Estate planning is not just about making a will in the event of your premature death. You are preparing for any situation where you are incapacitated and making sure your affairs are in order in the event of death.
What is included in an estate plan?
1. Will
2. Living trust
3. Advanced health directives
For. Lasting Power of Attorney
B. Living will
vs. Do Not Resuscitate Order (DNR)
D. Physician’s Order for Life Support Treatment (POLST)
me. Organ and tissue donation
Wills (Prob. §§6100, et seq.)
When people think of estate planning, they generally think of the will. A will is a document in which you can make your final wishes known. This document will inform the courts, family and friends who wants to care for your children and how, asset allocation, pet care and more. Without a will, it will be up to the probate court to determine where and with whom your children will live, as well as the distribution of assets.
Living Trust (Prob. § 15400)
A living trust is a trust that allows you to transfer your assets or property to a person of your choice (trustee) while you are still alive. There are basically two main types of living trusts: revocable and irrevocable. A revocable living trust allows you to place the items in a trust while you are still living and the benefactor would receive them after your death, after taxes. It allows the flexibility to modify the trust, remove or add beneficiaries, establish or change the terms of the trust, and determine how assets are managed.
An irrevocable trust does not offer the same flexibility as a revocable trust, but it has its own benefits. Once an irrevocable trust is established, you cannot modify any aspect of the trust (there are certain exceptions, but those exceptions will come with great difficulty). It offers a benefit to the benefactor in the sense that you will not have to pay taxes on the assets upon death, nor will you be liable for any taxes on the income earned from those assets.
While a revocable trust is easier to establish, an irrevocable trust can be more difficult, and you may want to hire an experienced Los Angeles estate planning attorney to help you.
Advanced Health Directives
Advanced Health Care Directives are another important one that you can’t do without. Advanced Health Care Directives are made up of several documents that will act as your voice should you have a medical or mental disability. The set of documents may include:
Durable Power of Attorney (Prob. §4650, §4700 et seq.)
A durable power of attorney is a document in which you name a person (an agent) to act on your behalf (the principal). This would allow the agent to pay your bills, talk to creditors, and much more while you are incapacitated. It is important to choose someone who has your best interests in mind. A durable power of attorney as opposed to a general power of attorney only goes into effect once the person is incapacitated (if it was created specifically for incapacitation).
Living Will (Will §4600 et seq.)
A living will indicates how your children and assets will be handled in the event of disability. It is this document in which you can make your last wishes known. Life will only be effective if you, the director, are in a persistent vegetative state or in an irreversible coma.
Do Not Resuscitate Order (DNR)
The DNR order is part of the living will. It is a document in which you make your wishes known if you wish to be resurrected should the need arise.
Physician Order for Life Support Treatment (POLST)
This document allows you to choose a primary and secondary physician to carry out your end-of-life treatment. High school goes into effect if your first-choice physician is unwilling or unable to carry out your wishes.
Organ and tissue donation
Also, as part of your living will, you can make your wishes known if you want to donate organs or tissues in the event of death.
That can be a lot to take in and you may be wondering where to start. The best and safest way to structure your estate planning and all that goes with it is to consult and work with an experienced Los Angeles estate planning attorney to get the best result.
