What is an Estate Plan?
The answer to this question varies according to each individual’s needs. However, a basic estate plan will include a will, a revocable living trust (if necessary), a durable general power of attorney for financial/property matters, and an advance health care directive. See below for a brief description of the benefits of these vital estate planning documents.
Wills: Parents with minor children absolutely need wills in order to name guardians for their children. If parents don’t name their choice of guardian and they both pass away, the State of California will name a guardian for them.
Trust: A revocable living trust will serve to eliminate the long delay and high attorney/executor fees that are inevitable when a family only has a will and their estate must be administered through probate court.
General Durable Power of Attorney: By naming an agent to act for you with regard to financial matters, your assets and loved ones are in good hands if you become incapacitated. Otherwise your life/business, etc. will come to a stand-still while your loved ones go to court to ask that they be permitted to act on your behalf during your period of incapacity.
Advance Health Care Directive: You get to name an agent who will make health care decisions for you, including life sustaining measures via hospital machinery, in the event you are unable to make such decisions for yourself. This will save you thousands of dollars by avoiding the need for a court appointed conservator to look out for your health interests should you become incapacitated.
Executor: The person who carries out your will.
Trustee: The person who manages your trust.
Beneficiary: The person who receives your property.