Creating an estate plan is a crucial step in protecting your assets, your loved ones, and your legacy. But completing your plan is not the end of the process. Life changes, and so should your estate documents. Failing to review and update your plan after major life events can lead to unintended consequences, delays in the administration of your estate, or even conflict among family members.
For California residents, where probate can be time-consuming and costly, keeping your estate plan current is especially important. Here are five common life events that should prompt you to review your estate plan with a qualified California attorney.
Marriage or divorce
A change in marital status is one of the most significant reasons to update your estate plan. Whether you are getting married or going through a divorce, your legal relationships change in ways that affect how your estate is handled.
If you get married, you may wish to include your spouse in your will or trust, change beneficiary designations, or appoint them to make decisions on your behalf through a durable power of attorney or advance health care directive.
If you divorce, it is equally important to remove your former spouse from your estate documents. California law may automatically revoke certain provisions in favor of a former spouse, but not all documents are affected. An updated estate plan ensures that your current wishes are clearly documented and legally enforceable.
The birth or adoption of a child
Welcoming a new child into your family brings new responsibilities. Your estate plan should clearly name a guardian to care for your child if you pass away or become incapacitated. This is especially important in California, where guardianship must be approved by the court, and a written nomination carries significant legal weight.
You may also want to create or revise a trust to manage assets for your child until they reach an appropriate age. Without proper planning, your child could inherit assets outright at age 18, which may not align with your intentions.
A significant change in financial circumstances
An inheritance, the purchase of real estate, the sale of a business, or any major financial event should prompt an estate plan review. These events can affect how your assets are distributed, your potential estate tax exposure, and whether you may benefit from additional planning tools such as a revocable living trust or irrevocable trust.
In California, many residents use living trusts to avoid probate, which can be lengthy and expensive. If you acquire new assets and do not transfer them into your trust, those assets may still be subject to probate.
Changes in relationships or family dynamics
Sometimes relationships evolve in ways that make you reconsider earlier choices. You may have named a sibling, friend, or adult child as trustee or health care agent, but circumstances may have changed. They may no longer be available, capable, or aligned with your values.
You may also experience changes in family dynamics, such as a reconciliation, estrangement, or the formation of a blended family. Reviewing your estate plan ensures it reflects your current relationships and reduces the risk of conflict or legal disputes after your death.
Changes in California law
Laws affecting estate planning in California, such as community property rules, probate thresholds, or Medi-Cal recovery regulations, can change over time. Federal tax laws also shift, affecting how your estate is taxed and administered.
If your assets are not titled in a trust, your family could face unnecessary court involvement. Regular reviews with a California-based estate planning attorney ensure your plan complies with current laws and still meets your needs.
Final thoughts
An outdated estate plan can create confusion, conflict, and legal complications for your loved ones. By reviewing your plan after major life events, you ensure it continues to reflect your current circumstances, relationships, and goals.
If you have experienced any of these changes, or if it has simply been a few years, it may be time to revisit your plan.
To schedule a free consultation and ensure your estate plan is up to date and legally sound in California, contact DiDuca Ellingson, APC at (530) 343-3454 or visit diducalaw.com.