estate planning designation

The Importance of California Estate Planning

Establishing California estate planning strategies is one of the best gifts residents of the Golden State can give their loved ones. Estate planning refers to various protocols used to protect valuable assets and bequeath personal property. Without directives, estates must be settled according to California probate laws and the process can take months to complete.

California estate planning is essential for residents of the Golden State. California has some of the most stringent probate laws in the country, so it is highly recommended to work with a probate attorney or professional estate planner.

Estate planning can consist of multiple strategies. At minimum, individuals should execute a last will and testament, assign power of attorney rights, and establish healthcare proxies. Individuals with estates valued over $100,000 should consider transferring property to a trust in order to avoid probate.

Probate is required within the U.S. to settle decedent estates. Two types of probate processes are used. The first is known as testate and refers to estates which include a valid Will. The second process is known as intestate and refers to estates without a Will. Intestate estates require additional time because extra steps are needed to comply with state probate laws.

Testate probate typically extends for 6 to 9 months, while intestate estates can require an additional 2 to 3 months. Much depends on the estate value, court caseload, and family dynamics. In California, estates valued under $100,000 may be exempt from probate if a valid Will is in place.

In California, estates are required to undergo a 40-day waiting period in order to avoid probate. The estate executor is then required to submit a sworn affidavit to the probate judge stating the estate has been settled according to probate laws and directives outlined in the Will. Once the affidavit is approved, distribution of inheritance property can take place.

Estates which are required to endure the probate process must follow specific protocol. Probate typically involves validating the decedent’s last will; determining rightful heirs; paying outstanding debts; securing valuable property and obtaining appraisals; filing a final tax return; and distributing inheritance property.

The Will is used to provide directives as to who should receive the decedent’s assets. The Will is also used to designate a probate personal representative and establish guardianship for minor children. Intestate estates are required to undergo a probate proceeding to determine rightful heirs.

When California residents choose to disinherit heirs they should include a disinheritance clause within the Will. When disinheritance occurs, it is crucial to clearly state the reason heirs were disinherited. Otherwise, heirs can contest the Will which will prolong the probate process and add additional expenses to the estate. Defense legal fees can quickly bankrupt small estates and force estate administrators to sell inheritance property to cover legal expenses.

California estate planning is essential for establishing healthcare proxies. Having a healthcare proxy in place allows individuals to state which medical treatments they do or do not want. Individuals can include directives regarding life-saving measures or ‘do not rescesitate’ (DNR) orders.

California estate planning also allows individuals to grant Power of Attorney rights to another person. POA privileges allow another person to make decisions on your behalf. Individuals with POA privileges can sell real estate and other types of titled property; pay bills; and have access to banking and financial accounts. Therefore, designating power of attorney rights should not be taken lightly and should only be granted to individuals who can be trusted to make smart financial decisions.

About the Author

Obtain additional California estate planning information from real estate investor and author, Simon Volkov. His website offers an extensive estate planning article library covering topics of how to avoid probate, establishing trusts, and tips for hiring probate lawyers and estate planners available at www.SimonVolkov.com.

There probably won’t be any money in the retirement for the heirs, because if there were there would have been a beneficiary designated. The retirement plan expired on the death of the recipient.

Probate will be necessary if there is any property to transfer, either real or personal. Personal would be cash, and bank accounts, as well as furniture.

You can call the court to see how much the fees are to open a probate case.

Good Luck

CHFC Designation