The living trust is an document that allows a person’s estate to avoid the cost and time of probate court, maintains privacy for their final wishes and provides control in how their property will be administered.  When a person dies, their assets are essentially “frozen” until someone, usually a family member, files a case in the probate court to have the property transferred to the next of kin under CA law.  This court process can take 1-3 years, with a price tag of $40,000-$100,000+ to complete.  With a living trust, you can avoid having your family and loved ones deal with the stress, time and cost of going through the courts.

A will is a legal document that allows you to provide specific instructions for distribution of your assets and can be used to pre-select guardians, if you have children.

In California, if you die without a will, your assets will pass through the laws of “intestate” under the Probate Code.  The intestate laws determine who will inherit your property based on surviving heirs and family members.

Most people do not want the laws of the State to determine who should inherit their assets.  If you die without a will, and your only remaining heir is a brother you never liked, then that person will inherit everything you have left behind!  If you want to select who will own your assets once you die, then you should get a will in place immediately.

Unexpected situations can arise at any time. Therefore, it’s important for all adults to have protections in place, not just the elderly.

An Advance Medical Directive, also known as a living will, allows you to give instructions for your doctor or caregiver if you fall into a coma or become terminally ill, seriously injured, or mentally incapacitated. It also gives you the option to appoint someone else to make decisions on your behalf if you become incapacitated. The directive can help to avoid unnecessary suffering, relieve your caregivers of heavy decision-making burdens, and prevent any disagreement about your wishes during a time of potential crisis or grief.

A Power of Attorney is a legal document where you (the “principle”), give another person (the “agent” or “attorney-in-fact”) the legal authority to act on your behalf in regards to financial matters.

Depending on your wishes, the agent’s power may be broad or limited to specific actions under certain conditions. You can grant your agent control over all financial decisions and matters, or the power can be limited to a single transaction or circumstance. Since the POA only affects your rights, you are in sole control of how much power is transferred.

This document can help your loved ones manage your property and assets in an event where you are incapacitated and unable to care for yourself.