Probate avoidance is one of the major purposes of estate planning. Let’s break down these terms further. Let’s begin with estate planning.
What is Estate Planning?
Estate planning is the planning of your “estate”. This refers both to assets that you have during your lifetime and those that you leave behind at your death.
Estate Planning Allows You to Choose Your Beneficiaries
Estate planning can also be used to make sure your assets go to the right beneficiaries.
Your assets will not pass to your spouse if there is no Will or Trust. Your assets will be divided under intestacy to your spouse (if applicable) and/or your nearest blood relative. Your assets will be divided according to whether they are separate or community property.
Your spouse receives the community property. Separate property will pass between you and your closest relatives. Even if these are your intended beneficiaries, the percentage that is distributed to them may be different from your intention. This could mean that your assets are passed to someone you don’t want, or your assets don’t pass to someone who you want.
Estate Planning Ensures That the Right People Are in Charge
Another purpose of estate planning is to ensure that the right person is responsible for your estate. The person responsible for your estate depends on the details and circumstances. They may be the Trustee, Executor, Attorney-in-Fact, or Agent in your Durable Probate for Finances. This person is responsible to follow the terms of your Trust, Durable Power, or Will and ensure that your wishes are met.
This article was written by Alla Tenina. Alla is one of the best tax attorneys in Los Angeles California, and the founder of Tenina Law. She has experience in bankruptcies, real estate planning, and complex tax matters. Click here for more information. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.