People often ask me, “When is the right time to get my estate plan done?”  My response, “Yesterday.”

The fact of the matter is, we cannot predict when we are going to die. Planning early in life gives you the peace of mind that your assets are protected for your loved ones when you pass away.  This is true for those who are single or married, with children or without children, and young or old. Simply put, it is a myth that only the elderly or ailing need an estate plan.

Estate planning can ensure that real estate, financial accounts, and personal property, among other things, pass to beneficiaries without involvement of a probate court, which can be a very long, emotional, and expensive process.

A trust is generally defined as an arrangement where a person, called a trustee, holds assets for the benefit of one or more beneficiary. A specific type of trust, called a revocable trust, allows for you to be the initial trustee of your trust.  What this means is that you have the full and complete ability to control and direct how money and assets are dispersed during your lifetime while you are the trustee. The revocable nature of this specific trust allows you to make changes to the document during your lifetime.

Furthermore, if you have children under the age of 18 or plan to leave any assets to a minor child, a trust can hold these assets for the minor beneficiary until he or she reaches the age of majority.  Estate planning documents also allow you to assign guardians for your minor children in the event you pass away while your children are still minors.

There are a variety of estate planning tools that one can benefit from including revocable and irrevocable trusts, wills, special needs trusts, charitable remainder trusts, pet trusts, irrevocable life insurance trusts, powers of attorney, health care directives, and burial instructions. An analysis of your estate and your personal requirements is needed to determine the right documents for you. These documents can be drafted to your specific needs.

Rittu Kumar, Esq. is an estate planning attorney and Principal at Kumar Law (www.kumarlaw.net).  Ms. Kumar also practices in the areas of employment law, business litigation, and contract disputes and negotiations.  The foregoing is meant for informational purposes only and does not constitute legal advice or an attorney-client relationship.  Ms. Kumar can be reached at (323) 456-8657 or rkumar@kumarlaw.net.