One of the most common mistakes people make regarding their estate plans is failing to make them in the first place. A California adult may assume that he or she is healthy and young, therefore not needing any type of estate planning protection until years in the future. Others may assume that since they are not wealthy or have discussed their wishes with loved ones that this effort is not necessary. In reality, everyone can benefit from having a plan, and delaying this too long can lead to problems down the road.
It is not easy to make plans for the future, particularly when it involves thinking about what will happen to a person's estate after he or she passes away. For many in California, a basic will seems like it is sufficient, but in reality, a person may need more. Thorough estate planning often involves more than just a will. With the right tools and documents in place, a person can be confident his or her objectives for the future are secure.
Planning for the future is not easy, especially when it comes to making legal and financial choices that will impact a person or his or her loved ones down the road. Estate planning is a smart way to maintain control over what happens to a person's property after his or her passing and ensure that things go where they are intended. While drafting a will is the first and most basic step in this process, it may also be beneficial to consider the benefits of establishing a trust as well.
When a Californian makes the effort to plan for the future, he or she may think that once it's all drafted, that's all someone needs to do. It can be tempting to forget about estate planning documents until they're needed, but that's not always wise. In reality, these documents and important paperwork should be carefully reviewed occasionally, especially after a major life change.
When a California couple has kids, they may start making financial adjustments for the future needs of their children. For example, they may start a college savings fund or buy life insurance. Most parents understand the importance of thinking ahead, but many of them overlook the importance of estate planning for the benefit of their family. This includes deciding what to do with assets and preparing for medical emergencies that may arise in the future.
It is not easy to think about the future and make plans that could determine what will happen to a person's belongings after his or her passing. These are not simple decisions to make, and for many in California, they believe that estate planning is not necessary. They assume that because they are not famous, wealthy or elderly that they do not this type of legal protection. These and other misconceptions can be quite damaging.
It is important to begin the estate planning process early on in your adult life (as you cannot anticipate if an accident or sudden illness cuts your life short). Yet one of the drawbacks of creating a will so early is that you are almost certain to go through life-changing events that may impact how you want your estate to be dispersed. For example, many come to us here at The Law Firm of Lan Quoc Nguyen & Associates in a panic due to loved ones having died without updating their wills following their divorces.
Caring for elderly parents in California is challenging in the best circumstances. If they need help with their finances, you may have concerns about whether they spend money wisely, or if they succumb to undue influence by caregivers. The attorneys at The Law Firm of Lan Quoc Nguyen & Associates often assist clients with estate planning for their aging parents.
Things like life insurance policies, retirement funds, and savings accounts are all included in the assets you have in your name. Accordingly, you must make decisions on how the proceeds of these accounts are to be distributed among your heirs upon your death. Beneficiary designations are key in this regard, as explained by The Balance.
There certainly is a strong finality that comes with death. Yet what many in Westminster may fail to appreciate is that such a finality does apply to any debts that may owe. Indeed, when one dies in debt, the responsibility to settle those liabilities falls to their estate. Given that CBS News reports that Americans are dying with an average of $62,000 in debt, the likelihood that one's heirs will be left to deal their debts is relatively high.