Cava and Faulkner

Do You Have a Loved One With Special Needs?

By planning for the future with estate planning tools, you can plan for a variety of situations and determine the best way to pass your life’s work on to your children. But if you don’t use the right tools or give the proper forethought, you may be leaving gaps in your estate plan or even doing harm to your loved one with special needs.

Cava & Faulkner provides a variety of estate planning services, and we guide our clients through the entire process. If you are just starting your estate planning journey, you may not know there are specific methods you can use to provide the care your loved ones with special needs need.

Read more about the steps you should take to protect all of your children.

What is a Life Care Plan?

When planning around a child’s special needs, the first thing you should do is ensure your child has a comprehensive life care plan. This plan acts like an instruction manual for anyone who may have to take over caring for your child when you are unable to do so yourself.

Include things like their medical needs, educational goals, daily care, and their future care, including housing.

Can You Establish a Trust to Care for Your Child?

When planning for a child who does not have special needs, you can often create a trust, fund it, and not have to worry about anything else, knowing the trust will care for them when you are unable to do so yourself.

When it comes to your children with special needs, a simple trust can actually do more damage than not. That’s because most people with special needs rely on government benefits for their insurance and Social Security Payments. These benefits are governed by strict income limits, meaning an improperly planned inheritance can cause them to lose their benefits and the care that they provide.

Instead of leaving your child assets in your will or in a trust, create a Special Needs Trust (SNT). This type of trust holds and manages assets for the benefit of people with disabilities. More importantly, since the trust and not the individual own the assets, they are not counted against those strict income limits that determine eligibility. 

There are two primary types of SNT: first-party and third-party.

First-Party SNT

This type of SNT is funded with the disabled person’s own assets, often from a lawsuit settlement or an inheritance. Strict federal rules and regulations, including a payback provision govern these trusts. A payback provision requires the reimbursement of Medicaid expenses using the remaining assets in the trust.

Third-Party SNT

This type of SNT is funded with assets from someone other than the beneficiary, usually a parent or grandparent. It is more flexible and does not require a Medicaid payback clause. It is often established in a family’s estate plan to hold future inheritances or gifts.

What Can an SNT Cover?

As previously mentioned, an SNT has strict regulations. Following these regulations will ensure your child’s benefits are protected, while deviating from these rules can possibly cause them to lose eligibility for their benefits.

An SNT can cover the following:

• Out-of-pocket medical or dental expenses
• Therapy not covered by insurance
• Personal care professionals
• Education and tutoring expenses
• Adaptive technology and medical equipment
• Vacations and recreation
• Home furnishing and accessibility modifications

An SNT cannot be used for things like direct cash payments to the beneficiary, food, shelter, gifts, spending money, or non-approved expenses. Using trust funds for any of this can result in the beneficiary losing the eligibility protections the trust offered.

Who Will Care for Your Child?

When your child turns 18, they are considered an adult, regardless of their cognitive or developmental disabilities. That means you will no longer have the automatic legal authority to make decisions on their behalf. You may need to rely on a guardianship or conservatorship.

In California, a conservatorship allows someone, typically a parent or close relative, to make decisions regarding another individual’s health care, housing, and personal needs. Certain types of conservatorship may also allow a person to manage someone else’s assets, spending, and property.

In a conservatorship, you can also nominate a successor conservator, someone who will be able to care for your child after you are gone, even if they are over 18 years of age.

While planning your estate, you may wish to address guardianship of your minor child. This person is someone you trust who will be able to assume the position of legal guardian should something happen to both parents. 

It is important to note that just because you nominate a conservator or guardian, the courts do not have to honor it. Suppose circumstances change, or the nominated conservator or guardian is no longer deemed fit to serve. In that case, the court may find an alternative solution that ensures the best interests of your special needs child.

Can a Lawyer Help You?

Estate planning without a special needs child is already a long, complex legal process. Planning for the future of a child with special needs requires legal scrutiny and experience.

Cava & Faulkner can help you with all of your estate planning needs. We will ensure the future needs of all your children are met and that any government benefits your loved one depends on are protected.

Call 916-831-7565 to schedule a free consultation with an experienced estate planning attorney.

What is the Effect of an Advance Health Care Directive on Family Members’ Decision-Making Capabilities?

In California, an Advance Health Care Directive (AHCD) is a powerful legal document that allows individuals to express their healthcare wishes and appoint a trusted agent to make crucial medical decisions on their behalf when they cannot do so. Emotions can run high when an individual is facing serious medical issues and their family is tasked with making difficult decisions on palliative care and life-sustaining treatments. 

The document can act as a vital guide for families during challenging times by allowing them to know exactly what care measures their incapacitated loved one would and would not want. 

A valid AHCD can also override a family member’s medical choices if they are not legally authorized to make those decisions or if their choices conflict with the individual’s stated preferences. The clarifying abilities of an AHCD may be able to prevent family-destroying disagreements and costly legal battles over end-of-life care. A knowledgeable health care directive attorney can explain the importance of a comprehensive AHCD and its relationship with family decision-making.

What is the Purpose of an Advanced Health Care Directive?

An Advance Health Care Directive (AHCD) is a legal document that serves two primary functions in California. First, it allows individuals to appoint a healthcare agent, also known as an attorney-in-fact, who has the legal authority to make medical decisions for them if they become incapacitated. Second, it enables individuals to document their healthcare wishes, such as refusing life-sustaining treatment in specific situations.

The AHCD has replaced previous forms like the Natural Death Act Declaration and the Durable Power of Attorney for Health Care in California. It offers more flexibility and comprehensive coverage of an individual’s healthcare preferences, allowing them to express their desires about healthcare in any situation where they may be unable to make their own decisions, not just in cases of terminal illness or permanent unconsciousness.

What Power Does an AHCD Have?

In California, an AHCD holds significant legal weight. When properly executed, it becomes a legally binding document that healthcare providers must follow. The wishes expressed in an AHCD or the decisions made by the appointed healthcare agent take precedence over the opinions or desires of family members who are not designated as agents. 

The legal authority of an AHCD is reinforced by California’s Health Care Decisions Law, which consolidated the state’s advance directive laws in 2000 to make it easier for individuals to communicate their preferences through written and oral communication. This law ensures that healthcare providers respect the decisions outlined in a valid AHCD. To fight the terms of an AHCD, a family member or interested party would have to demonstrate by a preponderance of evidence that the document was invalid due to the mental incapacity of the individual at the time of its creation, coercion from an outside source, or another allowable reason.

What Rights Do Family Members Possess for Medical Decision-Making if No AHCD Exists?

In the absence of an AHCD, family members in California do not automatically have the authority to make medical decisions for an incapacitated individual. In these cases, family members may find themselves in a confusing and potentially contentious situation, unsure of who should make decisions or what those decisions should be.

In the past, California law gave hospitals and healthcare providers significant discretion to make medical decisions on behalf of an incapacitated patient without an AHCD. Sometimes, these choices conflicted with the preferences of family members and friends familiar with the patient’s wishes. However, an amendment to the state’s probate code that went into effect on January 1, 2023 now provides a list of next-of-kin who can make decisions. Currently, medical providers must make a good-faith effort to identify an individual who can serve as an authorized representative.

However, any individual eligible under the law can potentially be chosen as a surrogate for the incapacitated person. The hospital still retains significant leeway to designate a representative, which can have serious ramifications, particularly when families disagree on care decisions. Having a valid, thoughtfully drafted AHCD is the only way to be certain your health care wishes will be honored and someone you trust will make your medical choices if you cannot.

How Can an AHCD Nullify a Family Member’s Opinions on Medical Care?

An AHCD can effectively override a family member’s medical decisions in several ways:

• Appointed agent: If the AHCD designates a specific person as the healthcare agent, that individual’s decisions take precedence over those of other family members, even if they are next-of-kin
• Specific instructions: If the AHCD contains specific instructions about medical treatments or end-of-life care, these instructions must be followed regardless of family members’ opinions
• Legal protection: Healthcare providers are legally obligated to follow the instructions in a valid AHCD, protecting them from potential disputes with family members who disagree with the document’s contents

How Can Individuals Avoid Major Family Arguments Over Care Decisions?

Given the potential for conflicts between an AHCD and family members’ wishes, it’s crucial for individuals to communicate their healthcare preferences clearly and in advance. By taking these steps, individuals can help prevent painful family disagreements, ensuring their healthcare wishes are respected and reducing the emotional burden on their loved ones during difficult times:

• Discuss wishes: To prevent surprises, have open conversations with family members about your healthcare preferences and the contents of your AHCD
• Choose an agent carefully: When appointing a healthcare agent, select someone who understands and respects your wishes and can effectively communicate with other family members
• Be mindful of potential disagreements: If you are aware that some family members may not agree with your stated choices, choose an agent who is comfortable with possible conflict and inform them of the situation so they can be prepared
• Perform regular updates: Review and update your AHCD frequently to ensure it continues to reflect your current wishes and circumstances
• Follow legal requirements: Ensure your AHCD is properly executed according to California law, which typically requires either two adult witnesses or notarization
• Communicate clearly: Once your AHCD is completed, provide a copy to your agent, health care provider, and other relevant entities. Discuss the contents with your doctor to ensure they are aware of the document and its terms

How Can Our Experienced Lawyers Assist With Your AHCD?

An AHCD is a highly effective and important legal document that allows you to express your desires about healthcare in any situation where you may be unable to make and communicate your own decisions. Its usefulness can extend beyond cases of terminal illness or permanent unconsciousness to acute injuries or illnesses. By clearly expressing your healthcare wishes and appointing a trusted agent, you can make certain your preferences are respected, even in situations where family members might disagree. 

However, it’s essential to approach this process with care, communication, and regular updates to minimize potential conflicts and ensure the best possible outcomes in challenging medical situations. To begin drafting an AHCD that provides you and your loved ones with peace of mind, contact Cava & Faulkner today at 916-831-7565 and schedule a free consultation.

How is Inheritance Determined in the Absence of a Will?

Dying without a will in California, known as dying “intestate,” triggers a complex legal process governed by the state’s intestate succession laws. These laws determine how a deceased person’s assets are distributed among their surviving relatives. Unfortunately, the outcome of the intestate succession process may be quite different from the distribution of assets you would have chosen. A skilled California wills lawyer can explain the implications of dying without a valid will and help you create strategies to ensure your wishes are honored and your loved ones are cared for if you are no longer around to look after them.

What Are the Differences in How Community and Separate Property is Handled for Decedents With a Spouse?

In California, the first step in determining intestate asset distribution for a married individual is distinguishing between community property and separate property. Community property includes assets acquired through the efforts of either spouse during a marriage or registered domestic partnership. When no will exists, legal domestic partners are afforded the same inheritance rights as spouses. If a person dies intestate, their half share of the community property accumulated while married is typically inherited entirely by the surviving spouse. 

Separate property consists of assets owned before marriage or acquired by one spouse through a designated gift or inheritance. Property purchased with separate funds can also qualify as separate property. While many people may assume that a surviving spouse will inherit the entirety of the separate property if no will is present, this is generally not the case unless the decedent leaves behind no other next of kin. If the decedent has any other close family, their separate property will be subject to specific, complex intestate distribution rules depending on their family situation. 

How is Separate Property Distributed if the Decedent Has a Spouse and Children?

If the deceased leaves behind a spouse and children, the distribution of separate property without a will becomes more complex. It’s important to note that adopted children are treated the same as biological children under California’s intestate succession laws. Additionally, children born outside of marriage may inherit if they can prove acknowledgment and financial support from the deceased. 

If there is only one surviving child, the spouse and child will split the separate property equally. If there is more than one surviving child, the surviving spouse receives one-third of the separate property, while the remaining two-thirds is divided among the children. If a child has predeceased their parent but has offspring, the decedent’s grandchildren typically retain their parent’s inheritance rights. 

How Does Intestate Succession Work in the Absence of a Spouse or Child?

When there is no surviving spouse or children, California’s intestate succession laws follow a specific order of priority for asset distribution:

• Parents: If the deceased has no children or spouse, their parents inherit the entire estate.
• Siblings: In the absence of parents, the deceased’s siblings inherit the estate in equal shares. Half-siblings who share one parent with the decedent have equal standing with full-blood siblings.
• Grandparents, aunts, uncles, and their descendants: If no closer relatives survive, the estate is distributed among these more distant relatives.
• Next of kin: The estate passes to the next closest blood relatives if no other heirs are found
• State: If no blood relatives can be identified, the deceased’s assets may become the property of the state

Are Some Assets Exempt From Intestate Succession?

While many property types are subject to the aforementioned rules, not all assets are covered by intestate succession laws. Certain categories of property may bypass probate and are transferred directly to beneficiaries, regardless of whether a will exists. These assets include:

• Life insurance policies with designated beneficiaries
• Retirement accounts with named beneficiaries
• Bank accounts with payable-on-death designations
• Real estate held in joint tenancy or with transfer-on-death deeds
• Assets held in a living trust

What Are the Risks of Dying Without a Will?

Considering the terms of a will can sometimes cause discomfort, so many individuals put off drafting their will and other key documents, particularly if they are younger or in good health. Unfortunately, life circumstances can change quickly, and engaging in estate planning may not be possible once a catastrophic event has occurred. A will cannot be created if you no longer have the mental capacity to understand and make reasoned decisions. Careful, proactive planning while you still possess strong mental acuity is vital, as dying intestate can lead to several complications for your family and estate, such as:

• Unintended heirs: California’s laws may distribute assets to relatives you wouldn’t have chosen while leaving out close friends or charitable organizations
• Family conflicts: The lack of clear instructions can lead to painful disputes among family members over asset distribution
• Increased costs and time: The probate process for intestate estates can be more complex, time-consuming, and expensive than when a will is present
• Guardian appointment: If you have minor children, dying intestate means the court may make decisions on guardianship without your input

How Can Our Firm Put Our Knowledge to Work for You?

Dying without a will in California can have significant consequences for the distribution of your estate and the well-being of surviving loved ones. While intestate succession laws provide a framework for asset distribution, the results may not align with your wishes or family dynamics. At Cava & Faulkner, our compassionate and dedicated lawyers can help make the process of creating a will as simple and hassle-free as possible. We take pride in assisting clients in developing robust, tailored estate plans that can provide clarity and security for their loved ones during a difficult time.

Ultimately, creating a will as part of a larger estate plan is not just about distributing assets; it’s about providing stability, protecting loved ones, and ensuring peace of mind. As your life circumstances change, it’s essential to regularly review and update estate planning documents to reflect current wishes and changes within your family. By doing so, you can maintain control over your legacy and provide for the important people and causes in your life as you see fit, rather than leaving these crucial decisions to the default provisions of California’s intestate succession laws.

To schedule a free consultation to discuss how our experienced estate planning lawyers can serve you, contact our Elk Grove office today at 916-831-7565.

You work your entire life to save and have enough money to comfortably retire – and ideally, leave something for your loved ones when you pass away.

During your life, you pay all kinds of taxes: income taxes, property taxes, sales taxes, and so on. And at the end, the government still wants to tax you on the assets you have left at your death.

This is known as the estate tax – sometimes called the “inheritance tax” or “death tax.” The best way to protect your assets and your family’s future from excessive taxation is to hire an attorney who has experience in estate tax planning. We can help you reduce – if not entirely avoid – the federal estate tax burden. At Cava and Faulkner, our team of legal professionals can help you create an estate plan that will minimize your tax liability and help ensure that your loved ones are taken care of after you’re gone.

How Does the Estate Tax Work?

Estate tax is totally separate from federal tax, property tax, sales tax, and every other type of tax you’ve paid during your lifetime.

Estate tax is a tax paid on the net value of all your assets owned at your death.

However, there are fairly sizable exemptions to the estate tax so it is primarily a high net-worth individual or family who is affected.

This said, the estate tax rate is a whopping 40% on your net estate, so if you do have an estate tax problem, we are talking about potentially massive sums of money your estate will owe to the government before a single heir would enjoy a single penny.

Is The Estate Tax Really My Problem?

President Trump’s Tax Cuts and Jobs Act of 2017 nearly doubled the allowable exemptions to the estate tax that existed prior to 2017. This ensured that even fewer families would be affected.

The estate tax exemption for individuals increased from $5.4 million to $11.2 million, and the estate tax exemption for married couples increased from $10.9 million to $22.4 million.

Unless your estate is valued at more than $11.2 million, you do not have to worry about the estate tax at this time. But for those who are affected, there are numerous estate planning strategies available that can greatly reduce the amount owed. We can advise you on the best options for your family.

What are Advanced Estate Tax Planning Strategies?

Families with high-value estates face several complex legal and tax issues – estate tax is only one of them.

There are a number of advanced estate planning strategies that are aimed primarily at reducing a family’s tax burden. In addition to minimizing or eliminating the estate tax liability, an estate tax planning attorney can help you leverage the advantages of estate and gift taxes and generation-skipping trusts to pass assets on for successive generations without the risk of a tax liability decimating your estate at each generation. Some of the most advanced estate planning tools and strategies include:

• Life insurance trusts
• Qualified personal residence trusts
• Grantor retained annuity trusts
• Asset protection trusts
• Land trusts
• Gift tax planning
• Bypass trusts
• Dynasty trusts
• Charitable planning
• Family limited partnerships or limited liability companies
• Asset gifting

Utilizing these strategies can help clients optimize and reduce liability when it comes to estate taxes. It is important to note that every situation is different. Your estate tax planning attorney should focus on creating estate plans that can not only optimize your tax situation now but after you pass away.

Call Our Elk Grove Estate Tax Planning Lawyers Today!

You have worked hard to build your family’s wealth and legacy, so it makes sense to put similar effort into protecting those assets after you are gone.

This includes protecting your assets against excessive taxes.

A good estate tax planning lawyer can go into detail about how you can minimize the potential tax burden faced by your family so that you can maximize the inheritance you pass on to your loved ones. By hiring an estate planning lawyer in California, you are setting yourself up for success. Our firm can help your family through the trust administration process in the future. Give us a call at 916-685-1225 to learn more about how we can help.

Making Decisions for When You Can’t Make Decisions

Most people understand the importance of having a will in place – even if they (inaccurately) believe they cannot afford one. Far fewer individuals understand how critical incapacity planning is for their future. If a time comes when you can’t make decisions for yourself, crafting comprehensive health care directives can ensure your wishes are honored.

Unfortunately, this isn’t as simple as saying, “I want this person to make decisions for me” or “I don’t want machines keeping me alive.” Healthcare decisions are complex, and two individuals in seemingly similar situations could have very different outcomes. This is why you should take health care directive planning seriously by utilizing the following strategies.

Understand the Components of a Health Care Directive

Unlike a will, health care directives are typically not single documents that cover all potential outcomes. Instead, a comprehensive directive includes a variety of legal documents and agreements. Overlooking even one of these can result in “blind spots” when it comes to planning for your future medical care in the event of incapacitation: 

• Living will: Outlines your preferences for medical treatments, such as life support, resuscitation, or artificial nutrition and hydration 
• Medical Power of Attorney (POA): Names a trusted individual who can make healthcare decisions on your behalf if you become incapacitated 
• HIPAA release: Grants access to your medical information for designated individuals 
• Do not resuscitate (DNR) order: Optional document that indicates whether you want CPR if your heart stops

Clearly, these components of a comprehensive health care directive cover a variety of potential situations. Some of these can be more important than others based on your wishes, and some may be unwarranted entirely. For instance, a DNR is not necessary if you want life-saving CPR in the event of an emergency. 

Simply put, your directive has many different aspects – and you should consider all of them to ensure you’re making your wishes known. 

Clarify Your Medical Preferences

The underlying goal of a comprehensive health care directive is to ensure your medical preferences are known and respected. Due to the complexity of medical conditions, this means planning for a multitude of situations. For instance, what if you can breathe on your own but cannot wake up? What if you can’t breathe on your own, but your heart is beating? 

These scenarios barely breach the surface of medical possibilities. That’s why you should clarify your wishes regarding the following medical issues: 

• Life-sustaining treatments: Do you want mechanical ventilation, dialysis, feeding tubes, or other support care 
• End-of-life care: What are your preferences for comfort measures, hospice care, or palliative care 
• Pain management: How aggressive would you like pain treatment to be 
• Organ and tissue donation: Do you want to donate organs or tissues if you pass 
• Religious or cultural preferences: Include any practices that are important to your care decisions

These are the most important decisions you’ll make when crafting a comprehensive health care directive to ensure your wishes are honored. Such advanced care planning will help you maintain control over your life and well-being while removing some of the burdens faced by loved ones. If for no other reason, this is why such directives are critical for estate planning. 

Choose a Trustworthy Health Care Agent

When you create a health care directive, it’s not just a list of your wishes. You also need to include someone who can make your wishes known and who will advocate for your decisions. This person may be referred to as a healthcare agent, surrogate, proxy, representative, or attorney-in-fact. Regardless of the terminology, there are certain traits you should look for:

• Trusted individuals (e.g., close family member, friend) 
• Someone who shares your beliefs and values 
• Strong-willed and assertive individuals 
• An individual willing to put in the time and energy

In addition to choosing a health care agent, you should also select a backup agent in case your primary agent is unavailable. Crafting a comprehensive health care directive to ensure your wishes are honored involves more than just selecting an agent. You also need to discuss your preferences with them in advance so they can faithfully carry out your wishes. 

Make It Legally-Binding and Accessible

Like all other estate planning strategies, specific legal requirements must be met when crafting a health care directive. Every jurisdiction has different laws, so you need to understand the rules in your state. In many cases, you’ll need to sign your documents in the presence of a witness — perhaps even multiple witnesses or a notary in some jurisdictions.

You’ll also want to ensure that your directive is easily accessible to those who need access. Do this by providing copies to your health care agent, physician, and close family members. You should also store a copy in a secure but accessible location (e.g., a digital vault) and consider carrying a wallet card that contains key information.

Finally, revisit your documents every 3-5 years or when a significant life change occurs.

Work With an Estate Planning Attorney

Estate planning attorneys handle more than just wills and trusts. These professionals assist with just about anything regarding making plans for the future – ranging from financial to medical. Don’t make the mistake of using do-it-yourself online services. These DIY legal websites cannot account for your unique circumstances and frequently don’t include updated legal information.

In fact, most legal professionals warn against using these services – particularly for matters as important as health care directives and other forms of estate planning. Many law firms offer these services for a flat fee, so you won’t have to worry about hourly charges stacking up. This can grant you peace of mind and certainty that your wishes will be honored.

At Cava & Faulkner, our dedicated legal team can help you craft a comprehensive health care directive that is valid under the law. Contact us at 916-831-7565 to schedule your free consultation.

Regular Updates Ensure Your Wishes Are Respected

People frequently make the mistake of thinking that creating an estate plan is a “one-and-done” process. In reality, periodically reviewing and updating your documents is essential. Failing to do so could lead to disputes and even partial intestate succession during the probate process. Fortunately, there are legal and practical tips for updating estate plans regularly.

These tips offer a variety of advantages. Most importantly, they ensure that your estate plan reflects your current circumstances and wishes. Regular reviews will also help avoid the common mistake of not including newer properties and accounts in your estate documents. With a few simple strategies, you can minimize the likelihood of surprises.

Review Your Estate Plan After Major Life Events

Periodic reviews of your estate plan are an important aspect for securing your future. However, there are certain events that should trigger an immediate review and update. These events are so life-altering that it would be surprising if a change in your plans wasn’t warranted. Such changes include, but are not limited to: 

• Marriage or divorce 
• Birth or adoption of a child 
• Death of a family member or beneficiary 
• Significant changes to your financial situation (e.g., newly acquired/sold assets) 
• Relocation to a different state 
• Changes in tax laws 

All these situations will likely warrant a change to your estate documents. Some of these might seem obvious – such as a divorce, birth, or death. However, others might not be as clear. For instance, you may wonder why relocating would warrant a change. As it turns out, every state has different laws. This means a will that’s fine in one state may be invalid in another. 

These events are significant, so always review your plans when they happen. 

Conduct Periodic Reviews

Imagine a scenario where your life is fairly set in stone. Perhaps you’re married, living in your dream home, and have no plans to move or have children. Certain events could still trigger the need for an estate plan review, but even if such events never occur, conducting a thorough review of your plans every 3-5 years is still important.

During this review, you should check that all key documents remain legally valid and reflect your current intentions. If your financial situation is particularly complex, you should consider conducting these reviews yearly. The simple fact is that seemingly insignificant changes in your life could warrant an update, and changes to state law could make such an update critical.

Don’t think everything is fine just because your current circumstances have not changed much.

Updating Key Legal Documents

All the legal and practical tips for updating your estate plan regularly mean nothing if you don’t update all relevant documents. Many people who do conduct regular reviews only focus on their will. While this document is certainly important, it’s far from the only essential estate plan document. Each of the following needs to be updated in specific ways: 

• Will: Ensure asset distribution and executor choices are current
• Trusts: Modify trust terms to account for life changes
• Power of Attorney: Verify that your appointed agent is still capable and trusted
• Healthcare directive: Ensure your preferences and emergency contacts are current
• Beneficiary designations: Review retirement accounts, insurance policies, and payable-on-death accounts

Many people are surprised to learn just how complex their estate plans truly are. They believe that creating a will and incapacity planning are straightforward processes that require minimal maintenance. However, the breadth of estate planning requirements should make it clear that having an attorney draw up these documents is only the first step in the process. 

Updating your estate plan regularly might not require 24/7 monitoring, but being thorough is an absolute necessity when the time comes for a review. 

Include Digital Assets

Up until recent years, digital assets were not even a major concern for most people. However, this has certainly changed in recent times. You can now handle everything from banking to buying and selling stocks online. What once would’ve taken hours of phone calls or visits to local institutions can now be done almost instantaneously via smartphone apps.

For those who didn’t think of this or who created their estate plan before accruing digital assets, an update is certainly in order. You should document usernames, passwords, and access details for all your online accounts. Specify who you want to have control over these accounts and how you want them to be managed.

Explain Your Choices to Family and Beneficiaries

The best legal and practical tips for updating your estate plan regularly can ensure your wishes are known. However, they can’t prevent disputes from arising. If someone is unhappy with your estate plan after you die, it’s possible that they can challenge its provisions. This potentiality becomes far more likely when a lack of communication exists.

The simple fact is that family dynamics are complicated. If you make changes to your estate plan, it could result in certain individuals feeling favoritism or left out. This is why all estate planning decisions should be discussed with loved ones who will be directly affected. Let them know your reasoning, and this could make them more comfortable with your decision.

Work With a Legal Professional

Reviewing and updating your estate plan is almost as important as creating the plan in the first place. If you want to simplify each of these processes and minimize the potential for problems, it’s typically advisable to work with an estate planning attorney. A legal professional can review the entirety of your situation and create a plan that protects your wishes.

When creating a will or any other estate document, a legal professional can ensure its validity and advise you on when updates may be necessary. An experienced attorney can also conduct periodic reviews and let you know how certain updates will affect your overall estate plan. Since some law firms charge flat fees, you can have peace of mind without “sticker shock.”

At Cava & Faulkner, our team of legal professionals provides the legal and practical tips you need for updating your estate plan. Contact us at 916-831-7565 for your free consultation.