Estate planning is the process of organizing and setting your affairs in order in the case of death, incapacity or disability.
What makes up someone’s estate is everything they own and everything that they want to accomplish in planning for their ultimate demise, disability or incapacity.
Everybody has their own estate: some are large, some are small, some are specific, and some are general.
For most people, their estate comprises their personal property, their cash, their investments, their real estate and their personal property.
Who Needs Estate Planning and Who Does It Benefit the Most?
Since everybody has an estate, everybody should plan one.
In terms of who does it benefit the most, the general idea is everybody thinks that the rich people really benefit the most but the reality is that anybody who has a home, anybody who has some financial assets like bank accounts or investments, anybody that has a family with children, they all really benefit from estate planning because you want to protect yourself, you want to protect your assets and you want to protect your family.
That is really why people do estate planning; to protect themselves, their family and their assets.
What are the Common Misconceptions That People Have About Estate Planning?
The biggest one is that estate planning is just for rich people because people think that they are the only ones that really benefit from it.
The reality is everybody benefits from estate planning because if you donot properly plan your estate, then the state in which you reside is going to get involved in the management of your affairs.
Most people don’t realize that in California, if you own a home, then you’re going to need to do your estate planning.