Do I need an estate plan?

Sometimes, I get asked, "Do I need an estate plan?" And I respond, "Well, technical, you already have one." As a matter of fact, everyone has one. The State of California, as well as many other states, provides a default estate plan known as intestate succession. That’s what happens if any part of your estate is not effectively disposed of by a will or some kind of will substitute like a trust.

So, what is in this default plan? Well, every state is different, but in California, it says that your half of the community property goes to your spouse, but your separate property might go to your spouse, or it may go to your child, your parents, or even your brothers and sisters. It’s just going to depend on a number of factors. You might be thinking, well, I don’t have a spouse, or I don’t have any children, or perhaps you’re one of the many Californians with a blended family with stepkids. So where does your estate go then? See, that’s one of the issues with this “default plan,” it’s a plan that may not fit your situation and goals. And even if this default plan gave your estate to whoever you wanted it to, they may need to go to court to receive their part of your estate, adding time and money. That’s where an experienced estate planner can help by building you a custom-fit estate plan specifically tailored for you and your family.