Taking Care of Business

 Estate Planning isn’t a fun topic. No one wants to contemplate his own mortality. Nevertheless, most of us do care about what would happen to our loved ones if we were gone. Most of us have worked hard to acquire assets and build whatever estate we have. Most of us want to make sure that whatever we have saved will some day go to our chosen beneficiaries, without waste or excessive expense for lawyers, accountants, appraisers, courts and taxes.
The estate of any California resident who dies leaving over $150,000.00 of gross aggregate assets will require probate. Probate is a legal procedure that takes at least a year and costs thousands of dollars, mostly in attorneys’ fees and executors’ commissions.
Probate can be avoided. By the creation and use of a living trust, we may be sure that our chosen representatives will carry out our wishes, while avoiding probate and publicity and perhaps saving up to hundreds of thousands of dollars of Federal estate taxes.
The late Col. Tom Parker devoted his time to managing the career of one client, Elvis Presley.  He often wore a jacket emblazoned with the letters TCOB, which meant “Take Care of Business.”
We are each well advised to take care of business in our own financial and family worlds. Start by preparing a balance sheet, listing your assets and liabilities. Don’t minimize or inflate your net worth, but use realistic market values. Next, decide who you would want to inherit these assets or their liquidated values. Consider Plan B: If son Charlie were not alive at your death, should that classic car go to his own son, or to your daughter, Sue? Select a Successor Trustee to manage your assets when you can no longer do so. Then, engage an experienced estate planning attorney to draft the appropriate documents, such as a revocable living trust, a will, a power of attorney, a health care directive and an assignment of assets, taking into account your wishes, the needs of beneficiaries and possible tax avoidance.
With the assistance of knowledgeable professionals, you will not only provide your families with security and relief from hassle and cost, but give yourself the gift of some well-earned peace of mind.
Jerry Kessler practices law in Santa Clarita. You may call him at 661-255-1001 for a confidential consultation.