Centara Connection

Back to Basics: Is Your Estate Plan in Order?

Brittany Oates, Estate Planning Attorney

The five basic components of an effective estate plan include: Living Revocable Trust, Pour-Over Wills, Financial Powers of Attorney, Health Care Powers of Attorney and HIPAA Authorization Forms. If your estate is worth more than $100,000 or if you own real property valued at over $20,000, you must have a living trust in place to avoid probate.

Although most are aware of the great expense of probate, few people appreciate the extent to which probate negatively impacts the lives of their loved ones. San Diego is the 6th most populous county in the country, yet has only two probate court judges! With their extreme backlog of cases, probate takes an interminable time to close, currently a minimum of 18 months for even the simplest estate. While probate fees are set by statute, the typical estate ends up paying approximately 7% of the estate’s gross value in fees (not net). It is actually feasible for an estate with highly leveraged property to pay more in probate fees than the estate itself is worth! The sheer cost of probate can destroy all that you have worked so hard to build. Probate can easily be avoided by taking just a few simple steps to set up your estate.

Aside from the disposition of your estate upon your death, have you considered who will take care of you and your finances in the event that you are no longer able to do so? Have you granted those people the power to effectively take over the management of your care and your estate without the necessity of a court order? Are you aware that even your spouse may be limited in what they can do for you without formally naming them as your attorney in fact? Did you know that without a valid HIPAA Authorization Form, no health care provider may give out any information about you without court intervention? Again, if you have a plan in place for long-term disability, catastrophic illness and total incapacity, this can all be easily be avoided.

The experienced professionals at Centara Legal Group are available to help you take control of your future and ensure you peace of mind!

Centara Legal Group, APC
8880 Rio San Diego Drive, Suite 450
San Diego, CA 92108
(619) 400-1900
www.centaralegal.com
info@centaralegal.com