Estate planning can feel overwhelming, and it’s easy to put off. But with the right guidance, the process can be simpler, smoother, and much less daunting. As an estate planning attorney, I’m here to help Californians avoid common mistakes and make thoughtful decisions to protect their families and assets. This article covers some of the most frequent questions I receive, including:
- How often you should review or update your estate plan in California.
- How to protect your assets from the estate tax and the costs and complications of probate.
- How to avoid common mistakes and choose the right executor for your estate plan.
1. What Experience Do You Have With Estate Planning In California?
It’s natural to want to know about our experience before you entrust us with your estate planning needs. After all, we’ll be working together on securing your legacy and protecting your family’s future.
As an estate planning attorney, I’ve had the privilege of helping families from all walks of life. My experience spans a wide range of financial situations, from families of considerable wealth to those managing modest estates. I’ve helped clients handle a variety of specific needs, including:
- Special Needs Beneficiaries: Crafting plans that protect and provide for loved ones with special needs.
- Minor Beneficiaries: Ensuring the financial stability and protection of young beneficiaries.
- Pet Beneficiaries: Arranging for the continued care of beloved pets.
- Complex Family Dynamics: Working with single individuals, married couples, blended families, and non-traditional relationships.
Based in Orange County, I primarily work with middle-class families from Orange and Los Angeles counties. Whether clients need a comprehensive estate plan or assistance with trust administration after a loved one’s passing, I’m here to help identify the best approach for their unique circumstances.
For some, this means creating essential documents to support their family’s future; for others, it’s navigating conflicts, trust administration, or issues that arise when someone becomes incapacitated. Whatever your situation may be, my goal is to make estate planning as seamless and straightforward as possible, providing you with peace of mind and confidence in your plans.
2. How Often Should I Review Or Update My Estate Plan?
Keeping your estate plan up to date is crucial, and the best approach is to review it anytime there’s a major life change or shift in your financial circumstances, relationships, or priorities. Here are some situations that should prompt you to revisit your plan:
1. Significant Life Events
Events like marriage, divorce, the birth of a child, or the passing of a loved one can all impact your estate plan. For instance, if you get married or divorced, or if a close family member dies, it’s a good idea to check that your plan still reflects your current relationships and responsibilities. This is particularly important when getting married or with the birth (or adoption) of a child. If you do not update your estate plan at that time, the law provides for omitted spouses or children to appeal to the court for an equal share of your estate, which may not be what you intend. So make sure to review your plan when there are significant changes and consult with a lawyer if you’re not certain if you need to take action (or what action you need to take to make your wishes effective).
2. Changes In Relationships
If there’s been a family disagreement or a change in your relationship with someone you’ve named in your estate plan, pull out the document and confirm that this person is still the right choice. While it’s natural for relationships to go through ups and downs, a serious change may mean it’s time to make an update.
3. Financial Changes
If you’ve recently inherited money, received a large financial windfall, or undergone a major shift in assets, consulting an estate planning attorney or tax professional is often necessary to make sure your estate plan aligns with your new financial situation. This might mean adjusting trusts, beneficiary designations, or tax planning elements.
4. Annual Quick Review
Once a year, it’s a good idea to take a few minutes to look over your estate plan. Confirm that the people you’ve named in various roles are still appropriate and that the assets are directed where you want them. Sometimes, people are surprised to find they’ve named someone they no longer have a close relationship with or someone who is no longer the best choice.
5. Comprehensive Review Every Three To Five Years
Every few years, take a more thorough look. Many professionals offer free consultations, and a quick review by an attorney can confirm that your plan is up-to-date and complies with any new laws that might impact your goals.
6. Shifts In Your Goals
Sometimes, your goals may change over time. For example, you might have initially focused on funding your grandchildren’s education, but if they’ve all graduated, you may want to redirect those assets toward a different purpose. Anytime your priorities for your legacy shift, it’s wise to ensure your estate plan reflects these new objectives.
Regular updates to your estate plan allow you to stay in control of your legacy, making sure it truly aligns with your current relationships, finances, and goals.
Attorney Rebecca Sommer is a talented Orange County estate planning lawyer who has helped countless families throughout Southern California navigate the estate planning process. Her previous experience working with financial planners and her Certificate in Financial Planning give attorney Sommer valuable insights into estate plan optimization, which she is enthusiastic about passing on in articles like these.
Is your estate plan error-free and up-to-date? To get started planning your estate, contact Rebecca Sommer today to schedule an initial consultation.
3. Can An Attorney Help Me Protect My Assets From Estate Inheritance Taxes In Orange County?
A well-crafted estate plan goes beyond minimizing estate taxes; it considers multiple tax types that can impact your legacy. While estate taxes get a lot of attention—and it’s easy to assume they’re the primary tax concern—many people don’t realize that estate taxes only apply to high-value estates due to today’s high exemption levels. Unless you have a significant net worth, estate taxes may not be the biggest issue.
However, there are other taxes that could impact your estate and your beneficiaries, such as:
- Capital Gains Taxes
- Income Taxes
- California Property Taxes (Proposition 19)
When working with an estate planning attorney, it’s essential to ensure they consider these additional taxes, not just estate taxes. A strong estate plan should address these tax issues holistically, either through your attorney’s expertise or in collaboration with financial and tax professionals. This way, you won’t need to bridge communication gaps between multiple advisors, and you’ll have a streamlined approach to tax planning.
Ultimately, a well-designed estate plan helps ensure that your taxes are minimized to the fullest extent possible while aligning with your overall goals for your legacy.
4. What Are The Biggest Mistakes People Make With Estate Planning In Orange County, CA?
When it comes to estate planning, there are two major pitfalls that people often fall into:
1. Failing To Create An Estate Plan At All
It might sound obvious, but one of the biggest mistakes people make is simply not creating an estate plan. Many people delay planning, thinking they have more time or that it’s something they’ll get to “later.” Unfortunately, life doesn’t always give us the luxury of time. For example, I recently consulted on a case where a young man passed away unexpectedly, leaving only a modest estate: part of a small home, a couple of cars, and some small bank accounts. However, because he hadn’t done any planning, nearly all of these assets will be consumed by probate costs and legal fees.
This situation could have been entirely avoidable. Even with a small estate, planning ahead could have saved tens of thousands of dollars—a significant amount, especially in modest estates. Putting off estate planning doesn’t just mean additional stress and costs for your loved ones; it can mean the difference between protecting or losing assets that you’ve worked hard to build.
2. Relying On Quick, DIY Estate Planning Forms
The second big mistake people make is using quick, fill-in-the-blank estate planning forms without investing the time to truly understand their plan. These online tools or templates can seem convenient, and they’re often marketed as easy, “one-size-fits-all” solutions. However, estate planning is about more than just filling out a form in 20 minutes—it requires thoughtful consideration of your unique situation, goals, and family dynamics.
If you’re doing estate planning on your own, it’s crucial to research each aspect of your plan: how assets will be distributed, who will handle your finances if you’re incapacitated, how taxes will impact your estate, and so forth. Each of these areas can have a big impact, and making decisions without fully understanding the implications can lead to unintended outcomes that leave your family unprotected.
If you decide to use a template or a quick online form, it’s vital to do your due diligence. Estate planning is more than just completing paperwork; it’s about ensuring that your wishes are honored, your family is protected, and your legacy is secured. Taking only a few minutes to prepare such an important document is likely to leave gaps, and those gaps can create hardships for your loved ones in the long run.
5. How Do I Choose The Right Trustee Or Executor For My Estate?
Selecting an executor or trustee is a critical decision, as this person will be responsible for carrying out your wishes and managing your assets. Ideally, this is someone you trust deeply, but if you’re uncertain or lack a trustworthy option among friends or family, consider hiring a professional fiduciary who specializes in estate management.
If you’re deciding among family or friends, here are some helpful criteria to keep in mind:
1. Location, Location, Location…
Proximity matters. If you own a home or other physical assets, the executor will need to manage, secure, and eventually distribute these items. Choosing someone nearby can make it much easier for them to handle tasks like securing the property, cleaning out personal belongings, and addressing other logistical needs without undue burden.
2. Type-A Organizational Skills
The executor’s role involves significant paperwork and coordination with professionals. Consider who among your trusted contacts is best at organization and logistics. This person will need to contact various institutions—from credit card companies (to close accounts and prevent fraud) to tax professionals (to file your final returns). Having someone who can handle detailed work and complex coordination can help the process go smoothly.
3. Deep 1-1 Understanding
This person will be responsible for distributing your assets according to your wishes. For example, if your trust allows for discretionary spending on a beneficiary for health, education, or support before a certain age or milestone, it’s ideal to choose someone who knows you well enough to make decisions aligned with your values and goals for your loved ones.
If you find that no one in your circle fits these criteria comfortably, a professional fiduciary might be the best option. A professional brings experience in managing estates, a track record you can review, and the objectivity to handle complex situations efficiently while respecting your instructions.
In the end, choosing someone who can fulfill these responsibilities with care and respect for your wishes will make all the difference in safeguarding your legacy and supporting your loved ones.
Have More Questions? Ready To Get Started?
For a chance to learn more about Estate Planning In Orange County, CA, a free initial consultation is your chance to get personalized answers. Get the information and solutions you are seeking by calling (657) 571-1241 today.
Attorney Rebecca Sommer is a talented Orange County estate planning lawyer who has helped countless families throughout Southern California navigate the estate planning process. Her previous experience working with financial planners and her Certificate in Financial Planning give attorney Sommer valuable insights into estate plan optimization, which she is enthusiastic about passing on in articles like these.
Is your estate plan error-free and up-to-date? To get started planning your estate, contact Rebecca Sommer today to schedule an initial consultation.
