California and other states are seeing a reversal to some extent of the longtime trend of family members establishing independent and separate households. The Pew Research Center estimates that 20 percent of the population lived in multigenerational homes in 2016, which is the equivalent of 64 million people. Some of this trend includes working adult children who are making changes in their living space to accommodate their aging parents. Where applicable, the trend is a factor to be considered in estate planning.
There is enough estate-related scamming going on in the country, including in California, to make one lose faith in the human race. However, if one exercises due caution against these plots and keeps steady control of one's affairs, tragic outcomes can be entirely avoided. One key thing to remember is that the relationship between a qualified and experienced estate attorney and the client is built on a long tradition of trust and reliability. Promotions that go beyond that simple estate planning formula are often a signal of fraudulent companies trying to make a quick, illegal buck.
Estate planning in California is a complicated process of arranging all of one's assets in a manner that will protect them from depletion and at the same time set up a plan of distribution of those assets for one's heirs after death. The benefit of providing for one's care and financial functioning during a period of incapacity is also a major benefit of the estate planning process. There are some general misconceptions that people tend to make about estate planning, which it is helpful to avoid.
Estate planning attorneys in California are accustomed to working with a client's financial advisor to obtain information helpful to designing the estate plan with the client. For persons who are contemplating associating with a financial advisor for mapping out a future financial plan, there are various subjects to inquire about before making a commitment. Estate planning attorneys may at times be able to assist the client in determining how to find a qualified financial advisor.
Estate planning in California and elsewhere always involves making choices that invite human drama and emotions. For example, an older couple with three children must decide how to divide and distribute their assets among the three. They may make an estate plan in their middle years, but the terms may seem a bit out-of-place several decades later when the couple takes a look at their estate planning documents.
Business owners in California will benefit greatly by engaging in estate planning and developing various beneficial features and protections. The legal instruments that are created can ease the stress and potential complications that family members may encounter upon the owner's death. In addition, a buy-sell agreement can be formulated during the estate planning process.
There will always be a small percentage of married couples in California who separate but never get around to a formal divorce. What are the estate planning consequences when a person dies while separated? That was the case for both designer Kate Spade and expert chef/traveler Anthony Bourdain, who both died recently. Dying while separated and not legally divorced can raise several thorny issues.
The subject matter of estates and trusts in California is complicated. The individual or married couple must keep vigilant over their affairs to assure that no costly and troublesome mishaps occur. Even though estate planning may have been undertaken, a cavalier attitude in the years thereafter can lead to various disasters.
In California, a majority of people do not even have a will, which is a basic estate planning tool at the heart of many estate plans. This applies to people with a large amount of assets and those with a modest financial picture. Persons in both financial categories need to have basic estate planning to maximize their asset holdings during life and to provide for a smooth distribution of assets to the heirs that the person wants to receive the assets.
The populous baby boomer generation is in the process of transferring its wealth to the younger generations in California and throughout the nation. This $30 trillion transfer along with continuing increases in the federal lifetime federal estate and gift tax exemption makes this a good time for boomers and others to do some fruitful estate planning. Despite the favorable circumstances, experts report that some people will continue to make certain repetitive and predictable mistakes.