Have you been considering a will, college funding, protecting your family and answering questions such as who will watch over the children if both parents pass in the same accident? Do you own a home in the San Diego area? If so, you should contact Allen Barron to learn how estate planning reduces taxes and expenses and preserves assets that can be passed on to your beneficiaries and heirs. You may be surprised to learn that a will is usually not the best strategy for many San Diego residents. Perhaps you’ve heard that a trust is a better strategy for protecting your home and assets, and avoiding probate costs. How does all of this work?
Estate planning is a combination of several legal vehicles to ensure that you personally, as well as your assets, are protected come what may. Advanced healthcare directives provide guidance on whether you wish to be kept alive after a serious accident through “heroic” means or life-support machines, as well as your intentions regarding organ donation and other healthcare issues. A power of attorney provides important decision making authority to a person you absolutely trust. These powers can extend to your health, your money and assets, and other important decisions in the event you become incapacitated or pass away unexpectedly.
Estate planning reduces taxes and expenses by helping you to avoid the time and extreme expense of California’s Probate Court. When someone passes away, their liabilities must be paid and their assets must be completely distributed. One method to handle these tasks involves a “revocable trust.” A trust is a legal entity that protects your money and assets, avoids probate and distributes your money and belongings quickly and cost-effectively to your heirs and beneficiaries according to your specific instructions, much like a will. A will, however, must go through the Probate Court, and expensive fees are applied to every asset you have based upon its appraised value, regardless of what you may owe on that asset. For example, if your home is worth $500,000 but you have a $400,000 mortgage the probate fees are based upon the $500,000 appraised value, not the $100,000 in equity. In this example, a substantial portion of the equity will be paid to the probate court, your executor, attorneys fees, and other probate costs.
We invite you to contact the experienced estate planning and tax attorneys at Allen Barron for a free consultation at 866-631-3470. Estate planning reduces taxes and expenses and preserves the majority of your assets so that you may provide for your heirs and beneficiaries, and ensure your money goes to those you deeply care about instead of administrators, executors, and the State of California.