Asian Journal- The Filipino-American Community Newspaper

Having a will gives you the decision-making control over who gets what; you still control how and when they receive it. A will conserves and distributes your assets and money according to your wishes, names guardians for your minor children, as well as names an executor for your estate. It alleviates family member feuds that may take place after your death; there is no guess work. While essential to have, a will does not avoid the probate process.

Creating a living trust allows you to be in control over your assets and their distribution at your death. A living trust is a relationship between people and property. One person (the trustee) is given legal ownership of the assets to be managed or invested for the benefit of the beneficiary. You can even be the trustee of your own trust while you are alive. The successor trustee will oversee the trust upon your death. Having a living trust avoids the probate process.

In California, an estate goes through probate if the total gross value of the estate is more than $100,000 (if you own a home or have life insurance, your estate already surpasses this minimal amount). The probate process can take at least eight months or as long as three to four years. An attorney can then charge up to six percent of the gross value of the estate, which greatly reduces the amount left to be distributed to loved ones.

Estate planning is needed to avoid dying "intestate" (dying without creating a will or a trust that gives you the power to control your assets after your death). If there is no planning done, California law will decide who will care for you and have control over your assets. If you have a small estate, focus on who will receive your assets after your death and who will be in charge of carrying out your last wishes. If your estate is relatively large, focus should be on preserving your assets and reducing or postponing estate taxes that are payable on your death.