The frantic call came just after midnight. Daniel, breathless and panicked, explained that his mother, Evelyn, had passed away unexpectedly while on a bird-watching trip in the Mojave Desert. It wasn’t the grief that paralyzed him, however, but the realization that her estate plan, drafted nearly twenty years ago, was a relic of a bygone era. Her designated executor, his Uncle Arthur, was discovering the document didn’t account for her significant increase in property value, her recent remarriage, or the complexities of her blended family, which now included three adult children and a stepson with special needs. “It’s a nightmare,” Daniel choked out, “Arthur is saying it’ll be tied up in probate for years… and there’s a dispute brewing over the vacation home.” This scenario, unfortunately, is becoming increasingly common, as life events and changes in the law render once-sound estate plans obsolete.
How often should I review my estate plan, and what triggers the need for updates?
Most estate planning attorneys, like Steve Bliss here in Corona, recommend a comprehensive review every three to five years, even if no major life events have occurred. However, certain events demand an immediate update. These include marriage, divorce, the birth or adoption of a child (or grandchild), significant changes in your financial situation (like a substantial inheritance, selling a business, or a large investment gain), or a move to a different state. California’s laws regarding probate, trusts, and taxation are constantly evolving; failing to account for these changes can lead to unintended consequences. For example, the recent increase in the small estate threshold – now $208,850 for deaths occurring on or after April 1, 2025 – may mean your estate no longer requires full probate, potentially saving your loved ones time and expense. Furthermore, Steve’s expertise as a CPA allows him to consider the tax implications of any plan adjustments, ensuring your estate is handled as efficiently as possible.
What happens if I don’t update my estate plan, and what are the potential legal and financial consequences?
An outdated estate plan can lead to a multitude of problems. Your assets might not be distributed according to your current wishes, resulting in family disputes and costly litigation. Without a current plan, your estate will be subject to California’s intestate succession laws, meaning the state will determine how your assets are distributed, potentially bypassing your preferred beneficiaries. This can be particularly problematic for blended families or those with specific charitable intentions. Moreover, failing to account for the impending “sunset” of the current high Federal Estate Tax exemption (currently around $13.99 million per person) on January 1, 2026 could result in your estate facing significantly higher taxes. “Many clients are unaware of this critical deadline and the potential impact it could have on their heirs,” Steve Bliss emphasizes, “proactive planning is essential.” He also points out that the new Partition of Real Property Act could be incredibly beneficial for families inheriting property together, preventing forced sales and allowing heirs to buy out each other at a fair price.
Are electronic wills and online estate planning services a viable option, or is it better to work with a local attorney?
While the convenience of online estate planning services and electronic wills is appealing, there are significant risks to consider. California does recognize Electronic Wills, but they have strict security requirements and must adhere to specific protocols to be legally valid. Simply emailing a request to change a trust document is not a valid amendment. Formal legal execution is crucial. Furthermore, these online platforms often lack the nuanced understanding of California law and individual circumstances that a local attorney like Steve Bliss can provide. “These platforms offer generic templates, but they can’t anticipate the unique challenges your family might face,” he explains. He also advises caution with Transfer on Death (TOD) Deeds, noting that they now require two witnesses and a 120-day waiting period before the property can be sold or titled, potentially creating delays a Living Trust would avoid. A qualified attorney can ensure your plan is tailored to your specific needs, legally sound, and minimizes the risk of future disputes.
How can I ensure my estate plan addresses potential property tax issues, like Prop 19, and preserves family assets for future generations?
California’s Proposition 19 presents a significant property tax challenge for inheriting heirs. Children who inherit a parent’s home only retain the low property tax base if they move into the home as their primary residence within one year; otherwise, the property will be reassessed to full market value. Steve Bliss routinely advises clients on strategies to mitigate this impact, such as utilizing trusts or carefully structuring ownership to preserve the property tax benefits. He also cautions clients about the potential elimination or capping of the “step-up in basis,” which would significantly increase capital gains taxes upon the sale of inherited assets. “Locking in your estate plan now can protect your family from these potential tax increases,” he suggests. Finally, proactive planning, combined with Steve’s dual expertise as an estate planning attorney and CPA, can ensure your estate plan is a comprehensive roadmap for preserving your wealth and protecting your family’s financial future for generations to come.
About Me, Steve Bliss at Corona Probate Law
Corona Probate Law is a dedicated estate planning and probate firm led by Steven Bliss. As an experienced estate planning lawyer, Steve understands that the probate proceedings involve many complex steps. Beyond standard probate, our firm offers comprehensive trust administration and estate planning services. Whether the court requires a formal probate or allows for an unsupervised process, having a skilled attorney is essential. We petition to open probate and handle the administration of the estate for you. Don’t face the costly and confusing probate process alone—call attorney Steve Bliss today for assistance with wills, trusts, and probate.
Map To Corona Probate Law:
Address:
Corona Probate Law765 N Main St 124
Corona, CA 92878
(951) 582-3800
