We love providing our clients with clear and accurate information to guide their Estate Planning decisions. Along the way, we get to see lots of misconceptions about Estate Planning. Here are some of the common ones:
I Don’t Have An “Estate”
Many people read the word “estate” and imagine a countryside villa, perhaps with orchards and stables. Since they don’t have a mansion with stables, they think they don’t need an Estate Plan. But in California, “an estate” is literally just “everything you own” – your house, regardless of its cost, your furniture, cars, the money and stock in your bank accounts. So if you have any of those, you need an Estate Plan. Estate Planning is not reserved for the upper crust.
I Don’t Need “An Estate Plan”
Creating a simple will is not terrifically difficult, so if you’ve already taken that step, it might be hard to see the value of an Estate Plan. But a will alone is not enough to avoid the pain of probate (an expensive court proceeding that typically takes at least a year and costs literally tens of thousands of dollars for most people). And really, a complete Estate Plan offers more than just a list of who gets what. A complete estate plan can help ensure that your assets go to the right people, your wishes are followed, and your health care and financial decisions are made according to your wishes.
The Revocable Trust part of an Estate Plan not only avoids probate, but also offers control of your legacy. You can be sure your children don’t inherit and spend everything at once before they are ready. The Durable Power of Attorney and an Advanced Health Care Directive, aka the Living Will, together prepare for your incapacity, allowing important health care and financial decisions to be made the way you would want by the people you designate. in short, a full Estate Plan is an array of documents that offers complete peace of mind in a variety of areas.
Estate Planning Is Too Expensive
“Expensive” is a relative term, and yes, of course estate planning costs money. However, if you have California real estate or other assets of substantial value, a complete estate plan will often save your family many times its cost by avoiding California probate fees, which are astronomical and increase with the size of the estate.
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