I'm Not Wealthy, Why Do I Need Estate Planning?

A person’s estate includes all the property owned by that individual before it is distributed under the the terms of a will, trust, or inheritance. But why should someone be inclined to do estate planning? 

Without properly planning your estate, there can be dire problems with passing on your assets to your heirs of beneficiaries. There are many issues left unanswered if you do not properly plan for the future. If something were to happen to you, who would receive your assets? Who would be responsible for taking care of your children if they are minors? What is to happen to you if you are unable to care for yourself? Estate planning addresses all these problems. 

Many people think that they have to be wealthy to do estate planning, but they do not consider the possessions they own as assets, your property, bank account, stocks, bonds, and even jewelry and items in your house. Without a proper estate plan, your property will be distributed to your heirs through someone appointed by a judge. Much of the value of your estate can be damaged in the process. The taxes on your house could take up most of its value, leaving your heirs with little but trouble. To avoid putting a strain on your family if anything were to happen to you, talk to an estate planner to find out where you stand and tie up all these loose ends.

When confronted with a tighter budget or uncertain economic future, many people instinctually cut back on everything they can to compensate for potential losses. This is not entirely a bad thing, since excessive debt and lack of planning both help to contribute to deeper financial troubles. But redoing a budget to compensate for changing economic circumstances calls for enhanced planning, not putting planning off for another day.

Estate planning is often thought about in terms of numbers, property, assets and finances. While estate planning does involve all of these things, the primary focus of a good estate plan is the people who will benefit from it from your efforts and legacy. Estate planning is about maximizing the benefits of your work while you are alive and providing for family and loved ones after your death.

Keeping in mind the real importance of estate planning will help individuals stick to their plans or give them the push they need to start planning through even the tightest of economic times. Estate planning is easier than most people think, and will create peace of mind that is well worth the investment.

In addition to helping you organize your finances and assets in the short term, estate planning during tough economic times has obvious long-term benefits as well. Continuing to plan and make contributions to trusts, life insurance policies, retirement and other accounts will minimize the overall damage that could be done to your estate in the long term. Failure to plan during an economic downturn can actually serve to unnecessarily multiply the effect of the financial hardship many times over.

Estate planning is important to individuals and their families, and it is even more important in a down economy. Consulting with an attorney and sticking to an estate plan will provide peace of mind in the present and maximize benefits in the future.

10 Fun Things You Can Do After You Retire

When retiring many elders find themselves bored with tons of spare time on their hands. Below is a list that I suggest you try! Some items are new experiences, some allow you to acquire a new skill, some are enjoyable and some might even help others. It is imperative that you choose things that are right for you. Here is a list of ten fun things you could do with your free time in retirement.

1. If you’re not ready to give up working then maybe you can share your talents by taking up a part-time job.

2. Learn something new, sign up for a class that interests you and maybe acquire a new skill. Ex: gardening, sewing, knitting, painting, photography

3. Work out with a fitness group, water aquatics are the best for your body.

4. Relax!! Go to the beach, stargaze, read a great book, nap. You’ve worked your whole life now is the time to relax.

5. Spend time with friends who share your interest in a craft, game, sport or hobby.

6. Volunteer by reading to children at the local library or hospital.

7. Volunteer at a non-profit organization.

8. Enjoy nature! Visit zoo's and parks. Spend the afternoon observing animals and scenic views.

9. Visit the local museums and art galleries in your town.

10. Get involved with your church.

Retirement is a new beginning, enjoy it!

Empty Nesters Syndrome

Have you recently lost touch of your children due to college, marriage, or moving? You may be experiencing the “empty nester syndrome,” which is the general feeling of loneliness that parents may feel when one or more of their children leave home. This usually happen mostly with women, but it can happen to men as well.

Although this new change can be traumatic, many adults seem to look at it as a time to enjoy their marriage. A study at UC Berkley discovered that couples after their children leave home actually end up happier and have a healthier relationship. While the Berkeley researchers had hypothesized that the improvement in marital happiness came from couples’ spending more time together, the women in the same study reported spending just as much time with their partners whether the children were living at home or had moved out, but they said the quality of that time was better.

If you are expecting your children to be soon moving out here are a few things you can do to be prepared. Prepare your child for the real world so you don’t worry about them, avoid any big changes, write up a list of things you would like to accomplish, and talking to other empty-nesters will always help you cope.

Vacation Destinations for the Retired

Senior travel is increasing in popularity. It is becoming easier to travel around the globe, and senior citizens are becoming more active than ever before. Here are some vacation destination ideas for the retired:

If you are an avid golfer, treat yourself to a vacation at a golf resort. Pebble Beach in northern California is one of the world’s top golf courses. Being near the ocean, this beautiful resort is certain to give you a memorable golfing experience.

Why not venture out to a continent you have never explored before? Europe is a popular destination with great architecture. Utilize your time and thoroughly explore Europe—Eiffel Tower and the Louvre in Paris, Colosseum in Rome, the Tower of London—the possibilities are endless. Renting a vacation cottage can be an option for a longer vacation.

For a great vacation without the hassle of flying, consider taking a Caribbean cruise. You can enjoy great scenery and all the amenities you need while traveling to your destination.
Want to stay on a budget? Consider a local vacation. San Diego is full of beautiful scenery. Consider a relaxing weekend of staying at a local hotel, strolling the beach, and visiting museums. This could also be your chance to explore a city you have not had a chance to visit.

There are various websites and agencies dedicated to retired and senior travel, which can help you plan your vacation destination or find companions.

These tips are brought to you courtesy of Walters & Ward, A Professional Corporation. We specialize in estate planning in California and understand that clients have a wide range of needs. As San Diego estate planning attorneys, we offer advice on a wide range of topics. Our focus is helping clients avoid probate, reduce taxes, and keep family matters private. But we're not opposed to offering advice on vacations every now and again either!

Living Trusts

A living trust is a popular way to avoid probate, which can be a very expensive and time consuming process. A living trust is created while a person is still alive who names a trustee to the assets of the trust. By setting up a living trust, probate is not needed for the trustees to inherit the assets of the trust. Anything that is transferred into the living trust before death doesn’t go through probate and can avoid any lawyer and court fees. The beneficiary simply transfers the named assets and once the assets are transferred, the living trust ceases to exist.
It is still a smart decision to have a will in addition to a living trust for any property that is acquired shortly before death or any property that is mistakenly forgotten to be included in the living trust. By setting up a will in addition to a trust, you can simply name a person to inherit any assets and property that is not already left to a different specific beneficiary. This will ensure that all of your assets are dispersed in a manner that you approve of rather than it being determined by the state.
Here at Walters and Ward, we have years of experience in helping individuals and couples set up living trusts and wills to protect their family from costly fees and headache after they pass on. We can explain all of your different options that you may have for your specific circumstances as well as all of the benefits and negatives of each option in order to assist you in making the right decision for your assets and family. Call us today for a free consultation that will help lead you in the right direction and leave you feeling confident and informed about your future and your family’s future.

How to Avoid Probate and Death Taxes

There is a lot of hassle that comes with drawing up a will. It seems like it might be impossible to avoid the large sum of taxes that come with transferring your estate and belongings to your family and friends. But what may come as a surprise is, with the right San Diego trust attorneys, you can create a solid trust that will allow you to pass on your estate free of taxes and probate.

The first step of probate is when the court decides whether the will is invalid or not. If it is deemed invalid, the probate court applies the state inheritance laws to the estate. If the will is deemed valid, the court then oversees the process of settling the will. This includes overseeing the distribution of assets (including payment of state and federal taxes), hearing contested claims by creditors and others seeking to collect from the estate, deciding which possessions are subject to estate administration, and supervision of many more actions that may have even been specified within the will.

Probate can lead to large taxation of your estate and unwelcomed assistance in the distribution of your possessions. To avoid these death taxes and the long process of probate, it is important to set up a trust along with your will. San Diego probate lawyers are able to set up solid trusts that prevent probate and allow you to pass on your possessions free of estate taxes.

Estate Planning is extremely important in ensuring that your estate and belongings are passed on to whom you want and how you want. Setting up a trust is invaluable and it’s the only way to make sure your family and friends avoid probate and death taxes. Walters and Ward are great San Diego lawyers that will help you further understand the importance of trusts and help you start the process of protecting your estate.