As we have mentioned on previous occasions, there is always a plan for what will happen to an individual's assets after their passing. However, if the individual did not dictate through comprehensive estate planning what he or she would like to happen to their assets after passing on, then the state's plan will be put into place.
The state does not take into account the legacy an individual would like to leave, and the state does not take into account the quality of all relationships an individual maintained. This means that in many instances, if an individual does not specify what he or she wishes to happen to their assets at the time of their passing, the fate of those assets and the heirs of those assets could greatly misalign with an individual's wishes.
As we have also previously touched on, divorce is a very pertinent example of why estate planning is crucial. At present, almost half of all marriages in California and the rest of the country will end in divorce. In many instances, a couple has children prior to divorcing. Further, many individuals will go on to remarry a new spouse and have children with them. It is also not unusual for the second spouse to bring children from a previous relationship into the new marriage. There are scores of blended families in Los Angeles. In fact, blended families are increasingly becoming the norm rather than the exception in today's society.
Accordingly, comprehensive estate planning can be invaluable when an individual contemplates the high rate of divorce. By utilizing an asset protection trust, also sometimes referred to as a spendthrift trust, the settlor can protect their property from divorce, and other life happenings like bankruptcy or a lawsuit. Comprehensive estate planning can also take matters of asset distribution in a blended family into consideration after an individual passes on through a variety of manners.
There are many situations that estate planning can be tailored to address. It is not unusual to have complicated relationships in our lives and our families. Estate planning can ensure that an individual leaves their legacy with the people that were most important and beloved in that individual's lifetime.