Estate Planning Documents
SOME THOUGHTS, ABOUT ESTATE PLANNING, FROM DAN:
I'm a big fan of getting your ducks in a row regarding estate planning. If you own real estate (such as your own personal residence), my personal preference is to have a revocable living trust so that your real estate can avoid the probate process, someday, when you pass away. If you choose to do that, I suggest that you have an entire estate plan prepared - including the revocable living trust, a pour-over will, a financial power of attorney, an advanced healthcare directive, etc.
I do not provide legal advice, but I highly recommend being skeptical about the attorney you work with. I'm going to go ahead and make a bold statement that any "true" estate planning attorney would agree with: Most lawyers don't prepare estate planning documents very well. There; I said it! Quite honestly, quality and price are the most important things to look for. I know a few attorney's who have a great personality, but their documents are terrible. I also know some attorneys who are a bit abrasive or come across in an arrogant way, but they have awesome documents and good prices. No matter what, if you're looking to complete, update, or restate your estate plan, you should use an attorney who specializes in estate planning and not just one that says they know how to do it. I would never go to We The People or LegalZoom, etc. I would also be cautious about using the attorney that you know just because you know them - unless they specialize in estate planning. IT'S THAT IMPORTANT! I have a couple of attorneys that I recommend in the Santa Clarita, California area and also in Auburn, Washington. Please let me know if you'd like their contact information.
The cost of an estate plan can be all over the board. I know a couple of attorneys that charge almost $8,000 for a basic estate plan, and that's WAY too much! There are also some firms that will do it for around $1,000 but I know what it takes to do it right and, quite honestly, that price is too low and it'll show in the quality of the plan. Many estate planning attorneys will ask questions about your assets (a very normal part of your first meeting) so that they know what type of estate plan you may need and what may need to be funded into the trust, but I also know some attorneys that will base what they charge you on how much you have in the bank. If you have a lot of liquidity, they'll raise the price. The bottom line is that, if an estate planning attorney is doing it the right way, he or she will charge based on the complexity of the estate plan - such as are you single or married, how many homes do you own, will you need a special needs trust, do you have minor children, etc. At the time of this writing, depending on your situation, the cost should come out to be between $2,500 and $3,500 for a complete estate plan.
If you're seriously considering having your estate plan prepared, please contact me so I can give you some thoughts on the subject and point you in the right direction so it gets done right the first time. I've been around the block (many times) regarding estate planning and, if you're going to spend that kind of money, I want to make sure you have a heads-up on a few important things. For instance, I'd like to go over some of the pros and cons of some of the choices you'll need to make when meeting with the attorney - such as should your trust own your bank accounts, do you really even need an IRA trust, should you allow gifting to occur for Medicaid/Medi-Cal planning, do you want your power of attorney to be springing or immediate, etc. So, if you don't mind me saying, let's have a quick talk! After all, we're talking about everything that you own and everyone that you care about!
For people who do not own real estate or may just be starting out in life, you still need an estate plan, but it probably doesn't need to be as elaborate. You can avoid probate, in most cases, on all of your accounts by adding beneficiary designations to every account including checking, savings, CDs, money market, investment accounts, IRAs, 401(k)s, 403(b)s, annuities, life insurance, etc. They key is that you have to do it and you have to make sure it stays up-to-date and accurate. However, in addition to beneficiary designations, you should still have a few other documents, such as a last will and testament, a financial power of attorney, and an advanced healthcare directive.
Below are some California generic estate planning documents that may be of help to you. These documents are recommended, by some California estate planning attorneys, for a simple estate plan. You'll need to fill in the blanks and then get notary seals and/or witness signatures where required. Remember, I do not practice law or give legal advice so, to cover my own tail end, I will also go ahead and suggest that you consult a qualified estate planning attorney to make sure that these documents are appropriate for you. These documents are only posted here as a courtesy. Here they are:
California Advanced Healthcare Directive - CLICK HERE
California HIPAA Form - CLICK HERE
California Last Will & Testament - CLICK HERE
California Last Will & Testament Q&A - CLICK HERE
California Financial Power Of Attorney - CLICK HERE