Building an effective and comprehensive California estate plan is important to protect beneficiaries, reduce taxes, avoid probate, protect assets, and just overall avoid the potential for a legal mess occurring after you pass or if you become incapacitated. When you work with an established and experienced Los Angeles estate planning attorney, you get the guidance necessary to ensure that your loved ones will be taken care of the way you’d want and your legacy is managed according to what you planned.
What are the Most Common Mistakes When Making an Estate Plan?
- Poor funding of your trust or failing to integrate your assets with your trust is a major mistake. An example would be if you didn’t bring together your retirement beneficiary documents with your trust.
- Not keeping your trust up-to-date. A good example would be if you had a joint trust with your spouse like and old A-B trust for the purposes of minimizing estate taxes. When the trust splits into a Survivor’s Trust and the A-B trust, the death of the second partner could result in capital gains taxes for the beneficiaries. It is important to understand this ahead of time so that you can remove any complications that may arise after you die.
- Not openly discussing your parent’s estate plan or failure to urge your parents to develop an estate plan if they don’t already have one in place. In the event of an emergency, you’d want to be able to help and so it is vital that you know what documents they have regarding the management of their estate.
- Planning for protection. A Protective trust can ensure that if your children inherit your assets at a young age, they don’t foolishly squander them. It can also ensure that if they grow up and end up in a divorce or are facing bankruptcy, that wealth is safe from all types of creditors and will continue to be a consistent income source throughout their life.
- Not putting an estate plan together puts your loved ones at a disadvantage. A conservatorship or probate may take place and you have no way to ensure your loved ones will be properly protected. The other risk you take when you don’t establish an estate plan is that if you become ill or incapacitated if you don’t have the person you want specifically named to manage your assets, it could fall into the hands of an individual that you never wanted to have access to that wealth. You also stand the chance of your wealth not going to who you want but rather someone that you never intended to have any inheritance from you.
Speak with A California Estate Planning Attorney Today
It just makes good sense to take the time to set up your California estate plan so that you know that your family is protected and they won’t be subject to any expensive and time-consuming complications. The skilled California estate planning attorneys, at Leiva Law, will help you build an estate plan that works the way you want it to. Contact the California probate and will lawyers at Leiva Law today to schedule your free consultation by calling (818) 703-1777.