After fans in California mourn the deaths of their favorite or most idolized celebrities, they often begin discussing the fate of those celebrities' estates. Unfortunately, most discussions concerning celebrity estate plans circle around the estates' deficiencies and, in some cases, squabbling families left in the throngs of probate. At first glance, it does not appear that David Bowie's recent death will incite any such distress among surviving family members. Most people believe that the singer and actor utilized at least one trust -- although likely more -- to ensure the smooth transition of his estate after his death.
There are many things to think about when designing an estate plan. Much of the focus in estate planning will be on making sure intended beneficiaries are taken care of in California. This may involve creating a trust for one's heirs. However, many times people will forget about their pets and do not realize that pet owners can create a trust for their pets that they may unexpectedly leave behind.
When couples marry, they are usually not concerned with financial matters at first. On the other hand, with their change from single to married status comes some potential tax advantages in California. However, tax advantages do not only apply while the married couple is alive, it also helps as far as administering an estate to beneficiaries in the future. Couples can do this through a smart trust administration strategy.
There is various tax saving strategies that can be put into that will prevent finances in an estate from being depleted. Unfortunately, many people do not understand just how much taxes can affect one's finances in the long-term.
The reason most Los Angeles residents have an individual retirement account is to help supplement income in later life or, following an account owner's death, to add to the financial support of a surviving spouse. However, some California residents see IRAs as assets meant to be passed through an estate to heirs.
Legal documents used in estate planning have unique purposes. California advisers usually recommend that everyone creates a will. The same advice may not apply to revocable trusts, depending on individual estate plan desires.
California estate plans often include trusts that have dual roles. Assets in revocable living trusts benefit individuals during their lifetimes and reward beneficiaries when the trust creator, also known as a settlor, is no longer alive.
Not every person requires a trust to complete an estate plan. Sometimes a will and powers of attorney cover everything necessary for an estate. In other circumstances, trust instruments are needed to ensure assets and heirs are protected from probate and, sometimes, even from an inability to manage inheritances.
Events like Hurricane Sandy make pet owners think about what would happen to a loved animal when owners were unable to care for them. Natural disasters and an owner's incapacity or death can separate a pet from a human friend.
Many people believe that having a will is all that is needed for a proper estate plan. The reason for that belief may be a lack of knowledge about other estate planning tools like the revocable living trust.