What does THIS mean? Definitions in Estate Planning

What is a power of attorney?

A power of attorney gives someone else the right to make decisions on your behalf. You can have an immediate power of attorney, which allows someone to go make decisions on your behalf right now. You can also have a springing power of attorney that kicks in only once you are declared incapacitated.

What is incapacity? What does it mean to be incapacitated? How long does it last?

Incapacity is when you are not able to make decisions for yourself. It could be short term, like if someone is in a coma after a car accident. Or it could be longer term like with dementia or Alzheimers.

What is a will?

A will typically does three things in California: it revokes any prior wills, it names your guardians, and it says where you want your assets to go when you die. It only kicks in at the time of death. The will does not have any legal effect until someone dies.

What is a trust?

A trust is a legal fiction that is a way to maintain, control, and distribute assets. If you have a trust, you still have a will that pours everything into the trust to make sure that things are distributed per your trust. It’s your trust that will gift things to people, however.

Most people over 18 years old need a financial and/or healthcare power of attorney at the very least; many people also need a will; and many people also need a trust AND will. Contact me for a complimentary consultation to discuss your needs.