There is still a notion in America that only those with children or those who are “well off” need to think about estate planning. But wealthy or not, child-free or not, we all have stuff (our “assets”) and we all have people, causes, or institutions we care about. Few of us want state law and the courts to decide who will take care of us and our legal affairs when we no longer can, or who will inherit our assets we spent a lifetime building.
Simply put, estate planning is really about making these very personal choices for ourselves and then spelling them out in legal documents designed to keep our most private affairs out of the court’s hands. So, now that you understand that this type of planning might be useful, below are a few suggestions to help guide you through the estate planning thought process.
INCAPACITY – TAKING CARE OF THINGS WHEN WE NO LONGER CAN
Most of us grow up thinking adulthood means we are independent and in charge of our lives. It is hard to wrap our minds around the idea that a day may come when we might lose the ability to make legal or medical decisions for ourselves. It can happen in an instant because we get into a terrible accident. It can happen over time because dementia sets-in robbing us of our judgment and decision-making skills. No matter how or when it happens, it is important to plan for it.
Let’s say that over time dementia sets in and loved ones notice that you are just not able to make your own decisions anymore. What happens? If you haven’t planned, your loved ones will need to initiate a court proceeding in the probate court. A judge will appoint someone you may or may not know to make your decisions for you. But with appropriate planning, you will have legal documents prepared (like a durable power of attorney and health care directive) naming people you trust to take charge of your legal affairs and carry out your medical wishes when you are no longer able.
TRUSTS
Most people have heard of a will as a way to pass property when you die. You may have even heard of a trust. Some people mistakenly believe that only wealthy people use trusts to pass assets to their kids and future generations. While parents can choose to use a trust this way, those without kids can benefit too. Holding assets in trust during life allows those same assets to pass without probate when you pass away.
Why does this matter you might ask? Well in most states, and especially here in California, probate is a public, cumbersome and expensive court-guided estate administration process. In most states, a last will and testament are not enough to avoid the probate process. Trusts are a great way to make sure your assets are taken care of during your lifetime when you are incapacitated and then transferred properly when you pass away.
HOW TO DECIDE WHO WILL GET MY ASSETS
Deciding who will get our assets when we pass away is a personal journey. Sometimes, those without children struggle with this decision. Where do you start? Listen to your heart. Perhaps you have family or friends to whom you would like to leave a legacy. There might be organizations that have enhanced your life and you would like to benefit (your alma mater, for example). Maybe there is a charitable cause you feel passionate about and would like to further their mission. Some couples and individuals without children have pets they love. Planning for your pets’ care if something should happen to you is an important component of your estate plan.
ESTATE PLANNING
Whether or not you have children, you deserve to have peace of mind to know that your affairs are in order and that your legacy will be preserved for those who you feel will benefit most. Tresp Law, APC is here to help you create the kind of estate plan that will best serve you.
Call Tresp Law, APC today to schedule your consultation and begin planning for your future. We now offer face-to-face consultations utilizing video conferencing technologies such as FaceTime, Duo, and Zoom.
