ESTATE PLANNING | Cruz and Cruz PC

Why hire an estate planning attorney?

An estate planning attorney in California specializes in helping individuals and families create legally binding documents that outline their wishes for the distribution of their assets and belongings upon their death. These attorneys can help clients create wills, trusts, powers of attorney, and other important documents to ensure their assets are handled according to their wishes. They also assist with minimizing estate taxes and navigating complex legal issues related to estate planning. Estate planning attorneys in California are highly knowledgeable about state laws and regulations that govern the transfer of assets, and can provide personalized guidance to help clients protect their wealth and provide for their loved ones after they are gone.

What is a will?

A will is a legal document that outlines a person's wishes regarding the distribution of their assets, belongings, and property after their death. In a will, the individual (referred to as the testator) can specify who will inherit their assets, appoint an executor to manage the distribution of their estate, designate guardians for minor children, and make other important decisions related to their estate. A will is a crucial part of estate planning as it helps ensure that a person's wishes are carried out and that their loved ones are provided for after they pass away. It is important to have a properly drafted and executed will to avoid conflicts and disputes among family members and to ensure that the estate is distributed according to the testator's wishes.

What is a revocable trust?

A revocable trust, also known as a living trust, is a legal arrangement in which an individual (known as the grantor or settlor) transfers ownership of their assets into a trust during their lifetime. The grantor retains control over the assets in the trust and can make changes to the trust or revoke it entirely at any time while they are alive.

One of the main benefits of a revocable trust is that it allows for the seamless transfer of assets to beneficiaries upon the grantor's death without the need for probate, a court-supervised process that can be time-consuming and expensive. By avoiding probate, the assets in the trust can be distributed quickly and privately according to the terms outlined in the trust document.

Additionally, a revocable trust can provide flexibility and control over how assets are managed and distributed during the grantor's lifetime and after their death. It can also help protect assets from creditors and provide for the management of assets in the event of incapacity.

Overall, a revocable trust is a valuable estate planning tool that can help individuals ensure their assets are managed and distributed according to their wishes, while also providing flexibility and privacy during their lifetime.

What is a financial power of attorney?

A financial power of attorney is a legal document that grants another person, known as the agent or attorney-in-fact, the authority to make financial decisions and manage the financial affairs of the person creating the document, known as the principal. The authority granted to the agent can be broad or limited, depending on the specific terms outlined in the power of attorney document.

A financial power of attorney can be useful in situations where the principal becomes incapacitated or unable to manage their financial affairs due to illness, injury, or other circumstances. By appointing a trusted individual to act on their behalf, the principal can ensure that their financial matters are handled in accordance with their wishes.

Some common powers granted in a financial power of attorney include the ability to pay bills, manage investments, buy or sell property, and make banking transactions. It is important to carefully select an agent who is trustworthy and competent to handle financial matters, as they will have significant authority to act on behalf of the principal.

A financial power of attorney is a crucial component of an estate plan and can provide peace of mind knowing that there is a designated person to handle financial affairs in the event of incapacity.

What is a health care power of attorney?

A health care power of attorney, also known as a medical power of attorney or health care proxy, is a legal document that allows an individual, known as the principal, to appoint another person, known as the agent or health care proxy, to make medical decisions on their behalf in the event that they are unable to do so themselves. This document only comes into effect if the principal is incapacitated or unable to communicate their wishes regarding medical treatment.

The agent appointed in a health care power of attorney is authorized to make decisions about the principal's medical care, treatment options, and end-of-life care based on the principal's wishes as communicated in the document or as known by the agent. This can include decisions about surgery, medication, life-sustaining treatment, and other medical interventions.

A health care power of attorney allows individuals to designate a trusted person to make important medical decisions on their behalf and ensures that their wishes are followed, even if they are unable to communicate or make decisions for themselves. It is an essential component of an individual's advance care planning and ensures that their preferences for medical treatment are known and respected.

Should you create an estate plan in California?

Yes, it is highly recommended to create an estate plan in California, regardless of the size of your estate or your age. Estate planning allows you to make important decisions about how your assets will be distributed upon your death, who will make decisions on your behalf if you become incapacitated, and how your medical care and finances will be managed in the event of your incapacity.

Creating an estate plan in California can help you:

Control the distribution of your assets: By creating a will, trust, or other estate planning documents, you can specify how you want your assets to be distributed to your beneficiaries.
Avoid probate: Proper estate planning can help your loved ones avoid the costly and time-consuming probate process, ensuring a smoother transfer of assets.
Protect your loved ones: Estate planning allows you to designate guardians for minor children, provide for family members with special needs, and ensure your loved ones are provided for after your passing.
Plan for incapacity: By creating a power of attorney for finances and a health care directive, you can appoint someone to manage your financial affairs and make medical decisions on your behalf if you become unable to do so.
Minimize estate taxes: Estate planning can help you minimize taxes and preserve more of your assets for your beneficiaries.

Overall, creating an estate plan in California can provide peace of mind knowing that your wishes will be carried out and your loved ones will be provided for in the future. It is recommended to consult with an experienced estate planning attorney in California to help you create a comprehensive estate plan tailored to your specific needs and goals.

Why avoid probate?

Probate in California can be a lengthy and costly process, often involving court fees, legal fees, and other administrative expenses. Additionally, probate proceedings are a matter of public record, which may not be desirable for some individuals who value privacy.

To avoid the probate process in California, individuals can utilize estate planning tools such as trusts, joint ownership, beneficiary designations, and other strategies to transfer assets outside of probate. Proper estate planning can help streamline the transfer of assets, minimize costs, maintain privacy, and ensure that assets are distributed according to the deceased person's wishes.

What is the cost of an estate plan?

The cost of an estate plan in California can vary depending on several factors, including the complexity of the plan, the attorney's experience and expertise, and the specific services included in the plan. On average, the cost of an estate plan in California can range from $1,000 to $3,000 or more.

It is important to consult with an experienced estate planning attorney in California to discuss your individual needs and goals and obtain a personalized estimate for the cost of creating an estate plan tailored to your specific circumstances. Investing in a well-crafted estate plan can provide peace of mind knowing that your wishes will be carried out and your loved ones will be provided for in the future.

Call us today for a complimentary consultation. You can reach us at (562) 276-2333 or (714) 283-3803. Hablamos Español.