Estate Planning Resolutions For California Residents In The New Year

In this article, you can discover…

• Why January is often an optimal time to begin or update your estate plans.
• How recent life changes might impact your estate plans.
• Steps to ensure your plans truly reflect your relationships, goals, and priorities.

Why Is January One Of The Best Times Of Year To Start Or Update An Estate Plan?

One reason that January is often an optimal time to start or update estate plans is that you have likely just seen your loved ones. Often, when you’re talking with loved ones, you learn more about them, their needs, and what is going on in their life. This can give you some ideas about how you may want to distribute assets someday, and to whom.

These conversations with sons, daughters, nieces, and nephews can also give you a good idea of who might make an ideal medical power of attorney, for example, to make healthcare decisions for you should you become incapacitated.

In the New Year, it’s common to have resolutions and an abundance of energy, recent meaningful conversations fresh in your mind, and some ideas about changes you’d like to make. Why not direct some of that energy towards estate planning?

How Do Recent Life Changes Like Marriage, Divorce, Births, Or Losses Affect An Existing Estate Plan?

It’s a good idea to review and possibly update your estate plans whenever there’s a birth, death, marriage, or divorce. It’s common to have grandchildren come along and (as a doting grandparent) want to include them, but delay or forget to update your plan so they are included. In that case, once you pass away intentions don’t count and the grandchildren do not receive what you intended.

Another example of a major life change that can have an impact on your intentions is in the event of marriage. If you fail to update your estate plans after a new marriage, doctrines within the law apply to allow your new spouse to receive an inheritance through the omitted spouse doctrine. However, this adds unnecessary expense and complication that can be avoided if your estate plans are updated when this major life change happens.

If you or your family have faced a major life change recently, sit down with an estate planning lawyer. Explain what has changed and what you would like to accomplish, and let them see whether your existing documents align with your intentions. If you need to update your plans based on those life changes, you can do so quickly and effectively.

How Can I Make Sure My Estate Plan Reflects My Current Family Relationships And Priorities?

It’s a good idea to get into the habit of doing an annual, informal review of your estate plans. Take five or ten minutes at the start of each year to check your plans and clarify to yourself who is getting what, who is named in key roles, who you like, and who you trust. This can be done on your own, at no cost.

Every three to five years, I would suggest having an estate planning attorney review your documents to make sure they are up-to-date with current laws.

Laws don’t change dramatically very often, but changes to tax laws or laws governing Supplemental Security Income (SSI) may impact your estate plans and intended beneficiaries. These more formal reviews ensure your plans are aligned with the law and can benefit your loved ones to the greatest extent possible.

How Do I Choose The Right Estate Planning Attorney For My Goals And Family Situation?

It is very important to find an estate planning attorney with whom you can communicate well. If you have communication problems, can’t understand them, or they can’t understand you, that’s probably a sign that this is not the right attorney for you. Make sure you have clear, natural communication with this person, so that you are both on the same page.

Your estate planning attorney should also be someone with whom you feel comfortable sharing family dynamics, your fears, and sensitive information. You may feel that your family is quite ordinary and that there are no skeletons in the closet, but the estate planning process can still be quite emotional.

The more comfortable you are with your attorney, the more you’re likely to share. And the more you share, the clearer a picture your attorney can form of your concerns, issues, and family dynamics, helping ensure they design a plan that truly works for you.

If you have special circumstances, such as running your own business, having a high net worth, having a special needs loved one, or being worried about long-term care planning, seek out an estate planning attorney who specializes in that concern.

Not every estate planning lawyer is deeply familiar with these issues and the laws that apply, so make sure your attorney not only has experience in estate planning, but in handling the specific concerns or circumstances you’re facing.

What Is One Simple First Step I Can Take Today To Begin The Estate Planning Process?

Schedule a free initial consultation with my law firm. It’s not hard to do, and won’t cost you anything. You may have New Year’s resolutions, such as going to the gym or going on a diet, and you have to start each resolution by taking a first step.

The same is true of estate planning; without that first phone call, your plans can’t move forward. So schedule a free consultation, get it on the calendar, and give yourself the starting place to move forward.

Notes From The Field: Can You Talk About What It’s Like When Clients Come At The Start Of A New Year And Need To Update Their Estate Plan?

One of the most fun client interactions is when new grandparents come to see me after the New Year. They’ve just celebrated their grandchild’s first holiday season, and it’s so new and exciting. They’ve been able to see the holidays through their grandchildren’s eyes, and for many grandparents, this inspires them to consider what they might leave their grandkids with someday.

You may not have assets that can dramatically change your adult child’s life, but perhaps you could leave something to your grandchild that is meaningful to them – after all, since they are starting with less, anything they can turn into a down payment on a house, pay off student loans, or otherwise improve their financial position could have a significant impact for them.

Still Have Questions? Ready To Get Started?

For more information on estate planning during the new year in California, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (657) 210-3722 today.