2024 Estate Planning; What to Consider

Did you know that only one in three adults in the United States has established an estate plan? Without one, you leave your assets—and your family—vulnerable. If you pass away without completing your estate planning, the court could decide how your property and money will be divided, possibly not in the way that you would have wanted. Having a clearly defined estate plan can protect your family and ensure that your final wishes are carried out per your instructions. 

At the Law Office of Kyle W. Jones in Bakersfield, we believe that anyone, regardless of their financial status, can benefit from an estate plan. Your estate plan can protect you and your assets in the event of your death or disability. It can be used to name a guardian for your minor children and designate who you would like to inherit your real estate holdings, savings accounts, investment accounts, and much more. If you have been putting off creating your estate plan, there is no better time than the new year. 

Here are some of the top factors to consider during your estate planning journey in 2024. 

Should You Use a Will or a Trust?

Creating a will or trust can ensure that your assets are passed on to beneficiaries according to your wishes. With a will, you will provide instructions for what will happen to your assets upon your death. It is also what you will use to designate a guardian for any minor children. However, the disadvantage of a will is that it must go through the probate process before assets can be distributed to your beneficiaries. This can be a timely and expensive process that puts more undue stress on your loved ones. The details of the will also become a matter of public record, which can create privacy concerns for your family members. 

A trust, on the other hand, is a living document that will hold your assets while you are alive. The trust is only valid once it has been funded by assets, such as property, bank accounts, and investment accounts. Assets can be added and removed from the trust at any time during your lifetime. Upon your death, all the assets that were placed within the living trust will be protected from probate, making distribution much more seamless. You will name a successor trustee who will execute the asset division as defined in the trust agreement. 

If you decide to go with a trust, you may also need to create what is known as a pour-over will. This document will allow you to name a guardian or guardians to care for any minor children should both you and your spouse pass away. Additionally, a pour-over will can be used to protect any assets that you might not have had a chance to transfer over to the living trust before your death. However, you should know that these assets would be subject to the probate process, so it is imperative to keep your trust up to date as your financial situation changes over the years. 

Do You Need a Power of Attorney?

Your estate plan should also designate a power of attorney for your financial matters should you become incapacitated. This person will be able to handle your financial affairs as if they were you, so they should be someone that you have complete trust in, such as a spouse, a business partner, an adult child, or a long-time friend. They can ensure that your bills and other financials are taken care of until you recover. 

It is also wise to name a healthcare power of attorney in your estate plan. They will be able to make medical decisions on your behalf should you experience a serious illness or injury. You can also make their job easier by creating a Living Will, which is a document that details your healthcare directives. Should you not be expected to fully recover, you can outline what life-prolonging medical interventions you would want, such as artificial nutrition, respiratory support, or surgeries. These can be difficult decisions for a family member to make on their own, so it is a good idea to have a living will in place even if you elect a power of attorney. 

Who Are Your Beneficiaries?

Your will or trust will also need to designate one or more beneficiaries of the estate. You will detail what assets—or percentage of assets—each beneficiary is entitled to upon your death. You should keep in mind that certain accounts, such as life insurance and retirement accounts, will have their own beneficiary designations. These should be reviewed regularly to ensure that your assets are passed down to the right people. Your beneficiaries can be anyone who you would like to receive a portion of your estate, including charitable organizations. The executor of your estate is responsible for administering your assets to beneficiaries based on your instructions. 

How Often Do You Update an Estate Plan?

An estate plan isn’t something that you do once and just forget about it. The plan should be reviewed and updated every three to five years with an estate planning lawyer to ensure accuracy. However, you should have it updated sooner if you experience significant life changes, such as:

• Marriage or divorce
• Birth or adoption of a child
• Real estate purchase or sale
• Death of a beneficiary
• New state of residency 

Many changes can happen over the years, so it is essential to ensure that your estate plan reflects your current family and financial situation. Timely updates to your estate plan will make the asset distribution go more smoothly. If you fail to update your estate plan and pass away with assets or family members unaccounted for, it can be stressful for your loved ones to figure out what you would have wanted. This can result in bitter disagreements that must be resolved by the courts. 

The Office of Kyle W. Jones understands how important it is to have an estate plan that will protect your family and everything you have worked for. We are happy to help you with any estate plan revisions through the years. We will assess your situation, discuss potential changes, and make the appropriate updates to your documents in a timely manner. 

Contact a Bakersfield Estate Planning Attorney

Start 2024 off on the right foot with a comprehensive estate plan. The Law Office of Kyle W. Jones has extensive knowledge of estate law in the state of California, and we’re prepared to help you with your estate plan no matter what stage of life you’re in. 

We know that every situation is different, so we take a personalized approach to estate planning to ensure all your needs are covered. When you partner with our firm, we will simplify the estate planning process for you and provide the guidance that you need to secure your assets and protect your legacy. 

Are you ready to get started with a new estate plan for the new year? Contact the Law Office of Kyle W. Jones today to set up your consultation with an experienced estate planning lawyer in Bakersfield. 

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