Creating a basic California estate plan helps ensure beneficiaries inhering assets do so with relative ease, and there are many other benefits that come with creating such a plan. Many people neglect to make estate plans because they feel as if they do not have enough assets to warrant one or because they fear it takes a lot of time and money. Yet, everyone benefits from having a basic estate plan in place, regardless of how much they have in assets.
Per Bankrate, many different estate planning tools and techniques exist, and they help individuals accomplish a wide range of unique estate planning goals. Yet, an estate plan does not have to be complex and lengthy to prove effective. Many people reap the benefits of having one with just the following three components.
A will is the most basic element of an estate plan, and it gives individuals a chance to say who they want to take ownership of specific assets once they die. Many people also use wills to name guardians over their minor children.
An advance medical directive
Many people include advance directives in their estate plans to spell out their wishes with regard to their personal medical care. Advance directives might dictate anything from organ donation desires to information about whether someone wants resuscitation.
A power of attorney
A power of attorney gives someone else the ability to make financial and similar decisions on an incapacitated party’s behalf.
Having an estate plan that includes a will, an advance directive and a power of attorney may help beneficiaries get their hands on distributions faster. It also helps ensure that an individual’s wishes come to fruition even if he or she is unable to vocalize them.