California Estate Planning Law
Estate planning allows someone to denote who may manage his assets if he becomes incapacitated during his lifetime and how his assets will be distributed after his death. In California, the process includes preparing a will and sometimes creating a trust.
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Identification
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A person's estate is all of her assets, including life insurance benefits, retirement accounts, stocks and bonds, personal property (like cars, electronics, furniture and jewelry), bank accounts and real estate.
Trusts
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A person may choose to transfer assets into a trust. This allows him to maintain control of the assets while he's alive, but transfers the assets to the beneficiaries upon his death. Preparing a trust does cost more than a will; however, transfer through a trust means beneficiaries can avoid the probate process, which is also expensive. The person must name himself as trustee to control the trust, but can also name a successor trustee who will act in his place if is incapacitated and unable to manage his assets.
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Wills
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A will is the legal document that sets forth how a person's estate will be divided after her death. A person can make a will if she is over 18 years old and is "competent," meaning she understands the provisions in her will. The person must sign her will in the presence of two witnesses, who will also sign the document. In California, a person can leave her property to anyone, including family, friends and charitable organizations. Unlike other states, California law allows a person to disinherit -- or not leave any assets to -- her spouse or children.
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