Proper estate planning is one of the most valuable things that a family can do

An estate plan is one of the easiest things in the world to delay. It is natural to avoid thinking about incapacity or death, and there are lots of other purchases that seem more immediate. This type of thinking is a trap because proper estate planning is one of the most valuable things that a family can do.

Estate planning is a process. It involves people - your family, other individuals and, in many cases, charitable organizations of your choice. It also involves evaluating your assets and all the various forms of ownership and title that those assets may take.

As you plan your estate, you will consider:

• How your assets will be managed for your benefit if you are unable to do so
• When certain assets will be transferred to others, either during your lifetime, at your death, or sometime after your death
• To whom those assets will pass

If one does no planning, California law provides for the court appointment of persons to take responsibility for your personal care and assets at the time of your incapacity through conservatorship. California Probate Law also provides for the distribution of assets to your heirs at death pursuant to a set of rules to be followed if you die without a will or trust; this is known as "intestate succession.". However, California&8217;s rules may not provide for the people and charities you would want to inherit from you; therefore, a will or trust is the preferable approach.

Having a will still requires a person's estate to go through a very archaic process, called "probate." This is the court administered process of dividing up one's assets in an "orderly" fashion. The only problem is this "orderly" process costs your estate time, money, and makes your estate a public record.

Probate is costly.  Your estate can lose tens of thousands of dollars to probate fees and costs. California residents with under $100,000 in gross assets can avoid probate; as can people who hold their assets in certain title arrangements. Please note that the fees are based on gross assets; owning a home in the Bay Area means that you do have gross assets exceeding this limit. In general the time delay, the cost, and the public nature of the probate process make the antiquated procedure difficult and in fact painful in many situations; it is something to avoid if possible.

The most advantageous title arrangement that allows a person to avoid probate is called the "living trust." The living trust, or revocable trust, is a device which holds all of your assets during life, allows you full control over your assets, , and can efficiently distribute your assets after your death, thereby avoiding probate costs and delays.

A living trust is actually a pretty straightforward device. It is simply a separate entity which holds your assets. You retain complete control over your assets while you are alive and mentally competent. Upon your incapacity or death another person (called the "trustee") steps into your shoes and manages your assets for you. This trustee can be a relative, a friend, a professional fiduciary, or a bank. Avoiding the probate process is  valuable, as your trustee can distribute your assets in an expedient manner to your heirs.

Choosing between a will and a trust or other alternate forms of ownership requires an evaluation of your estate and a professional legal analysis. Most importantly, do not procrastinate and place your loved ones at risk of avoidable legal entanglements and costs.