Pasadena, CA Estate Planning Lawyer

Experienced Estate Planning Attorney Protecting Families in Pasadena, California

The decisions you make about your estate can affect everything you have built and everyone you care about. Estate planning is a practical and personal process that benefits you and your loved ones both during your life and after your death. Without a plan in place, your assets may pass to the wrong people, your children may be placed in the care of someone you would not have selected, or other serious issues can arise. A thoughtfully constructed estate plan will provide you with the peace of mind you need.

At The Law Offices of Russell M. Ozawa, our lawyer helps families in Pasadena build estate plans that are based on their values and protect their loved ones. He will work closely with you to understand your circumstances and goals, explain the available options in plain language, and create documents that will provide for your family's current and future needs.

The Foundation of Estate Planning

A comprehensive estate plan can address what will happen after your death and how certain matters will be handled during your lifetime. The core components of an estate plan will typically include a last will and testament, one or more trusts, a financial power of attorney, and an advance health care directive.

Last Will and Testament

Your will is the document through which you will specify your wishes for the distribution of your assets, designate someone to manage your estate, and, if you are a parent of minor children, name a guardian to care for your children if both you and the other parent die. Your will serves as the cornerstone of your estate plan.

The most fundamental function of a will is to decide who will receive the property you own after you die. You may choose to leave your entire estate to your spouse, divide assets among your children or other family members, make specific gifts of money or property to designated people, or donate a portion of your estate to charitable organizations.

Through your will, you will also name an executor who will be responsible for initiating the probate process, managing your estate after your death, paying debts and expenses, and distributing your assets to the beneficiaries you have chosen. Choosing the right executor can ensure that your trust will be in charge of carrying out your wishes.

As a parent, one of the most significant decisions your will can address is guardianship. Naming a guardian for your minor children will ensure that you will be able to decide who will raise your children if you die before they reach adulthood. Without a guardianship designation, the decision will be made by the court.

Our attorney can work with you to prepare a will and make sure all legal requirements are met. He will advise you on what terms to include and how you can make sure your wishes will be carried out correctly.

Trusts

While a will is an essential starting point for your estate plan, it may not be enough on its own to address your family's current and future needs. Trusts offer options that a will cannot provide, including the ability to avoid probate, maintain privacy, plan for incapacity, protect assets, provide for loved ones with special needs, and control how and when beneficiaries will receive their inheritances.

When you create a trust, you will transfer the control of assets to a trustee. They will manage and distribute those assets based on the instructions you provide. Different types of trusts can be used for different purposes, including:

Revocable Living Trusts

You can create a revocable living trust and serve as the trustee during your lifetime, with the ability to modify or revoke the trust at any time. Assets transferred into the trust will avoid probate entirely after your death. They will be distributed to your beneficiaries according to the terms you provide.

With a revocable living trust, you can make sure financial issues will be handled correctly in the event of your incapacity. If there is a reason that you may be unable to manage your financial affairs, a designated successor trustee can step in immediately to manage the trust's assets.

Irrevocable Trusts

You will no longer directly own the assets transferred into an irrevocable trust, and the terms of the trust usually cannot be modified. By relinquishing control, you may gain some important legal and financial advantages.

Because assets held in an irrevocable trust will not be part of your taxable estate, this can be a way to reduce federal estate taxes. The assets may also be protected from creditor claims. Some types of irrevocable trusts may be used in Medi-Cal planning to help preserve assets while qualifying for benefits that will cover long-term care costs.

Special Needs Trusts

If you have a loved one who has a physical or developmental disability, you may want to provide them with support or leave them an inheritance. However, a gift or inheritance could disqualify them from receiving assistance from the government through Supplemental Security Income, Medicare, or similar programs. A special needs trust holds assets for the benefit of a disabled person in a way that will provide for specific needs rather than replacing their government benefits. This can help ensure that you will be able to provide financial security for a loved one with a disability without cutting off their access to critical services.

Charitable Trusts

When you wish to give money or assets to charity as part of your estate plan, charitable trusts can provide multiple types of benefits. With a charitable remainder trust, you can place assets in the trust, receive ongoing income throughout the rest of your life, and make sure the remaining assets will go to charity after your death. With a charitable lead trust, you can provide income to a charitable organization for a certain amount of time, after which the assets remaining will be distributed to family members. This can ensure that wealth will be transferred to the next generation while supporting important causes.

Powers of Attorney

A power of attorney will give authority to someone who can manage financial matters and related concerns for you. The authority granted in a financial power of attorney can be tailored to your specific needs and preferences. A broadly drafted document may give a person the ability to manage financial accounts and business interests, pay ongoing expenses, and address other financial matters. A more limited document may restrict the person's authority to specific financial concerns.

If you do not have a power of attorney, a loved one who may need to manage your financial affairs will need take steps to establish a conservatorship of the estate. A durable power of attorney will provide an effective way to ensure that your financial affairs will be managed correctly if you become incapacitated.

Advance Medical Directives

With an advance health care directive, you can address the important question of who will make medical decisions on your behalf and what those decisions should be. You can designate a health care agent who can make certain types of medical decisions if you do not have the capacity to do so. Your agent will be able to communicate with medical providers, evaluate treatment options, and make decisions about the care you will receive.

You can also provide specific instructions about the types of medical care you do and do not want to receive under various circumstances. Your directive may state that if you become terminally ill, you do or do not want to receive certain life-sustaining treatments or other forms of care. By detailing your wishes clearly, you can help avoid a situation where your loved ones will need to make difficult decisions without guidance.

Contact Our Pasadena, CA Estate Planning Attorney

Building a complete estate plan is one of the most important steps you can take for yourself and the people you love. At the Law Offices of Russell M. Ozawa, our attorney can explain your options and help you put the right documents in place. Contact our Pasadena estate planning lawyer by calling 626-499-4500 to schedule a free consultation.