A common misconception is that Torrance Estate Planning is only for people with large fortunes or multiple homes. This is not true. Estate planning is actually the act of putting together your final arrangements. This can include a will, a power of attorney, a living will or medical power of attorney and a trust, if necessary. Now that you know what it is, how do you get started?
The first step is to take stock of your assets. These can include your investments, savings, insurance policies and any business or real estate properties. Then you need to decide who your heirs will be, who would you prefer to hold power of attorney to in order to handle your financial issues if you are unable to and in the even that you are incapacitated, who do you want make medical decisions for you. Regardless any verbal agreements you have made, the only legally binding way to give someone the ability to make decisions on your behalf or distribute your property after you are gone is with a will. Everybody needs a will. By the same token, a trust is not just for the wealthy. A trust allows you to put parameters down on when your assets will be dispersed after your death. A trust may lower your taxes and allow you to issue your assets to your heirs without additional costs and to avoid probate court. Probate court presides over wills and can cause delays in distributing your assets and is a public action of record, so others could be privy to your final arrangements. A trust is an easy way to avoid this type of court action and may also offer enhanced protection from creditors and potential lawsuits. In order to prevent confusion or frustration later, it is best to be upfront and honest about the arrangements you are making with your heirs and potential heirs.
Death is a difficult time for the survivors. Make it easier for them by giving them a clear layout of your intentions. Knowing what you are working with before you get started with help your Torrance Estate Planning to go more smoothly.