Elk Grove, CA Estate Planning

How many times have you heard about wars erupting in otherwise peaceful families after the parents pass away? It is sad, but true. When a loved one dies without having made his or her decisions known, the family members can act irrationally, and conflicts develop. Emotions run high for those who are grieving a loss. With an estate plan, indecision and quarrelling is replaced with facts and understanding. Do yourself and your relatives a favor, and be ready. Farrell, Fraulob & Brown specialize in estate planning for all of Elk Grove.

Avoiding Probate

In addition to difficulties with relatives when there is no estate plan, an estate must be probated when a person dies with more than $100,000 in assets. You hold legal title to your property (think of your house, cars, bank accounts and heirlooms). This means that all assets remain in the deceased's name after death. Even with a will, the courts arrange the assignment of your assets and settling any debts of your estate. This procedure is usually costly, burdensome and extended. Thousands of dollars and months, or even years, are spent handling probate. The solution is a living trust.

The Living Trust

Why use a living trust instead of a will? A properly executed last will and testament passes your property to whomever you state. This is not enough, however, to avoid probate. Essentially, your decisions are declared through your will, but another step is needed to keep your descendants out of court. What you need is a trust, a modern invention of the law that creates a fictitious "person" that holds your property. It does not change your ability to buy, sell, trade or make income off your funds. It merely transfers ownership from you as a person to your living trust, declaring you the trustee. It is a clever way of ensuring that after you die, a "living" entity owns your property, thus avoiding probate. Inheritors are listed as members of the trust and one of them is appointed to administer the trust and distribute its funds, according to your decisions, after your death. The courts are avoided!

Power of Attorney for Health Care and Assets

Most of our clients in Elk Grove also can use a Power of Attorney for Health Care and a Power of Attorney for Asset Management. If you cannot make decisions for yourself, due to injury or illness, a power of attorney names an agent ahead of time to make decisions for you and care for your financial affairs. How often family and associates spend important time and effort fighting over health questions, end of life decisions and funeral rites! Specifying advance health care directives lets your relatives and medical professionals know just what procedures you are willing to order in order to save your life. Without such directives, it is possible for people to remain connected to live-saving machines for years, with no hope of recovery. In many cases, this was not in accord with their personal wish, but the individual never stated in advance what their medical choices would be or who would be responsible for making those judgments. Even worse, their funds can be tied up in court while they lie in a hospital. The Power of Attorney for Health Care and Power of Attorney for Asset Management avoid all of these difficulties.

Think Ahead

An estate plan contains provisions for your end-of-life commands, how your property will be divided, and who will make decisions for you should you lose the ability to do so. Make these decisions now and give yourself great peace of mind, knowing that whatever happens, you are ready. Clients seeking estate planning in Elk Grove may call Farrell, Fraulob & Brown at (916) 442-5835 today or contact us through our website to chat with an attorney about a family estate plan. You will be happy you did.