Folsom, CA Estate Planning

How many times have you heard about battles 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 descendants can act irrationally, and conflicts explode. Emotions run high for those who are dealing with a loss. With an estate plan, doubt and discord is replaced with order and harmony. Do yourself and your loved ones a favor, and be prepared. Farrell, Fraulob & Brown specialize in estate planning for all of Folsom.

Avoiding Probate

In addition to difficulties with loved ones when there is no estate plan, an estate must be probated when a family member 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 are left in the deceased's name after death. Even with a will, the courts decide the partitioning of your valuables and paying any debts of your estate. This process is usually expensive, bothersome and lengthy. Thousands of dollars and months, or even years, are spent dealing with 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 estate to whomever you choose. This is not sufficient, however, to stop probate. Basically, your decisions are enumerated through your will, but another step is needed to keep your inheritors out of court. What you need is a trust, a modern invention of the law that creates a fictitious "person" that holds your estate. It does not change your ability to buy, sell, trade or make income off your estate. It merely transfers ownership from you as a person to your living trust, making you the trustee. It is a legal way of guaranteeing that after you die, a "living" entity owns your estate, thus avoiding probate. Beneficiaries are listed as members of the trust and one of them is specified to administer the trust and distribute its estate, according to your decisions, after your passing. The courts are avoided!

Power of Attorney for Health Care and Assets

The greater number of our clients in Folsom also can use a Power of Attorney for Health Care and a Power of Attorney for Asset Management. When 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 handle your financial affairs. How often people spend important time and effort arguing over health procedures, end of life decisions and memorial rites! Creating advance health care directives lets your loved ones and medical professionals know just what treatments you are willing to request in order to maintain your life. Without such directives, it is possible for people to remain tethered to live-saving medical equipment for years, with no hope of recovery. In many cases, this was not in accord with their wish, but the individual never specified in advance what their medical choices would be or who would be responsible for making those decisions. Even worse, their estate can be tied up in going to court while they languish in a hospital. The Power of Attorney for Health Care and Power Attorney for Asset Management prevent all of these difficulties.

Think Ahead

Farrell, Fraulob & Brown are prepared to help individuals in Folsom think through their estate plan. Write a rock solid set of documents for the benefit of yourself and your loved ones. Call (916) 442-5835 today to set up a simple consultation or contact us via our website.