This is what people are thinking of when they talk about Trusts and Wills. Estate planning refers to the planning process as a whole, which typically includes documents like a revocable trust, a will, a power of attorney for financial decisions and an advance health care directive.
Minimally, a basic estate plan provides the following benefits:
- Clarity about who gets what, to avoid family arguments
- A power of attorney will allow someone to help you, if you are ill
- Save your family the cost and burden of probate (court + attorney fees)
- Reduce or avoid taxes
- A health care directive will allow someone to help with medical issues if you are ill
An estate plan can also be drafted now to allow Medi-Cal planning down the road if it’s ever needed.
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