Folsom Estate Planning Attorneys
Estate Planning Attorneys Offering Guidance to Folsom – Clients
When many people think about estate planning, they think about wills, death, and asset management. However, there are so many benefits involved with estate planning, and some of these tools can serve you throughout your life.
The Law Offices of Daniel A. Hunt are here to help you nail down estate planning, protect your wealth, and ensure as much of your assets as possible are passed to your family after you are gone.
What Should Be Included in a Comprehensive Estate Plan?
You may be surprised to find out that an estate plan should contain far more than a simple will. While wills are a fantastic start, they leave your family exposed to the probate process and don’t offer any form of asset protection or other benefits.
Some items that we will go over when building your estate plan may include:
- Revocable living trusts – This type of trust allows assets to pass to your beneficiaries without the need for probate. A living trust also allows you to maintain control of your assets during your life and determine trust administration and asset distribution after death.
- Pour-Over Wills – If your trust is the lifeline, a pour-over will is the safety net. This type of will allows any remaining assets you own that are not already in a trust to automatically pass to your living trust after you pass away.
- Durable Power of Attorney – This legal document allows you to authorize someone you trust to handle your financial and legal affairs should you become incapacitated.
- Beneficiary Designations – A great way to ensure your retirement accounts, life insurance, and other payable-on-death assets are transferred to your loved ones is to ensure your estate plan properly and completely designates your heirs and beneficiaries.
- Choosing Guardians for Your Children – If you have children, it is important to name who will become the guardian for your minor children should both parents pass or become incapacitated.
- Inventory of Assets, Creditors, and Debts – Keeping track of your assets and who you owe money to can make the probate process much easier for your executor or administrator. Without this information, they will have to track down everything without your input.
- Successor Trustee Guide – What happens if the person you choose to administer your trust passes away or becomes unable to carry out their duties? Ensuring there is a backup, or even multiple backups, can protect your assets from the unpredictable.
What Is the Difference Between a Will and a Trust?
It may seem like a will and a trust are similar on the surface, but when you dive deeper, you can truly see just how different these two estate planning tools actually are.
Wills
A will is a legal document that goes into effect once you pass away. It outlines who should receive your assets and who will be responsible for handling your estate. The person who handles your estate is called an executor. You will be able to name a guardian for any minor children, as well. However, even a comprehensive, valid will has to go through probate, which can be time-consuming and expensive in California.
Trusts
A trust allows you to transfer ownership of assets into a legal entity that holds and manages them both during your life and after you pass away. With a properly funded trust, you can avoid probate, provide for management of your affairs if you become incapacitated, and make sure your assets are distributed according to your final wishes. The trustee handles a trust administration. While you can choose someone you trust to handle your affairs after you pass away, for the most part, you can name yourself the trustee and take charge of trust administration. A trust is more flexible and far more private, as assets in trusts do not have to pass through probate.
Trusts and wills also differ in when assets can be passed to beneficiaries. With a will, the assets can’t be distributed until after probate, while a trust’s assets can be distributed immediately after death.
Wills are simpler and cheaper than trusts up front, but trusts have future benefits that wills don’t, and in the long run, they can save your beneficiaries money. The time and money you invest in creating a trust now will reduce the amount of time, stress, and money your family has to spend on your affairs later.
Both of these estate planning tools have benefits, and choosing the right one depends on your goals and family dynamics. If you don’t know which one is the best option for your situation, call our Folsom office to speak with an estate planning attorney. Scheduling a free consultation is the first step towards securing your family’s future.
What Is California Probate?
Probate law covers the process of settling someone’s estate after they pass away. Probate is a long, expensive process and can be stressful for your family and executor. Probate is necessary for people who die with or without a will and without a trust that manages the distribution of their assets.
When someone dies without a will, or intestate, the probate court will assign a representative to administer the estate. Since there is no will, this person will have to find your assets and locate your creditors without your help, then distribute the remainder according to California intestacy laws. It completely strips any control the decedent would have had to distribute their estate the way they want.
This process can take 6 months to 2 years to complete, meaning your family will not have access to your assets until then.
What Are Common Mistakes That Arise in DIY Estate Planning?
While there are many services people use, ones they think are saving them money, nothing compares to the guidance of an attorney who knows your specific estate planning needs. These services are “boilerplate,” and every single person who uses them will get the same estate planning documents to complete, regardless of their actual situation. A millionaire in California will get the same recommendations as a minimum wage employee in Kentucky.
Small mistakes made during the estate planning process can come back to haunt your family later. If you create a trust, do you know how to fund it? Do you understand what goes into picking an executor or trust administrator? Have you thought about who will take over trust administration or execute your will if something should happen to your primary assignee? Without an estate planning attorney who grows with you, will you know when you should revisit and update these documents, especially when major laws change?
Overlooking California-specific requirements can make all of your planning pointless. One of the biggest mistakes people make is trying to take this on without an understanding of the law or exactly how this legal process works.
Luckily, you don’t have to do this alone. The Law Offices of Daniel A. Hunt has a local office in Folsom. You can speak with an experienced estate planning attorney right now by calling 916-957-3803 .
What Is the Role of an Estate Planning Attorney?
When you work with a Folsom estate planning lawyer at the Law Offices of Daniel A. Hunt, you can rest assured that you are receiving tailored legal guidance. We don’t just fill out a template with your information; we build plans around each of your goals, family structure, and financial situation.
Are you worried about the legal validity of your current estate planning documents? With our help, you can feel confident that your documents are legally sound and will take care of your family the way you intended.
If your goal is to help your family avoid probate, then we can give you the tools necessary to do just that. We can build your estate plan so it offers asset protection, meaning you can leave more for your family.
Do you intend to leave something to a family member who relies on government benefits? Did you know that doing things the wrong way can lead to losing their benefits and ending up in a worse place than before receiving an inheritance? The good news is that there are ways to plan your estate where you can leave them assets and protect their benefits.
Call our law firm to speak with a Folsom estate planning lawyer who will prioritize you, your family, and your future. Call 916-957-3803 to schedule a free consultation today.