Why do people need estate planning?

People often tell me that they do not need estate planning.  They say they do not have anything, or they do not have kids, or they do not have a spouse.  When someone says this to me, I look at them and tell them that everyone needs some sort of estate plan.  I ask, "Who will make medical decisions for you if you are unable to do so?" or "Who will pay your bills if you are unable to do so due to incapacity?".  This usually gets them thinking that they do, in fact, need estate planning. 

Framed this way, it is clear that everyone needs some sort of estate planning.  With estate planning, you can say who will make your financial and medical decisions for you if you are unable to do so.  With proper estate planning, however, you can do so much more.  You can say where stuff goes when you die, you can say who will raise your minor children, you can provide for a special needs child, you can reduce your taxes, you can provide for a charity, you can make it easier for you or your spouse to qualify for Medi-Cal benefits to pay for skilled nursing care should you need it.  You can even increase your income through proper estate planning.  That is just the tip of the iceberg.  Check back for future discussion of these, and other, topics.

Gerald Cummings

Gerald W. Cummings is a San Jose, California attorney who helps families find peace of mind.  He is on the web at www.cummingslegal.com and can be reached at (408) 286-2122.