For the most part, what happens to your money in the event of your passing is in your hands. Creating a proper estate plan will ensure that your assets are allocated according to your plans. Read on to learn more about what happens to your money, and some various estate planning documents that may be beneficial.
What is a Will?
A will may be the most important document you can create. Your will allows you to declare how you would like your assets to be divided amongst your loved ones in the event of your passing. In your will, you may include real estate, bank account, retirement plans, and other important assets. You can also include more sentimental items, such as photographs, letters, antiques, and more. Dying without a will is known as dying “intestate.” This means that your assets will be distributed by the state of California. This can cause a great amount of stress for your family members during a time of mourning.
What is a Trust?
A trust is a contract between a third party and an estate. The person who creates the trust is referred to as the trustor. The person who receives the assets of the trust is the beneficiary. There is also a third party involved. This third party, known as a trustee, manages the trust on behalf of the beneficiary.
In California, some of the trusts you can create include:
- Revocable Trust
- This type of trust can be modified, changed, or revoked at any time, without the permission of the beneficiary.
- Irrevocable Trust
- Once an irrevocable trust is created, the trustor must nullify his or her rights to the trust, and therefore cannot alter or terminate the trust.
- Irrevocable Life Insurance Trust
- This type of trust is available for individuals who wish to remove their life insurance from their estate. This may be done so that beneficiaries of the estate will not have to pay the taxes placed on the insurance policy.
These documents can help you allocate your assets, and our firm is here to ensure that all goes according to plan. Reach out today to speak with an experienced estate planning attorney.
Contact our Firm
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Offices of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Do not delay. Estate planning is a more urgent matter than you may think. You never know what the future holds. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.