Why Should I Have an Estate Plan?
Considering our morality is frightening, and can deter us from creating an estate plan for ourselves and families. This is understandable but unfortunate.
As of April 1, 2022, in California, a gross estate of $184,500 will trigger the need for a court supervised probate of your estate. Most estates are well above this value in California. At this amount and above, a court supervised administration of your estate is required in order for your assets to pass to your loved ones.
The probate administration will cost approximately 4-6% of the gross value of your estate, times two. One payment goes to the personal representative, and another to the attorney representing the personal representative. Not only are those individuals entitled to the statutory compensation laid out in the probate code, but they may also be entitled to extraordinary compensation at their applicable hourly rates, further bleeding money from your estate.
A revocable living trust is a means to avoid probate in California, saving your family time and your estate money. Further, it is a way to ensure that your estate will be distributed to the persons whom you truly want to receive. You can make detailed distribution plans for each of your beneficiaries to ensure that your wishes are carried out.
An estate plan, whether for a single person or a married couple should include the following documents: Revocable Living Trust, Pour Over Will(s), Power of Attorney(s), Advance Health Care Directive(s), HIPAA Authorization(s), General Assignment(s), Certification of Trust and Grant Deed(s) for funding your real property into your trust.
Do not wait to create your estate plan until it is too late. To guarantee that your wishes are carried out upon your passing, it is best to create a full estate plan with an experienced attorney. Call Tresp, Day & Associates, Inc. today at (858) 755-6672 to schedule your consultation and begin planning for your and your family’s future.