What is an estate plan?

An estate plan is a set of instructions and legal tools that allow a person to organize their affairs and distribute their assets according to their wishes after they die. It’s important to create an estate plan to make sure your family is taken care of and your wishes are respected. In California, an estate plan typically includes a will, trust, durable power of attorney, and advance health care directive. A will is a legal document that states how a person’s estate (assets and liabilities) will be distributed upon death. It can also name guardians for minor children, trustees for assets held in trust, and executors who are responsible for carrying out the terms of the will. A trust is a legal arrangement in which a person (the “grantor”) transfers assets to another person (the “trustee”) to manage and distribute for the benefit of someone else (the “beneficiary”). The grantor has the ability to control how and when the assets are distributed, and the trust is managed independently of the grantor. A durable power of attorney is a legal document that authorizes a person (the “agent”) to act on another’s behalf (the “principal”) in making decisions about assets and property. This document can be used to ensure that someone’s wishes are carried out even if they are not able to make decisions for themselves. An advance health care directive is a document that states a person’s wishes regarding their medical care if they are unable to make decisions for themselves. It is important to have an advance health care directive to ensure that your wishes are followed if you’re ever in a medical emergency and cannot make decisions for yourself. In California, an estate plan should be tailored to an individual’s particular needs. It is important to make sure to update your estate plan regularly to ensure it reflects your current wishes and lifestyle. An estate plan can be created with the help of a qualified estate planning attorney.

Related FAQs

Can I revoke a trust?
What is a charitable trust?
What is a trust protectorship?
What is a trust administration?
How do I appoint a guardian for a minor in an estate plan?
Who can be a trustee of a trust?
What is a grantor?
How do I terminate a trust?
What is a revocable trust amendment?
What is a discretionary trust?

What is an estate plan?

Related FAQs

Related Blog Posts