Estate planning is the process of organizing your affairs to ensure your assets are distributed according to your wishes, reduce taxes, avoid probate, and designate decision-makers for your medical and financial needs in the event of incapacity. It’s essential for protecting your loved ones, minimizing family disputes, and ensuring peace of mind about the future.

A comprehensive estate plan typically includes:

• Last Will and Testament: Specifies how your assets will be distributed and appoints guardians for minor children.

• Revocable Living Trust: Manages assets during your lifetime and after your death while avoiding probate.

• Durable Power of Attorney (Financial): Appoints someone to handle your financial and legal matters if you become incapacitated.

• Advance Healthcare Directive: Outlines your medical preferences and appoints a healthcare agent to make decisions on your behalf.

• Power of Attorney for Healthcare: Specifically authorizes your chosen agent to make healthcare decisions if you’re unable to do so yourself.

• Beneficiary Designations: Assigns beneficiaries for accounts like life insurance policies and retirement accounts.

You should review your estate plan every 3–5 years or after major life events, such as:

• Marriage or divorce.

• Birth or adoption of a child.

• Significant changes in your financial situation.

• Changes in healthcare preferences or the person you’ve named as your agent.

Trust administration is the process of managing and distributing the assets held in a trust after the grantor’s death or during their incapacity. It involves following the instructions outlined in the trust document, complying with legal requirements, and ensuring the beneficiaries receive their inheritances as intended.

Failing to administer a trust correctly can lead to legal and financial consequences, including lawsuits from beneficiaries or penalties for unpaid taxes. Trustees can also be held personally liable for breaches of their fiduciary duties.

Probate is the legal process of validating a will, settling debts, and distributing a deceased person’s assets. It is typically required if the deceased owned assets solely in their name or if no trust was established to manage those assets.

Yes, you can avoid probate by using tools like revocable living trusts, joint ownership of property, and beneficiary designations on accounts like life insurance or retirement funds.

Not all estates require probate in California. Probate is typically required if the total value of the deceased's assets exceeds $184,500 (as of 2025) and those assets are not held in a trust or passed directly to beneficiaries via joint ownership or beneficiary designations. However, smaller estates that fall below this threshold may qualify for simplified probate procedures, such as filing an affidavit or small estate declaration. Additionally, assets titled in a trust, payable-on-death accounts, or joint tenancy property can avoid probate altogether.

Essential business documents include:

• Operating Agreement (for LLCs): Outlines ownership structure, roles, and decision-making processes.

• Corporate Bylaws (for Corporations): Governs internal procedures and management.

• Power of Attorney: Grants authority for financial or operational decisions in your absence.

• Partnership Agreements: Defines roles, contributions, and profit-sharing among partners.

• Employee or Independent Contractor Agreements: Clearly outlines expectations and responsibilities.

• Client or Vendor Contracts: Ensures clarity and legal protection in business transactions.

• LLC (Limited Liability Company): Offers flexible management and taxation, and provides personal liability protection.

• Corporation: A more formal structure ideal for raising capital, with distinct tax and operational advantages. Corporations can be taxed as C-Corps or S-Corps, depending on their setup.

  Deciding between the two depends on your business goals, tax strategy, and operational preferences.

• Use clear, well-drafted contracts for all transactions.

• Establish clear policies and procedures for employees.

• Maintain compliance with local, state, and federal laws.

• Separate personal and business finances.

• Have liability protection in place, such as insurance and a legal business entity (e.g., LLC or corporation).

Business agreements and documents should be reviewed annually or whenever a major change occurs, such as:

• Bringing on new partners or investors.

• Expanding operations or entering new markets.

• Changes in state or federal laws that affect your business.