DO YOU NEED A WILL?
A Will is a legal document which tells the world who is to inherit your property when you die. It also tells the world who you want to be in charge of your estate when you die. The Will can also name a guardian for your minor children. The Will can also set up a testamentary trust.
In California, if you die without a Will, the State determines who will inherit your property. If you are married and have community property, your spouse will inherit the community property. If you are married and have separate property, your spouse inherits either one-half or 100% depending on whether or not you have other close relatives. If you are not married, then your closest relatives (sometimes called next of kin) inherit your property. The person in charge of your estate (personal representative) would also be your next of kin.
There are three different types of Wills. There is a Formal Will. This is a Will that an Attorney prepares for you. Our office can explain the many different ways to leave your estate to your beneficiaries. Our office can also go through different estate planning ideas and different ways to save your heirs money and taxes. There is a holographic Will. This is a Will entirely in a person's own handwriting and signed by the person. If a holographic Will is not prepared properly, it can cause your heirs many problems after you die. There is a California statutory Will. This Will is designed for single, married or widowed California residents. The Will has blanks to fill in to leave your estate to your spouse, your children or other beneficiaries. It also has blanks to fill in to select an executor or guardian. If the form does not fit your situation, you cannot change the form.
A Will may not cover everything that you own. A Will does not cover joint tenancy assets. A Will does not cover assets for which a beneficiary has been designated, such as life insurance and retirement plans. A Will does not cover assets held in a trust.
A Will does not keep your estate out of court. If you have more than $100,000 in your name alone at the time of your death, then your estate must go through Probate. Probate is a process where your estate goes through court proceedings. In an uncomplicated estate, this process can take between six months and one year. The costs can be anywhere from two percent to ten percent of the estate. There are various ways to avoid Probate. Our office can advise you on ways to avoid Probate.
As long as you remain competent, you can change your Will at any time.
You should keep your original Will in a safe place, such as a safe deposit box, your lawyer's office, or a fireproof box at home. It is a good idea to let your executor know about your Will. It is also advisable to let your executor know where the original of your Will is located.
If your estate is over a certain limit, your heirs will have to pay estate taxes. There are various ways to reduce estate taxes. One way would be to establish a Living Trust. Our office can assist you in the preparation of your simple Will or help you determine if you require a more detailed estate plan.
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