What Documents are Necessary for Estate Planning?
Approximately 75% of adults in the United States don’t have an estate plan, even though they understand the importance of having one. There are several reasons for this, but for some people, it’s a matter of feeling overwhelmed, which leads to procrastination.
However, estate planning is about being prepared if you become incapacitated, in addition to the distribution of your assets after you pass away. And we never know when either might happen. Procrastinating too long can mean too late, leading to multiple complications for your loved ones.
But it doesn’t need to be daunting, and a better understanding of the legal documents required for a comprehensive estate plan can help make the process less overwhelming.
Living Trust
A living trust allows you to place all your assets into a trust during your lifetime. You will still have access to them, but they are then transferred to your beneficiaries upon your death without going through probate, a costly and time-consuming process.
Last Will and Testament
A will is a legal document that outlines the distribution of your assets after you pass away. It also allows you to appoint an executor for your estate and designate guardians for minor children. If you have a living trust, you might consider creating a “Pour-Over Will,” which transfers any assets not included in the trust at the time of your death into it.
Power of Attorney
If you become incapacitated, someone will need to pay your bills and handle your financial affairs. Legal documents appointing a power of attorney will ensure your finances are managed according to your wishes.
Advanced Health Care Directive
An advanced health care directive specifies your medical treatment preferences if you cannot make decisions for yourself. You can also name someone as your medical power of attorney to make healthcare decisions on your behalf.
Beneficiary Designations
Ensure that all beneficiary designations on retirement accounts, life insurance policies, and other financial accounts are up-to-date and align with your overall estate plan. These designations often take precedence over instructions in your will.
Keep Paperwork Updated
Creating and maintaining a comprehensive list of bank statements, life insurance policies, statements from your investments and retirement plan accounts, and other vital financial documents is essential. Also, include copies of deeds for any real estate that you own. This will help your executor manage your estate efficiently and transfer property ownership according to your wishes.
Don’t Forget Your Digital Estate
In today’s digital world, much of our personal and financial business is conducted online. Therefore, it’s crucial to have a digital estate plan that lists your online accounts, usernames, and passwords. You can also stipulate how you want your social media accounts handled after your death.
LPEP Law Can Help with Your Estate Planning
The estate planning process is easier when you have someone advising you. Our attorneys at Lonich Patton Ehrlich Policastri can help you with your estate planning needs. We have extensive experience assisting individuals in San Jose and the greater Bay Area. Everyone’s situation is unique, and we will tailor your estate plan to align with your goals and final wishes and ensure they comply with California’s laws.
Contact us for a free consultation by calling (408) 553-0801.
Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
Michael Lonich
Specializing in Divorce and Estate Planning, I am San Jose Attorney, Michael E. Lonich; and I have been battling for client’s rights for nearly 40 years. When focusing on divorce, child custody, and related matters, I know all too well the emotional and financial toll divorce has on clients. Integrity, common sense, and a passion for what I do which guarantee the best possible results for my clients. Resolution of family law issues requires an attorney able to navigate the myriad legal and emotional issues presented in cases. Financial issues, child custody, domestic violence, valuation of property, analysis of RSUs, hidden assets, spousal and child support, all may require trial, mediation, or a collaborative effort with the parties. Regardless, each client gets the individualized attention they require. Every family law case is unique, we partner with you to develop a comprehensive approach to get the best results.
