When people undertake the estate planning process in California, they tend to focus on the major assets: the house, other real estate, bank accounts and investments. Too often they overlook the things they own that have little monetary value but a lot of sentimental value. Things like a mother's wedding ring or an old family portrait should be addressed in one's estate plan in order to avoid unnecessary conflict with heirs.
When a person in Sacramento takes steps to shore up his or her estate by preparing a will, it might seem like a relatively straightforward process. However, many are not fully aware of what the terms of a will entail especially when it comes to what is covered by it. Having an understanding of what the will covers in terms of property can help to move forward appropriately and account for all the issues that could eventually present a problem between relatives at the time of the person's death.
In last week's post we discussed what assets are included in one's estate under California law for estate planning - and estate tax - purposes. One of the assets we mentioned in that post is life insurance. If a person is the owner of a life insurance policy, the proceeds of that policy will be included in their taxable estate for federal estate tax purposes.
When a person decides to begin the estate planning process, one of the first tasks is taking a general inventory of their estate. But, what assets are included in one's estate under California law?