From time to time, it’s good to review why having a complete, up-to-date estate plan is so important. In addition to confirming our own actions, it can provide us with valuable information to pass along to friends and family who need estate planning. Here we discuss two common mistakes:
- Not having a plan. Every state has laws for distributing the property of someone who dies without an estate plan—but not very many people would be pleased with the results. This process is called probate. By having a plan in place, your family will be able to avoid probate when you pass away. State laws vary, but generally they leave a percentage of the deceased’s assets to family members. Non-family members will not receive any assets so it is crucial for same-sex partners and non-married partners to have a plan in place if it is your intention to provide for a partner. It is common for the surviving spouse and children to each receive a share during a probate proceeding, which often means the surviving spouse will not have enough money to live on. In addition, probate fees and costs diminish the estate. If the children are minors, the court will control their inheritances until they reach legal age (usually 18), at which time they will receive the full amount. This may be contrary to what parents prefer, who may want to have some restrictions on their inheritance until they are more mature. By having a plan in place, you make the decisions and keep your affairs private by avoiding government intervention and government involvement.
- Not naming a guardian for minor children. A guardian for minor children can only be named through a Will. If the parents have not done this, and both die before the children reach legal age, the court will have to name someone to raise them without knowing whom the parents would have chosen. Equally tragic would be that the minor children might end up in protective custody while the court gets around to hearing the case to nominate a guardian. By seeing me, a San Diego Estate Planning lawyer, you can have the peace of mind knowing an estate plan is in place, which includes naming a guardian, for the short term and long term, for your minor children.