Establishing an estate plan is a critical step in ensuring your family is protected in the event of incapacity or death. Without an estate plan, it will be the state—not your family—that assumes control of your assets in an emergency and begins making decisions regarding your care or the distribution of your assets. Unfortunately, many people put this off for years, perhaps imagining the estate planning process to be a morbid, uncomfortable chore best left for old age, or assuming they don’t have enough of an estate to warrant planning. Whatever their reasoning, failing to plan can be a very costly mistake.

The fact is, everyone has an estate, and estate planning is one of the easiest ways for families of all shapes and sizes, both young and old, to prepare for the future. A customized estate plan will help you begin maximizing wealth and saving on taxes, while ensuring that your long-term wishes regarding care and property are honored.

Typical parts of an estate plan include:

• A will, which allows you to choose who will inherit your money and property;
• A living will, which defines the care you want to receive if you are ever incapacitated and unable to make medical decisions;
• Durable power of attorney for healthcare matters, through which you to name a person to make critical medical decisions on your behalf;
• Durable power of attorney for financial matters, through which you name a person to act on your behalf with regard to handling your finances in the event you cannot;
• One or more trusts, which are instruments that allow for you to direct the use of your money, while minimizing taxes and protecting your estate from lawsuits and/or creditors.

Trusts are often established to ensure assets are easily transferred to heirs while avoiding both probate and taxation, allowing for your family to maximize the wealth it has earned. They are also used to provide for people you care for: for instance, a parent might seek a revocable living trust for the benefit of their minor children so as to ensure the person they select—instead of the court—will be able to manage the inheritance for their children until they reach the age you want them to inherit. Or a special needs trust may be needed for an elderly parent who wants to stay on or become eligible for Medicaid, but who has too many assets to qualify. Such a trust is designed to hold the excess assets so that they can be used for the benefit of the parent while simultaneously retaining Medicaid eligibility.

Sound complicated? It doesn’t have to be!

Our focus is on simplifying your life by helping you create a comprehensive plan that meets the specific needs of your family. We are just as comfortable advising you on what is best for your financial situation and handling every detail ourselves as we are working with you to create the estate plan you specify—our service is flat fee, so your cost is the same in either case.

For more information about scheduling a free estate planning consultation, please fill in the contact form below or call us at (415) 439-0653.