Let us make certain terms clear, before proceeding into the nuances of estate planning and asset management.
Estate Planning –
It is the basic process of creating a plan to facilitate transfer of your assets to a trustworthy person, capable of handling the responsibilities and in your blood line.
A normal will at many times, do not hold any significance in the court of law. As, under most conditions, its hand-written or not certified from any court of law. Probate comes into existence at such times and is required to determine the authenticity of the document.
Trust Administration –
The main weapon used in California is the trust, which is used to take on the responsibilities of the living person, that the ‘trust’ imitates. Various trusts can be created:
- Testamentary Trust –
It works well, when the owner has small estates. The trust is dependent on the courts. Through this trust, the money is held till the children are capable enough to use the money or out it to good use.
- Irrevocable Trust –
You can change these trusts. These are used to avoid tax concerns. You can use this trust to support your expenses, when you are alive and your children or designated person can use it, after death.
All these terms seem inconsequential to the layman. This is where the Estate Planning Attorney comes in.
A competent attorney should know about laws related to estate planning. He should have at least a decade of experience in estate planning. Another main point, is to be malpractice insured. This can save the customers from losses, if the Estate Planning Attorney makes a mistake.
Financial Durable Power of Attorney
It gives a power to anyone to sign documents on your behalf. The incumbent can manage the accounts, real estate and bank accounts on behalf of the owner.
This is just the beginning of financial decision-making.