Sacramento Estate Planning Blog

Oftentimes, a will serves as the foundation of an estate plan. When a will is improperly drafted, an individual's estate may be in jeopardy. This is because a poorly created will can lead to ambiguity, challenges, a lengthy probate process and even an undesired distribution of assets. Therefore, Californians need to be diligent in their efforts to create their wills and update them regularly. Skilled legal professionals may be able to advise as to how best to utilize these estate planning tools.

One option is to use what is referred to as a "pour-over will." Although even a basic will typically dictates how assets will be passed on to heirs, a dated will can mean that certain assets are missed. In these instances, those unidentified assets may pass down in accordance with state law, which may not be in-line with a testator's wishes. Additionally, a testator may not have as much control over assets that are not placed in a trust. Assets that aren't place in a trust are not subjected to the trust's conditions, though. This is where a pour-over will can help.

A common misconception amongst Californians is that estate planning is reserved for those who have reached the later stages of their lives. Although older individuals should ensure that their estate plans are suited to their wishes, younger people can and should utilize the estate planning tools at their disposal, too. Those who realize this often turn to a simple will to ensure that their bases are covered, but those who have children may be leaving their estate vulnerable by doing so.

Simply put, assets that are left to a minor child are inherited outright when they turn 18. On its face, this fact may not seem concerning, but when examined more closely, many 18-year-olds are simply unequipped to adequately manage inheritances. For these young people, an inheritance may seem like it is going to last longer than it actually will, thereby spurring them to spend recklessly.

On its face, estate planning can seem relatively easy, especially for those who just want to leave their assets to their spouse or children. For these individuals, a simple will may suffice to meet their needs, but even these documents can be fraught with legal issues. For an example of the complexities and confusion that can arise when a will is improperly handled, just read our recent post about Aretha Franklin's estate and her handwritten wills. To avoid potential problems related to the creation of a will, Californians should consider working closely with an estate planning professional.

There are many issues that can derail a will, and other estate planning vehicles, but a skilled attorney will know how to deal with those matters. He or she can help an individual take the steps necessary to diminish or eliminate claims of incapacity, coercion, and undue influence. Additionally, a legal professional can help ensure that a will is drafted in accordance with applicable laws, thereby ensuring its legal validity.

Laying out an estate plan is no easy feat. The challenges that often arise can come up in a variety of contexts, too. Those with blended families, young children, and a desire for asset distribution that is anything other than evenly divided amongst loved ones need to carefully consider how their estate plan is drafted to obtain desired results. While this may mean the creation of a will and a number of trusts, estate planning is about much more than just determining how one's assets will be distributed upon his or her death.

For example, when a trust is created, an individual can name another person to serve as the trustee. This individual has a fiduciary duty, meaning that he or she has a duty to act in the best interests of another. The trustee also holds title to assets that have been placed in the trust, making him or her responsible for how those assets are utilized. Oftentimes these assets need to be invested to maintain the trust's viability for as long as possible, which is why trustees are oftentimes better off if they consult with a financial expert.