Estate
planning is simply a fancy term to cover a broad range of documents which
describe your wishes for the future, after your death or if you become
incapacitated.
Some
of these documents cover property ownership. Some cover taxes.
Some cover health care. Some
cover long-term care. Not
everybody needs every document, but the following is a list of the most common
documents used in estate planning:
- A Will: This document gives you the opportunity to say where you want your property to go and who you want to manage it. If you do not have a will, the State of California will make these decisions for you.
- Living Trust: Like a will, this document controls the distribution of your assets after your death. In addition, it provides for
management of your property while you are alive, if you become incapacitated.
- Special Needs Trust: This can be part of a Living Trust or it can be a stand-alone document. The purpose of a Special Needs Trust is to provide for a person who is disabled, incapacitated by illness, suffering from addiction, or is simply unable to manage money. It can be useful to provide for such a person while still allowing them to be eligible for public benefits.
-
General Durable Power of
Attorney: This documents allows you to select someone to manage your assets if you become incapacitated. It is especially important to have if you do
not have a living trust.
- Advance Health Care Directive: This document allows you to name
someone to make medical decisions for you if you are not able to make those
decisions yourself. Every adult should have one
of these!
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