People in California have a lot of uncertainty about the future, especially when unpredictable natural disasters strike. When tragic and scary events happen, it is human nature for people to feel helpless and fragile in their own mortality. When confronting these very difficult issues, some people may take solace in the fact that their legacy, including the financial well-being of their loved ones, is well planned. We cannot predict or avoid certain tragedies, but we can control what happens to our possessions, our loved ones and our own bodies, in the event of an incapacitating injury.
Every person needs an estate plan, which, at the very least, should include a will, a health care directive and a durable power of attorney. Having these things in place will alleviate any uncertainty as to what will happen, should a person become incapacitated or grievously injured. The will should also dictate what will become of a person's assets, by assigning certain possessions and financial assets to heirs in clear and certain terms.
While these documents are essential, they may not provide all of the protection, financial and otherwise, that a person with a complex or large estate may require. For people with significant assets and complicated needs, one or more trusts may provide the proper solution.
A trust is a great way to minimize taxation on significant estates, while providing the flexibility and protect people in an uncertain and ever-changing world. Trusts can be complicated, and setting up the right one requires the help of an experienced family law attorney who will take the time to become familiar with your personal and financial situation. Not only can the right trust save a person many thousands of dollars, it can provide peace of mind for any person no matter what the future holds.