California Estate Planning: Top 3 Facts Every Resident Should Know
There are a lot of different aspects to be aware of for estate planning in California, but here are the top 3 facts:
1. Avoid probate to save your family time and money
Probate is just the name of the court that supervises the process of distributing a person’s assets after death. In California, probate can be lengthy (often 18–24 months) and expensive, with statutory fees for attorneys and executors based on the value of the estate (not just net worth).
Revocable living trusts are commonly used to avoid probate. By placing assets in a trust, you can pass them to beneficiaries without court involvement. Plus, trusts are private documents that don’t see the light of day - if drafted correctly.
2. If you don’t have an estate plan, California has a plan for you
California (and every other state) has a plan for you if you don’t have an estate plan in place. It determines who gets your stuff when you die, if you don’t draft documents otherwise. It’s called the intestacy statute.
If you have a spouse and kids, some of your assets will go to your spouse and some will go to your kids - maybe. It depends. Which of your relatives are alive? Who is considered a closest living relative? All of these will impact who gets what if you die without a will or a trust in California.
Estate planning must consider both separate and community property to ensure assets are distributed according to your wishes and legal standards.
3. Advance Healthcare Directives and Powers of Attorney Are Essential
Estate planning isn't just about what happens after you die—it's also about managing your affairs if you become incapacitated.
An Advance Healthcare Directive (or healthcare power of attorney) lets you specify medical preferences and name someone to make decisions for you.
A Durable Power of Attorney allows someone to manage your financial matters if you can't do so yourself.
All aspects of estate planning should be determined by YOU in conjunction with your lawyer. Typically, a comprehensive estate plan includes a trust, will, financial power of attorney (also called a durable power of attorney), and healthcare power of attorney (also called advanced healthcare directive). Contact me for a complimentary consultation.