As the year winds down, most California families are focused on holiday gatherings, wrapping up work projects, and preparing for the new year. But December is also one of the most important times to review your estate plan. Life changes quickly, and an outdated will or trust can create confusion, unwanted tax consequences, or even costly legal disputes for your loved ones later on.
For families in Pasadena and throughout California, this end-of-year checklist can help determine if your plan is current, legally sound, and aligned with your goals heading into 2026.
Why December Is the Best Time to Review Your Estate Plan
The end of the year naturally provides a moment for reflection and organization. Estate planning often falls to the bottom of the to-do list, but reviewing it annually, especially in December, offers key advantages:
- You’re already reviewing your finances for tax season.
- Families gather during the holidays, creating opportunities for important conversations.
- Changes in your life or California law may require updates.
- You can start the new year with clarity and a solid plan in place.
Estate planning is not a “set it and forget it” project. Even a well-crafted California trust can become outdated if your assets, family structure, or intentions change.
- Review Your Living Trust and Will
Your revocable living trust and will form the backbone of your estate plan. At the end of each year, it’s important to review whether they still reflect your wishes.
Questions to Ask Yourself:
- Have you acquired new property in 2025?
- Did you refinance your home and accidentally remove the property from your trust?
- Did you sell a home, business, or rental property?
- Has your family grown through birth, marriage, or adoption?
- Has anyone you named as a beneficiary passed away or become estranged?
- Have your feelings changed about who should receive certain assets?
California-Specific Considerations
California’s community property rules can complicate ownership and inheritance. If you married, divorced, or separated this year, your documents likely need immediate updates.
Additionally, Proposition 19 continues to affect property tax issues for parent–child transfers. If you plan to leave real estate to children, your trust should reflect these rules to avoid unintended tax increases.
- Update Your Powers of Attorney
One of the most commonly overlooked documents is the Durable Power of Attorney (POA), which allows someone you trust to manage your financial affairs if you become incapacitated.
Ask yourself:
- Is your chosen agent still the right person?
- Has their relationship with you changed?
- Do they live close enough to assist if you need help quickly?
- Have you named backups?
In California, powers of attorney are especially important because financial institutions can be strict about accepting outdated POAs. An annual review can help prevent unnecessary obstacles during emergencies.
- Review Your Advance Health Care Directive
Your California Advance Health Care Directive outlines your wishes for medical care and appoints someone to make decisions for you if you cannot.
This document affects:
- Decisions about life support
- End-of-life preferences
- Organ donation
- Mental health treatment preferences
- Choosing a healthcare agent and alternates
If your family circumstances or relationships have changed this year, your directive may need an update. Your healthcare agents must be people you trust completely—people who can honor your wishes even during emotional times.
- Check Beneficiary Designations on Financial Accounts
This step is often forgotten, but it is absolutely essential.
Accounts that typically have beneficiaries include:
- Retirement accounts (IRA, 401(k), 403(b), CalPERS)
- Life insurance policies
- Annuities
- Some brokerage and bank accounts
- Payable-on-death (POD) or transfer-on-death (TOD) accounts
These designations can override your will or trust, meaning the person listed receives the asset—even if your estate planning documents say something different.
Year-End Tip
Check for:
- Missing beneficiaries
- Outdated ex-spouses
- Children added or removed
- Trusts that should be the beneficiaries instead of individuals
- Review Your Real Estate and Property Titles
California homeowners often overlook a critical step: making sure every property is titled correctly.
Common Issues to Catch Before Year-End
- A house removed from a trust during refinancing
- A newly purchased property titled only in one spouse’s name
- A rental property still listed individually instead of under an LLC or trust
- Failure to add new property to your living trust
Improper titling can cause probate, unnecessary taxes, or ownership disputes. December is the perfect time to verify that everything is exactly where it needs to be.
- Add Newly Acquired Assets to Your Trust
If you purchased any of the following in 2025, they may need to be titled in the name of your trust:
- Real estate
- Vehicles
- Significant bank accounts
- Business interests
- Brokerage accounts
- High-value personal property
- Cryptocurrency or digital assets
Funding your trust is essential to avoiding probate in California. A beautifully drafted trust accomplishes nothing if assets remain outside of it.
- Review Your Guardianship Choices
If you have minor children, revisit your guardianship choices each year.
Ask:
- Are the named guardians still appropriate?
- Have their health, lifestyle, or location changed?
- Are they still willing to serve?
- Do you want to name a different backup?
Families change quickly—another child may have been born, or your guardians may have added children of their own. Updating this section provides that your kids will be placed with the right people if something unexpected happens.
- Evaluate Your Plan for Blended Families
Many California families have blended households with stepchildren, former spouses, or shared custody arrangements.
Without careful planning, blended family estates often lead to disputes.
Your year-end review should consider:
- Whether stepchildren should inherit
- Whether your spouse should inherit certain assets separately
- Whether ex-spouses are still named in any documents
- Whether a trust needs to be updated to protect children from previous relationships
- Whether joint assets are handled correctly under California community property rules
A Pasadena estate planning attorney can structure blended family trusts to minimize conflict and promote fairness.
- Consider Updating Your Tax Planning Strategies
The end of the year is ideal for reviewing:
- Charitable giving strategies
- Annual gift tax exclusions
- Capital gains planning
- Trust tax planning
- Proposition 19 concerns for real estate transfers
- Potential federal estate tax changes for 2026
A coordinated plan between your attorney, financial planner, and CPA can significantly reduce tax exposure.
- Prepare a “Family Information Sheet” for Emergencies
This is not a legal document but is incredibly practical. It should include:
- Location of your estate documents
- Account numbers and login information
- Insurance policy details
- Contact information for your attorney, CPA, and financial adviser
- Location of safe deposit boxes
- Information about digital assets and passwords
- Instructions for caring for pets or dependents
Updating this every December is important so your family is not left searching for critical information during a crisis.
- When to Contact a California Estate Planning Attorney
You should reach out to an estate planning attorney when any of the following occur:
- You bought or sold a home
- You refinanced your property
- A birth, death, marriage, or divorce occurred
- A beneficiary developed special needs
- You started or sold a business
- You just moved into California
- You want to minimize California property tax issues for heirs
- A loved one became seriously ill
- You have not reviewed your documents in 12–18 months
An annual review is the best way to confirm if your plan remains effective.
Closing Thought: Start 2026 with Peace of Mind
A thoughtful estate plan gives your family clarity, protection, and stability—especially in a state as complex as California. With rapidly changing laws, rising property values, and community property rules, keeping your plan updated is essential.
By reviewing your documents at the end of the year, you can start January knowing:
- Your assets are protected
- Your wishes are clear
- Your loved ones are taken care of
- Your plan complies with current California law
If you need assistance updating or reviewing your estate plan, our estate planning law firm is here to help Pasadena families protect what matters most.
