California Estate Planning: How to Avoid Problems With Probate

Introduction

Probate can be a complicated part of settling an estate in California. It is a court-supervised process that may be required when certain assets do not have another method for transferring them after death. Thoughtful estate planning can help reduce unnecessary complications and make the administration of an estate more orderly.

Keep Your Estate Plan Current

One way to reduce probate-related problems is to create an estate plan that clearly addresses how assets should be handled. A will can state a person’s wishes regarding property that passes under the will, but a will does not necessarily prevent probate. Depending on the circumstances, other planning tools may provide different methods of transferring assets.

A living trust can be useful for some California estate plans because qualifying assets properly transferred to the trust may generally be administered and distributed without ordinary probate. However, simply signing a trust document may not be enough. Assets intended to be held by the trust generally need to be properly transferred or otherwise coordinated with the trust.

Estate plans should also be reviewed after significant life changes. Marriage, divorce, the birth or adoption of a child, the death of a beneficiary, or substantial changes in property ownership may affect whether an existing plan continues to reflect a person’s intentions.

Review Asset Ownership and Beneficiary Designations

The way property is titled can be just as important as the documents in an estate plan. Certain jointly owned assets and accounts with valid beneficiary designations may transfer outside probate, depending on the ownership arrangement and governing terms. Problems can arise when beneficiary designations are outdated or inconsistent with the overall estate plan.

It is also important to understand which assets are actually covered by a trust or other transfer arrangement. A carefully prepared estate plan can become less effective if significant assets are left outside the intended structure without an appropriate plan for their transfer.

California provides simplified procedures for some qualifying estates and types of property. Whether such a procedure is available depends on the circumstances, so estate planning should take into account the nature and ownership of the person’s assets.

Conclusion

Careful planning cannot eliminate every potential probate issue, but keeping estate documents, asset ownership, and beneficiary designations coordinated can help reduce avoidable complications. This article is intended for general informational purposes and is not legal advice. Because California probate and estate planning rules can vary based on individual circumstances, readers should consult a qualified California estate planning or probate attorney for advice about their specific situation.