Many people in their 30s, 40s, and even 50s view estate planning as something for elderly people to do. “There’s plenty of time,” they reason. They equate estate planning with dying — which they’re not likely to do for many years to come. Statistically, they may be right. But what about Michael Jackson, who died at 50? What about Billy Mays, who died at 50? Farrah Fawcett, who died at 62? “They’re different,” people rationalize. “I don’t use drugs, I don’t have a history of cardiac issues, and if I had cancer, I’d know to get my affairs in order,” they say. But what about my neighbor, age 42, who was standing in his kitchen with his wife, suddenly clutched his chest and died of a heart attack before he hit the floor? What about that family of four who were on an airplane that crashed, killing hundreds aboard? What about Nick Adenhart, the major league pitcher, who died in a car collision? Let’s face it: we fly on planes, drive cars and live in a town that’s already had a significant earthquake. Who among us is going to die first: Will I, or your grandpa, your nephew, or you? We just don’t know. Estate planning is not only for the elderly. It’s for any of us who has significant assets and cares who gets them when we’re gone.
If you die leaving assets in California in your name alone, and those assets have an aggregate gross value of over $100,000, there will be a probate. Probate is a legal procedure that takes eight months to a year, or longer, costs thousands of dollars, primarily in legal fees, and is a matter of public record. Probate can be avoided by proper estate planning, including a review of your assets, calculation of tax ramifications, consideration of your after-death wishes regarding the disposition of such assets, selection of personal representatives and of guardians for any minor children. Estate planning also involves the preparation of a living trust agreement, pour over wills, powers of attorney, healthcare directives, deeds, letters of instruction and the funding of the trust.
Jerry Kessler practices law in Santa Clarita. For more information, call 661-255-1001.