Frequently Asked Questions
Our goal is to provide you with immediate access to information that will assist you in understanding the estate planning and probate process in California.
We believe that an informed client is an empowered client, and we are dedicated to offering resources that are as informative as they are easy to understand.
Explore the questions and answers below to learn more, and feel free to reach out to us for a more personalized discussion regarding your estate planning needs.
WHAT IS ESTATE PLANNING AND WHY IS IT IMPORTANT?
Estate planning is the process of organizing how your assets, like money and property, will be managed or distributed during your life and after you pass away. It's crucial because it helps ensure your wishes are followed and could minimize taxes and legal fees for your loved ones.
WHAT'S THE DIFFERENCE BETWEEN A WILL AND A TRUST?
A will is a document that outlines who will receive your assets after you die. A will only takes effect after you pass away. A trust, on the other hand, is a setup where you can place assets to be managed by a designated person (a trustee) for the benefit of others. Trusts can often help avoid lengthy court processes if you become incapacitated (called conservatorship) and after you die (called probate).
WHAT IS PROBATE AND HOW DOES IT WORK IN CALIFORNIA?
Probate is a legal process that occurs after someone dies to ensure their assets are distributed correctly and their debts are paid. In California, this process is handled in the probate court of the county where the deceased person lived, and can take normally more than a year or even years to complete.
HOW CAN I AVOID PROBATE IN CALIFORNIA?
You can often avoid probate by:
Creating a living trust to hold your assets.
Owning assets jointly with someone else with rights of survivorship.
Naming beneficiaries on accounts like retirement plans and insurance policies.
Using Payable-On-Death designations on bank accounts and other assets.
HOW CAN I ENSURE MY ESTATE PLAN IS LEGALLY SOUND?
To ensure your estate plan is legally sound, it's advisable to consult with an experienced estate planning attorney who understands California law. They can help you draft the necessary documents, advise on tax considerations, and suggest strategies to protect your assets and beneficiaries.
CAN I MAKE CHANGES TO MY ESTATE PLAN ONCE IT’S CREATED?
Absolutely. It's not only possible, but often recommended to review and potentially update your estate plan due to changes in your life, laws, or financial situation. Common life events prompting a review include marriage, divorce, birth or adoption of a child, or a significant change in financial circumstances. Additionally, changes in tax laws could impact your estate plan. It's advisable to consult with an experienced estate planning attorney to ensure your estate plan remains up-to-date and continues to meet your objectives in a legally sound manner.
WHAT HAPPENS IF I DIE WITHOUT A WILL OR TRUST IN CALIFORNIA?
If you pass away without a will or trust in California, your assets will be distributed according to the how the law says it should be distributed. This means that the state and a judge decide who gets your assets, usually starting with your closest relatives like your spouse or children. It may not align with your personal wishes, which is why having an estate plan is recommended to ensure your assets go to the people you choose.
WHAT IS A POWER OF ATTORNEY AND WHY MIGHT I NEED ONE?
A power of attorney is a legal document that allows you to appoint someone to make financial and/or healthcare decisions on your behalf if you become unable to do so. It's essential in case you get seriously ill or incapacitated, ensuring that someone you trust is making important decisions for you. There are different types of powers of attorney. Consulting with an estate planning attorney can help you understand which type(s) would be beneficial for your situation.