When should you create an estate plan in California?

Creating an estate plan in California is a proactive step that individuals of all ages and stages of life should consider. While the specific timing may vary based on individual circumstances, there are several key milestones and life events that often trigger the need for estate planning:

1. Becoming an adult: As soon as you reach the age of majority (18 years old in most states, including California), you become legally responsible for making your own healthcare and financial decisions. At this point, it's wise to consider creating basic estate planning documents such as an advanced healthcare directive (also called a healthcare power of attorney) and a durable power of attorney (also called a financial power of attorney) to designate someone to make decisions on your behalf if you become incapacitated. Your parents can’t automatically make decisions for you once you turn 18 years old.

2. Accumulating Assets: Whether it's through employment, investments, or inheritance, as you accumulate assets, it becomes increasingly important to have a plan in place for how those assets will be managed and distributed in the event of your incapacity or death. A trust expresses your wishes regarding property distribution and ensures that your estate avoids the lengthy and costly probate process.

3. Marriage or Domestic Partnership: Getting married or entering into a domestic partnership can have significant legal and financial implications. It's essential to review and update your estate plan to reflect your new marital status, designate your spouse or partner as a beneficiary, and ensure that your assets are distributed according to your wishes. California also requires that spouses have equal access to community property, which implicates certain estate planning documents.

4. Having Children: The birth or adoption of a child is a life-changing event that often prompts individuals to create or update their estate plans. Parents want to ensure that their children will be cared for by trusted individuals if something were to happen to them. This may involve designating guardianship for minor children and establishing trusts to provide for their financial needs.

5. Changes in Health: If you or a loved one experience a decline in health or receive a serious diagnosis, it's crucial to address estate planning matters promptly. This may include updating healthcare directives, appointing healthcare agents, and making arrangements for long-term care.

6. Retirement Planning: As you approach retirement, estate planning becomes even more critical. You may want to review your retirement accounts, pension plans, and other assets to ensure they are structured in a way that aligns with your estate planning goals. This may involve designating beneficiaries, minimizing estate taxes, and maximizing the value of your estate for future generations.

In summary, estate planning is not just for the wealthy or the elderly—it's a process that everyone should undertake to protect themselves, their loved ones, and their assets. Whether you're a young adult just starting out in life or a retiree, it's never too early or too late to create an estate plan in California. Contact me for a a complimentary consultation to discuss your estate planning goals.