A Few Common Reasons You Need Estate Planning

This is just a brief article going over some common reasons people need to take care of estate planning. Estate Planning is a generic term to describe the ways your property can be distrubuted after your death. Probate is the default statutory scheme if you do not make legally make you wishes known. Wills are a simple instrument that can distribute your property and Trusts are a more flexible tool that can be used to control, manage and distribute your assets after your death.

Once you understand what exactly is available it becomes important to think about how you want your assets handled after your death. The tools available can be very simple or very complicated based on your desires. Here are a few reasons it may be important to make plans for the future.

1. You have children. In the event you die while your children are still young the court will decide who raises yor children unless you do so.

2. Choice. Probate is a statutory scheme that will distribute your assets to you spouse, children and blood relatives. A will or trust allows you the freedom to distribute your assets the way you choose.

3. Costs: probate and contested issues will drain money from your estate to pay for court and attorney's fees. In CA probate is very costly. Proper use of a will can make sure you the maximum amount of your assets reach the people you care for.

4. Power of Attorney. This comes in two types. Financial and medical and can be be extended to a person if you become incapacitated. Having orders regarding medical care and regarding your property ensures your wishes are followed. Family member's judgment may be clouded with their own emotions and your wishes should be respected during these times.

5. Your legacy. A trust is so flexible you can make sure your property reaches loved ones into the future. Giving support or specific property down the road can ensure you have a long lasting effect on your family even after you have passed.

This are just a few examples of benefits available. IT is an uncomortable subject to cover but it is important to make sure your family and you are cared for the way they deserve.