Many residents in California tend to believe that a simple will is enough to transfer their assets to their loved ones. However, state-specific laws can sometimes lead to expensive surprises for heirs. Being aware of these legal pitfalls can help spare your family from a lengthy probate process while better protecting your assets.
Failing to fund your living trust
Creating a trust can be insufficient if you do not transfer titles for your real estate, property and financial accounts into its name. In California, assets left outside a trust exceeding the current threshold of $184,500 may still be forced into probate court. You can remedy this by properly funding your trust after signing and notarizing it or by creating a pour-over will.
Neglecting plans for potential incapacity
If you only plan for what happens after you die, your money and health may be at risk if you suddenly cannot think clearly or care for yourself. You can prepare for this by setting up an advance directive and a durable Power of Attorney (POA).
These documents let you choose trusted people to make medical and financial decisions for you without going to court for a conservatorship. Getting these protections early helps ensure that your wishes are followed if a sudden accident or illness leaves you incapacitated.
Ignoring digital assets
In addition to your physical assets, you also need to include clauses in your documents to cover your cryptocurrency, social media and cloud storage accounts. California’s Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) now allows executors to access and handle your digital accounts. Including these specific instructions in your will or trust helps you account for your tangible and virtual assets.
Safeguarding your legacy
Properly planning your estate begins with a careful review to ensure the right documents are in place. A lawyer can help you draft the paperwork you need while ensuring they comply with current state statutes. Taking action early can help you structure your estate plan to minimize conflict while maximizing the value passed down to your loved ones.
