Estate planning provides many unique opportunities to establish goals and intentions for the future of your assets. By taking no steps at all, the state of California will still appoint someone to handle your estate administration and will use their specific rules for determining who receives your property. It is unlikely that your wishes align directly with the natural interstate succession laws that name which family members are eligible to receive your assets.
Discussing your options with a Pasadena estate planning lawyer can help you review the four primary ways your estate can pass, which is by will, by trust, by beneficiary designation, or by joint survivorship. Assets that are not covered by other means will typically pass through your will, which is submitted to probate after you pass away. A trust, however, gives you more control and flexibility. There are numerous different types of trusts available, and you can add many types of assets into a trust, meaning they will not be subject to probate.
Certain assets also pass via beneficiary designation. This can include life insurance or retirement accounts where you have named a beneficiary. It is extremely important to keep your beneficiary designation documents up to date given the importance of these stipulations. Companies will distribute to the beneficiary they have on file, even if it is someone that you would not have liked to receive these assets. One common example of challenges that arise with this include failing to update beneficiary designations after a divorce or after one of your beneficiaries has passed away.
The fourth way your estate may pass is through joint survivorship, which applies to assets you own jointly, such as a home where you and your spouse are both on the title. These assets typically pass automatically to the surviving owner. Make sure that you talk through your legal options with our Pasadena attorney to discuss your next best steps.
