California residents who have a high net worth seriously need to consider undergoing the process of estate planning. This can help to ensure that future generations can enjoy the wealth that you’ve obtained over your lifetime. While estate planning can be overwhelming at first, it can become much simpler when you have a plan of attack.
Start by consulting an attorney
Estate planning should start with a call to an attorney. When you’re dealing with a high net worth, you don’t have any margin for error. You need to consult an attorney who can successfully walk you through the entire estate planning process and answer all of your questions with ease. A good attorney will be able to explain the types of documents you’ll need to complete and how to avoid unnecessary taxes when passing on your wealth to others.
Plan for your incapacitation
While it may not be a pleasant thought, it’s vital that you plan for the event that you become incapacitated. This means that you can’t make rational decisions regarding your wealth or medical treatment. A durable power of attorney will help to signify which person will act as your agent regarding various matters. These can be specified as a power of attorney for your financial matters and a healthcare power of attorney for your medical treatment decisions.
Strategize to avoid probate
The probate process of verifying your will can take a good bit of time and money. You can help your heirs from having to deal with this process by simply strategizing your estate plans to do so. Any knowledgeable estate planning attorney should be able to assist you in setting up various financial strategies like a revocable living trust that can help your heirs to avoid the entire probate process.
When you have a high net worth, you owe it to future generations in your family to undergo estate planning. This process will help to protect your wealth for future generations and ensure that your end-of-life medical wishes are clearly outlined.