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.
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.
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.
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.
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.
A recent article outlines several factors that families in California may want to take into account when considering leaving money in a trust for future generations. The suggestions in the article vary in their approaches while generally working toward the common goal of helping individuals with fortunes protect their heirs from throwing away the wealth they inherit.
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.
California estate planners and those who benefit from trusts and investment income have observed with interest as higher income taxes and the national 3.8% increase in investment income taxes take effect. This has substantially raised the tax bill for nearly all trusts, causing estate planners to look for creative ways to minimize the tax burden.
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.
Although considering the end of life is not uplifting for residents in California, creating a will and final testament is the best way to prevent headaches and complications for a person's heirs after their death. If such a document is not made, the state will carry out an estate plan for the deceased, irrespective of the needs of their heirs or personal wishes. Drafting a will with a professional usually runs between $500 and $2,000 but can be done for much less if an online service is used and the needs are straightforward.