Our Practical Guide for California Families Who Want to Protect Their Assets, Reduce Taxes & Preserve Peace of Mind

1. Passing Away Without a Living Trust

If you pass away without properly funded living trust or will in California, state laws — not your family — decide who inherits your assets. This often results in outcomes completely misaligned with your wishes. Also, your estate will be forced into probate, a public, time-consuming court process that can take 12–24 months and drain thousands in fees. A properly drafted estate plan keeps your family in control and your assets protected.

2. Creating a Living Trust… But Forgetting to Fund It

You can have a well drafted trust, but if your assets aren’t actually titled in the trust’s name, it won’t work as a legal foundation. Many Californians believe a signed trust automatically protects everything. It doesn’t. Funding the trust is key step, since failing to transfer real estate, bank accounts, and investments can send your estate to probate upon your passing.

3. Outdated or Incorrect Beneficiary Designations

Retirement accounts, life insurance policies, and transfer-on-death accounts bypass your trust entirely. If beneficiaries are outdated — an ex-spouse, a deceased relative, or a minor child — your estate plan can fall apart. Regular reviews ensure everything coordinates so assets pass smoothly, privately, and according to your wishes.

4. Ignoring Advanced Estate Tax Planning Strategies

California has no state estate tax, but the federal estate tax may apply to high net-worth families, exposing many California households to unexpected tax burdens. For higher net-worth households, failing to plan early can mean millions lost to taxes. With proactive strategies, often implemented years in advance, you can preserve more of your wealth for the next generation.

5. Forgetting to Plan for Incapacity

Estate planning is not just about what happens when you pass away. A health condition, sudden accident, or illness can leave you unable to manage your finances or medical decisions. Without powers of attorney and advanced healthcare directives, your family may be forced into a stressful, expensive conservatorship process. Proper incapacity planning keeps decisions in trusted hands.

6. Choosing the Wrong Trustee or Executor

Your trustee or executor will handle sensitive decisions, manage assets, and work closely with your beneficiaries. Choosing someone who is unprepared, overwhelmed, or biased can lead to conflict, delays, and even litigation. The right fiduciary — whether a family member or professional — ensures your wishes are carried out smoothly and fairly.

7. Overlooking Digital Assets

From cryptocurrency wallets to social media accounts to cloud storage, digital assets are now a significant part of California estates. Without clear instructions, access can be lost forever. A modern estate plan includes digital asset provisions to safeguard passwords, access authority, and long term management.