LEGAL COMPASS
The Importance of Estate Planning IF YOU HAVEN’T CONSIDERED ESTATE PLANNING YET, WORK ON IT NOW. ARTICLE JULIE B. MAINS, ESQ.
NO ONE CAN PREDICT THE FUTURE. But one thing is certain: if you
+ Relying On A Trust
leave unanswered questions about how to settle your affairs after you’re
A Trust establishes a legal arrangement defining how your assets
gone, life for your beneficiaries will be more difficult than it has to be.
are held for a beneficiary. Your estate assets are managed by a
Ensure the assets you’ve worked so hard to acquire go to the loved ones
trustee according to your wishes. Specific directions can be pro-
you designate. This is only possible through effective estate planning.
vided about how your assets should be managed by the trustee, and
Estate planning is a strategic step for putting your assets and
when and how they should be distributed. You can tailor terms of a
finances in order before your death. This may sound morbid, but life
trust to satisfy specific goals and meet the needs of your loved ones.
is unpredictable. We must plan ahead to save our dependents from
Since circumstances for every individual are different, it’s important
the unnecessary burden of dealing with loss and estate matters at
to discuss the matter with an estate planning attorney to determine
the same time. The process of estate planning includes establish-
if a trust is appropriate for your estate plan.
ing a will or trust, leaving your loved ones with specific instructions
Benefits of Estate Planning
about what to do with your assets when you’re gone.
+ I Already Have a Will, Isn’t that Enough?
Saves Heirs from Paying Extra in Taxes With proper estate planning, you can protect loved ones from
You might think your will is adequate, but a will must be reviewed regularly to ensure you’re not missing anything. Acquiring major assets,
potentially high tax burdens, depending on the size of your estate.
+ Eliminates Mess
getting married or dissolving a marriage, selling a business, changes in
We’ve all heard the stories about people fighting for property
beneficiaries’ circumstances, changes to personal circumstances, or
when their rich relative dies. One sibling might think that they
changes in tax laws can all necessitate changes to your will. Additionally,
deserve more than the other, or one might think they should
if you only have a will in California, but have assets in excess of fair market
decide who deserves the size of the share. This kind of squabbling
value of One Hundred and Fifty Thousand dollars ($150,000.00), that will
gets ugly fast, and the families end up in the court room. Estate
is required to be probated which is public, time consuming and costly.
planning saves your family from battling each other in court. With
+ What Happens if there’s no ‘Will’?
an estate plan, you can decide who your assets will be transferred
If you don’t have a will, and you die, you’ll be considered intestate. If this happens, the California state intestacy laws will determine the
to in case you become incapacitated or die.
+ Protecting Beneficiaries
distribution of your assets. Intestacy laws vary depending on marital
An estate plan can protect both minor and adult beneficiaries
status, or whether you have children. Your assets are split amongst
from outside influencers, bad decisions, divorcing spouses, or cred-
your heirs. If no relatives are located, your estate assets will go to the
itor problems. By designating a trustee and guardian for minors, you
state. Therefore, it is always preferable to put your wishes in writing.
can ensure they get their deserved share without any discord.
+ Can I Rely Upon Joint Tenancy?
+ The Final Word
Joint tenancy is not a substitute for estate planning and is only
Save your loved ones from unnecessary suffering when you’re
applicable for the property that’s described in the instrument creat-
gone, by establishing an estate plan. Without one, your loved ones
ing it. If a single piece of real property is your primary asset, California
may be subjected to tax burdens, fighting over your property, or
currently offers a Revocable TOD deed that can be explored to deter-
becoming enemies over material possessions. Start estate planning
mine if appropriate for your Estate.
now and ensure your heirs get what they deserve!
Julie B. Mains, Esq. is an estate planning and litigation attorney in Dana Point. She has over 20 years of experience protecting her clients’ loved ones and assets. Ms. Mains is available for a complimentary initial consultation and/or Estate Plan review. MAINSLAWOFFICE.COM (949) 545-6500 10
San Clemente Lifestyle | March 2018