Even if you are currently the picture of good health, you may suddenly become too ill to make healthcare decisions for yourself or become unconscious after an accident, needing someone to stand in your shoes to make those decisions for you. A medical power of attorney is a crucial part of your estate plan that enables you to name a trusted person to make healthcare decisions for you, if and when needed. It is essential for the person you name to have the information necessary to carry out your wishes for your medical care.
3 Myths We Tell Ourselves About Estate Planning
Estate planning can be a very difficult process. While it’s not brain surgery, making the decision to move forward with the planning requires us to face the fact that we will not live forever. This thought can stop many people right in their tracks. Others talk themselves out of seeing a qualified attorney to put together an estate plan based on some of the following common myths:
Estate Planning Awareness Week: The Importance to You and Your Family of Having an Estate Plan
In 2008, Congress recognized the need for the public to understand the importance and benefits of estate planning by passing House Resolution 1499, which designated the third week of October as National Estate Planning Awareness Week. Nevertheless, according to a 2019 survey carried out by Caring.com, 57% of adults in the United States have not prepared any estate planning documents such as a will or trust, despite the fact that 76% viewed them as important. Many of the respondents said this was due to procrastination, but many others mistakenly believed that it was not necessary because they did not have many assets.
Important Considerations For Beneficiary Designations Of Life Insurance Policies
Legislature Proposed Estate & Gift Tax for California (SB 378)
If you are a client, you have likely heard me say it a dozen times, “we never know what the tax laws will be at the time of your death – they are changing all the time.” As it happens, a new bill has been proposed in the California Senate that would impose a California gift, estate and generation-skipping tax (GST) beginning on January 1, 2021.
How To Protect Your Retirement Account
Shocking to most people, your retirement accounts can be seized once they pass to your loved ones. During your lifetime, your retirement funds have asset protection, meaning they can’t be taken in a lawsuit. Unfortunately, as soon as retirement accounts are inherited, the protection evaporates. This means your hard earned money can legally be snatched by strangers and the courts.
Three Legal Strategies When Facing a Major Heath Event
The Differences Between a Will and a Trust
Should You Choose a Will or a Trust
A recent study states that over half of all Americans die "intestate", meaning without a will. That's not completely true – California (and most other states) has "intestate laws" defining how your property will be distributed. So, you do have a will, but not necessarily one you'd like. Either you choose how your estate is divided or the State of California will choose for you.
The choice, obviously, should be yours. That means every person should have an estate plan. Attorney Heather Johnston founded Sapphire Law Group to deliver a level of elder law and other services equal to any major firm, but in a way that is convenient, efficient and, most of all, personal.
What is a Will?
A will is a legal document that defines who (beneficiaries) receives your property (estate), and in what amounts, after you die and who's in charge of the transfer (executor). If you have minor children, it can also define who'll raise them for you (guardians). Wills can even specify funeral arrangements.
There is a legal process (probate) that certifies your will is final and binding. This, by the way, makes your will a matter of public record. If anyone doesn't like the will, they can ask the court to invalidate it (contest).
What is a Trust?
A trust (also called a "living trust") is a legal relationship defined by a document (instrument) defining how one person or business (trustee) holds and handles the property of another (donor, grantor, settler, trustor) on behalf of others (beneficiaries). In California, the trustee can be the donor and/or one of the beneficiaries or the trustor can pick a relative, a friend or a trust company to act for them.
Upon your death, the trust passes immediately to the beneficiaries without probate. Trust transfers can, therefore, remain entirely private. A trust can also deal with incapacity – assuring that your wishes are carried out even if you're still around but can't make those wishes known. A trust can't specify guardianship for children, but a trust instrument isn’t at all easy to contest.
Is a Will or Trust Better for You?
Since every individual's situation is different, every estate plan is different. Consult an experienced living trust lawyer to see exactly how best to safeguard your family and property. In Folsom, California, that living trust attorney should be Sapphire Law Group. With Sapphire as your lawyer for wills and trusts, probate, trust administration or estate planning, you get more than just the documents, you get a partner and the peace of mind your family deserves.