Estate planning is one of those topics that people tend to avoid. They do not like thinking about their ultimate demise. However, it is also a topic that requires some thought and consideration now before it is too late. Having that initiative to start your California estate plan is the first step in the process, so now that you are thinking about it, do not lose the momentum.
Everyone who owns assets can benefit from creating an estate plan, according to CNBC. You have many legal options when it comes to how you will leave your assets to your heirs. Many people start with a will. This allows you to layout your general wishes. When it comes to allocating your assets, though, a will may not handle your needs completely.
You may want to consider trusts. A trust gives you control over your assets and allows you to manage them now and after your death. You can use a trust to put limitations or set stipulations for an asset or an heir. For example, if you have a small child, you could set up a trust to hold money for that child until he or she turns a certain age. Because you can modify a trust, as your child ages, you can add money or change the stipulations.
Trusts also protect your estate from creditors. If you leave assets in a trust, the creditor cannot access the to try to collect on any debts you own when you die. Furthermore, you can use this type of account for almost any asset, which makes it very versatile. This information is for education and is not legal advice.