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Estate Plan or No Estate Plan? That is the question…

Lauren Peebles • Oct 30, 2017

The Pros & Cons of No Estate Plan

You’ve heard that you need a will or living trust, but you aren’t quite sure why. You remember Aunt Sally who died without a will and can’t remember any consequences. Things seemed to resolve on their own and it was no big deal that she didn’t have a plan in place, right? Well, that depends.Everyone—young or old, single or married—should create an estate plan, but not everyone does. In fact, studies show that over half of all Americans do not have anestate plan. Not to worry, leave it to the State of California to come the rescue.

California’s Default Estate Plan

California’s Probate Code governs  intestate succession —a set of laws that outline how a person’s assets should be distributed if they did not leave their own instructions. The state will consider your spouse, children, parents and siblings when you have not. For some, the state’s default rules are sufficient to represent their wishes. For others, the state’s rules do not capture their specific family dynamics or their desires for how property should be handled upon death.

This does not mean that the state’s rules are entirely bad. When you pass away without a will (or even with one), your estate must go through  probate. Probate is the process by which your affairs are wrapped up—someone is appointed as your executor to handle the probate, creditors are provided notice of your death so that your final bills are paid, beneficiaries receive notice so that they can obtain their inheritance, and the court monitors the entire process. Some people like the idea of having the court system involved to monitor how things are handled. Others do not prefer this idea and would instead prefer someone in their family or a friend handle their affairs when they are unable to. Additionally, probate proceedings are public. If you’re a private person, you may not like the idea that any one and everyone can discuss your business openly in court.

Attorney’s Fees in Probate

The State of California’s default estate plan is not without cost. The default rules provide for attorney’s fees and personal representative fees. Currently, attorneys and personal representatives are each entitled to a percentage of the value of your estate: 4% of the first $100,000 of the gross value of the probate estate, 3% of the next $100,000, 2% of the next $800,000 and 1% of the next $9 million. In California, a modest estate including a single property and a few bank accounts could easily rack up tens of thousands of dollars in probate expenses. This means less money for the people of your choosing and more money for people you may not even know!

You Decide

At the end of the day, whether or not to create an estate plan is a personal choice. The State’s default plan is a “one size fits all” estate plan, but many times the State’s plan simply does not fit. The best thing to do is sit down with a licensed Estate Planning Attorney who will listen to your unique family situation and the things important to you and will draft an estate plan that represents your desires. You may choose not to create an estate plan altogether or simply to just not create one “right now”. No matter what your decision, know that the State of California has a plan for you and the only way to free yourself of the government’s choices is to make them for yourself. The choice is yours.

Face Coverings Policy

By Lauren Peebles • 15 Jun, 2021
Note: This policy takes effect on June 15, 2021 and will supersede all prior face coverings guidance. Masks are not required for fully vaccinated individuals. All persons entering The Law Office of Lauren N. Peebles are required to present a photo ID, and either proof of full vaccination (two weeks since your final dose) or a [..] The post Face Coverings Policy appeared first on The Law Office of Lauren N. Peebles.

Thanksgiving Conversation You MUST Have

By Lauren Peebles • 09 Nov, 2017
Thanksgiving is almost here. This is the time of year when friends and family gather over good food and great fellowship. We know that thinking about accidents, illness, tragedy and death is not easy. We also know that talking about it can be even more difficult. But the conversation is critically important and one we [..] The post Thanksgiving Conversation You MUST Have appeared first on The Law Office of Lauren N. Peebles.

Joint Tenancy Accounts–Who Owns the Money?

By Lauren Peebles • 02 Nov, 2017
Joint Tenancy vs. Estate Money The Estate of O’Connor case came before the court to answer the question often asked and that is, when an elderly person dies with a bank account held in joint tenancy, who owns the money? The decedent’s estate or the co-owner of the account? Here are the facts… Creation of Living [..] The post Joint Tenancy Accounts–Who Owns the Money? appeared first on The Law Office of Lauren N. Peebles.

Lottery Win Could Be a Loss Without a Plan

By Lauren Peebles • 31 Oct, 2017
Six numbers. That’s it. Six numbers and you’re a billionaire! You probably already know exactly what you would do with the money. Maybe pay off your debt. Perhaps buy something expensive. You’d invest some. Donate some to charity, right? But if you ever plan to win the lottery, you’ll want to have a plan first. Here [..] The post Lottery Win Could Be a Loss Without a Plan appeared first on The Law Office of Lauren N. Peebles.

Estate of Whitney Houston: Rich Woman, Poor Planning

By Lauren Peebles • 27 Oct, 2017
Have you done any estate planning? If the answer is no, you’re not alone. In fact, Whitney Houston did not draft a will until 6.5 years after her marriage to Bobby Brown. Bobbi Kristina was one month shy of six years old. Houston’s Estate Plan When Houston did, she executed a very simple 16-page will [..] The post Estate of Whitney Houston: Rich Woman, Poor Planning appeared first on The Law Office of Lauren N. Peebles.
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