What is an Estate Plan?
The answer to this question varies according to each individual's needs. However, a basic estate plan will include a will, a revocable living trust (if necessary), a durable general power of attorney for financial/property matters, and an advance health care directive. See below for a brief description of the benefits of these vital estate planning documents.

Wills: Parents with minor children absolutely need wills in order to name guardians for their children. If parents don't name their choice of guardian and they both pass away, the State of California will name a guardian for them.

Trust: A revocable living trust will serve to eliminate the long delay and high attorney/executor fees that are inevitable when a family only has a will and their estate must be administered through probate court.

General Durable Power of Attorney; By naming an agent to act for you with regard to financial matters, your assets and loved ones are in good hands if you become incapacitated. Otherwise your life/business, etc. will come to a stand-still while your loved ones go to court to ask that they be permitted to act on your behalf during your period of incapacity.

Advance Health Care Directive: You get to name an agent who will make health care decisions for you, including life sustaining measures via hospital machinery, in the event you are unable to make such decisions for yourself. This will save you thousands of dollars by avoiding the need for a court appointed conservator to look out for your health interests should you become incapacitated.

What are the benefits of a living trust?
A living trust avoids probate, a formal proceeding of the Superior Court, which is time consuming, expensive, and public. A living trust, also known as a revocable living trust, avoids the need for a conservatorship in the event you become incompetent or incapacitated. A living trust offers the potential for tax savings. This same trust can then continue for the benefit of your loved ones.

What are two important estate planning problems and solutions for parents and homeowners?
If you have a son or daughter under 18 years old, you can designate a guardian for him or her in a Will. Otherwise the court will decide who gets custody of your child if you pass away while he or she is still a minor.

If your estate (all your assets) is over $2 million (include life insurance, and don't subtract your mortgage if you own a house), you may owe estate taxes (death tax). If you create a joint family revocable living trust, you can reduce or completely eliminate estate taxes.

What are 7 Costly Problems of Failing to Create a Will or Trust?
— If you own a home worth $500,000, probate will cost a minimum of $25,000
— Everything about your estate will be made known to the public and your creditors
— If you become incapacitated, a court chooses who will make your financial and medical decisions
— Your estate will be tied up in probate court for an average of 16 months
— A court will distribute your estate to your "next-of-kin" which may include someone you want to disinherit
— A guardian for your minor children will be chosen by the court
— You will not eliminate unnecessary estate income and capital gains taxes.

Plan Your Legacy, Preserve Your Wealth, & Protect Your Children