Why Estate Planning is Important
Proper estate planning is important for you and your family. Failing to properly create an estate plan could result in your family losing assets you had hoped to pass on to the next generation of your family. Estate planning is about more than simple tax avoidance. If you have concerns about privacy or want to avoid the high costs of probate litigation, estate planning will provide you and your family protection.
In California, Probate is the legal process required to pass title and ownership of a deceased person's assets to his or her heirs. While having a Will is important, a Will alone will never avoid probate. In fact, having a Will is a guarantee that your estate will go through the Probate process. Probate litigation can be time consuming. Currently, probate litigation can take anywhere from nine months to three years. Additionally, Probate costs are often based on the value of your estate and can range from 4 to 12 percent of your estate. Losing such a significant portion of your estate can be devastating, especially to smaller estates. Finally, Probate proceedings are part of the public record and anyone can find out about your private affairs. Those who value their privacy and want to keep their hard earned assets will avoid Probate by creating an estate plan.
In addition to falling victim to the probate process, the lack of an estate plan can result in the unexpected appointment of a Guardian or Conservator should you become incapacitated or declared incompetent. Without a proper estate plan, any relative could petition the Court to be appointed as your Guardian or Conservator if you are declared incompetent. Because you are unable to express your true desires, the Court will have to appoint someone without your input. The Court appointed person would then have total control over everything you own. Those who want to avoid an unknown judge from determining who controls their person and assets in a time of incapacitation will take steps to create an estate plan.
To avoid the unnecessary expense and delays associated with the probate process, you should consider setting up a well-written Revocable Living Trust. Establishing a Living Trust is an effective way to avoid the problems discussed in this article. A Living Trust avoids Probate, preserves your privacy, eliminates challenges to the estate, establishes Guardians and Conservators, minimizes taxation, takes care of your minor children, and allows YOU to be in control of your assets.
Amir H. Afsar, Esq. is an attorney and founder of Afsar Law Group, A.P.C. which represents clients in business, real estate, construction, and estate planning matters throughout the Coachella Valley including Indio, La Quinta, Bermuda Dunes, Indian Wells, Palm Desert, Rancho Mirage, Cathedral City, Palm Springs, Banning, Joshua Tree, and other cities located within Riverside and San Bernardino County. Mr. Afsar can be reached at Afsar Law Group, A.P.C. at 760.345.3110.
