![]() Problem: People acquire assets at all stages of their life. You can combine a trust with a will and other legal tools to create a tailored plan that protects your family members and the assets you leave them. Solution: Decide when and under what conditions your children will receive their inheritance by placing funds in a trust under the control of a trustee. Would you be comfortable with your 18-year-old inheriting your entire estate outright? Problem: The truth is young people are more susceptible to making poor financial decisions. You should make sure your authorizations for those who can access your records are up-to-date and still reflect your preferences. Solution: HIPAA is a national law that governs the portability of your health coverage and the privacy of your health records. Problem: Will doctors discuss your medical information with your loved ones? 21 Step Estate Planning Checklist Step 5. You can determine that the power of attorney comes into effect when you are incapacitated and ends when you pass away.Īlternatively, a financial power of attorney can take effect immediately and ends when you become incapacitated, depending on your circumstances. Solution: A financial power of attorney has limited or broad powers over your financial affairs. Problem: Who will make your financial decisions if you are not able to make them for yourself? This individual is called a healthcare agent or proxy. It also identifies an individual who will make healthcare choices on your behalf when you cannot. Solution: An Advanced health care directive, also known as a health care power of attorney, sets out what medical procedures you do not want to receive if you are incapacitated and cannot express your wishes. Problem: Who will make your health care decisions for you if you are unable to make them yourself? ![]() This is especially true when you have minor children and do not want them to inherit everything upon turning 18.Ī final benefit of creating a trust is that the administration is private which makes it less likely to be contested. These are good options to reduce the tax burden on your estate or to determine the terms and schedule of when assets will be distributed to beneficiaries. A testamentary trust comes into effect when you die and may set conditions on the distribution of assets within the trust. ![]() Solution: A living trust becomes the owner of assets during your lifetime and avoids probate when you pass away. Problem: How can you avoid probate, unnecessary taxes, AND distribute your assets in installments (rather than outright). Additionally, Wills still need to go through the probate process, which is a time-consuming and costly event. Wills are relatively inexpensive to set up, however, they only provide for the transfer of assets after death. In a will, you can also name a guardian for minor children and leave money to charity. If you pass on without a will, your assets will be distributed according to California’s intestate succession laws, which may not reflect your preferences. Solution: Your will sets out who will receive your property after you die. Problem: Where will your assets go after you pass away? Use this estate planning checklist to start thinking about how to plan to protect your hard-earned assets and loved ones. That is why we have created a super simple 21-step estate planning checklist. Estate planning can be overwhelming at first glance.
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