Like many of the most important steps we take for our physical health, estate planning is a kind of preventative medicine.
It’s something you don’t have to do today, but you know that doing it will likely help you or your family avoid problems down the road. Having a clear picture of what estate planning entails may help you make it a priority, sooner rather than later.Am I too young for estate planning?
Estate planning should be considered a fundamental part of every comprehensive financial plan. Once you have your first job, first home or first child, and your long-term finances become a concern, you are ready for estate planning.
Am I wealthy enough for estate planning?
In California, all estates valued over $150,000 have to be administered through the probate court process. Generally speaking, your estate would include bank accounts, investment accounts, and the current fair market value of any real property that you own. The probate court process is public, takes an average of 12-16 months and costs approximately 5% of the value of the estate. The only way for your family avoid this lengthy and costly court process is for you to make an estate plan.
What decisions do I need to make for my estate plan?
An estate plan is essentially a set of instructions, detailing how you want to distribute any property you leave behind. You will need to decide who you would like to give your assets to and how you would like these people, called beneficiaries, to receive the assets. Beneficiary distributions can be outright, paid in one lump sum. They can also be done at certain milestones, like once a person graduates from college or turns 30. You could also decide to create a trust structure for your beneficiaries, which has added protections for the beneficiaries and safeguards for the property you leave them.
How much does estate planning cost?
LifeLadder Estate Planning uses a flat-rate, package-based fee structure. Once you choose your package and design your plan, you will know the exact total cost to you – no surprise follow-up fees or extra billable hours to pay for. Packages range between $2500 and $7500.
Learn about the contents of a well-designed estate plan by downloading our Estate Planning Checklist below.
