The New Year Is a Great Time to Get Your Estate In Order

As you gear up for another year, you should think about your estate plan. Have you experienced any major changes over the past 12 months, such as a marriage or the birth of a child? You’ll need to update your estate plan to reflect these important milestones. Don’t have an estate plan? Now’s a great opportunity to create one to ensure that you and your family are protected.

Do I really Need an Estate Plan?

At the Law Office of Kyle W. Jones, we believe that it’s never too early—or too late—to begin planning for the future. Anyone can benefit from an estate plan, no matter what stage of life they happen to be in. If you don’t own property or have any children, your plan today could be as simple as designating who should receive your personal property when you die or detailing your health care wishes should you become seriously ill or injured. Later down the line, your estate plan can be updated to include more substantive assets, the guardianship of minor children, and other important decisions. When you work with our Bakersfield law firm for your estate plan, we will check in with you over the years to ensure that your documents are as up to date as possible. 

What’s the Difference Between a Will and a Trust?

This is a common question as people begin estate planning. A will is a legal document that doesn’t go into effect until your death. It provides directions for who will receive your property and other assets when you die. With a will, you can also designate a guardian for any minor children you have. This will help prevent the courts from having to decide who should raise your children should both you and the other parent pass away. You might also consider naming a secondary guardian should your first choice be unable to care for your children.

You should know that a will must undergo the probate process, and it then becomes a matter of public record. Under probate, the court will determine if the will is valid and then appoint an executor to pay the fees and debts owed by the estate before distributing the assets as you have outlined in the will. 

Alternatively, a trust can be used to hold your property and other assets while you are still alive. You designate a trustee (yourself, a loved one, or close friend) to manage the trust, and the trustee can distribute assets to the beneficiaries. You can transfer assets in and out of the trust as needed, but keep in mind that any assets that aren’t in the trust must go through the probate process when you die, which can be costly and time-consuming. If you have significant financial assets and property, you may consider securing them in the trust to help your loved ones avoid the hassle of probate. A trust is also beneficial because, unlike a will, it’s entirely private—no one will know what’s in your trust unless you want them to. 

If you do decide to go with a trust, you can also create a pour-over will to ensure that any assets outside the trust are transferred to the trust when you die. This will protect you if you gain more assets but don’t get around to updating your estate plan before your death. While this document must go through probate, it will ensure that your remaining assets are distributed according to the terms of the trust. You can also use a pour-over will to name a guardian for minor children, which cannot be done within a trust.

What Else Should I Include in My Estate Plan?

A comprehensive estate plan will include more than just a will and/or trust. You should also consider a Durable Power of Attorney, which will allow someone to act on your behalf should you become unable to make decisions on your own. Without this document, the court could decide what happens to your financial assets while you are incapacitated, and their decision may not be what you would have wanted. The person you choose will be able to manage your finances just as if they were you, so they should be someone you trust, such as a spouse, adult child, or business partner. 

You should also consider creating a Health Care Directive, or Living Will. This will allow you to detail your medical wishes in the event that you are unable to make decisions on your own. You can decide on which medical interventions you would want your health care providers to take should you not be expected to recover. This may include palliative care, respiratory assistance, supplemental feeding, and other medical treatments or procedures. You can also name a Health Care Power of Attorney to make decisions on your behalf. Again, this should be someone you would trust with your life since they would be acting in your interest. 

Some individuals also include a Letter of Intent with their estate plan. The Letter of Intent is used to detail what you would like done with your property and other assets once you die. You may also use it to outline your funeral plans or to give your loved ones some other special directions. While it isn’t typically a legal document, the Letter of Intent can be used to provide a judge with insight into your wishes should there be any issues with the asset distribution.

How Often Do I Need to Update My Plan?

It’s a general rule of thumb to review your estate plan every three to five years. This will allow you to make timely changes to beneficiary designations or name secondary trustees or agents for your power of attorney documents if your first choice is no longer available. However, you may want to update your plan at every important life event, including a marriage or divorce, the birth or adoption of a new child, the death of a beneficiary, and a new property purchase or sale. Keeping your plan up to date is the best way to ensure that your assets are distributed according to your wishes so that your family is fully protected upon your death. 

Contact an Estate Lawyer Today

Estate planning can be challenging, especially if you have multiple beneficiaries and a variety of assets to consider. At the Law Office of Kyle W. Jones, we aim to make the process as simple as possible for you. We have extensive experience in estate planning, and we take pride in working one-on-one with each client to ensure that nothing is overlooked. 

We understand how important it is to prepare for the unexpected so that your family is taken care of. However, we recognize that everyone’s situation is different. That’s why we work closely with each client to develop an estate plan that makes the most sense for their unique circumstances. And as your family and finances change over the years, you can rely on us to modify your plan accordingly. Contact our law firm today to schedule your initial consultation with a Bakersfield estate planning attorney. 

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