Category: Estate Planning

Do you know that estate planning can also fail if it’s not done properly? Yes, estate planning can fail. What could be the consequences? So after your death, the beneficiaries, executors, and everyone will be in trouble.

It usually happens when someone makes mistakes like naming only one beneficiary, not including digital assets, etc. Regardless of the error, the consequences can be severe, potentially preventing the estate from being distributed as intended.

If you don’t want this to happen in your case, this article will help you out. Below, we’ll explain the common mistakes people make with estate planning and also offer solutions. By following these tips, you can avoid such mistakes.

10 Common Estate Planning Mistakes To Avoid

Let’s jump into the main part of the article, which consists of the 10 common mistakes to avoid while planning an estate. We’ll first explain the problem and then provide a solution to help safeguard your estate planning efforts.

1. Incomplete Estate Planning

Incomplete estate planning means having only a Will without considering other crucial aspects. While a Will outlines property distribution, it may not address scenarios like hospitalization or childcare arrangements.

Solution: The simple solution is to contact a professional estate planning lawyer. They’ll guide you about all the aspects you should look at, like family, future health conditions, financial decisions, and appointing children’s guardians to create a foolproof estate plan.

2. Selecting An Inappropriate Executor

The second common mistake we’ve seen people making is they choose inappropriate executors. It means a person who lacks responsibility, time, or effective communication skills that can easily prolong the estate distribution process.

Solution:

Always select responsible executors who are good at communication and dedicate time to implement the will. Consider nominating two executors so they can both divide the responsibilities and perform all tasks efficiently.

3. Limiting Beneficiary Choices

No doubt it’s important to be specific in estate planning, but being specific doesn’t mean nominating only one beneficiary. Opting for a single beneficiary restricts your options, and if that beneficiary passes away before the probate process concludes, complications can arise.

Solution:

You can nominate more than one beneficiary, like the primary one, and then the contingent beneficiaries who’ll be the second choice. The contingent beneficiaries inherit assets only if the primary beneficiaries die or choose not to accept the estate.

4. Overlooking Digital Assets

Many people forget to add digital assets to their estate planning, which is a big mistake. This results in the distribution of assets among all beneficiaries according to the intestate succession law rather than the choice you would have preferred if you had been alive.

Solution:

Include all digital assets, such as cryptocurrency, social media accounts, and content royalties, in your Will, specifying who inherits what. This prevents future conflicts and ensures your assets go to the intended beneficiaries.

5. Failing To Plan For Future Needs

Another mistake we’ve noticed in estate planning is neglecting to address future needs. For example, addressing questions like who will make financial and healthcare decisions on your behalf if you’re unable to.

Solution: 

Create both financial and healthcare powers of attorney for future needs. By doing so, you entrust these critical decisions to someone you trust. This will ensure your affairs are managed according to your wishes.

6. Forgetting Charitable Contributions

People often forget to add details about the assets they want to donate. If you’ve set aside assets or funds specifically for charitable purposes, it’s essential to include them in your estate planning after consulting with a lawyer about the tax implications.

Solution: 

You can either nominate the charitable organization in the Will or create a charitable trust. It’s also possible to name the organization as the beneficiary of the life insurance policy, retirement account, stock, or other assets.

7. Not Planning For Disabled Dependents

Estate planning is crucial when you have disabled dependents in the family, such as children, spouses, or parents. Simply leaving assets to them without appointing a guardian can leave them vulnerable and susceptible to potential scams.

Solution: 

Appoint a trustworthy guardian for your disabled dependents. This guardian will make financial decisions on their behalf, ensuring their assets are managed responsibly and safeguarding them from potential exploitation.

8. Ignoring Funeral Instructions

Although it’s not obligatory, you should also consider leaving instructions about your funeral in estate planning. This will solve a lot of problems and conflicts that can happen in the future after your death.

Solution:

Discuss with your estate planning lawyer to create a detailed document outlining your funeral wishes. You can also include whether you’re a registered organ donor and give consent for organ donation to help people in need.

9. Overlooking Estate Tax Implications

You may not know, but the amount of assets you want to give to the beneficiaries can be lower than expected. Executors also pay taxes before the estate is distributed among all the beneficiaries. This is why it’s important to consult a lawyer about the tax implications.

Solution: 

Estate tax isn’t applied to every estate but only to those whose value exceeds a certain amount ($13,610,000 as of 2024). If your estate surpasses this amount, seek advice from a lawyer to explore ways to minimize taxes and understand your options.

10. Drafting An Online Will Without Expertise

A common error in estate planning is relying solely on online tools to create a Will. No doubt, online Will generators are quite helpful, but they may not account for all legal nuances, leading to potential mistakes if you’re not well-versed in estate law.

Solution:

Conduct thorough research on how legal experts draft Wills and review available templates online to get an idea. After drafting your Will, double-check for accuracy, ensure it’s witnessed, and don’t forget to sign it before finalizing.

Final Words

Well, that’s all! We hope you’ve got the answer to the common mistakes people make with estate planning. We’ve explained the top 10 common mistakes that mostly happen and become the reason for a failed estate plan.

You can read the solutions along with the mistakes mentioned above. If you need further assistance, don’t hesitate to reach out to our estate planning lawyers. We offer complimentary consultations to discuss cases with our legal team.

AI is going to change the world; it will affect everything from big business to your life in a positive way. For example, now you don’t need to pay a hefty fee to lawyers for every small task related to estate planning. 

There are a lot of things that can be done by using Chatbots like ChatGPT, Google Bard, Microsoft Copilot, and so forth. All you need to do is ask the right question or request help using the right prompt, and AI will assist you. 

To explain this further, we’ll explore how AI chatbots help in estate planning and what tasks you can do by using AI chatbots. So, let’s get into the details! 

4 Ways AI Chatbot Helps In Estate Planning

Below, you can read how AI chatbots can help with estate planning. We’ve also added images so you can understand the process. You can use the same prompts or different ones in any AI chatbot for assistance. 

1. Getting Advice From Chatbot 

Getting estate planning advice from a Chatbot may not seem wise, but trust us, it works and saves a lot of money. We’re not suggesting you depend entirely on Chatbot information; rather, you should use it to gather ideas and basic info. 

For example, you can ask Chatbot about how to save estate from creditors and the probate process. Once you’ve got suggestions from Chatbot, select a few of them and consult directly with a lawyer. 

If you follow this process, there will be two benefits. First, you’ll save time, as you don’t have to spend hours understanding the basics from a lawyer. The second biggest benefit is that fewer hours mean lower expenses.

2. Free Document Generation 

It’s a fact that the legal process needs documentation, especially estate planning. The big issue with creating documents is they’re not free, as lawyers charge fees for it, but now, thanks to AI, this barrier has been lifted. 

With AI Chatbots like ChatGPT, anyone can effortlessly generate a proper Will or any other legal documents for various purposes. In just a matter of seconds, a professionally drafted legal document will be accessible to you.

Just make sure to research the basic requirements about what should be included in the documents before drafting. Provide these requirements to the AI Chatbot, and it will follow all of them to create the best possible draft. 

3. Understanding Estate Planning Laws 

One of the reasons people seek paid legal consultations is that they lack familiarity with estate planning laws and legal terminology. Fortunately, this process has been simplified with the emergence of AI chatbots. 

AI Chatbots can easily explain laws and legal terms in an uncomplicated way, eliminating the need for consultation fees. However, there’s a catch: AI Chatbots lack access to the latest data and sometimes provide incorrect information.

Therefore, instead of inquiring directly about the law, we would suggest you provide a proper context. After the context and specific details, the AI Chatbot can easily explain the law like any professional. 

4. Assist In Research 

Not everyone hires a lawyer for estate planning matters; some individuals prefer to do most of the work themselves. To perform all tasks, they do research which is a significant challenge for someone who doesn’t have much time. 

The research process can take a few days to a week if the person doesn’t have sufficient knowledge about estate laws. However, this is the part where AI chatbots of search engines like Microsoft Copilot can help. 

These chatbots provide a concise answer to your question, along with links to the sources. It means you don’t have to go through each and every blog to find your answer. This saves an ample amount of time, allowing you to focus on other matters. 

Final Words

We hope you’ve found the answer to the question of how AI Chatbot helps in estate planning. We’ve shared the top four ways you can use AI Chatbots for estate planning. However, don’t confine yourself to just the methods above.

You can also use AI Chatbots to proofread legal documents, analyze documents, and more. With time, we believe that AI capabilities will continue to advance, enabling even more effective assistance in estate planning. 

However, till then, if you need the help of an estate planning lawyer for any matter, CPT Law Firm is just one click away. Just visit our website and fill out a simple form to claim a free consultation, and our team will be there to guide you through the process.

Trust and inheritance may seem like the same option, but they’re completely different from one another. Inheritance means assets that will be inherited by the heirs of the deceased person typically through the probate process. 

While Trust is a fiduciary arrangement in which the owner of assets (grantor) puts everything in the Trust by transferring its legal rights. Grantors also create a legal document that describes how the assets should be used, and who will be the beneficiaries and trustee. 

The noticeable point of the Trust is, trust property doesn’t go through probate. This is why it’s considered a safe and time-saving process, but is it really? We’ll answer this question below with our detailed guide about “Trust vs Inheritance.” So let’s get into the details.

What’s Trust? An Overview 

A Trust is a legal arrangement established between two parties: the grantor and the Trust itself. The grantor, who is the legal owner of assets, transfers the rights of the assets to the Trust and then the Trust holds the property. 

Within this arrangement, a trustee is also appointed to manage the Trust and its assets. To manage the Trust, the grantor creates a legal document that sets out rules and regulations to manage the assets and who’ll be the beneficiary and how they’ll inherit the assets. 

There are two main types of Trust: revocable and irrevocable. Revocable Trust agreement can be changed, like the beneficiary’s name, trustee, and the rules. However, this can’t happen with the Irrevocable Trust; and it can’t be changed by the grantor once it’s created. 

What’s Inheritance? An Overview 

Inheritance means the assets and money someone has left behind after their death. This process is often governed by Will in which the deceased person has nominated the beneficiaries and how much property they’ll inherit. 

The property included in the Will goes through probate, a legal procedure overseen by a probate court. During probate, the court ensures the validity of the Will and facilitates the transfer of assets according to the decedent wishes. 

If someone passes away without a Will, their inheritance is distributed based on the laws of intestate. In such cases, the probate court determines the rightful heirs and distributes the assets in accordance with the legal guidelines.

5 Key Differences Between Trust Vs. Inheritance 

Below are the five key-differences between Trust and Inheritance. You can read about these differences and make an informed decision about which one is the best option for your estate matters.  

1. Legal Structure 

The main difference between Trust and Inheritance is the legal structure. A Trust is a legal entity, in which a grantor transfers the assets legal rights to the name of Trust and sets the rules and regulation for the Trustee. 

On the other hand, inheritance refers to the assets (no legal status). When it comes to inheritance, who will inherit and what will inherit, remain unspecified unless the deceased individual left behind a Will naming the beneficiaries and the assets. 

2. Flexibility of Changing Terms & Beneficiaries 

Trust has two main types and one of them is Revocable Trust. The specialty of this Trust is it provides flexibility, its terms can be modified, as well as the beneficiaries and the Trustee according to the wishes of Grantor. 

Inheritance lacks the legal entity status. If there’s a Will, then the transfer of estate rights will be easier but in the absence of the Will, there’s no flexibility. The court will decide the beneficiaries and divide the estate as per the law not by the wishes of the decedent. 

3. Proper Guideline & Control 

The reason most individuals prefer Trust is because of the power it provides to the grantor. A grantor can set out proper guidelines and control everything about how assets will be sold, or manage, who’ll be the administer of the estate even after death.

You can also control the inheritance transfer process with Will. But if you don’t have a Will, things will get complicated. In that case, the law decides who gets your estate, and it might not be what you wanted, leaving you with no control. 

4. Safety From Probate Case 

Whether you’re aware of it or not, all of your inheritance will go through a legal process called probate, even if you’ve left a will. This process is a necessary step in inheritance cases and the main issue with probate is that it usually takes about six months to a year to complete.

However, individuals who have placed assets in a Trust don’t have to worry about probate. Assets held in a trust are owned by the Trust itself. Since only assets owned by the deceased individual go through probate, assets in a Trust are safe from the probate.

5. Security For The Assets

Inheritance is divided through two ways either Will or the according to State laws. Neither of these methods offers security for the assets. In fact, one of the first tasks the court undertakes is to settle any outstanding debts owed to creditors and taxes owed to the government.

In contrast, Trusts provide a shield against such problems. This is because any debts and taxes owed are associated with the deceased individual, and if a property is held within their name, these obligations are settled using the assets from the estate.

Assets held in a Trust are not in the name of the deceased, so they remain safe from such claims, providing a higher level of security. This is why legal experts suggest creating a Trust with the help of an experienced Trust attorney rather than a Will. 

Trust Vs. Inheritance: Final Thoughts 

Trust means a fiduciary relationship between the Trust and the grantor while inheritance means the assets someone has left behind. If the assets are held in the Trust everything will be managed according to the terms stated by the grantor. 

However, in the inheritance case the assets will be distributed as per the guidelines of the Will. When there’s no Will, the State law comes into rescue and the court decides the beneficiaries and distributes the property accordingly. 

While the choice ultimately rests with you, it’s worth noting that opting for a Trust is a more secure option than a Will for inheritance transfer. Trusts provide protection from creditors and taxes, and their assets rights can be transferred to the heirs without the long probate process.

Trust and Will are both ways to distribute an estate after death. A Will is a legal document that describes who will inherit the assets, while a Trust involves transferring your assets to a trustee so the trustee can transfer it after death according to the wishes of the deceased.

A person who has assets can choose any option between these two and nominate the beneficiaries for the estate. But what will happen if a person leaves both a will and trust behind for the family? 

Does a will  override a trust in Northern California? We’ll answer this question below, and will also discuss which option is better and who needs a trust instead of a will. The answer to these questions will provide guidance as you make important decisions regarding your estate.

What’s A Trust? Overview

A Trust is a legal framework that is quite different from the traditional way of transferring assets. Trust means the individual (grantor) who owns assets grants the other party (the trustee) the rights to hold and manage assets and pass them to the beneficiaries after the grantor’s death.

The benefit of creating a Trust is that the property held under the Trust name won’t go into probate court. This is because the assets will be under the name of the Trust, not the grantor who has died. 

Since the assets don’t have to go through probate court, it will save a lot of time and money typically spent on probate lawyers. The trustee will transfer the property as per the wishes of the deceased person to the beneficiaries.

What’s A Will? Overview

A Will is completely opposite to a Trust. Creating a Will means creating a legal document that’s signed by witnesses and meets all legal requirements. It outlines who will inherit estate from the family, friends, and so forth after death.

The reason individuals don’t choose Will is because it goes through the probate process. The executor nominated in the Will files the case in probate court, and the process begins to validate the Will and its transfer process.

The probate process usually takes six months to a year or even more if the case is complicated. After the Will is validated, the executor will evaluate the property and begin the process of distributing assets.

Does A Will Override Trust In Northern California? Trust Vs. Will

No, a Will can’t override a Trust in Northern California. This is because the Trust, being a separate legal entity, will hold ownership of assets. Therefore, upon the death of the Trust creator, the assets within the Trust pass to the beneficiaries without the need for probate.

However, there are instances where a Will may affect assets held in a Trust. For example, assets not properly transferred into the Trust during the Trust creator’s lifetime may be subject to the terms of the Will and go through probate.

To avoid confusion between Trusts and Wills, legal experts suggest a Pour-Over Will. This legal document means all property not in the Trust’s name—real estate, businesses, etc.—will be transferred to the Trust upon the owner’s death. 

The Pour-Over Will solves the issue of probate easily. Once the property goes to the Trust’s name, the trustee will transfer the assets to the beneficiaries included in the Trust document, following the instructions laid out by the Trust creator.

Does A Will Override An Irrevocable Trust?

An Irrevocable Trust is a type of Trust in which the grantor can’t change anything once the Trust is created legally. Everything under the Trust’s name will go to the trustee who’ll manage it. Hence, a Will cannot override an Irrevocable Trust. 

Similarly, the principle applies to a Revocable Trust. In a Revocable Trust, the grantor retains the ability to modify or revoke the Trust during their lifetime. If the grantor has taken assets out of the Trust, then they can be subject to the content of the Will. 

However, if assets are properly transferred into the Trust—be it revocable or irrevocable—and held within it at the time of the grantor’s death, they will typically be governed by the terms of the Trust rather than the Will.

What Is Better, A Will Or A Trust?

Both a Trust and a Will are suitable for distributing wealth, but there are some differences that make a Trust a better option. The biggest difference is that Trust assets don’t go through the long probate process. 

Trusts offer tax benefits, and the assets are free from creditors’ claims. The grantor can create a Trust for conditions such as illness or disability and decide who will make decisions on their behalf. All of these benefits make a Trust a preferred option for many individuals.

Final Words

Does a Will override a Trust in Northern California? No, a Will can’t override a Trust because only assets held in the deceased person’s name are subject to the Will’s content. If there’s a Trust, it means the assets are under the Trust’s name. 

Since the assets aren’t under the deceased person’s name, the Trust property can’t be disputed. However, it’s important to note that if assets are removed from the Trust’s ownership prior to the grantor’s passing, then the situation may change.

Probate is a necessary process that’s done once a person dies, leaving a property. The custodian of will submits the original will to the probate clerk’s office within 30 days, and then the probate process starts. 

The court validates whether it’s a real will and genuinely reflects the deceased person’s wishes. Once the will is considered valid, the process of distributing the wealth starts. A common question that concerns everyone is, what if the probate court has an invalid or fake will? 

Can you challenge a will after probate in Northern California, or do you have to accept the court’s decision even if it’s based on the wrong will? Don’t worry; we’ll provide detailed answers to these questions below. Let’s dive in!

Can A Will Be Contested After Probate In California?

Yes, you can contest a will after the probate starts. According to the 2009 California Probate Code – Section 8270, you have up to 120 days after the will is admitted for the probate case to contest. You can submit a petition to the court to challenge the will.

However, keep in mind you must have solid evidence to build strong ground for your case. If you don’t have valid reasons that can show that the will is fake, you might not be able to contest it successfully.

What Happens After A Will Is Contested?

The outcome of a will contest case depends on the petition. For instance, if the petition involves two wills, the court will carefully review the case and determine which one is the most recent and the right one. 

In some cases, beneficiaries may claim that the person who passed away wrote the will when they weren’t mentally capable, making the will invalid. To support such a claim, the petitioner needs to provide evidence, like medical reports.

If the evidence is convincing, the court may consider the will invalid. When this happens, the court may decide there’s no valid will. In such situations, the case will follow according to succession laws in the USA, and the property will be divided among family members.

Who Can Challenge The Will In Probate?

Not everyone can challenge the will once the probate case begins. There are specific criteria determining who has the right to contest the will and who does not. Here’s a quick overview of the eligibility criteria.

• Legal Beneficiaries: In case there’s a will, any beneficiaries whose name is included in it can contest the will in court. 
• Blood Relatives: Immediate family members who believe the will is fake or if there’s no will left by the deceased person can also contest it.

4 Reasons To Challenge The Probate In Northern California

The reasons you mention in your petition to contest the will are crucial. You can’t challenge a will just because your name isn’t included as a beneficiary – you need solid reasons. Here are some valid reasons if you want to contest the will:

1. Multiple Wills

The most solid reason to challenge a will is when there are two different wills. In such situations, the court examines both wills and their content. The court then decides which is the correct will and should be followed. 

2. Fraud Or Forgery

Each will include the executor’s name; they’re individuals who have the responsibility to distribute the property as per will. Unfortunately, sometimes executors attempt fraud by using a fake or old will. You have a strong reason to contest the will if you suspect anything like this.

3. Lack of Mental Capacity

A will should be written when the person is mentally sound. If you discover the deceased person wrote the will when they were not mentally capable of making important decisions, you can contest it in court.

4. Violation of Rules 

Apart from the reasons mentioned, if the will doesn’t follow the rules – like lacking signatures of witnesses or proper procedures – it won’t be valid. As a beneficiary, if you notice anything like that, you have the right to contest the will.

Conclusion

In short, yes, you can contest a will after probate in Northern California. The time frame to contest a will once the probate process starts is 120 days. You can file a petition in the court stating the reasons that make the will invalid. 

Remember, the reasons must be strong, or you won’t be able to prove your claim. Furthermore, it’s important to note that only the beneficiaries and the family of the deceased person can contest the will. You can contact our probate attorney to find out more information.