries, name a legal guardian for minor children and select an executor of your estate. While a last will and testament is a necessary document, property passing under the provisions of a will may still require probate.
Wills and trusts paperwork
A revocable living trust, laid out without much jargon at https://www.investopedia.com/terms, holds your property during your lifetime, and it specifies what should be done with your property after you die. If executed and funded correctly, a revocable living trust may allow some of your property to pass outside of probate. It can also allow you to put a system in place for the management of property in the event of your incapacity.
Funding is where many estate plans go awry. A trust doesn’t manage your property simply by virtue of its existence. Your estate planning attorney will verify that deeds, financial accounts and other property have been transferred to the trust or otherwise aligned with its provisions.
Incapacity Documents
Estate planning is also incapacity planning. If there isn’t a written authority, your relatives may not be able to pay bills, get information, or make medical decisions for you.
A durable power of attorney can give an authorized person the power to perform financial acts. An advance health care directive can name a health care agent and provide instructions regarding medical treatment and end-of-life care. These documents should be read closely because you may ask your designated representative to make these decisions at an emotionally charged and confused moment.
An unsigned plan provides no security.
Execution requirements are just as important as what’s written on the paper. A will usually requires two witnesses in California, and attorneys will also check if those witnesses might raise questions of undue influence or potential conflicts of interest (e.g., a beneficiary). Trusts, powers of attorney, and health care documents may have other execution rules, such as signing in front of a notary.
Asset Titles and Beneficiaries
Certain types of assets can be distributed without a will or trust. Retirement accounts, life insurance policies, pay-on-death bank accounts, and joint accounts may distribute according to beneficiary designation forms or titles. The instructions on those forms can take precedence over your wishes stated elsewhere.
So a full review should be more than legal documents. It should be accompanied by up-to-date account statements, property deeds, business records, insurance policies, and beneficiary designations. Look for old names, missing secondary beneficiaries, or newly acquired property that hasn’t been included in the plan.
Property and beneficiary records
Petaluma homeowners should be careful about how their real estate is titled. Your primary residence is often the largest asset in an estate. Ownership title, mortgage debt, and trust transfers all impact what will happen.
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Plan Updates
Obviously, major life events are reasons to update your estate documents, but smaller things may matter too. An identified fiduciary may move, become ill, or not be the right person to serve. A kid may grow up, a bequest may alter your net worth, or a new account might not have been incorporated into the plan.
Updating your plan after a relocation, marriage, divorce, a death in the family, or a major shift in property ownership can help ensure the plan still meets your needs. Changes in California law or financial institution rules may also render an older document less functional.
Don’t forget about digital assets.
Financial accounts on the internet, pictures stored in the cloud, virtual currency, social media accounts, subscriptions, these can be hard for an agent to discover or use. Maintain a confidential list of accounts and how to access them, but don’t include passwords in your will. You may want to include authorization for these items in your estate planning documents, and update your list from time to time.
Document Access
A good estate plan should be readable by the people who may need to execute it. Store original copies in a safe and accessible place and let the appropriate trusted person know where they are. Don’t leave the important paperwork tucked away in a filing cabinet, an unknown box, or an unmarked folder on a hard drive.
To start, inventory your assets, your choice of decision makers, and any existing estate documents before you meet with an attorney to discuss updating the plan.