Estate planning uses several tools to ensure that wishes are carried out in the event of incapacity or death, including a last will and testament, trusts, a power of attorney and a health care proxy. The overarching goal of estate planning, according to a recent Cleveland Jewish News article, “Estate planning helps you keep control of financial decisions,” is to prevent decisions from being made by a court or someone a court appoints. With a properly prepared estate plan, you get to make the decisions.
Estate planning has the added benefit of preventing family conflicts and may even provide tax benefits.
Other estate planning documents include advance directives, sometimes referred to as a living will, to clarify your wishes for end-of-life care.
The will is used for property going through probate and names the person who will oversee the estate. It also details who you want to receive the property. For parents of minors, the will names a person to become their guardian, in case the parents should die.
Many people use trusts to protect assets and provide more structure to property distribution. With a trust, you can give heirs assets over an extended period, set qualifications for how they are to use the assets and make provisions for any disabled family members.
If these documents are not created to memorialize your decisions legally, a probate court judge may have to step in and make those decisions for you. The person the court appoints might be a family member. However, it could also be someone you would never have chosen. If a loved one wants to serve, they may have to petition the court and there is no guarantee the request will succeed.
Having these documents created with the help of an experienced estate planning attorney before they are needed is the best approach. Estate planning documents should be updated every five years or if there are significant changes in the family, the individual’s health or financial status.
Health care is part of estate planning. Most Americans fall into the group who do not have enough money to pay out of pocket for nursing home care but do not wish to spend down all their resources to qualify for Medicaid. An estate planning attorney can discuss how a Medicaid Asset Protection Trust can protect a lifetime of savings and the well spouse, while ensuring a person can have some or all their long-term costs covered by Medicaid.
Estate planning should consider the number of beneficiaries and the relationships among them. If children are not speaking to each other or to their parents, making sure each is addressed in the estate plan is necessary to avoid an all-out family battle.
Start by making an appointment with an estate planning attorney. They will be able to walk you through the process of gathering information, clarifying your wishes and establishing an estate plan to protect you and your loved ones.
Legacy One Law Firm, APLC is an estate planning and probate administration law firm in Los Angeles, California, serving families throughout the State. We help individuals and families establish living trusts, wills, powers of attorney, advance healthcare directives, and other essential estate planning documents designed to protect their loved ones and preserve their legacy. Schedule a quick and easy consultation with estate planning attorney Sedric E. Collins, Esq., or call 323-900-5450.
