An Introduction to Estate Planning in Folsom, California

Estate planning in Folsom, California, involves creating a comprehensive plan for the distribution of your assets and the management of your affairs upon your death or incapacity. It’s a vital process to ensure that your wishes are carried out, taxes are minimized, and your loved ones are provided for. As an experienced Folsom estate planning lawyer, here are a few key steps and considerations that I believe you should consider:

1. Identify Your Goals: Start by clarifying your objectives. What do you want to achieve with your estate plan? This could include passing assets to specific beneficiaries, minimizing estate taxes, providing for your family, or supporting charitable causes.
2. Gather Financial Information: Compile a list of your assets, including real estate, bank accounts, investments, retirement accounts, life insurance policies, and personal property.
3. Choose Beneficiaries: Decide who will inherit your assets. This may include family members, friends, or charitable organizations. Be specific about your wishes to avoid potential disputes.
4. Create a Trust: Depending on your goals, you might benefit from creating one or more trusts. Trusts can help you avoid probate, provide for minor children or individuals with special needs, and offer greater control over asset distribution during your lifetime.
5. Consider a Will: You may also want to have a Last Will and Testament that outlines how your assets should be distributed upon your death. In California, your will must meet specific legal requirements to be valid.
6. Appoint an Executor and Trustee: Designate individuals who will be responsible for carrying out your wishes as stated in your will and trust documents. Ensure they are willing and capable of fulfilling these roles.
7. Address Healthcare Decisions: Create an Advance Healthcare Directive (also known as a living will) and designate a healthcare proxy to make medical decisions on your behalf if you become unable to do so.
8. Establish Financial Powers of Attorney: Designate someone you trust to manage your financial affairs if you become incapacitated. This person will handle tasks like paying bills, managing investments, and making financial decisions.
9. Minimize Taxes: Understand the California and federal estate tax laws. In California, there is no state estate tax, however, estates that are over $13,610,000 (as of 2024) are subject to federal estate tax.  In conjunction with working with a Folsom estate planning attorney, it is important to also work with a tax professional to explore strategies for reducing potential estate taxes.
10. Review and Update Regularly: Your circumstances may change over time, so it’s essential to review and update your estate plan as needed. This includes updating beneficiary designations on insurance policies and retirement accounts.
11. Organize Your Documents: Keep your estate planning documents, financial records, and important contact information in a safe and accessible location. Make sure your loved ones know where to find them.
12. Communicate Your Wishes: Discuss your estate plan with your loved ones to avoid surprises and potential conflicts after your passing.
13. Consider Digital Assets: Account for your digital assets, such as online accounts and cryptocurrency, in your estate plan.

Summary

Remember that estate planning is not a one-time event but an ongoing process. Life changes, such as births, deaths, marriages, and divorces, can necessitate updates to your plan. Consulting with a Folsom lawyer who specializes in estate planning will help you create a tailored plan that meets your unique needs and goals while complying with California laws.  If you have any questions about estate planning or anything written in this article, please send us a message or give us a call.