We create thorough yet flexible estate plans that accurately reflect our client’s objectives, allowing them to not only distribute their estates properly but to leave a legacy for succeeding generations that reflect the client’s values and priorities. Our planning process begins with a meaningful conversation with our clients to understand their concerns and goals.

Although the comprehensive and flexible estate plans we prepare should not require frequent extensive review, periodic review of your estate plan ensures that it continues to reflect your wishes despite changes in your personal or financial circumstances which may have occurred. We recommend that at least once every year you consider whether changes have occurred that may affect your estate plan, and then schedule a review meeting if you have any of the circumstances discussed below.

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1. Changes in Family Composition

Your plan should already provide for significant flexibility regarding changing family circumstances. However, if you have unique changes in your family circumstances, you may need to modify your plan. Of course, a change in marital status will always require you to modify your estate plan, including beneficiary designations which may become legally ineffective due to your change in marital status.

2. Significant Changes in Financial Circumstances

If your income or net worth has changed significantly since you completed your estate plan, those plans may be inadequate. For example, a large increase in your net worth, perhaps because of an unexpected inheritance, might alter the tax considerations that factored into your estate planning.

If you are married, there are important issues regarding the character of an inheritance as separate property that should be addressed. You may also need to evaluate whether your current plan would now pass more to your children or other heirs than would be necessary or helpful to them. Including or increasing charitable bequests may be appropriate.

If you have changed jobs, you may have different employee benefit plans that alter your future financial outlook. Of course, you also need to ensure that new beneficiary designations are properly coordinated with your estate plan.

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3. Changes in Ownership or Value of Specific Assets

If you have removed an asset from your revocable trust for any purpose, (i.e., to refinance a mortgage), be sure the title has been transferred back into your revocable trust. Although we try to avoid these provisions, if your will or trust provides that a specific asset will be given to a specific person and you no longer own the asset, or it has changed in value significantly, you may need to change your estate plan to ensure that your plan still distributes your assets as you wish. If you owned liquid assets when you planned your estate, and decided that those assets would be adequate to pay administration costs and estate taxes, but you have since sold those assets and purchased assets less easily converted into cash, your estate may have liquidity problems. If you own a business, stock in a closely held corporation, or an interest in a partnership or sole proprietorship, the value may have increased since you did your planning. If so, the planning may be obsolete, both because of tax planning issues and also because there may be new issues regarding the transfer of your business interest, particularly if you have children involved in a family business or you own a business with others. If you plan to sell a highly appreciated asset, it is crucial that you explore various tax planning opportunities before you sell.

4. Changed Circumstances of Others

If the financial circumstances of your spouse or children have changed, your provisions for them may also need to be changed. For example, if your spouse has inherited enough money to provide adequately for him or her, new planning opportunities may be available. Depending on your children’s circumstances, more or less protection for their inheritances may be appropriate.

5. Your Fiduciaries

You should periodically review designations of trustees, executors, and agents to make certain they are still appropriate. Remember to include your health care directives in this review.

6. Life Insurance

When you planned your estate, life insurance may have been an essential part of the plan. To determine if your present life insurance is appropriate, please consider whether the needs of your estate and family for cash after your death have changed. In addition, you should also review ownership of life insurance policies. If your estate has grown, perhaps someone other than you should own the life insurance policies to avoid inclusion of the insurance proceeds in your taxable estate.

7. Move to Another State

You should notify us if you are moving to another state and depending on your circumstances, you may want to pick up your file from our office. If, after reviewing your estate plan, you think revisions may be necessary for any of the reasons discussed above, or if you have questions about your plan, please contact our office so we can discuss your new circumstances and whether changes may be advisable.

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Although revocable living trusts are excellent planning tools that will save time and reduce the costs of administering an estate, trustees need legal counsel when administering a trust after the death or incapacity of the trust’s creator to be sure they comply with the numerous laws governing the administration of trusts. This is especially true after the death of a spouse if the trust was designed to minimize estate taxes. We provide the support and comfort needed by clarifying the process of administering the trust and guiding the trustee through each step of the process, reducing both stress and unnecessary costs.

California law generally requires a probate whenever an individual dies having more than $100,000 of assets in their name alone if those assets are passing to someone other than a surviving spouse. In difficult family circumstances where there may be significant friction between family members, court oversight through probate may be the preferable method for transferring the estate. For most families, however, avoiding probate would be preferred because of the substantial costs and lengthy involvement with the courts. Our firm represents executors and family members in all area probate courts for those times when insufficient planning makes probate unavoidable.