California estate planning should be at the top of the list for residents of the Golden State. Individuals can engage in strategies to protect estate assets from undergoing the probate process; grant power of attorney rights; and establish a healthcare proxy.

Entering into California estate planning is not a difficult task, nor is it costly. Executing a last will and testament can be completed in a few hours for less than $150. Individuals with small estates might be exempt from probate. Those will estates less than $2 million may want to establish a trust, while those with estates over $2 million might require an irrevocable life insurance trust.

Probate is required for all estates that are not protected by a trust. California has very stringent probate laws, so it is always best to consult with a lawyer or estate planning service. The type of protection strategies required depends on estate value and type of assets owned.

When a person dies without executing a Will, assets are distributed according to California probate laws. This type of estate is referred to as intestate and requires more time to settle than estates protected by a Will.

A personal representative must be designated and confirmed through the court before estate settlement can begin. Additionally, rightful heirs must be determined before assets are distributed.

When a Will is executed the estate is referred to as testate. The last will is an essential element for quickly settling estates. It is used to designate a personal representative, heir apparent, and beneficiaries, and establish legal guardianship for minor children.

The average duration to settle testate estates in California is between 3 and 4 months. Intestate estates typically take 4 to 6 months to settle. The exception is if the estate is valued below $100,000.

Small estates are exempt from probate in California as long as a last will is filed through the court. Estates undergo a 40-day waiting period. Afterward, the personal representative files a sworn affidavit through the court stating the estate has been settled according to decedents\’ last Will and in compliance with state probate law. Distribution of inheritance property cannot occur until the sworn affidavit is filed.

Personal representatives for probated estates must adhere to specific protocol. It can be advantageous to retain legal counsel to ensure the estate is properly settled. Protocol requires filing the last will through the court; securing estate assets; obtaining property appraisals; paying outstanding debts; distributing assets to heirs and beneficiaries; and filing a final tax return.

Establishing a healthcare proxy is a crucial element of California estate planning. This document is used to provide directives regarding the type of healthcare a person does or does not desire. Healthcare proxies are the only way to avoid life-saving treatment if a person is unable to communicate their desires.

While most of us don\’t want to think about the type of medical care we do or do not want should we be diagnosed with life-threatening trauma, issuing a healthcare proxy provides directives to family members and eliminates the need for them to make agonizing decisions.

The final consideration of California estate planning is granting power of attorney rights. POA grants authority to another person to make financial decisions on your behalf. POA authority should only be given to those who can be trusted with important financial decisions.

Author Bio: Author and investor, Simon Volkov shares additional California estate planning strategies, along with ways to avoid probate, tips for hiring probate lawyers, establishing trusts, and ways to prevent family disputes over inheritance at www.SimonVolkov.com.

Category: Finances
Keywords: california estate planning,probate, california probate laws,personal representative,probate lawyer