As many California residents know, moving -- whether for a job, school or retirement -- has become a way of life for many Americans. While moving may herald an opportunity or the realization of a lifelong dream, it may affect one's estate plans in unexpected ways.
When to revise estate plans
California residents may be interested to learn that only approximately half of senior citizens have created a will to distribute their assets. The number of adults with a comprehensive estate plan is even lower. Some people are not aware of the importance of creating a living will, health care directive or powers of attorney in addition to a basic will or trust document. Every bit as important as creating an estate plan is knowing when to modify it. Experts recommend reviewing estate plans every few years, as tax laws and life situations change, to ensure that it continues to meet ongoing needs.
Single individuals face challenges in estate planning
Many single and childless individuals in California will face the complex and open-ended question of how to settle their estate after they die. There are approximately 17 million Americans over the age of 65 who are unmarried. In addition, financial advisers and charitable organizations are reporting that an increasing number of young people are starting to think about estate planning before they get married or have children.
Including digital assets in an estate plan
An estate plan is typically focused on the distribution of physical assets after one's death, but online activities and assets are increasingly important to consider in end-of-life planning. According to research, more than 50 percent of adults in California and around the country conduct their banking activities online. Nearly one-third use their mobile devices for banking. Online activities may also result in both financially and sentimentally valuable assets.
Estate plan and tax issues when leaving collections to loved ones
For California residents, estate planning is an important part of ensuring that valuables are distributed properly after death. However, there are potential tax and personal implications of inheriting collections that one should be aware of.
Collections require additional estate decisions
California residents who own collections of art, coins, cars and other valuables may be interested in how to leave them to heirs. There are several things to consider before deciding on a home for precious treasures. One of the first things for a collector to do is to discuss with family and friends any interest they may have in owning a collection or selected items. Appeal and lifestyle could drive the decision on who receives tangible items from a collection.
Estate planning for pet owners
California animal lovers may be interested in an article discussing arrangements to care for a pet after the owner dies. Through the use of trusts and other estate planning documents, this can be taken care of in advance.
Asset protection and estate planning
California residents who want to distribute their assets to family members and other beneficiaries after they die have several tools at their disposal. Proper estate planning can often include much more than the creation of a will. Creating a trust be an effective way of carrying out the grantor's wishes while instituting a degree of control over how and when the assets are distributed. A properly-drafted trust can also avoid the time and expense of probate and in some cases can be used as a means of avoiding or reducing the estate tax burden.
4 elements of estate planning
Estate planning is a process that California residents may need to take seriously. If it is done properly, an estate plan might be able to reduce taxes heirs will have to pay on the estate, document how a person wants to handle end-of-life decisions, arrange for the care of minor children if both of their parents die, and avoid probate court.
Digital assets in estate plan
When California residents think of estate planning, they probably call to mind wills, powers of attorney and trusts. Now, the electronic age requires consideration of what will happen to digital assets when the owner dies.
