Estate planning isn’t just about making a will if you die prematurely. It is preparing for any situation where you are unable and ensuring your affairs are in order in the event of death.
What is Included in the Plantation Plan?
1. Will
2. Life Trust
3. Advanced Health Care Instructions
a. Durable Power of Attorney
b. Life Will
c. Do Not Resuscitate (DNR) Order
d. Doctor’s Order for Life Sustaining Care (POLST)
e. Organ and Tissue Donation
Wills (Prob. 6100, etc.)
When people think of estate planning, they generally think of wills. A will is a document where you can make your final wishes known. This document will inform the court, family and friends who you want to care for your children as well as how, asset distribution, pet care, and more. Without a will, it is up to the probate court to determine where and with whom your children will live and the distribution of assets.
Living Confidence (Prob. 15400)
A living trust is a trust that allows you to transfer your assets or property to a person you choose (the 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 these items in a trust while you are still alive and a benefactor will receive them after your death, after taxes. This allows the flexibility to modify the trust, remove or add beneficiaries, set or change the terms of the trust and determine how assets are managed.
An irrevocable trust doesn’t offer the same flexibility as a revocable trust, but it does have its own benefits. Once an irrevocable trust is established, you cannot change any aspect of the trust (there are certain exceptions, but those exceptions will come with great difficulty). It does offer benefits to benefactors as they will not have to pay taxes on assets after death, nor will they be liable for taxes on the income earned on those assets.
While a revocable trust is easier to build, an irrevocable trust can be more difficult, and it would be best for you to hire an experienced estate planning attorney in Los Angeles to help you.
Advanced Health Care Instructions
The Advanced Health Care Guide is a great one that you can’t afford to go without. The Advanced Health Care Instructions consist of several documents that will act as your voice in the event of a medical or mental disability. Document sets can include:
Durable Power of Attorney (Prob. 4650, 4700 et seq.)
A Durable Power of Attorney is a document in which you will name a person (agent) to act on your behalf (principal). This will allow the agent to pay your bills, talk to creditors and more when you can’t afford it. It’s important to choose someone who has your best interests at heart. A durable power of attorney as opposed to a general power of attorney only becomes effective after the individual becomes incapacitated (if specially made for disability).
The Will of Life (Judgment 4600 et seq.)
A living will directs how your children and assets will be handled in the event of disability. This is a document where you can make your final wishes known. Life will only be effective if you, the principal, are in a persistent vegetative state or an irreversible coma.
Do Not Resuscitate (DNR) Order
The Do Not Resuscitate order is part of a living will. This is a document where you make your wish known whether you wish to be revived if needed.
Doctor’s Order for Life Sustaining Care (POLST)
This document allows you to choose a primary and secondary doctor to carry out your end-of-life care. Secondary takes effect if your first choice doctor is unwilling or unable to carry out your wishes.
Organ and Tissue Donation
In addition, as part of your living will, you can express your wish if you wish to donate any organs or tissues in the event of your death.
That’s probably a lot to take in and you might be wondering where to start. The best and safest way to structure your real estate plan and all that comes with it is to consult and work with an experienced real estate planning attorney in Los Angeles for the best results.