Los Angeles Estate Planning Lawyer

What Is an Estate Plan?

An estate plan is your way of acting now to take care of your family now and in the future. The estate plan both gives your family peace of mind now, and it helps them in the future when you are either no longer here, or you have become incapacitated. The estate plan is about more than just how your property is to be divided. Of course, preserving your assets for the use of your family is a key part of an estate plan. There are other elements that can provide stability in making decisions for you when you are no longer able to make them yourself. 

How an Estate Plan Preserves and Divides Your Property

There are two primary options that you have when it comes to the disposition of your property. What works best for you depends on the facts and circumstances of your situation.

• A will is a binding legal document that states your wishes for how your property is to be divided when you die. Your will names an executor who is responsible for administering your estate. It also names beneficiaries who will receive your property, and it specifies which property they will receive. When you have a will by itself, your estate must go through the probate process, where creditors are paid money that they are owed before the assets can be retitled in the names of the beneficiaries. 
• A living trust is something that you create during your lifetime, where your property is managed by a trustee for the benefit of the beneficiaries. There are numerous types of living trusts from which you can select. Trusts provide a number of benefits, including your estate avoiding the probate process, making life easier for your family. Depending on the type of trust that you choose, it can preserve and protect your assets from various expenses and threats.

Devising a Will for Your Assets

It is important to remember that a will may only divide some of your assets. Many of your assets can be held in transfer upon death accounts. Here, you would need to designate beneficiaries in these accounts. The assets would automatically be transferred to the beneficiaries after you die, in accordance with your instructions.

When it comes to a will, you are executing a binding legal document that states your final wishes. Not only does a will divide your property, but it may also make other important elections, such as the guardian for your minor children should it become necessary. Not only must you pay very close attention to all the details when you are drafting a will, but you must also revise it as necessary if circumstances change.