You spent most of your life working hard for your family, and you have finally paid off the mortgage, tucked away some retirement savings and built a comfortable life. Now, you want to make sure that your assets go to your loved ones without unnecessary conflict or financial strain.
When you start looking into writing a will, it is vital to remember that community property laws in California can affect the property and debt that you leave behind. Understanding how these rules work can help you structure your plan to protect your home and the family you are leaving behind.
What is community property?
California is a community property state, this means a couple equally owns most assets acquired during marriage. You might think you own your house entirely but your spouse likely owns half of the California property.
This is important to remember because you can only use your will to give away your 50% share.
Trying to leave the entire house to a specific child without accounting for your spouse’s share can possibly lead to a complex legal battle.
Handling debts and liabilities
In California, your estate is responsible for settling your debts before your heirs receive their inheritance. With a formal plan, you can choose which assets will pay your debts. You can also give a trusted loved one legal authority to speak with creditors and settle what you owe faster. Creating a plan can also help protect your children’s bank accounts from creditor claims.
Choosing the right person to lead
When drafting your will, it is vital to name an executor. This is the person who will handle the paperwork, pay the final bills and distribute what is left to your beneficiaries.
You can choose your child or any loved one you trust to be an executor. Taking this step can prevent a probate court from naming an administration and reduce any family infighting when you pass away.
Is doing it yourself enough?
Having just a will may sound like a good idea if your situation seems simple. But if you own a home in California that you fully paid off, your estate may be large enough to go through probate. This is often a lengthy and costly public court process where a judge supervises the distribution of your assets.
The problem with a do-it-yourself will is that a mistake, such as incorrectly listing community property, can cause the court to reject the will and force your family into probate. A lawyer can help you create a plan that works with your will so your home can pass to your children without being reduced by court fees and future legal costs.
The right plan for your peace of mind
Estate plans can seem intimidating, but they can be simple if your situation is generally straightforward. Unless you end your marriage, have another child or move out of state, a well-drafted will and a few supporting documents are often all you need. Consulting an attorney can help you create a plan that honors your last wishes and fits your family’s needs.