California Estate Lawyers Giving You the Representation You Need for Health Care Directives

Planning for your health is an essential part of aging. No one likes to think about doctors’ visits, hospital stays, or other age-related medical issues, but it’s a necessary part of growing old. Taking your health and well-being into your own hands is an empowering act. It allows a person to take charge of their health and ensure they will receive the kind of medical care they want. Part of this planning is a health care directive.

A health care directive outlines all of your wishes regarding your medical care if you cannot communicate your wishes adequately. Having an established health care directive will remove some of the potential stress and concern of what steps will be taken regarding your health care if you cannot express your wishes. A vital part of establishing a health care directive is a HIPPA release. This will ensure any individuals tasked with seeing to your well-being have full access to all necessary medical documents.

What is a Health Care Directive in California?

A health care directive is also called an Advanced Health Care Directive, or AHCD. It is a document that outlines what you want to happen regarding your medical care if you cannot communicate these wishes yourself. This could be due to a variety of factors including but not limited to:

• Car Accident
• Coma
• Stroke
• Dementia
• Surgery

An AHCD establishes what steps you want or do not want taken regarding your care. This can include but is not necessarily limited to:

• Designating Medical Power of Attorney
• Designating a Primary Care Physician
• A Do Not Resuscitate Order
• Instructions Regarding Life-Saving Procedures
• Organ Donation Instructions

Medical power of attorney is a document that designates an individual to make medical decisions on your behalf. That individual will make any health care decisions for you per the wishes established in your advance health care directive. The AHCD are your written orders; the individual you designate with medical power of attorney will carry out those orders. Those orders can include the doctor you want to be in charge of your medical care, whether you wish life saving steps to be taken if you are critically injured, and other critical medical decisions.

Some individuals would like to be allowed to pass away naturally if they suffer a serious medical incident such as brain death, a traumatic accident, or more. They may not wish for their family members to go through the process of taking care of them if there is little or no chance of a full recovery. They may also not wish to live with a diminished quality of life if they are able to make a partial recovery. Other individuals would like the opportunity to try and recovery fully. If an individual has existing health care issues, they may want particular concerns considered. These are all issues which can be addressed by an AHCD.

An important document to include along with an AHCD is a HIPPAA Authorization. A HIPPAA Authorization will allow your medical power of attorney and primary care physician to have all of the necessary information available to them to best carry out your wishes.

What is a HIPAA Authorization in California?

HIPAA stands for Health Insurance Portability and Accountability Act. It is a law regulating patient privacy information regarding their medical records and other health information. It makes sure that only patients and authorized individuals have access to a person’s medical records. HIPAA ensures that only a person and the people they want to have access can read, review, and make decisions based on medical records and other health-related information.

A HIPAA Authorization is a document granting another person, hospital, or other people or entities access to your medical records. If you cannot grant authorization yourself, an extant HIPAA Authorization will give your medical power of attorney permission to read and review your medical records. Having an AHCD and granting medical power of attorney do not necessarily grant access to your records. A HIPAA Authorization is a step to ensure that the proper individuals can access the appropriate documents in an emergency. Doctors and hospitals take patient privacy laws seriously. In an emergency, having a designated power of attorney and AHCD may not be enough to ensure your wishes are carried out. This is because some doctors and hospitals may be hesitant to act without full access to your medical records. With a HIPAA Authorization, your medical power of attorney will be able to access all of your medical information and present it to doctors and hospitals. This can help ensure your wishes are carried out.

Many online documents allow an individual to establish their own AHCD in California. These documents may not take into account all potential aspects of being hospitalized. That includes a HIPAA Authorization. This is why if you are considering establishing an AHCD you must consult an experienced attorney.

What Should I Do if I Want to Establish an AHCD with a HIPAA Authorization in California?

Making sure your health concerns are established and your wishes are taken seriously is an important part of growing old. Planning for a possible medical emergency or end-of-life care is a complex task that involves multiple legal documents. If you or a loved one want to establish an AHCD with a HIPAA Authorization to ensure your instructions are followed, don’t hesitate to contact the attorneys at Cava & Faulkner at 9070 Elk Grove Blvd, Elk Grove, CA 95624.

The attorneys of Cava & Faulkner are highly experienced in estate planning and elder care. They know what hospitals and doctors will be looking for in order to follow a patient’s medical instructions. The attorneys of Cava and Faulkner will ensure all of the appropriate documents and authorizations are in order and on file if you or a loved one face a medical emergency. They know it’s best to be prepared for every possible situation and can help you or your loved one plan accordingly.

Peace of mind is invaluable as we grow old. Part of that peace of mind is knowing that your wishes for your health care will be followed if you are not able to communicate them. An AHDC with a HIPAA Authorization is vital to ensuring your wishes are carried out. If you or a loved one want to establish an AHCD with HIPAA Authorization, call the attorneys Cava & Faulkner today at 916-831-7565 or email them for a free consultation. Your peace of mind can begin today.

California Estate Lawyers Giving You the Representation You Need to Establish Power of Attorney Before Incapacitation

No one likes to think about incapacitation. Everyone wants to remain able-bodied and of sound mind through their golden years. Accidents can happen to anyone at any time though. The same is true regarding unforeseen medical issues. Any healthy, non-disabled adult can suddenly find themselves physically or mentally incapacitated. The possibility of this increases as people age and the potential for health-related problems rises.

This is why people must establish power of attorney as they age. Establishing power of attorney is an easy way to ensure that a person’s wishes will be followed if they are no longer able to communicate. It’s also a way to remove any potential concern regarding who might assume responsibility in the event you become incapacitated.

What is Power of Attorney in California?

Power of attorney is an agreement in which one person (called the principal under California law) grants another person (called an agent) the ability to make confident decisions on their behalf. Depending on the type of power of attorney, these decisions may include but are not necessarily limited to:

• Managing Finances
• Signing Contracts
• Paying Bills and Utilities
• Making Business Decisions
• Managing Health Benefits
• Making Healthcare Decisions

There are multiple types of power of attorney in California. When designating power of attorney, a principal can choose any arrangement to ensure their wishes will be followed. Some of the types of power of attorney under California law include but are not necessarily limited to:

• General Power of Attorney
• Limited Power of Attorney
• Durable Power of Attorney
• Medical Power of Attorney

A general power of attorney allows an individual to make broad decisions on another person’s behalf. A limited power of attorney grants the agent more limited abilities. Durable power of attorney is used specifically for cases of incapacitation. In other circumstances, power of attorney may end if the principal becomes incapacitated; durable power of attorney remains explicitly valid if the principal is incapacitated. Medical power of attorney designates the agent to make medical decisions regarding their well-being on behalf of the principal.

How Do I Designate Power of Attorney in California?

Anyone can grant another person power of attorney at any time. Some online forms allow a person to quickly and easily designate power of attorney. To grant someone power of attorney, only a few key requirements must be met:

• Both Parties Must be 18 or Older
• Both Parties Must be of Sound Mind
• The Agreement Must be Notarized or Signed by Two Witnesses

Under certain circumstances, there are unique stipulations that apply. For example, if you are granting someone power of attorney to make real estate decisions on your behalf, the agreement must be notarized. If you live in a nursing home or assisted living facility, the agreement must be witnessed by a patient advocate and the notary or two witnesses. Some other stipulations may apply based on the type of power of attorney.

Granting someone power of attorney is not a decision to be taken lightly. You will be allowing another person to make significant financial and healthcare decisions on your behalf. You want to ensure the agent is someone you trust with your finances and your future. You will also want to make sure the power of attorney is valid in all situations you want it to be valid in.

For example, if you specifically want your power of attorney to apply if you become incapacitated, this must be stipulated in the paperwork. Suppose you are injured in an accident or suffer a medical incident and become incapacitated but do not have a durable power of attorney. In that case, it may not be valid at the time you need it most. This is why, even though anyone can draft a power of attorney, it’s best to consult an experienced estate planning lawyer. This is especially true if you want your power of attorney to be effective if you become incapacitated. There are multiple factors to consider, including how long the power of attorney will last past your incapacitation and what decisions your agent will be able to make. This is especially true regarding health care decisions. An experienced attorney is vital to ensuring you designate the proper individual as agent and that your agent will have all of the powers and responsibilities you want them to take on.

What Should I Do if I Want to Grant Someone Power of Attorney in California?

Granting someone power of attorney is a significant decision. It could also be a deciding factor at a key moment in your life. This is especially true if you plan on granting power of attorney if you become incapacitated. Many individuals may not want to think about power of attorney because they might feel like it’s encouraging something terrible to happen. The truth is that granting power of attorney is like a form of insurance. No one buys car insurance wanting to get into an accident, but if it happens, you’re protected. The same is true with power of attorney. You must consider all legal concerns and plan accordingly. This is why it’s essential to consult an experienced lawyer.

If you or a loved one are considering granting power of attorney, don’t hesitate to contact the attorneys at Cava & Faulkner at 9070 Elk Grove Blvd, Elk Grove, CA 95624. The attorneys at Cava & Faulkner have years of experience in all types of estate planning, including power of attorney. They can assess your unique situation and help you determine what kind of power of attorney is best for you to grant. They’ll ensure all potential concerns are addressed and that any possible situation is planned for accordingly. With Cava & Faulkner, you can rest assured you’ll be in good hands if the need arises.

No one wants to think about potential incapacitation, but it’s best always to be prepared. Planning for an event doesn’t mean it will necessarily happen. If you or a loved one want to designate power of attorney, don’t hesitate to call or email the attorneys at Cava & Faulkner at 916-831-7565 for a free consultation.

What Is Legal Guardianship and How Does It Work in California?

In California, guardianship is a legal process that gives custody or authority over a child (or other person) to someone other than the child’s parents. Guardianship may include full custody and control of the child’s property if needed.

A formal petition must be filed and approved by the California court to become a guardian legally. In most guardianships, the responsibilities of the guardian could include:

• Full guardianship of a special needs person or a child.
• A guardianship over the person or the child’s “estate.”
• Or complete control over the person and their estate or holdings.

If you petition the court and it appoints you as a guardian for a child, you will then take over all the essential duties and obligations that caring for the person or child requires.

Admittedly, this is a crucial and dire responsibility, and it is essential that you clearly understand your duties and responsibilities as the child’s or person’s guardian. Any questions you may have should be directed to a skilled, experienced, and empathetic estate planning lawyer who is well-qualified to advise you in these matters legally.

That said, in California, as parents, you can nominate a guardian for your minor children (or special needs person or child) in a will or using an estate plan or a standalone legal document. By nominating the guardian, you have a chance to express your preference for who should take over the care of your children if they die or otherwise become incapacitated and unable to care for them properly. You should note that the Californian court typically honors the parents’ wishes as expressed in their will, etc. This is, of course, that the person nominated as guardian is willing, able, and deemed to be in the children’s best interest.

Under California law, two main types of guardianship can be addressed in an estate plan or will, these are:

• Guardianship of the person – This legal guardianship concerns the child’s physical well-being. The guardian usually has full custody of the child (or special needs person) and is responsible for their care, protection, health, education, etc.
• Guardianship of the estate—If a minor child or special needs person inherits property or assets and cannot manage them, a guardian may be appointed to manage these assets until the child reaches adulthood or for the person’s lifetime.

This can be the same person as the guardian of the person, or another more qualified person is necessary. The “guardian of the estate” is fully responsible for managing all the assets in the child’s or person’s best interest. This could include managing investments, property, and any income involved.

What Are Some Of the Legalities in Choosing a Guardian?

As stated, with the proper professional help, In California, you can nominate guardians for your children in your will. This nomination is a general guide to the court but is not always binding. As the child’s parents, the court will consider your nomination very seriously, but the court will decide what is ultimately in your child’s best interests.

Additionally, while naming a guardian, most parents consider establishing a special trust to manage any inheritance, assets, etc., their child may inherit or hold. A well-drafted trust can specify how the assets are distributed, under what circumstances, and when this will occur.

If you want a more focused approach to this issue, California law allows you, as the parents, to make a standalone guardianship nomination. This approach can be beneficial if you want to update or change your nomination without altering your whole will, etc.

This legal process is also helpful if you need to appoint a temporary guardian while undergoing a severe medical procedure or traveling without the child.

Just note that California guardianship laws can be complex, and whatever type of guardianship you are considering, the skilled, passionate, and knowledgeable help of an Elk Grove estate planning lawyer is mandatory.

What Could Happen If I Don’t Have a Guardian in Place?

In California, if you die or become incapacitated without a guardianship plan in place, the court will intervene, and they will appoint a guardian for your children. This legal process is usually lengthy, expensive, uncertain, and rarely the situation you would have wanted.

You can avoid this usually undesirable process by creating a guardianship plan that designates a family member or other trusted individual to care for your children that will ensure your wishes are honored and provide clarity for all involved parties, including the court.

Without clear instructions regarding who should care for your child, disagreements among family members almost always arise. This usually leads to potential disputes and legal battles and can even split family ties.

However, a well-drafted professional guardianship plan will minimize the risk of conflict and protect your child’s best interests.

How Can A Trust Attorney Help Me Through This Critical Legal Process?

Due to the vital importance of this legal issue, the help of a knowledgeable, compassionate, and experienced guardianship lawyer is critical in navigating the complexities of guardianship planning.

Your lawyers’ specialized knowledge and experience in estate and family law allow them to be invaluable advisors when drafting a guardianship that meets the legal requirements of California law and the highly personal wishes of you as the parents.

Some areas of the guardianship process that your lawyer will advise you on are:

• Full legal compliance – Your thorough, trusted guardianship lawyer will ensure the guardianship arrangement complies with all applicable California laws. This includes drafting all the necessary legal documents, filing court petitions, and representing your family during all the legal proceedings.
• Clearly articulating your parental wishes – This is critical to guardianship planning. It involves documenting your wishes regarding who should care for your children and how they should be raised. Your experienced guardianship lawyer will draft precise instructions within wills, estate plans, or standalone guardianship declarations to reflect these preferences accurately and succinctly.
• Preparing and vetting the guardian – This is no small task; electing a suitable guardian is paramount to your child’s future. Your lawyer will conduct due diligence on potential guardians, ensuring they are willing, honorable, and capable of carrying out this essential responsibility.
• Financial planning for your child’s future -The first task is immediate concern for your child’s physical, emotional, and educational well-being, but guardianship also encompasses financial stewardship. Your trust and guardianship lawyer has the expertise and knowledge to establish the proper financial tools to ensure your child’s economic future is sound.

Guardianship of your children is one of the most important decisions you must make; under complex California laws, you must have the best professional advice, guidance, and knowledge to make the wisest and most prudent decision possible.

I Need More Information On the Guardianship Of My Child; How Should I Proceed?

As a parent, the well-being and security of your children in unforeseen circumstances are one of your major concerns. In California, establishing guardianship for minor children is a critical step in this process, allowing you to designate a trusted family member, loved one, or other individual to look after your children if you cannot do so yourself.

However, you never want to leave your children’s future to mere chance. A qualified, compassionate, and experienced guardianship and special needs lawyer is necessary when establishing a guardianship plan that offers peace of mind and secures your children’s well-being.

The Elk Grove estate and special needs planning lawyers at Cava & Faulkner are well-versed, highly trained, and empathetic. They will always draft a sound plan and give your loved ones the care and support they need.

Call 916-831-7565 today for a free consultation. They will compassionately and expertly advise you on this critical decision.

What Is Revocable and Irrevocable Trust?

A revocable trust is also called a living trust or family trust. It is a more adaptable and flexible trust document that allows you to manage and control your assets while alive and then distribute them, per your wishes, after your death.

If you are the “grantor” (the person who creates the trust), you can modify, change, or revoke the trust at any time in your life if you are mentally competent.

Some of the critical parts of a revocable trust are:

• You have complete control – During your life, you have full control of your trust assets and can manage them in any way you wish.
• It usually avoids probate – When you die, the trust will distribute assets directly to beneficiaries, generally passing probate. Probate is costly and time-consuming and must go through the California courts.
• It keeps things private – Usually, the contents of a will or revocable trust aren’t public knowledge, so your and your family’s financial affairs remain private.
• It offers financial flexibility – you can add or remove the trust holdings, change beneficiaries, etc., at will.

Alternatively, once in place, an irrevocable trust cannot be changed, amended, or revoked without the consent of your heirs or family members. When you transfer assets into your irrevocable trust, you no longer have ownership or control over any trust assets.

However, this type of trust still has benefits, such as protecting assets or minimizing estate taxes.

Some primary benefits of an irrevocable trust are:

• Protection of your assets – If you don’t control them, your assets are generally shielded from creditors, legal judgments, etc. However, great care must be taken when using these assets, or they may lose this legal protection.
• Specific tax benefits – Transferring assets into an irrevocable trust usually reduces the overall taxable value of your estate, effectively lowering your tax liability.
• The trust is irreversible – You can only alter it under specific conditions, usually with the approval of beneficiaries or the California court.

Both types of trusts have benefits and liabilities. Because all financial situations differ, you must have the experienced, knowledgeable, and empathetic help of a California estate trust lawyer to assist in deciding which may be best for you and your heirs.

What Are Some Pros and Cons of a California Revocable Trust?

The main benefit of a revocable trust is often its flexibility. When you establish your trust, you still have the power to make changes, modify terms, or revoke it altogether while you’re alive. This adaptability is advantageous if you anticipate changes in your financial circumstances, family relationships, estate planning goals, etc.

For example, you may want to draft a revocable trust if you’re a parent and want to guarantee your minor children are financially taken care of in the event of your death.

You might ask, wouldn’t a simple will solve this issue? It might, but many times, people choose to set up a revocable trust to benefit from the ongoing management provided, which is usually time-consuming and requires a professional level of financial expertise.

However, when asset protection is a primary concern, an irrevocable trust may be a more suitable option.

Some Vital Information About an Irrevocable Trust?

In California, a key benefit of creating an irrevocable trust is lowering tax liability. By removing assets from your taxable estate, you will reduce your overall estate value, which is subject to federal estate taxes.

Additionally, when you transfer ownership of assets to an irrevocable trust, you could legally sound and robust protection that effectively protects your assets from potential creditors.

Finally, using an irrevocable trust will give you complete control over the distribution of assets to beneficiaries, heirs, and family members. It also dictates what assets to include and precisely when and how they should be distributed.

That said, altering the terms of an irrevocable trust can be legally challenging; once the trust is in place and circumstances change, you may have to petition the Californian court and the beneficiaries to change its terms.

To summarize, if you want to be sure you’re doing the right thing for yourself, your family, and their financial future, you must seek the compassionate professional guidance of a knowledgeable Elk Grove trust lawyer.

So, How Do I Know Which Type of Trust is Right for Me and My Family?

All financial and familial situations differ, and deciding what type of trust is right for you will depend totally on your situation. Usually, though, revocable trusts are more common due to their overall flexibility and possible tax benefits.

For example, your experienced and well-versed estate planning lawyer may advise a revocable trust if:

• You want to avoid probate and keep your family’s financial matters private.
• You own real estate in different states and want to avoid probate in a state other than where you live
• You may feel that your plans for your assets may change over time and want the flexibility to alter your plans, beneficiaries, etc.
• You want to use and manage your assets without the California court’s approval after your trust is drafted.
• The total value of your estate is less than the federal amount needed for estate tax exemption

The above are a few common reasons your lawyer may advise you to use a revocable trust. Alternatively, you may wish to use an irrevocable trust if:

• You have high-value assets that exceed the federal estate tax exemption, and you want to avoid estate taxes
• You understand and are comfortable giving up the use and control of your assets after your trust is established.
• You have a distinct need to protect your assets from possible creditors. Because any assets in an irrevocable trust are no longer available to you, they could receive considerable protection from creditors, lawsuits, etc.

You must note that all types of trusts are highly detailed in what they can and cannot do. Therefore, the only prudent and confident means to decide what’s best for your unique situation is to discuss the matter in detail with an experienced, thorough estate planning lawyer passionate about doing what’s suitable for you, your family, and your personal goals.

I Need Expert Advice on Establishing a Trust; How Should I Proceed?

Choosing a type of trust for an efficient and sound estate plan, whether revocable, irrevocable, or another type, is totally dependent on your unique personal circumstances, financial goals, and the need for continued control of your assets.

Each type of trust can be legally complex, and each has its own merits and drawbacks. The lawfully correct choice varies significantly depending on your circumstances.

That understood, as a Californian, you must have expert, in-depth, and empathetic personal legal guidance tailored to your unique situation.

The Elk Grove-based law offices of Cava and Faulkner have a long, expert, and successful history of drafting and managing all types of estate and incapacity planning (and more) for clients and their families throughout the state.

Call them today at 916-831-7565, and they will work diligently to help you navigate the complexities of trusts and ensure your legacy and family are protected.

What Is Asset Protection and Can It Help Me and My Family?

A strategic and professionally drafted estate plan is critical for high-net-worth individuals, especially in California. California’s estate plan and tax laws are complex and constantly evolving.

The overall goal of your California estate planning lawyer is to guide you in creating a very comprehensive plan that ensures your wealth is strictly managed and distributed according to your wishes. This must also be done while minimizing your tax liabilities and avoiding the inevitable legal pitfalls.

First, you must know that California’s estate laws have targeted provisions that significantly impact high-net-worth individuals and their families.

These special provisions can affect many aspects of your estate plan. For example, state real estate transfer and tax laws can substantially alter your plan, especially if you have moved to the state. So, having a skilled, experienced, and knowledgeable estate planning lawyer who understands these nuances is vital for effective high-net-worth estate planning.

Why I Need a Strategic and Tailored Approach to My High Net Worth Estate Plan?

High-net-worth estate plans are different and must be professionally designed with these differences in mind. Although some factors are alike if you do have substantial assets, a tailored approach to estate planning is necessary.

Just a few of the primary reasons you should work with a professional, experienced, and thorough estate planning lawyer are:

• The complexity of the structure of assets – High-asset estate plans have diverse, complex portfolios that include investments, real estate, business interests and ownership, international assets, and more. A structured and detailed plan will address all the specific legal and tax implications involved.
• Family interaction and succession planning – Family dynamics are often challenging in high-net-worth estates, and there is a comprehensive need for strategic succession planning. Your professionally drafted plan will address these issues and ensure the efficient distribution of assets.
• Regulatory Compliance – Families and people with high net worth will face more complex regulatory requirements. Your plan must comply with all California laws and regulations and avoid legal complications.
• Considerations about your privacy—These high-asset estate plans always require significant privacy. Well-drafted, professionally drafted plans will always include measures to maintain that privacy.

The complexity and scope of your high-net-worth estate plan demand a professional approach to estate planning that ensures effective management, tax efficiency, legal compliance, and fulfillment of your personal and family goals.

What Are Some Key Parts of Planning a High-Net-Worth Estate Plan?

Remembering that no two high net worth estate plans are the same, there are a variety of tools utilized in their formation;

• Wills and trusts – These are essential tools that assure the proper distribution of your assets. Establishing revocable and irrevocable trusts, which offer flexibility and significant tax advantages, is often beneficial.
• Effective tax planning – California taxes, added to your federal estate taxes, can grab a substantial portion of your estate. This is why highly strategic planning is necessary to minimize these debits.
• Asset Protection – Protecting assets from creditors, lawsuits, and other risks is critical for high-asset individuals. Proper ownership structuring and the use of trusts offer substantial protections.
• The succession of your business interests – If you have business interests, own a family business, etc., planning for succession is critical to its ongoing success and your family.
• Life Insurance – This can play a significant role in your estate plan by providing liquidity for estate taxes and supporting your family and dependents.

Your thorough, well-versed, and knowledgeable estate planning lawyer will address all these concerns. By doing so, they will effectively mitigate the negative impact of California’s laws on your estate plan, protect your legacy, and ensure your family and beneficiaries have what you wish them to have after you’re gone.

How Can an Effective Estate Plan Mitigate My Taxes In a High Net Worth Situation?

One of the main questions that arises when designing a high-net-worth estate plan is how to reduce or delay taxes. This fact always holds for high-net-worth families whose estate plans have a higher tax burden due to the amount of assets they hold and the accrued wealth.

The simple legal answer to this question is proper, professional estate planning.

A well-versed, experienced, high-net-worth estate planning lawyer may use myriad strategies that suit your unique needs.

That said, however, there are some common strategies that your lawyer could employ that will effectively mitigate the tax burden you may be facing, such as:

• The use of Irrevocable trusts such as Grantor-Retained Annuity Trusts (or GRATs) – A “gifting trust” may allow you to transfer high-yielding or rapidly appreciating assets into a trust for your future heirs without triggering the gift tax.
• Family Limited Partnerships (FLPs) – These are sound options for families with high net worth or blended families. FLPs allow wealth to move from generation to generation while reducing the estate and gift tax.
• Revocable Living Trusts – This type of trust is specifically designed to avoid probate after the death of a loved one. The trusts are created during your lifetime and can be altered as you see fit. This trust will let you precisely dictate how assets are distributed following your death.

Your detailed, organized, and experienced estate planning lawyer may also use other legal tools like education, IRA stretch, asset protection trusts, and more.

However, as stated, every family and asset base differs, and this demands an estate planning law team that is well-versed and familiar with a wide variety of trust strategies; it is not a task that should be attempted without professional help.

I Need More Information About a High-Net-Worth Estate Plan; How Should I Proceed?

Both federal and California tax laws are constantly evolving, and if you’re a high-net-worth individual, you must be prepared for as many of the financial and tax twists and turns that may lie ahead. The highly adept and experienced estate planning lawyers at Cava & Faulkner consistently stay informed on all the latest legal changes and passionately help all their clients modify and draft their estate plans according to their particular needs.

They will use their expertise to stay ahead of negative contingencies and, especially in high-net-worth estate plans, plan for the vast array of financial and personal contingencies that may occur.

Call them today at 916-831-7565 for a complimentary consultation on your needs. They will passionately, empathetically, and professionally work to ensure the security of your finances and your family’s future.

How Can I Make Sure My Digital Assets Are Included in My Estate Plan?

In today’s world of technology, estate planning has taken a step beyond the physical into the fourth dimension of the online world. Many people store a significant portion of their net worth in digital servers or “the cloud.” The Revised Uniform Fiduciary Access to Digital Assets Act, adopted in California in 2016, covers important considerations regarding online access after someone has passed away. By working with the meticulous estate planning lawyers at Cava & Faulkner, you can rest assured that all areas and dimensions of your legacy will be cared for.

What Are Digital Assets and Where Are They Stored?

Computers store information using numbers, specifically the digits “0” and “1.” A “digital asset” is any asset that is stored using digits or “digitally.” Such assets can hold financial worth or be solely of emotional value to the owner; these can include the following:

• Bank accounts
• Cryptocurrencies
• Digital wallets
• Brokerage accounts
• Subscriptions (such as Netflix or Amazon Prime)
• Photos
• Cooking recipes
• Online or PDF documents
• Music
• Email accounts
• Social media accounts
• Rewards programs
• Videos
• Digital Art

In some cases, assets may have more than one component. For example, an online bank account where you review and access your money is a digital asset. Still, funds are considered physical assets if the bank maintains physical locations where tangible money can be withdrawn. In the case of cryptocurrency, this is solely a digital asset, as it can never be physically touched or held; it only exists in the world of computers.

How Can I Include Digital Assets in My Estate Plan?

By following these steps, you can ensure all your digital assets are securely included in your estate plan and will pass smoothly to your beneficiaries.

• Make a list: Review all the important online accounts you manage and list them out, including their usernames and passwords. Make sure you keep this document in a secure location.
• Consult a lawyer: Discuss your options with the experienced estate planning attorneys at Cava & Faulkner. They can help you decide how you would like to pass on your legacy, whether in a trust or your will.
• Choose a digital executor: This person will act to carry out your wishes as they relate to your online assets. The executor should be someone you trust and, ideally, someone adept at computers. It may or may not be the same person assigned to handle your general affairs.
• Complete your documents: With the help of your California estate planning lawyer, have the documents drawn up and officially signed by witnesses so they are legally sound.
• Store your documents safely: Place your estate planning documents and account information in a secure location. Make sure your digital executor knows where they are and has access.
• Talk to your family: Inform the key family members named in the will of your estate plan and where it is being securely stored so they can access it in a time of need.
• Regularly review your plan: Digital assets change fast. Estate planning is typically reviewed every three to five years. You may wish to monitor your digital assets more regularly as they are prone to rapid change. As needed, get your plan updated to reflect new changes.

What Can Happen to My Digital Assets If I Don’t Include Them in My Will?

If you fail to mention your digital assets in your will, you open your family to legal disputes and potentially problematic court processes. Without a will, your assets must be investigated, listed by the court, and assigned a beneficiary according to the legal priority of heirs, covered in California Probate Code § 6401–6402. When there are no clear instructions on accessing your accounts, some social media platforms will not allow access to individuals other than the owner, potentially causing money and memories to be lost forever.

How Can I Avoid Complications When Bequeathing Digital Assets?

Many people are unaware that due to the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), the settings regarding legacy account ownership on the online service or tool take precedence over your will. For example, Facebook offers the option of entering a “Legacy Contact” to manage your account after death. If you designate your daughter in your Facebook account and designate your son in your will by mistake, your daughter will be the one legally granted access, according to RUFADAA. To keep questions or disputes out of the picture, ensuring your estate planning documents align with your online account preferences is a good idea. This organization mimics how trust documents are followed. If a trust document specifies beneficiaries and a trustee and the will does not name the same individuals, the trust is taken as the senior document and considered valid within itself.

Should I Include My Passwords in My Will?

No. A will becomes a public document and should not include sensitive information that unauthorized persons could use to access your accounts. Instead, create a separate document or use a password manager to store all your information privately.

Will My Digital Executor Be Able to Access All My Accounts?

Your digital executor can access your accounts if you leave all the information they need. The information they need includes the following:

• User IDs
• Passwords
• The email address and phone number used for 2-factor authentication
• Security questions and answers

If you do not leave all the information, your executor could face technical issues, including privacy laws, encryption, or platform terms of service. Platform terms of service are upheld by RUFADAA.

Make Your Digital Assets Part of Your Legacy with Cava & Faulkner

Your legacy, memories, art, and creativity deserve to be passed down, not forgotten. In a fast-paced world, the expert team at Cava & Faulkner stays on top of current laws affecting your digital assets and estate planning. With our Family Wealth VIP Membership Program, your documents will be updated annually to remain on the cutting edge of digital law and give you peace of mind that no matter what happens, your loved ones will be cared for. If you have questions or want to learn more about including digital assets in your estate plan, contact us for a free consultation. Call us at 916-831-7565 today to schedule.