A dream without a plan is just a wish. Estate planning takes your wishes and turns them into reality. Estate planning is also a great way to focus on the legacy you want to leave behind for loved ones, so they can avoid the expense and delays associated with probate. And, in the process, you can save on taxes.
Putting Your Dreams on Paper
When putting together your estate plan, consider the legacy you want to leave behind. The best way to do so is to write down your wishes. Consider the values you want to promote through the plan. Think about important family traditions you want to encourage or memories you want to preserve.
A well-thought out Estate Plan should provide instructions for heirs:
- Clearly state who you are leaving your assets to;
- Give an explanation as to why an individual is receiving a particular asset;
- Provide guidance about how you want beneficiaries to benefit by your estate. (For example, if you designate that certain funds are for “education,” indicate what you mean.
- Make sure those assets are received by beneficiaries at the right time to maximize their benefit, and;
- Protect your legacy from being taken by estate taxes, creditors, predatory lawsuits, government claims or divorce. You even have the opportunity to protect your legacy beyond your beneficiaries’ lifetimes into future generations, if you so desire.
Estate Planning Basics & Benefits
Developing an estate plan should be done with your legacy in mind. Therefore, you can empower the next generation to achieve, demonstrate character, and exude confidence. You can also preserve and reinforce your family’s core values and traditions. In addition to preserving your legacy after you die, a comprehensive estate plan can provide guidance for managing your affairs if you become incapacitated or are otherwise unable to make decisions for yourself.
Basic Contents of an Estate Plan
A Will: A written document that states who you want to inherit your property, which should name a guardian to care for minor children or disabled family members. Also, the use of a will as your primary estate planning tool would require the court process known as probate. As we have discussed in previous posts, probate is best avoided. However, if probate is necessary, we can help.
A Trust: Document which holds property for your benefit during your lifetime and for the benefit of beneficiaries after your death. Thus, the use of a “fully funded” trust allows beneficiaries to avoid the costly and time-consuming process of probate.
A Healthcare Directive: A written document that spells out your wishes for healthcare and end-of-life choices if you are unable to make such decisions for yourself.
Financial Power of Attorney: A document designating a trusted person you select. Finally, the designee will handle finances and property on your behalf if you are unable to do so yourself.
About Skvarna Law
A skilled attorney can with your estate plan. Contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California and provide legal services for individuals living in San Bernardino, Los Angeles, Orange and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
