California Estate Planning Blog

Many people believe that their estate plans will help their loved ones understand their wishes. While a well-executed plan can certainly achieve that goal, some people may make mistakes when creating their wills and other documents that result in difficulties for family members. As a result, it is wise to go over plans to ensure that no errors exist.

One issue that some individuals in California may not consider is needing to update their plan if they moved to the state from somewhere else. Some parties may have created a plan before moving, and they may think that it will still be valid after the move. However, laws regarding estate planning differ from state to state, and a plan created in one state may not be valid under the laws of another, which means it is important to update a plan after moving.

The start of a new year is often a time that people start assessing certain aspects of their lives. Though some people may not have gotten a jump-start on this assessment on New Year's Day, there is still plenty of time to consider ways to plan for the future. In fact, some California residents may be considering their wills and estate plans at this time.

Creating a will is an important step for any adult. Even if parties choose to move the majority of their assets into trusts to avoid probate or simply for additional asset protection, having a will is still vital. This document is the only place that allows a parent to name a guardian for any minor children, and it also allows individuals to appoint an executor for their estate.

It is fortunate that there are so many options available when it comes to estate planning. In particular, the versatility of trusts can help California residents ensure that their exact wishes are followed after their passing. For some individuals, the use of a testamentary trust could allow them that sense of security.

A testamentary trust goes into effect after a person's passing. If individuals have minor loved ones or loved ones with special needs, implementing a testamentary trust may be wise because it can allow assets to be distributed over a period of time and in accordance with specific instructions. As a result, a special needs loved one would be less likely to lose government benefits after receiving an inheritance, and family members not yet adults would have someone in charge of their inheritances until they come of age.

Not everyone gets along with their close family members. Some parents and children may become estranged, or siblings may have strained relationships that go beyond simple rivalry. As a result, when individuals create their wills and other estate planning documents, they may think about disinheriting those close family members.

Though California residents can decide what happens to their assets after their passing, it can be more difficult than some people think to disinherit family or to leave them less than the law affords. In many cases, if an heir believes that he or she should have received more, it is possible for that person to contest the will and fight for a greater inheritance. If individuals want to prevent that, they could include a "no contest" clause in the document, which would prevent a person from receiving any intended inheritance if he or she chooses to contest the will.