What is an estate plan and why do you need one?
Estate planning is not just about making a will in the event of an untimely death. It is preparing for any situation where you are incapacitated and ensures that your affairs are in order in the event of death.
What is included in an estate plan?
1. Will
2.Living Trust
3. Advanced Healthcare Guidelines
has. Durable power of attorney
b. Living will
against Do Not Resuscitate (DNR) Order
d. Physician’s Order for Life-Sustaining Treatment (POLST)
me. Organ and Tissue Donation
Wills (Prob. §§6100, et seq.)
When people think of estate planning, they usually think of a will. A will is a document in which you can make your final wishes known. This document will inform the courts, family and friends who wants to care for their children, as well as how, distribution of assets, pet care and more. Without a will, it will be up to the probate court to determine where and with whom your children will live, as well as the distribution of assets.
Living Trust (Prob. § 15400)
A living trust is a trust that allows you to transfer your assets or property to a person of your choosing (trustee) while you are still alive. Basically, there are two main types of living trusts: revocable and irrevocable. A revocable living trust allows you to place items in a trust while you are still living and the benefactor would receive them after his death, after taxes. Allows the flexibility to modify the trust, remove or add beneficiaries, set or change the terms of the trust, and determine how assets are managed.
An irrevocable trust does not offer the same flexibility as a revocable trust, but it does have its own benefits. Once an irrevocable trust is established, you cannot modify any aspect of the trust (there are certain exceptions, but those exceptions will come with great difficulty). It does offer a benefit to the benefactor in that he will not have to pay taxes on the assets upon death, nor will he be responsible for any taxes on the income earned from those assets.
While a revocable trust is easier to set up, an irrevocable trust can be more difficult, and you may want to hire an experienced Los Angeles estate planning attorney to help you.
Advance Health Care Directives
Advance health care directives are another big requirement that you can’t do without. Advance Health Care Directives are made up of several documents that will act as your voice should you become medically or mentally incapacitated. The set of documents may include:
Durable Power of Attorney (Prob. §4650, §4700 et seq.)
The durable power of attorney is a document in which you would name a person (an agent) to act on your behalf (the principal). This would allow the agent to pay your bills, talk to creditors and much more while you are disabled. It is important to choose someone who has your best interests at heart. A durable power of attorney, unlike a general power of attorney, only takes effect once the person becomes incapacitated (if it was created specifically for incapacitation).
Living Will (Probate §4600 et seq.)
A living will is direct about how your children and assets will be handled in the event of your incapacity. It is this document in which you can make your last wishes known. Life will only be effective if you, the principal, are in a persistent vegetative state or irreversible coma.
Do Not Resuscitate Order (DNR)
The do not resuscitate order is part of the living will. It is a document in which you express your wishes as to whether you would like to be resuscitated should the need arise.
Physician’s Order for Life-Sustaining Treatment (POLST)
This document allows you to choose a primary and secondary doctor to carry out your end-of-life treatment. The secondary takes effect if her first-choice doctor is unwilling or unable to comply with her wishes.
Organ and Tissue Donation
Also, as part of your living will, you will be able to express your wishes if you wish to donate any organs or tissues in the event of your death.
That can be a lot to take in and you may be wondering where to start. The best and safest way to structure your estate planning and all that goes with it is to consult and work with an experienced Los Angeles estate planning attorney for the best outcome.
