Estate planning is a critical process for all individuals, but it is especially important when confronted with a terminal illness. It is imperative to ensure that one’s legal and financial affairs are in order, despite the overpowering emotional and psychological toll of such a diagnosis. Comprehensive estate planning can offer residents of Rocklin, Roseville, and Granite Bay the assurance that their wishes will be honored and their loved ones will be cared for after their passing.
This article will investigate the primary elements of estate planning for individuals with terminal illnesses, with an emphasis on the advantages of having a well-organized plan, legal considerations, and essential steps.
Understanding the Significance of Estate Planning
Estate planning is the process of determining the distribution of your assets after your death, the management of your affairs in the event of your incapacity, and the fulfillment of your medical care preferences. Time is of the essence for individuals with a terminal illness, and a well-defined plan can alleviate the stress on loved ones during an already challenging period.
It is not uncommon for individuals in the communities of Rocklin, Roseville, and Granite Bay to have amassed substantial assets, such as real estate, investments, and business interests. Estate planning guarantees that these assets are distributed in accordance with your preferences, thereby minimizing the likelihood of disputes among successors and reducing the tax burden on your estate.
The following are the primary components of estate planning for terminal illness:
1. Last Will and Testament
The foundation of any estate plan is a Last Will and Testament. It enables you to designate beneficiaries for your assets, appoint an executor to manage your estate, and specify guardians for any minor children. It is essential for individuals who are afflicted with a terminal illness to review and revise their will to account for any alterations in their circumstances, such as the acquisition of new assets or changes in family dynamics.
The testator (the individual who is making the will) must sign the will in writing, and at least two individuals who are not beneficiaries of the will must witness it in California1, which includes Rocklin, Roseville, and Granite Bay. In the absence of a will, California’s intestacy laws will govern the distribution of your estate, which may not be consistent with your intentions.
2. Advance Healthcare Directive
In the event that you become incapacitated, an Advance Healthcare Directive enables you to designate a healthcare agent to make medical decisions on your behalf. It also allows you to indicate your preferences for end-of-life care, such as whether you prefer hospice care or life-sustaining treatment.
It is imperative to have an Advance Healthcare Directive due to the character of a terminal illness. It ensures that your medical care is consistent with your values and alleviates your loved ones from the burden of making challenging decisions during a period of emotional distress.
3. Durable Power of Attorney
A Durable Power of Attorney enables you to appoint an individual to oversee your financial affairs in the event that you are unable to do so yourself. This may encompass the management of investments, the payment of invoices, and the execution of real estate transactions.
A Durable Power of Attorney is especially crucial in Rocklin, Roseville, and Granite Bay if you have intricate financial assets, such as multiple properties or business interests. In the absence of it, your family may be compelled to engage in a protracted and expensive legal process to regain control over your financial affairs.
4. Revocable Living Trust
A Revocable Living Trust is a commonly used estate planning instrument in California, including Rocklin, Roseville, and Granite Bay, as a result of its flexibility and advantages. A living trust enables you to transfer ownership of your assets to the trust, with yourself serving as the trustee. During your lifetime, you may continue to oversee the assets. Upon your passing, the successor trustee you designate will distribute the assets in accordance with your instructions.
The avoidance of probate, a long and costly procedure, is one of the primary advantages of a living trust. This means that your heirs can access their inheritance more swiftly, and the details of your estate remain private, which is beneficial for individuals with terminal illnesses.
5. Designations of Beneficiaries
Regardless of the provisions of your will, certain assets, including life insurance policies, retirement accounts, and payable-on-death (POD) bank accounts, are transferred directly to the beneficiaries you have designated. It is crucial to evaluate and revise these designations to guarantee that they accurately represent your current intentions.
For instance, it may be beneficial to revise your beneficiary designations to include your new spouse or children if you have recently remarried or had children. Failure to do so could lead to unintended beneficiaries receiving these assets.
6. Planning for Estate Taxes
Although California does not have a state estate tax, federal estate taxes may be imposed if the value of your estate exceeds the federal exemption limit, which is $13.61 million per individual in 20242. Proper tax planning can alleviate the tax burden on your descendants for residents of Rocklin, Roseville, and Granite Bay who possess substantial estates.
Strategies may involve the establishment of irrevocable trusts, the reduction of the size of your taxable estate through lifetime gifts, or the utilization of charitable giving options. It is imperative to consult with an estate planning attorney who is well-versed in the intricacies of federal and California tax laws in order to effectively implement these strategies.
7. Instructions for Funeral and Burial
Although it may be challenging to contemplate, leaving your loved ones with explicit instructions regarding your funeral and burial can alleviate additional tension during their time of mourning. These instructions may be incorporated into your will or a distinct document that specifies your preferences.
Consider indicating your preference for a traditional burial or cremation, any religious or cultural traditions you wish to observe, and the manner in which you would like your funeral service to be conducted. By informing your loved ones of these specifics beforehand, you can guarantee that your intentions are acknowledged and honored.
The Function of an Estate Planning Attorney
It is essential to collaborate with an experienced estate planning attorney, particularly when addressing the intricacies of planning for a terminal illness. An attorney can assist you in navigating the legal requirements of California, ensuring that your documents are drafted and executed correctly, and providing guidance on more intricate issues, such as trust administration and tax planning.
The Filippi Law Firm, P.C. provides estate planning services that are customized to the specific needs of residents of Rocklin, Roseville, and Granite Bay. Our objective is to ensure that your estate plan is in accordance with your desires and safeguards your loved ones, thereby granting you a sense of tranquility.
Conclusion
Estate planning is an essential step for individuals who are diagnosed with a terminal illness. By dedicating the necessary time to the development of a comprehensive plan, you can guarantee that your wishes are fulfilled, your loved ones are taken care of, and your legacy is preserved. Working with an experienced estate planning attorney can be instrumental in attaining these objectives for individuals residing in Rocklin, Roseville, and Granite Bay.
Please do not hesitate to reach out to the Filippi Law Firm, P.C. if you have any inquiries or would like to discuss your estate planning requirements. Compassion and expertise are the qualities that our experienced attorneys possess, and they are available to assist you during this difficult period.
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References:
1. California Probate Code §6110 – Execution and Revocation of Wills.
2. 2024 IRS, Estate, and Gift Tax FAQs.
If you are the deceased person’s spouse, child, or parent, you may be entitled to receive assets upon the death of the person. Probate can be a complicated process, and it is important to consult with an estate law firm if you have questions or concerns about the probate process. If you need help with probate law, get in touch with an estate lawyer in Rocklin.
What is Probate?
Probate is the legal process of administering a person’s estate after their death. It includes distributing their assets to their beneficiaries and paying any debts and taxes owed.
What Are the Steps of Probate?
Generally, the process probate goes as follows:
- The executor or administrator of the estate files a petition with the court.
- The court appoints an executor or administrator for the estate.
- The executor or administrator collects the assets of the estate and pays any debts and taxes owed.
- The executor or administrator distributes the assets of the estate to the beneficiaries.
Note: The steps of probate vary from state to state, but generally, the process is similar. Contact us to learn better about your situation.
How Does Probate Court Work?
The probate court appoints an executor or administrator to administer the estate and distribute the assets to the beneficiaries.
What Are Probate Assets?
Probate assets are those assets that are subject to the probate process. It includes all property owned by the deceased person that is not jointly owned, has no designated beneficiary, or is not held
in a trust. There will be a probate assets list that covers all the assets.
Some examples of assets that may be in probate are:
- A house
- A car
- Bank accounts
- Stocks
- Bonds
- Personal property
Do I Need To Go Through Probate?
It depends. If the deceased person left a will, then their estate will need to go through probate. But if the deceased placed their assets in a living trust, probate isn’t necessary.
The probate process can be time-consuming and expensive. It is important to hire an experienced probate lawyer to help you through the process.
Who Are Involved in the Probate Process?
The probate process involves the executor or administrator of the estate, the beneficiaries of the estate, and the court.
The Administrator of the Estate
The administrator of the estate is the person appointed by the court to oversee the probate process.
Beneficiaries of the Estate
Beneficiaries of the estate are the people who are entitled to receive the assets of the estate.
Probate Court
The court is the legal body that oversees the probate process.
What is a personal representative?
A personal representative is a person who is appointed by the court to oversee the probate process. In most cases, the personal representative is an individual who has a close relationship with the deceased, such as a spouse or child. However, in some cases, the court may appoint someone else to be the personal representative if no family members are available. A personal representative is the same as an executor or administrator.
What Are the Estate’s Obligations to Estate Creditor?
The executor or administrator of the estate is responsible for paying any debts and taxes owed by the estate to the creditor. The administrator may use estate assets to pay these debts and taxes.
How Long Does It Take to Deal with Probate?
The time it takes to complete the probate process varies depending on the size and complexity of the estate. Generally, the process can take anywhere from a few months to a year or more.
Factors that Make Probate Last Longer
Some factors that can make probate last longer are:
- A large and complex estate
- Multiple beneficiaries
- Disagreements among beneficiaries
- Creditors
Factors that Shorten the Probate Process
Some factors that can shorten the probate process are:
- A small and simple estate
- All beneficiaries agree on the distribution of assets
- No creditors
How Do You Get Around Probate?
There are a few ways to avoid probate. It includes joint ownership of property, designation of beneficiaries, and setting up a trust.
Is Probate Harder Without a Will?
If the deceased person did not leave a will, then their estate may still need to go through probate. The probate process may be more complex without a will, but an experienced probate lawyer can still help you through the process.
How a Probate Lawyer Can Help You
If you are the executor or administrator of an estate, consider hiring a probate lawyer to help you with the legal process. A probate lawyer can help you with tasks such as filing the necessary paperwork with the court, distributing assets to beneficiaries, and paying debts and taxes owed by the estate.
Probate attorneys are knowledgeable in probate law; they know what steps need to be taken and how best to go about it. They also know how best to communicate with family members and heirs so that everyone understands what’s going on and feels comfortable with it all.
Conclusion
A probate action requires a court order and may take many months or even years to complete. It is different from a will, which is just a document that you create before your death and make it clear how you want your property distributed after you die. If you are expecting to face probate, hire a probate lawyer to help you with the legal process. Contact Filippi Law Firm P.C. now.
Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, trust litigation, and personal bankruptcy in the greater Sacramento area, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin. Prepare for your future and work with the best estate planning attorneys today.
What is a small estate affidavit? If you have been a reader of our blog for any period of time, you have likely learned that you want to take the steps necessary to avoid probate. Not just for the excessive cost and time, it takes to proceed through that process, but because of the hassle, it causes your family (see https://filippilaw.com/what-is-probate). However, you may be surprised to learn there are some little-known situations when your estate won’t need to go through this probate process.
First, we must mention that the best solution, and one we often suggest to our clients, is to have a revocable living trust created. If done and maintained properly, this all but guarantees your estate will avoid probate.
Absent you putting a revocable living trust in place, there are still a couple of situations when probate may not be necessary. The most obvious being that if your estate does not have any descendible assets (property able to be inherited) for your heirs. This can happen if you have done extensive estate planning, or if you have simply lived your best life during retirement and enjoyed every cent you saved.
There is also another time when probate may not be necessary. California has a little-known law that allows for the passing of estate assets without the supervision of the court in the probate process. California Probate Code Section 13100 allows for assets in an estate to transfer through the drafting and executing of a small estate affidavit. However, only some estates will qualify.
The most significant qualification to proceed under a small estate affidavit is that the total assets in the estate do not exceed $166,250. This amount is modified by the California Judicial Council every three years in proportion to fluctuations in the Consumer Price Index (CPI), an economic reading that identifies the rate of inflation in our economy.
The next question that needs to be answered is what is included in the sum of a person’s estate. California Probate Code Section 13050(a)(1) answers this question for us. It excludes property that was held in joint tenancy with another, was terminable at death, passed to a surviving spouse under certain circumstances, or was held in a revocable living trust. If you don’t know what any of this means, it’s okay, just give us a call and we can help!
So, if you have followed our advice, and have most of your assets in a revocable living trust, but forget to place a particular asset in the trust, a small estate affidavit is one potential solution to correcting this mistake. That is of course, as long as the total assets left out of the trust are less than $166,250 (or the subsequently adjusted amount) and all the other requirements of the small estate affidavit process are satisfied.
Some of those other qualifications include a requirement that the death has occurred at least 40 days prior, no probate proceeding has been or is being conducted, and of course, that the affiant (the person signing the affidavit) is the proper person to receive the property.
There are other requirements, including having proper identification and attaching a certified copy of the death certificate, but the biggest concern is ensuring you are properly proceeding under this small estate affidavit statute. By signing the affidavit, you are subjecting yourself to personal liability.
It is for this reason that we suggest you consult with a licensed probate attorney to assist you with this small estate affidavit process. While you can always go it alone, the nominal fee you pay to a probate attorney will be a small price for the peace of mind in knowing it was done properly and your risk of liability is reduced.
We can assist you with the small estate affidavit process, so give us a call today and let us take that stress off your shoulders.
Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, trust litigation, and personal bankruptcy in the greater Sacramento area, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin. Prepare for your future and work with the best estate planning attorneys today.
