Centara Connection

What is Estate Planning?

Brittany Oates, Estate Planning Attorney

Estate planning is a process involving your family, friends and, in many cases, charitable organizations. It also involves your assets (your property) and the various forms of ownership and title that those assets may take. Further, it addresses your future needs in case you ever become unable to care for yourself.

Through estate planning, you can determine:

How your assets will be managed for your benefit during your lifetime if you ever become incapacitated.
Under what circumstances it makes sense to distribute your assets during your lifetime.
How and to whom your assets will be distributed after your death.
How and by whom your personal care will be managed and how health care decisions will be made during your lifetime if you become incapacitated.

What is involved in estate planning?
There are many issues to consider in creating an estate plan. First of all, answer the following questions:

What are my assets and what is their approximate net value?
Whom do I want to receive those assets and when?
Who should manage those assets if I cannot?
Who should be responsible for taking care of my minor children if I become unable to myself?
Who should make decisions on my behalf concerning my care and welfare if I become unable to care for myself?
What do I want done with my remains after I die, and do I want to be buried, cremated or otherwise laid to rest?

Once you have some answers to these questions, the attorneys of Centara Legal Group will help you create an estate plan tailored to your needs.

Who needs estate planning?
You do! Whether your estate is large or small, you should designate someone to manage your assets and make health care and financial decisions for you if you ever become unable to do so for yourself.

If your estate is small, you may simply focus on who will receive your assets after your death, and who should handle the distribution of your assets. If your estate is large, the attorneys of Centara Legal Group will also discuss various ways of preserving your assets for your beneficiaries by reducing or eliminating the amount of estate tax which otherwise would be payable upon your death.

If you fail to plan ahead, your estate will have to be probated and a judge will simply appoint someone to handle and distribute your assets according to State law, rather than your wishes.

When does estate planning involve tax planning?
This year, estate taxes are imposed upon estates that have a net value of $2 million or more. That amount will increase to $3.5 million in 2009. In 2010, the estate tax will disappear completely. Then, unless Congress passes an extension, the exemption will revert back to $1 million in 2011. For estates that approach or exceed these amounts, significant estate taxes can be saved by proper estate planning. Keep in mind that tax laws often change. Estate planning for tax purposes must take into account estate, income, capital gains, gift, property and generation-skipping taxes. The experienced attorneys at Centara Legal Group can provide you with guidance and advice about current tax planning strategies throughout the estate planning process.

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