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Why Every California Family Needs an Estate Plan

When you picture estate planning, you may think of wealthy families and boundless assets. But you don’t need millions in the bank to consider estate planning. It’s something that every family needs, as failure to properly plan could create a massive headache for your descendants.

What Estate Planning Actually Means

Simply put, estate planning is the process of protecting and managing your assets in the event you become incapacitated or pass away.

Whether you own multiple properties, a family home, or a car and a few valuables, estate planning ensures everything goes where you want it to go.

Why Estate Planning Is Important for Families

California has a very complicated probate system. It can take many months and even years for cases to go through the state’s probate court. The larger and more complicated the estate, the longer that process becomes.

Estate planning removes most of that, reducing the time it takes to transfer those assets.

It also protects children, ensuring custody goes to the right person and they are covered financially.

What Happens If You Die Without an Estate Plan in California?

Many assume that if they pass away without a proper estate plan, the state will claim their assets.

That’s not the case, but it does start a very complicated and lengthy process.

If an individual dies without a will, the state’s intestate succession laws determine how their assets are distributed. For example, if the deceased is survived by a spouse, the law favors them and their children, followed by parents, siblings, and grandparents.

It gets more complicated if the individual isn’t married.

For example, let’s say that you don’t have children and have been with your partner for 20 years. You then pass away without a will.

You spent a large portion of your life with that person, and it makes sense that they could claim your assets. However, as you weren’t married, your partner is not automatically entitled to your assets, and the assets are more likely to transfer to surviving parents or siblings.

Your partner can still make a claim of joint ownership and will receive anything they jointly own, but without estate planning, things can get very messy.

Key Components of a Basic Estate Plan

An estate plan is much more than just a will. A will is a key element, but it’s just one piece of the puzzle.

A comprehensive estate plan may include:

A Will

Your will covers everything related to your assets and valuables. It details who you want to receive your assets when those assets are not covered by separate documents.

A Trust

There are a couple of types of trust. Both include a trustee who manages the trust and a beneficiary who receives the assets:

Revocable Living Trust: A trust that you can alter and amend at any time.
Irrevocable Trust: A trust that is much more difficult to change.

The trust determines who receives specific assets following death or incapacity.

Guardianship Designations

Guardianship designation is essential if you have minor children. It determines who cares for your children after your death. Without it, the courts make that decision.

Powers of Attorney and Healthcare Directives

With a power of attorney, you designate an individual to manage your financial affairs when you’re no longer able. Healthcare directives describe your medical wishes—such as whether you want to be kept on life support—when you can’t communicate them yourself.

When You Should Update Your Estate Plan

You should change your estate plan every few years or after a major life event, such as the birth/adoption of a child, a divorce, relocation, or a marriage. You should also change your estate plan if a key trustee or beneficiary passes away, or if your financial situation changes (new property purchases, businesses, or a significant change in your wealth).

Common Estate Planning Mistakes to Avoid

Failing to create an estate plan is one of the biggest mistakes you can make, but even if you go through with it, there are still some pitfalls to avoid:

Doing Everything Yourself: The more assets you have, the more complicated your estate plan becomes. An attorney can help you through this process and ensure everything is correct and all key aspects are covered. If you go it alone, you may overlook something or make a costly mistake.
Leaving it too Late: Create an estate plan when you’re fit and able. You don’t need to be old, nor do you need to have health problems. In fact, if your health is failing and you’re vulnerable, there’s a higher chance that someone will take advantage of you and sway your decisions.
Choosing the Wrong Trustees: The trustees need to work with the beneficiaries. They should have a good relationship. More importantly, they should be competent and trustworthy. So, choose someone you trust and someone who has a good relationship with the beneficiary. If that changes and they fall out, consider changing the trust.
Not Updating Your Estate Plan: An estate plan is not a one-and-done thing. Circumstances change. People pass away. You buy/sell property, close businesses, and get divorced and remarried. Always change your estate plan after major changes in your life and financial situation.

How to Get Started With an Estate Plan

Get in touch with an attorney who specializes in estate planning to get started with this process. At County Law Center, we offer various estate planning services, including wills, living trusts, powers of attorney, and healthcare directives—everything you need for a comprehensive estate plan.