Creating A Will: The Cornerstone Of Your Estate Plan

Overviewing Wills

A will is an essential legal document that outlines your wishes regarding the distribution of your assets and the care of any minor children after your death. For California residents, it’s particularly important, but it’s not always enough to avoid the probate process.

A will primarily serves to designate guardians for your minor children and appoint an executor who will be responsible for settling your estate. The executor plays a crucial role in managing your affairs according to your wishes.

Having a will is a necessary step, but it alone might not prevent your estate from going through probate, which can be a lengthy and expensive process. In California, if your assets exceed $184,500 in value (the current threshold), your estate will likely go through probate if you only have a will. Probate can be time-consuming, stressful, and costly for your loved ones.

To avoid probate and ensure a smoother transition of your assets, we recommend having a trust in place if your assets surpass the $184,500 threshold. A trust can help manage and distribute your assets according to your wishes without the need for probate, offering greater protection and peace of mind for your family.

Assets To Include In A Will

When creating a will, especially in the context of estate planning, it’s important to understand which assets you need to specifically address. The wills we use are often referred to as “pour-over wills.” These wills serve as a safety net, ensuring that any assets not already included in your trust at the time of your death are transferred, or “poured over,” into the trust. This approach provides an additional layer of protection, ensuring that all your assets are eventually managed according to the terms of your trust.

During your lifetime, any trust you have should hold key assets such as:

• Real estate, that is, any property you own, including your home or investment properties.
• Bank accounts, including brokerage accounts.
• Business interests, such as ownership in LLCs, corporations, or other business entities.
• Tangible personal property like clothes, furniture, jewelry, and other valuable personal possessions.

Life insurance and retirement accounts typically do not need to be included in your will or trust. As long as you have designated individual beneficiaries for your life insurance policies and retirement accounts, these assets will steer clear of probate and pass directly to your beneficiaries.

Ranvir Sandhu of Insight Legal in California is a seasoned estate planning and corporate attorney with years of experience helping clients protect their legacies and ensure their wishes are honored. His in-depth knowledge of California’s probate laws and meticulous approach to crafting wills and trusts have guided many families through the complexities of estate planning. Ranvir understands potential pitfalls and works closely with clients to avoid common mistakes, providing peace of mind for their loved ones.

Ready to secure your family's future? Contact Insight Legal today to begin your estate planning journey.

Common Mistakes To Avoid When Drafting A Will

Drafting a will is a critical step in estate planning, and it’s important to avoid common pitfalls that can undermine its effectiveness. I’ve observed people make many mistakes. Watch out for them as you craft your own will.

Using Third-Party Drafting Services

One of the most common mistakes people make is relying on third-party or online drafting services. Tempting as they might be with their convenience and affordability, they often lack any semblance of personalized guidance that would be necessary to address unique circumstances you may find yourself in.

DIY Wills

Another mistake is attempting to draft a will on your own. Estate planning is complex, and without the expertise of a qualified attorney, you may overlook critical details or make errors that could render your will invalid or lead to unintended and unwanted consequences for your beneficiaries.

Not Consulting A Qualified Attorney

Even when using a legal plan service, you will do well to speak directly with an attorney. An experienced attorney can provide valuable advice on things like choosing your fiduciaries and considerations surrounding the citizenship of a potential fiduciary. Having a trustee who is not a permanent resident of the U.S. could bring with it significant legal implications, and an attorney can guide you on how citizenship or residency status might affect the administration of your estate.

Contesting A Will

Wills can be contested in California, as can trusts. However, there are safeguards you can put in place to reduce the likelihood of a successful contest.

One key protection is the inclusion of a “no-contest clause” in your documents. This clause essentially states that if a beneficiary challenges the will and loses, they may be disinherited entirely. For instance, if a beneficiary is entitled to a 50-50 share but demands 70-30, they risk losing their entire inheritance. While this doesn’t guarantee that a will won’t be contested, it can deter frivolous challenges.

You can also include trust protection language in your documents, which helps address any drafting errors or issues that may arise, ensuring that the true intent of the grantor is honored. If you’re disinheriting a family member or anticipate that someone might contest your will, you can add specific language to your trust to clarify your intentions. This might include a customized statement of intent outlining your wishes and the reasons behind them.

Still Have Questions? Ready To Get Started?

For more information on Creating a Will, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (510) 916-2100 today.