Estate planning is not just deciding who to leave your assets to upon death. With certain trusts, you can enjoy tax benefits and distribute gifts. In addition, you can make your healthcare wishes known and appoint someone to manage your finances if you are ever in an accident and cannot do it yourself.
If you do not have a succession plan for a buyout of your business at retirement, an estranged spouse could end up owning your share when you pass away. Our Covina estate planning lawyers partner with you to determine your needs, wishes, and goals, and then we get to work protecting your wealth. Contact The Amity Law Group today to schedule a consultation to learn more.
The Probate Process
Probate is the court-governed procedure that validates wills to allocate assets to family members and friends. The court works with executors named in decedents’ wills to ensure the proper transfer of gifts after creditors and taxes are paid.
Those who die intestate without a will are also subject to allocating their assets through probate. However, the court will use a formula codified in California Probate Code § 6401 concerning who receives certain assets, which may not be what the decedent intended.
Conservatorship and Guardianship
A judge can appoint a conservator if conservatorship is the least repressive way to care for adults who cannot make rational decisions about themselves or manage their assets. This conservator could be a family member, friend, or professional caregiver.
Similarly, adults may be cognitively or physically impaired, including dementia patients and young adults incapacitated in a catastrophic accident. Conservatorships of the person ensure a responsible party cares for their daily needs, such as proper food, clothing, shelter, and medical decisions when necessary. Conservatorships of the estate involve the following:
- Managing the conservatee’s finances
- Investing
- Protecting investments and income
- Filing taxes
- Reporting to the courts concerning financial activities
Guardianships work similarly to conservatorships, except the conservatee is a minor child who is not necessarily impaired but needs care and oversight of themselves and their estate if one exists. A diligent Covina attorney who handles estate planning cases could further explain the intricate differences between conservatorship and guardianship.
Power of Attorney
Powers of attorney (POA) allow a person to name a trusted relative or friend to make legal or financial decisions on their behalf. In California, this is known as a durable POA, and it exists if the POA is in force, even if the authorizing person becomes incapacitated. A springing POA is ineffective until a triggering event, typically when the authorizing person becomes debilitated.
An Advanced Healthcare Directive (AHCD) is like a POA because it allows a person to name another individual to make healthcare decisions when they cannot due to becoming mentally or physically incapacitated. Detailed instructions include the maker’s medical history, religious beliefs, values, and end-of-life wishes. A POA has a lot of legal jargon and requirements that a trusted estate planning lawyer in Covina could assist with explaining.
Revocable Living and Irrevocable Trusts
Trusts are valuable estate planning tools because they circumvent probate and allow assets to be distributed more quickly. Their contents are private, as opposed to wills, which are part of the public record.
Irrevocable trusts cannot be altered after a trustor creates one because it is the new owner of the assets managed by an independent trustee with explicit instructions from the trustor. These trusts offer a tax advantage and are also used to qualify for Medi-cal long-term and home care, which impose income caps in some situations. An estate planning lawyer in Covina could protect their client’s wealth under state and federal laws.
Call a Covina Estate Planning Attorney Who Has the Tools to Preserve Your Wealth
There are numerous estate planning tools available that may benefit you. However, you will not know exactly what documents you need until you sit down with a legal professional to discuss your situation.
Estate planning is a detailed guidebook in which the past and present inform the future. You can leave gifts to loved ones, direct your business succession, lower your taxes, make your final wishes known, and arrange gifts to charity. Connect with our Covina estate planning lawyers when you are ready to draft your personal plan.
