One of the many important legal documents California residents who are chronically ill should have in their estate plan is a living will. This document allows individuals to expressly state their health care preferences. In addition to addressing decisions regarding end of life care, it can state whether individuals have certain religious beliefs that would affect the health care they receive or if they do not want any restrictions on the treatment they receive.
When developing their estate plans, California residents should strongly consider using a trust. One type of trust solution, the revocable, or living, trust, is often chosen.
From an estate planning perspective, it may be better for California residents to have a trust as opposed to a will. One of the benefits of a trust is that it can help those who become disabled during their lives. Instead of having a guardian appointed by a judge manage a disabled person's affairs, the trust can name a person to fulfill this role. When an individual does die, assets can be transferred without a need to go through probate.
Single parents in California may have particular concerns when it comes to planning for the future. In general, when people think about making wills or trusts and planning their estate, they think about how they can help to ensure their children have a brighter future. The same is true whether the kids in question are already adults or if they are still minors. However, when single parents have minor children, they may be even more concerned with how the process will work to pass their assets on.
Many people in California hesitate to engage in the estate planning process because they are concerned about family problems. They may fear that writing wills or trusts can bring tensions and family debates to the surface, leading to damaged relationships or hurt feelings. This is especially true for people with significant wealth, because the consequences of estate planning decisions can be far more significant over the years to come. Families with substantial wealth may face particular challenges when discussing the future of their assets.
Special needs trusts may be an effective tool for parents or grandparents who are looking to care for a loved one. The trusts may be structured in a variety of different ways to help meet the needs of the beneficiary. Furthermore, the trust will be overseen by a trustee who will make decisions based on guidance provided by the document itself. This person may be a California resident or any other adult of sound mind.
California parents of special needs children understandably want to do everything possible to make sure loved ones unable to care for themselves independently will have access to important financial resources. However, setting funds aside presents possible issues with eligibility for government assistance. One way to resolve this problem for parents looking to plan ahead is with an estate planning tool known as a special needs trust (SNT).
For California residents who have substantial assets, it can be particularly important to plan for the future to help ensure that their heirs and loved ones are able to benefit from them. Making an estate plan is a key step, but it can be only the beginning. It is important to periodically review documents like wills and trusts every three to five years to make certain that they are accurate. In some cases, decisions made at different times can contradict each other or lead to family conflict. In other cases, the laws themselves may have changed, and a different configuration may be more beneficial.
California residents and others may not like thinking about their own mortality. However, estate planning is an important way to ensure that loved ones are taken care of after a person passes. Typically, individuals use a will or a trust to distribute assets, and both can do a good job of meeting a person's needs. Prior to deciding which one to use, it is important to know the differences between the two documents.
Those in California who follow politics or pop culture may have heard about the recent passing of Lee Radziwill. While many people mourn her death, her estate plan was designed to make it easier to respect her final wishes. She had a will that was probated in New York as well as a revocable trust. Her assets were transferred into the trust when she passed away.