Why Should I Have an Estate Plan?
Simply put, you should have an estate plan to minimize the potential costs down the line. You've worked hard to get what you've earned—there's no reason to risk exposing your wealth to creditors, unnecessary taxes, or unnecessary costs of the court system. Without proper planning, your assets could be dwindled down through the legal system, leaving your beneficiaries with much less than you initially intended, if anything at all.
While it may seem complicated, think about how much more time you spent earning your wealth... now if you only spend a fraction of that time on planning for the next steps, you may preserve it for your descendants for many years to come.
It may be tempting to use a simplified version of an estate plan but remember how many times events in life didn't turn out as simply as you anticipated. With a little bit of planning, you can choose who manages your affairs, who inherits your assets and on what terms. Of course, if you don't make these choices, the California Probate Code has a whole series of default rules in place for just such an occasion.
You may also be interested in:
- What is a Trust?
- What is a Last Will and Testament?
- What is a Power of Attorney?
- What is an Advance Health Care Directive? How is it different from a Living Will or a Power of Attorney for Health Care?
- What are Some Ideas for Distribution Schemes?
- When Should I Update My Trust?
- Who Should Be My Trustee?
- Conservatorships Generally Eliminate Informal Estate Planning Mechanisms
- How Long Does a Conservatorship Last?
- The Cost of a Conservatorship Can Be Substantial
- What is a Conservatorship, and Do I Need One?