Estate planning for residents of Tracy and Livermore should involve periodic updates when life circumstances change. The birth of a child, the death of a family member, and the decision to divorce are all circumstances that warrant changing one’s estate plan. Because estate planning is an intricate area of the law, it’s strongly recommended that individuals who are divorcing consult lawyers who handle estate planning matters.

Create a New Will

Now that your marriage has ended, it’s doubtful that you would want to leave your assets to your ex-spouse. You’ll also likely want to change your executor, if you previously designated your ex-spouse as your executor. Visit a lawyer to draw up a new last will and testament. Be sure to revoke your old will, either by literally tearing it up or by including a statement in the new will that revokes all previous wills.

Designate Legal Guardians

If you have minor children, you will need to designate a legal guardian for them in the event that you die before they turn 18 years of age. Be aware that unless the other parent has also passed on, the court is likely to award full custody to him or her. However, it’s still advisable to name a legal guardian for your children just in case you and your ex-spouse die or your ex-spouse may be considered an unfit parent.

Create a Trust

Talk to your estate planning attorney about establishing a trust for your minor children. By setting up a trust, you can designate a trustee other than your ex-spouse to manage the funds until your children come of age. You can even set conditions on the distribution of money from the trust. For example, you may want your children to have access to money for college, but would prefer that they not have access to their full inheritance until they’re more mature. You can set up trust in accordance with these wishes.

Check Your Life Insurance Policy

If you previously named your ex-spouse as your beneficiary of your life insurance policy, you will need to change this information through the insurance company, not through your will. Call the life insurance carrier or visit its website for change of beneficiary forms.

Estate planning allows you to make decisions in advance regarding the distribution or handling of your estate in the event of your death. Because estate administration can be complex and your property or financial assets may be subject to an estate tax that affects your beneficiaries, it is beneficial to work with an attorney in Livermore during the estate planning process. Your lawyer’s knowledge of inheritance laws and taxes will ensure that the greatest possible percentage of your assets is passed on to your chosen recipients.

Understanding the Applicable Taxes

Certain taxes may apply to your estate when it is transferred. The estate tax is a federal tax imposed on your ability to transfer wealth to your chosen recipients. This tax applies to all your belongings and assets at the time of your death and is paid from your estate before the remainder is distributed per your estate planning documentation. Alternatively, the inheritance tax affects a beneficiary’s right to receive wealth. Inheritance tax is only imposed by certain states, and several exemptions are possible to minimize or eliminate the need to pay this tax.

How Estate Tax Works

The estate tax is calculated based on the number of assets you own that is greater than a maximum exemption amount, which is set by Congress and may be subject to change. The net value of your estate is calculated by summing your assets, including your home, your bank accounts, your personal property, and your investments, then subtracting any debts. If the value of your estate is greater than the exemption amount, the remainder will be subject to estate tax.

Reducing Estate Tax

Your attorney can help you with estate administration to minimize or even eliminate the amount of estate tax owed at the time of your death. There are several ways to reduce estate taxes, including filing for spousal estate tax exemption, removing assets from your estate via spending, donation, or property transfer before your death, and setting up a life insurance trust. Your lawyer will assess your estate and your desires to help you determine the best way to avoid estate taxation.

There are many aspects to estate planning near Tracy and Livermore. A lawyer can help you by preparing your last will and testament, drafting your advance healthcare directive, and finalizing other important documents. However, it’s important not to overlook another key aspect of estate planning : Discussing your decisions with your adult children. Some parents prefer to discuss estate planning with each adult child separately, while others prefer to disclose this information during a family meeting.

Decide Which Information to Share

Meet with your lawyers to finalize the details before broaching this topic with your children. Decide ahead of time whether you will share specific information, such as the amount your children might expect to inherit. If so, it’s typically best to underestimate this amount, just in case your living expenses are greater than you plan for. Or, you might only wish to tell your adult children that they will have an inheritance without specifying a dollar amount. This is a decision left to your discretion; however, keep in mind that if you have established trusts for your children, it may be wise to explain the basic structure of the trust.

Discuss Family Heirlooms

If you have jewelry or other family heirlooms to pass down, you have the right to decide who will receive which item. However, you may wish to bring up this issue with your adult children to prevent any future disagreements. You can always have your estate planning attorney amend your will to reflect your children’s preferences. For example, one child might prefer to receive antique furniture, while the other may be more interested in family historical records.

Explain Practical Considerations

Even if you prefer not to tell your adult children exactly what they can expect to inherit, it is a good idea to let them know that you have made a will. Let them know where they can find your important documents in the event of your death, who will administer your estate, and what steps they must take in the aftermath of your passing. Consider writing a list of people they can contact, such as your estate planning lawyer and financial advisor.

When you begin early estate planning near Tracy or Livermore , you have the opportunity to thoroughly protect your assets and ensure your dependents’ financial security. Visiting an estate planning attorney to draft a last will and testament, health care directive, trust, or powers of attorney is a very prudent financial decision, and something that can be done at any age. Here is a look at some valuable estate planning tips for people in their 40s or younger.

Start as Early as Possible

Many young people believe they don’t need to worry about estate planning because they don’t have a high net worth, or have few assets. In truth, it’s almost never too soon to start thinking about basic estate planning. Even if you only have debts and no assets, estate-planning documents will help your loved ones handle your finances after you’re gone. Additionally, you never know when you might become seriously injured or ill. A living will and power of attorney allow you to designate someone you trust to make important medical decisions for you if you’re unable to make them yourself.

Focus on the Basics

When you’re under the age of 40, you only need to focus on the basics of estate planning. Your estate planning attorney should advise you that you can most likely do without certain more complicated estate planning documents, like trusts and probate documents. The most important components of your estate planning when under 40 are a health care directive, life insurance, a last will and testament, and a durable power of attorney. These documents will ensure that both you and your family are protected should something happen.

Use Experienced Estate Planning Attorneys

While many companies sell estate planning kits online or in bookstores, you shouldn’t try to complete such complicated documents on your own. Your family might find out at the worst possible time that they don’t hold up in court, or that information is missing or unclear. You should instead visit an experienced estate-planning attorney who is familiar with estate planning for those under 40.

Even if you have already established a will , you may need to make some changes to it from time to time. As this video explains, it’s a smart idea to review your will every few years to make sure that everything is up to date and to make any desired alterations. You may also need to update your will after major changes in your life, such as remarriage, the birth of a child, or the death of a beneficiary. However, altering a will needs to be done in a legal way in order to be considered valid. To ensure that you are carrying out your will updates correctly, contact a will attorney serving Tracy.

Did you know that over half of Americans with children do not leave wills? Estate planning near Tracy is essential if you want to ensure that your assets are handled well and that your family does not engage in unnecessary disputes. To obtain legal advice about your specific situation, always consult with a lawyer who handles estate planning. Keep reading to find out how to start a productive conversation with your loved ones about your estate’s administration.

Select Family Roles

When it comes to planning your last will and testament, estate attorneys regularly advise their clients to select the family members who are best fit for different roles before holding a family meeting. When people ask for family input, feelings can get hurt and emotions can run high. By picking the right candidate for your health care proxy, financial power of attorney, or guardian for your children on your own, you can then use your family meeting to simply explain each person’s role—without asking for feedback.

Set a Good Tone

Of course, your conversation about estate administration should be as pleasant as possible. Try to strike a gentle tone, but remember to stand firm in your convictions. You may want to consider asking your will lawyer to join the conversation, as well. Your attorney can provide an expert’s analysis of estate law while serving as a neutral facilitator.

Prepare Necessary Paperwork

Once you’ve decided whom you want to handle the key roles related to your estate, it is time to contact an estate planning attorney. A will lawyer will help you secure the documents you need to cement your wishes and ensure that they are carried out according to your exact wishes. Your attorney can also verify that you have forms you may not have considered, like an Advance Healthcare Directive. This document states your preferences for medical treatment and is essential to have as part of your living will.

The passing of a family member is a difficult event to cope with, but it can be even more challenging when the surviving family members begin to disagree about the decedent’s assets. If you’ve met with an estate planning attorney near Tracy or Manteca, you’ve already taken an important step toward providing for your loved ones and preserving familial harmony. To ensure that all family members clearly understand what your wishes are, you may decide to call a family meeting to discuss your estate planning decisions.

Get Your Paperwork Notarized Beforehand
Your preferences regarding the distribution of your assets or the succession of your family business are your decisions alone. While you may decide to consider other family members’ feedback, you should make it clear that you have the final say. This may prevent some arguments among family members. To send a clear message that you’ve already made your decision, have your estate planning attorney finish drawing up the documents and get them notarized before you sit down with your family.

Consider Using a Neutral Facilitator
If you feel that your estate planning decisions may create some discord or confusion, it may be a good idea to ask your lawyer to serve as a

Avoid Making Emotional Decisions
Designating an executor, trustee, guardian, healthcare proxy, and financial power of attorney may involve making difficult decisions. It’s advisable to try to leave emotions and family attachments out of these decisions. Instead, carefully consider which person would be best able to handle these important roles. Remember that you can designate a non-family member. By avoiding making emotional decisions, you can explain your reasoning to your family members without upsetting anyone. For example, you might designate one of your daughters as a healthcare proxy because she is a registered nurse, instead of assigning that role to your sibling.

Far too many people die intestate, which means they pass on without a will. When this happens, their assets are dealt with in accordance with state intestate succession laws. In some cases, when an heir cannot be identified, it is possible for the state to claim these assets. You can easily avoid these problems by consulting an estate planning lawyer in Tracy or Livermore. Your estate planning attorney will carefully review your finances, offer sound recommendations, and provide you with all the information you need to make wise decisions for your heirs.

Will
A last will and testament is a crucial document to have, regardless of your health or age. As your circumstances change, you may wish to visit your lawyer to have your will revised. For example, if you have more children or if grandchildren are born, you may wish to adjust your will to reflect your new inheritance preferences. Your lawyer will draft your will for you to ensure that your assets are distributed in accordance with your wishes after you pass on. Your will can be as detailed as you like. For example, some people simply prefer to leave all their assets to their spouse, while others prefer to designate heirs for specific items. You might leave a valuable jewelry collection to a granddaughter, for example, and leave a vehicle to a sibling. You can also

Trust
Another basic component of estate planning is creating trusts. A living trust goes into effect during your lifetime, while a testamentary trust goes into effect after your death. You can transfer certain assets to a trust to protect them and reduce the tax burden. Trusts allow for the speedy distribution of assets to beneficiaries after a death. They may also place limitations on inheritances.

For affluent Americans, the federal estate tax has long been a matter of significant concern. Just a decade ago, estates valued at $1.5 million or higher could be subjected to a federal estate tax of nearly 50 percent. The same applied to gift taxes made while the individual was alive. When they handled estate planning matters, couples often had to establish trusts to take advantage of the estate tax exemption. To make estate planning near Tracy and Manteca even more challenging, the federal estate tax fluctuated from year to year in a highly unpredictable manner.

Recently, however, Congress made a few changes that may make estate planning a little easier for many. The highest federal estate tax rate is now firmly set at 40 percent. Additionally, the estate tax exemption was raised to five million dollars per person, which is adjusted for inflation yearly. Rules regarding trusts have also been relaxed. To take full advantage of these changes, individuals can turn to an estate planning lawyer for guidance.