In the context of estate planning, an estate refers to everything a person owns, including their financial assets, personal property, and real estate at the time of their death.

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Estate planning is important for many reasons including:

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Avoiding Probate​

Probate is a legal process where the court oversees the administration and distribution of a deceased person’s assets according to state intestacy law.​ In California, probate is expensive and time consuming. Typically, the probate process takes between 1.5 – 2 years and costs an average minimum of $40,000.

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Avoiding Conflict

A well-drafted estate plan is one of the most effective tools for preserving family harmony and avoiding conflict after a person's death.​ An estate plan outlines how assets are to be distributed, which reduces the chances of disputes among heirs/beneficiaries.

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Eliminating or Minimizing Estate Taxes

In California, when someone dies and the value of their estate exceeds the annual exclusion amount, the federal government levies a tax on the transfer of the deceased person’s property. The federal estate tax ranges from approximately 18% to 40%.

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Caring for Your Loved Ones​

Estate planning helps manage complex family dynamics such as blended families, second marriages, special-needs dependents, beneficiaries who suffer from addiction or a gambling problem, estranged children, etc. An estate plan can also include designation of legal guardians for your minor children and care  for your beloved pets.​  Proper planning can also ensure your loved one’s financial well-being including their living expenses, education, and future security in the event of your incapacity or death.

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Planning for Incapacity

An estate plan doesn’t just address what happens after death, it also plans for incapacity, ensuring that your medical and financial affairs are handled according to your wishes if you become unable to manage them yourself. An estate plan can also make sure that your loved ones continue to receive care and support.

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Creating Peace of Mind

Estate planning isn’t about dying - it’s about living with the confidence that your affairs are in order, your loved ones are protected, your values are honored, and your legacy is preserved.