Choosing a beneficiary is an essential part of the estate planning process. For the most part, you are free to choose any person or organization that you wish to receive or inherit your property. However, it is important to understand that your choice, as well as the versions of testamentary documents that you select, may have an impact on the transfer process.

Speaking with an experienced attorney about beneficiary designations in Rosemead estate planning could help you sort out these potential complications. Our experienced legal team could provide more information about the laws that determine the ability of beneficiaries to inherit property. We could also help draft estate plans that limit the impact of these laws on the futures of your heirs.

Ensuring the Rights of all Beneficiaries to Inherit Property

The main purpose of naming beneficiaries to an estate plan is to ensure that these parties receive the full benefit of assets. Whether property moves through a will, a trust, or other forms of testamentary document, clearly and concisely naming a beneficiary is essential to the estate planning process in Rosemead.

For example, saying that you want your children to receive the family home may sound clear to a will’s author. However, a statement saying that you want Child A to receive the real estate at 111 Main St. is far more effective. An attorney could take the lead in drafting testamentary documents that leave no doubt as to a person’s intent.

It is also important to understand that not every potential beneficiary may be able to directly inherit property. For example, California Probate Code § 3401 states that assets that are the property of a minor must go to the minor’s guardian until that child reaches the age of 18. As a result, a child cannot directly inherit most property if named an heir in a will. A lawyer could help someone avoid these common complications by drafting documents that allow for property to remain in a trust until a child comes of age.

Taxation and the Designation of Beneficiaries

California law has abolished the estate tax. This means that the state will never take a portion of an estate before it transfers to the ownership of a beneficiary. However, other states or countries may claim a portion of an estate if a beneficiary is a citizen of those locales. In addition, the federal estate tax still applies to estates of a high value.

Understanding the potential impact of the estate tax laws on beneficiary designation is another key part of estate planning in Rosemead. Creative planning can help keep an estate’s value low so as to avoid unnecessary federal taxation. At the same time, transferring assets through trusts can help avoid taxes that other states may levy. An estate planning attorney could help limit the impact of taxes on testators as well as beneficiaries.

Contact a Rosemead Attorney for Help with Beneficiary Designations During the Estate Planning Process

Choosing beneficiaries for wills, trusts, or other forms of testamentary documents may seem straightforward. However, limited situations may jeopardize a person’s ability to inherit property or expose the estate to taxation. Proper beneficiary selection could help minimize these effects and ensure that your chosen individuals receive the full benefits of being your heir.

Contact our team for help with beneficiary designation in Rosemead estate planning. We are ready to listen to your concerns, explain your estate planning options, and provide more information about selecting beneficiaries and limiting any potential complications.

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3733 Rosemead Blvd., Ste. 201
Rosemead, CA 91770

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1930 S. Brea Canyon Rd. #120
Diamond Bar,  CA 91765

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(626) 307-2800
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Orange County Office

511 E 1st St., Suite H
Tustin,  CA 92780

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(626) 307-2800
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Amity Law Group, LLP

Amity Law Group, LLP