MYTH: Estate plans are for older people.
FACT: Estate plans are for anyone who has assets or anything of value, even if sentimental, that they want to leave to loved ones. This is especially important in California, where the probate process can be lengthy and expensive.
MYTH: I have a Last Will and Testament (will), so I don't need to go to probate.
FACT: A will is an important part of estate planning, but it does not avoid probate. In California, probate is required for all estates valued at more than $166,250.
MYTH: When I die, my family will automatically get my assets.
FACT: Not necessarily. If you do not have a will or other estate planning documents, your assets will be distributed according to California's intestate succession laws. These laws may not reflect your wishes, and they can lead to family disputes.
MYTH: If I ever become sick or incapacitated, my family will handle things for me.
FACT: Unless you have given your family authority to do so, they may not be able to make decisions on your behalf if you become incapacitated. This is why it is important to have a power of attorney and other estate planning documents in place.
MYTH: I am automatically guardian of my spouse or adult child if they become incapacitated.
FACT: Not necessarily. If you want to be the guardian of your spouse or adult child if they become incapacitated, you must be appointed by a court. This can be done by creating a guardianship nomination in your estate planning documents.
California-Specific Information
In addition to the general estate planning myths listed above, there are a few California-specific myths that are important to be aware of:
- Myth: I don't need to worry about estate taxes because California has a high exemption.
- Fact: While California has a high estate tax exemption ($16.8 million in 2023), it is still possible to owe estate taxes if you have a large estate. Additionally, the federal estate tax exemption is much lower, at $12.92 million in 2023. If you have a combined estate that is worth more than either the California or federal exemption, you may need to take steps to reduce your estate tax liability.
- Myth: Living trusts are only for wealthy people.
- Fact: Living trusts can be a valuable estate planning tool for people of all income levels. Living trusts can help to avoid probate, protect your assets from creditors, and provide for your loved ones if you become incapacitated.
- Myth: I can create my own estate planning documents.
- Fact: While it is possible to create your own estate planning documents, it is generally not advisable to do so. Estate planning documents are complex legal documents, and even a small mistake can have serious consequences. It is important to consult with an experienced estate planning attorney to ensure that your documents are drafted correctly and that they meet your specific needs.
We hope this helps give you some perspective and information and look forward to talking with you. If you're interested in creating an estate plan to protect your family and loved ones, and keep them out of court and conflict, we would love to speak with you. Reclaim Your Legacy!
Book your free 15 minute discovery call here.
In Your Service,
PS – In my mind, the real purpose of a properly executed Estate Plan is to take care of the people you love, protect your family for the future, maximize the assets you pass on to the people you love and cherish, and keep your family out of Court and out of Conflict. This is a very important and noble part of LIVING! Lavelle Law Group, APC would be honored to help educate you and assist you and your family with this important part of life.
Let’s talk –
Joseph Lavelle (Lavelle Law Group)
1350 Columbia Street, Suite 500
San Diego, CA 92101
(619) 515-1498
joe@lavellelawgroup.com
