Why is estate planning so important?
The State of California has a plan for your estate whether you like it or not. That plan will be administered through a court oversight process called probate. If you have more than $150,000 in total assets, your estate may be subject to probate.
Why is it so important to avoid probate?
It’s expensive! Probate can cost between 3% and 8% of the gross value of your estate. For example, the attorney’s fees alone for a $750,000 estate are $18,000. Moreover, the personal representative who petitions the court for probate is also entitled to the same fees! The process is also time-consuming. The average probate takes more than a year to complete. Probate could severely slow down the process of transferring assets to your heirs.
How would things be different if I had my own estate plan?
The cost is significantly less. A plan for a married couple is typically around $2,500. You also get to choose who inherits your estate, raises your children, and manages the transfer of your assets. Let’s make your estate plan the gift that it should be!