If you're going to go to an online website or software program for estate planning, it doesn't provide you any meaningful guidance. If you know what all the options mean and what the ramifications of making those choices are going to be, then that is great. The vast majority of people, even attorneys who aren't estate planners, don't realize what all of those ramifications are. There are too many things that they don't think about, like…
Common Misunderstandings about Estate Planning
The most common misunderstanding about estate planning is that people think they're too young to create an estate plan. They think this is something that only old people need to do, or that they don't have enough assets to even bother going through the process. Secondly, people put together a will through online websites or a relative who is a lawyer and think that is sufficient for their family to be taken care of. Many people also believe that a trust they created decades ago is still all they need. That is far from the truth. As time goes on, the laws change, the people in your lives change, and what you own changes. It is not a one-and-done event. It is something that should be reviewed periodically to make sure that it still makes sense for you and your family.
People think estate planning is either for wealthy people or it is an estate sale, selling off the property after someone dies. It is really difficult to impress upon people that it is for everyone and that everyone needs to do some planning for their family's future…
Probate and Common Misconceptions
Probate is basically a lawsuit filed against you for the benefit of your creditors. It is a fully public court proceeding that takes, in California, about 12 to 18 months to get through. There is an open record for everyone to see an accounting of your assets and your debts. Your creditors come in and claim your estate to get paid. Whatever is leftover gets dispersed to your beneficiaries and your heirs.
Is there a better way?
Guardianship and its Meaning
Guardians are people you name to take care of your minor children if you are no longer able to do so. Very few people have picked guardians for their children if something were to happen to them. If you don't choose who your guardians are going to be for your children, someone has to choose for you. A judge is going to make that decision, based on the information they have available. However, they might not know everything. They might not make the same choice you would have.
Is Naming A Guardian Enough?
There are lots of issues when you think about who you're going to name as a guardian…