Power of Attorney Archives - Vacaville Attorney

Is There A California Estate Tax?

Many Californians ask: Is there a California estate tax? The short answer is no. California does not impose a state-level estate or inheritance tax. Most residents—regardless of how much they own—will never pay estate tax to the state of California. However, that doesn’t mean estate planning isn’t important. In fact, taxes are just one part of the bigger picture.

California has no estate or inheritance tax

The California State Controller’s Office confirms that for deaths on or after January 1, 2005, there is no California estate tax return required.
There is also no inheritance tax in California, which means heirs do not owe state taxes on what they receive from an estate.

Federal estate tax still applies—but only to the ultra-wealthy

As of 2024, the federal estate tax exemption is $13.61 million per person, or $27.22 million per married couple—meaning that only the largest estates are taxed. Note: The federal exemption is scheduled to drop roughly in half on January 1, 2026 unless Congress acts, which may affect higher-net-worth families.
For a broader look at planning strategies—including trusts, gifting, and preparing for future changes in tax law—City National Bank offers a helpful overview.

Solano County: What Local Families Should Know

Families in Fairfield, Vacaville, and other Solano County cities may not face estate taxes, but they still have to deal with local court procedures if no plan is in place.

The Solano County Superior Court Probate Division handles matters related to wills, trusts, conservatorships, and guardianships.
If your estate must go through probate, expect a public, formal court process that can take many months and involve court fees and statutory executor fees.
A revocable living trust is one of the most effective ways to avoid probate in Solano County.
The court also handles small estate affidavits and spousal property petitions, which may simplify things for smaller estates.

Why do estate planning if there’s no estate tax?

Even if your estate won’t owe federal or state estate tax, here’s why planning is still essential:

Avoiding probate: Probate is public, time-consuming, and often expensive. A trust can allow your assets to transfer privately and efficiently.
Naming guardians for minor children: A will ensures you—not a judge—choose who raises your children if something happens to you.
Control over distributions: You may want your beneficiaries to receive assets at certain ages, or with protections in place for special needs or addiction issues.
Medical and financial decisions: Estate planning includes powers of attorney and health care directives in case of incapacity—not just after death.
Preventing family conflict: Clear instructions and proper legal documents help avoid confusion and reduce the risk of disputes.

What other taxes might apply?

Even without estate tax, other taxes can still affect your estate or your beneficiaries:

Capital gains tax: Assets get a “step-up in basis” at death, but gifting assets before death can eliminate that benefit and result in higher taxes for the recipient.
Income tax on inherited retirement accounts: Beneficiaries of IRAs or 401(k)s now often must withdraw the funds within 10 years, creating taxable income.
Property taxes: Inheriting real estate in California may trigger reassessment unless certain exclusions apply (like the parent-child exemption).
Gift tax rules: Large gifts made during life may require IRS reporting and count against your lifetime exemption, even if no tax is due at the time.

Who needs estate planning?

Even though “no” is the answer to the question, “Is there a California Estate Tax,” there are still important reasons for estate planning. A plan is not just for the wealthy, and here are a few common situations where planning makes a big difference:

Young parents need to name guardians and ensure life insurance or other funds are managed wisely for their children.
Homeowners want to avoid probate delays and fees when passing their property on to loved ones.
Blended families often need to coordinate inheritances carefully to avoid conflict or accidental disinheritance.
Retirees may want to plan for incapacity, manage taxes on retirement funds, and protect surviving spouses.
Business owners need to prepare for succession or sale of the business in the event of death or disability.

Contact an Experienced Estate Planning Law Firm

While California has no estate tax—and federal estate tax impacts only a small percentage of families—estate planning is still crucial. A well-crafted plan protects your loved ones, avoids probate, reduces taxes, and ensures your intentions are carried out smoothly. For clients in Vacaville, Fairfield, and throughout Solano County, the Law Offices of David Knecht offer experienced guidance and peace of mind. Contact us at (707) 451-4502.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Living Will, Power of Attorney, Probate Lawyer, Taxes, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

What does a Trust Administration Attorney Do in California?

If you’ve been named a trustee in California, you may be wondering what your responsibilities are—and whether you need help managing them. Trust administration can be a complex process, especially when there are legal, tax, or family issues involved. That’s where a trust administration attorney comes in.

This article explains what a trust administration attorney does, why their role matters, and how the Law Offices of David Knecht can guide you through the process with confidence and care.

Understanding Trust Administration

When someone creates a revocable living trust, they typically serve as their own trustee during their lifetime. But when they pass away—or become incapacitated—a successor trustee takes over and the trust becomes irrevocable. At that point, trust administration begins.

This is the legal and financial process of carrying out the terms of the trust, including managing and distributing trust assets. In California, trust administration must comply with specific requirements under the Probate Code, even though it usually avoids probate court.

If you’re looking to change a trust during someone’s lifetime, that falls under trust modification, not administration.

What Does a Trust Administration Attorney Help With?
A trust administration attorney helps trustees follow the law, fulfill their fiduciary duties, and avoid costly mistakes. Here are some of the ways they assist:

Explaining the trustee’s legal responsibilities
Trustees are fiduciaries, which means they must act in the best interest of the beneficiaries. A lawyer helps explain what this means in practical terms.
Preparing and sending legal notices
California law requires trustees to notify beneficiaries and heirs when a trust becomes irrevocable (Probate Code § 16061.7). An attorney can draft and send these notices properly and on time.
Reviewing and interpreting the trust document
Trusts can be complicated. A trust administration lawyer helps interpret unclear language and resolves questions about how assets should be distributed.
Handling creditor claims and debts
Before distributing assets, the trustee must deal with debts, taxes, and any valid claims against the estate. A lawyer can help evaluate and handle these claims lawfully.
Assisting with asset management and transfers
The attorney helps identify trust assets, appraise property, manage real estate, and prepare documents needed to transfer assets to beneficiaries.
Preparing trust accountings
Trustees are often required to provide beneficiaries with an accounting. A lawyer can help prepare or review these accountings for accuracy and legal compliance.
Managing disputes or litigation
If beneficiaries disagree or legal challenges arise, a trust attorney can represent the trustee and help resolve the conflict—sometimes avoiding full litigation.

Trust Directors and California’s Uniform Directed Trust Act
Under California’s Uniform Directed Trust Act (Probate Code §§ 16600–16632), which became effective in 2022, a trust can formally appoint an advisor as a “trust director.” This person—such as a lawyer, CPA, or investment advisor—can be granted authority over specific aspects of the trust, like managing assets or approving distributions.

Trustees who act on the directions of a trust director are generally not liable for those decisions, which can reduce personal risk and allow more tailored, expert-driven trust administration.

For more on how trust documents can delegate control to advisors, see this article by Dennis Fordham on Lake County News.

Do You Always Need a Trust Attorney?
Not necessarily—but in most cases, yes. Even if the trust appears simple, the legal and tax obligations can be complex. A trust administration attorney is especially helpful when:

The trust holds significant or complex assets (like real estate or business interests)
There are multiple or contentious beneficiaries
The trust language is unclear or outdated
You’re concerned about liability or accusations of wrongdoing
There are unpaid debts, tax issues, or creditor claims
A co-trustee or former trustee is involved

Even experienced professionals seek legal help when serving as trustee—because the consequences of a mistake can be serious.

Trustee Mistakes Can Be Costly
Failing to follow trust terms, mismanaging assets, or distributing funds too early can lead to lawsuits or personal liability for the trustee. A trust attorney helps protect you by:

Keeping you compliant with California law
Making sure taxes and debts are properly handled
Helping you avoid missteps that could lead to delays, disputes, or court involvement

Think of it as insurance for one of the most important legal roles you may ever have.

How the Law Offices of David Knecht Can Help
At the Law Offices of David Knecht, we bring professionalism, clarity, and compassion to every trust administration case. Whether you’re serving as trustee for the first time or have questions about a trust you’re involved in, we’re here to help. Being a trustee is an honor—but it’s also a legal obligation. You don’t have to do it alone. A trust administration attorney can help you manage the process smoothly, protect your interests, and ensure the trustor’s wishes are honored. If you’ve been named trustee and need experiences guidance, contact the Law Offices of David Knecht today at (707) 451-4502 to schedule a consultation.

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Filed Under: California Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Living Trust , Living Will, Power of Attorney, Probate Lawyer, Trust Administration Attorney

Estate Planning: What Happens with Unknown Heirs?

Tech billionaire Pavel Durov, founder of the messaging app Telegram, recently made headlines — not for his innovations, but for his estate plan. According to reports, Durov intends to leave his entire fortune to 100 plus children, most of whom he may never even meet. This article will address estate planning and what happens with unknown heirs.

In his early years, Durov donated sperm to a fertility clinic.
Over 100 children are believed to have been born from those donations.
He also has six children with romantic partners.
Durov’s plan is to treat all of his biological children equally — whether or not he knows them personally.
Some of the children may not even be born yet, as the clinic retains stored sperm.

While Durov’s plan may sound extreme, it raises an important and increasingly relevant legal question: What happens in California when someone has children they don’t know about — and those children aren’t mentioned in their will or trust?

A recent case, Estate of Williams, offers insight into how California courts handle these situations.

The Williams Case: When a Child Is Left Out

In Estate of Williams, Benjamin C. Williams fathered seven children — five born outside his marriage and two within it. In 1999, he created a trust naming only the two children from his marriage as beneficiaries. One excluded child, Carla Montgomery, later discovered her half-siblings and petitioned for a share of the trust as an “omitted child.”

Montgomery argued that her father left her out because he didn’t know she existed when the trust was created. The Court of Appeal disagreed. It found that:

Montgomery failed to prove that her father omitted her solely because he was unaware of her birth.
Williams had also excluded four other children he did know about.
That pattern showed an intent to benefit only the two children of his marriage.

Under Probate Code § 21622, a pre-existing child must prove both that the parent was unaware of the child’s birth and that the omission occurred solely for that reason. Because Williams excluded multiple known children, the court inferred a deliberate choice — not an accident or oversight.

California Law on Omitted Children

California law allows a child to inherit from a parent’s estate if the child was unintentionally omitted — but the rules are narrow. The key statutes are found in California Probate Code §§ 21620–21623.

Here’s what those laws provide:

A child born before the execution of a will or trust is presumed to be intentionally omitted unless the child can prove otherwise.
To claim a share, the child must show that the omission occurred solely because the parent was unaware of the child’s birth.
Children born after the estate plan may have a stronger argument, particularly if the parent failed to update their documents after learning of the child’s existence.
A disinheritance clause — stating that any unnamed children are intentionally excluded — strengthens the case for exclusion, but courts also consider the overall pattern of inclusion and omission.

Why This Matters in a Changing World

Cases like Estate of Williams and stories like Durov’s show how estate planning is evolving alongside reproductive technology and modern family structures.

If there’s any possibility that you:

have children from past relationships or prior donations,
may have biological children you don’t have a relationship with,
or have stored genetic material that could be used in the future,

then it’s crucial that your estate plan addresses these realities.

Some key tips:

Be specific. Define “children” in your documents — are you including only legally recognized children, or all biological offspring?
Use disinheritance clauses thoughtfully. If there are people you intend to exclude, say so clearly.
Consider using a trust. Trusts offer more flexibility and precision than wills.
Update your plan as life changes. New relationships, births, or discoveries about past paternity should prompt a review.
Work with an attorney. Boilerplate estate plans may not anticipate the complexities of your family situation.

Planning for the Unexpected

Estate of Williams underscores the risks of unclear estate planning, while Pavel Durov’s plan illustrates the benefits of clarity and intent. Proper estate planning can set the course you want for what happens when you have unknown heirs. Whether your situation resembles Williams’s or Durov’s — or something in between — an experienced estate planning attorney can help ensure your legacy is protected and your wishes are honored.

To start creating or updating your estate plan, contact the Law Offices of David Knecht today at (707) 451-4502.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Living Trust , Living Will, Power of Attorney, Probate Lawyer, Taxes, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

10 Estate Planning Mistakes Celebrities Made —And How to Avoid Them

Even the most iconic names in entertainment have made avoidable estate planning mistakes. This article will summarize estate planning mistakes celebrities made. Their stories offer valuable lessons to help ensure your own plan works as intended.

1. Chadwick Boseman – No Will
Boseman passed away in 2020 without a will, which meant his widow had to file a probate case to manage his estate.
Lesson: Always create a will or living trust to prevent court intervention.

2. Aretha Franklin – Multiple Handwritten Wills
Several handwritten wills were discovered years after her death—including one found in a couch cushion—causing long legal disputes.
Lesson: Informal notes can lead to major confusion. Use legally drafted documents.

3. Prince – No Estate Plan
Prince died in 2016 without a will or trust, resulting in a six-year probate battle over his $156 million estate.
Lesson: Even if you’re private or hesitant, some plan is better than none.

4. James Gandolfini – Poor Tax Planning
The Sopranos star left a $70 million estate—almost 55% of which went to taxes due to insufficient tax planning and failure to use spousal deductions.
Lesson: Use marital trusts and tax strategies to preserve wealth for your family.

5. Whitney Houston – Outdated Will
Houston’s decades-old will allowed her daughter to receive her inheritance in lump sums at age 21, 25, and 30—terms that may not have matched her evolving wishes.
Lesson: Update your estate plan regularly as your circumstances and values change.

6. Heath Ledger – Didn’t Include His Daughter
Ledger’s will was signed before his daughter Matilda was born, and it left his entire estate to his parents and sisters—forcing legal workarounds to include his child.
Lesson: Review your plan after the birth of children or other major life changes.

7. Michael Jackson – Executor Disputes
Although Jackson had a trust, court proceedings were still needed to resolve disputes over executors, IRS audits, and debts.
Lesson: Be clear about who should manage your estate and ensure your documents are coordinated and thorough.

8. Amy Winehouse – No Updated Will
Winehouse died without a valid will, which meant her estate defaulted to her parents—excluding her ex-husband and any other intended recipients.
Lesson: Always update your estate plan after major life transitions like marriage or divorce.

9. Gene Hackman – Private Trust, But Still Potential Conflict
Hackman established a living trust and named his wife, Betsy Arakawa, as sole beneficiary of his will and successor trustee of the trust. The publicly-known documents do not list his three adult children as beneficiaries of the trust or will. Because the trust terms remain private and his wife died shortly before him (reportedly just days earlier), the estate’s disposition is now unclear. The children may pursue legal action or contest distribution depending on how the trust is interpreted.
Lesson: Even with a trust in place, lack of clarity and absence of named heirs can lead to disputes and uncertainty.

10. Matthew Perry – Unfunded Bank Accounts
Although Perry created the “Alvy Singer Living Trust,” he left $1.5 million in bank accounts outside the trust—assets now likely subject to probate.
Lesson: A trust only works if you transfer (or “fund”) assets into it.

Final Thoughts

These stories of estate planning mistakes celebrities made underscore a key truth: estate planning only works when it’s comprehensive, current, and properly executed. At the Law Offices of David Knecht, we help California clients take all the right steps—from creating your trust to funding it, minimizing taxes, and avoiding family disputes. Call (707) 451‑4502 today for guidance from an experienced estate planning attorney who knows how to help you avoid costly celebrity-sized mistakes.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, General, Living Will, Power of Attorney, Probate Lawyer, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

When Do You Need a Probate Lawyer in California?

Losing a loved one is never easy, and dealing with their estate can add stress during an already emotional time. This article will address the question: when do you need a probate lawyer in California. California’s probate process can be complex and time-consuming—but in many cases, a probate lawyer can help you navigate it with confidence and avoid costly mistakes. This article explains when you may need a probate lawyer in California and how they can help.

What Is Probate?
Probate is the court-supervised process of administering a person’s estate after they pass away. California law defines a probate proceeding in Probate Code § 50 as one that administers a decedent’s estate under court supervision. It typically involves:

Proving the validity of a will
Identifying and valuing assets
Paying debts and taxes
Distributing remaining assets to heirs or beneficiaries

While some estates can bypass probate, many in California must go through the formal process—especially when the total value of the estate exceeds the small estate threshold and no trust was in place.

When Is Probate Required in California?
You will likely need to go through probate if:

The decedent had a will but did not set up a trust (a will does not avoid probate in California—it just provides instructions to the court)
The estate includes real estate not held in joint tenancy or a trust
The estate’s total value exceeds the small estate threshold (currently $184,500 as of 2024)
There is no will (intestate estate), and court appointment of a personal representative is needed

Assets held in a revocable living trust or passed by beneficiary designation (like life insurance or retirement accounts) usually avoid probate.

When Do You Need a Probate Lawyer in California: Common Situations
While it’s possible to complete basic probate steps without a lawyer, it depends on the complexity of the estate.

Executors can represent the estate for routine probate tasks—like filing petitions, gathering assets, and attending probate hearings—but not in separate lawsuits or contested matters. If legal disputes arise, a lawyer is required because non-lawyers cannot represent an estate in civil litigation.

Hiring a probate lawyer is especially recommended when:

The estate is large or includes real estate
There are disputes among heirs or beneficiaries
The estate has significant debt or tax issues
There is no will or the will is contested
You are the executor and want to avoid personal liability

Executors have legal duties and can be held liable for mistakes. A probate attorney helps ensure proper filings, deadlines, and court compliance.

Why Legal Representation Matters: Estate of Sanchez (2023)
In Estate of Sanchez (2023) 95 Cal.App.5th 523, the California Court of Appeals held that a personal representative could not appear in propria person to prosecute causes of action on behalf of an estate when those actions involved third parties and were essentially for the benefit of the estate’s beneficiaries.

The court clarified that even though the fiduciary was appointed as executor and had broad authority under the IAEA, when the fiduciary is advocating for the estate’s beneficiaries (rather than only his or her own rights as executor), independent legal counsel is required — and appearing without counsel amounts to the unauthorized practice of law.

In other words: If you’re acting as executor and filing or defending civil-type claims on behalf of the estate or its beneficiaries, you must retain counsel. Attempting to represent an estate in such proceedings without a lawyer puts the case (and the fiduciary) at risk.

The court clarified that fiduciaries must hire separate legal counsel when representing the estate in court, unless they are formally acting as the estate’s attorney. This rule applies even to lawyers who are executors.

You can read the full case here on Google Scholar. See also Estate of Sanchez – California Lawyers Association

This decision reinforces the importance of hiring a probate lawyer when:

You’re managing legal disputes or civil claims tied to the estate
You’re unsure whether probate or litigation rules apply
You’re handling complex procedural issues

Attempting to represent an estate in legal proceedings without a lawyer could result in dismissal or loss of rights.

What About “Small Estates”?
If the total value of the estate is less than $184,500 (as of 2024), you may be able to use simplified procedures without opening full probate. According to Probate Code § 13100, a successor can use a small estate affidavit to collect certain assets.

However, even small estates can run into issues such as:

Unclear ownership of assets
Missing or outdated documents
Uncooperative heirs

A probate lawyer can help determine whether simplified procedures apply and guide you through the process efficiently.

Experienced Probate Attorneys
Probate in California typically takes 9–18 months. Delays can occur if forms are filed incorrectly, court deadlines are missed, or conflicts arise. A probate attorney can keep the process on track and help you avoid unnecessary stress.

If you’re dealing with the estate of a loved one—or have questions about whether you need a probate lawyer—the experienced attorneys at the Law Offices of David Knecht are here to help. We bring experience, compassion, and professionalism to every probate matter and can guide you through the process with confidence. Contact us today at (707) 451-4502 to schedule a consultation.

Filed Under: California Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Power of Attorney, Probate Lawyer, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

Understanding Power of Attorney in California: A Quick Guide

When life throws unexpected challenges your way—like illness, travel, or aging—having a Power of Attorney in California in place can provide peace of mind and legal protection. If you become temporarily or permanently unable to handle your affairs, a POA ensures someone you trust is legally empowered to act on your behalf.

What Is a Power of Attorney?

A Power of Attorney is a legal document that allows one person (the “principal”) to authorize another person (the “agent” or “attorney-in-fact”) to act on their behalf. In California, POAs can be used for many purposes, including:

Managing bank accounts and paying bills
Handling real estate transactions
Making healthcare or end-of-life decisions
Filing taxes or applying for government benefits

Types of Power of Attorney in California

General Power of Attorney – Grants broad authority over financial and legal matters. It becomes void if the principal becomes incapacitated.
Durable Power of Attorney – Remains in effect even if the principal becomes incapacitated. This is commonly used for long-term planning.
Limited (or Special) Power of Attorney – Grants authority only for specific tasks or for a limited time.
Medical Power of Attorney – Also called a health care power of attorney; this is usually included in an Advance Healthcare Directive to name a trusted person to make medical decisions.
Springing Power of Attorney – Only goes into effect when a specific condition is met (e.g., a doctor certifies incapacity).

Why Is Power of Attorney Important?

Without a valid POA, your loved ones might have to go to court to gain conservatorship or guardianship just to manage your affairs—a time-consuming and expensive process. A well-drafted POA:

Gives you control over who handles your affairs
Prevents unnecessary delays and legal fees
Ensures continuity in financial or medical decision-making

How to Create a Valid Power of Attorney in California

To be legally valid, a California POA must be:

Signed by the principal while they are mentally competent
Notarized (for most financial POAs) or witnessed by two adults (for healthcare POAs)
Clearly state the powers granted and any limitations
Dated and preferably drafted in compliance with the California Probate Code

You can find California’s statutory POA form here (Probate Code Section 4401).

Choose the Right Agent

Selecting the right person to act on your behalf is crucial—your agent will have significant control over your financial, legal, or medical matters. To illustrate the importance:

In one case, a financial advisor was sentenced to 10 years in federal prison for stealing $2 million from elderly clients after convincing them to give her power of attorney. Read the story on ThinkAdvisor
In another example, a Missouri woman used her brother’s POA to divert over $157,000 in disability benefits while he was incarcerated. Read the DOJ press release

These stories highlight the need to:

Choose someone with integrity and responsibility
Understand that POA is a serious legal role—not just a convenience
Regularly review the arrangement and revoke powers if trust is lost

Why This Matters: The Brian Wilson Conservatorship Case

Many people assume that naming someone in a Power of Attorney is enough—but what if your agent isn’t available or passes away? The case of Brian Wilson, the Beach Boys co-founder, highlights this risk. In May 2024, Wilson—who had struggled with neurocognitive decline—ended up under a court-appointed conservatorship when no trusted successor was in place. Read more on InvestmentNews

This situation illustrates why it’s important to:

Name multiple agents or successors in your POA
Ensure agents understand and are willing to act if the need arises
Include clear instructions on how and when an agent’s authority begins

Let the Law Offices of David Knecht Help You Plan Ahead

At the Law Offices of David Knecht, we help clients understand Power of Attorney in California and we can create documents that achieve their unique needs. Whether you’re planning for the future or updating outdated documents, we can ensure your wishes are respected.

Contact us today at (707) 451-4502 to protect your future with the right legal tools in place.

Filed Under: California Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Power of Attorney, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

Estate Planning for Uncertain Times

This article summarizes insights from Kiplinger’s “Eight Ways to Financially Plan Your Way Through Challenging Times” and shows how these strategies support estate planning for uncertain times. Whether you’re concerned about market swings, upcoming changes to the tax code, or simply protecting your legacy, these tips can help you act with clarity and purpose.

The economic landscape in 2025 is anything but predictable. Tax laws are in flux, investment markets are volatile, and inflation remains a concern. The good news? With the right planning, you can turn instability into opportunity—especially when it comes to preserving and transferring wealth.

Gift depreciated assets to shrink taxable estate

One smart move during uncertain markets is to gift or donate assets that have temporarily lost value. As Kiplinger points out, this can allow appreciation to happen outside your estate and maximize use of your gift tax exemption. This article on the 2025 gift tax exclusion explains how you can give up to $19,000 per person this year without tapping your lifetime exemption. Larger gifts can also be placed into trusts for added control and protection.

Lock in today’s estate and gift tax exemption

The federal exemption is still historically high—$13.99 million per person in 2025—but it’s expected to shrink dramatically in 2026. That’s why it’s smart to act now. Forbes’ 2025 estate planning strategies emphasize the urgency of using irrevocable trusts and discounted asset transfers before the exemption drops.

Use Roth conversions and trusts while valuations are low

Market downturns present excellent opportunities to shift future growth out of your estate. Roth conversions of traditional IRAs—when account values are temporarily lower—can set your heirs up with tax-free income. Trusts like GRATs and charitable remainder trusts can also freeze low values for estate tax purposes. This guide to estate tax exemptions in 2025 highlights why acting in a low-valuation environment makes financial and estate planning sense.

Why estate planning for uncertain times requires flexibility

Unpredictable markets and tax law changes reveal just how important flexibility is in your estate plan. You may need to:

Reallocate assets or update valuations
Revisit trust provisions and gifting strategies
Protect heirs from reassessment or tax liability
Ensure your plan still meets your financial and legacy goals

In short, estate planning for uncertain times means building a structure that can pivot as needed—without triggering unintended taxes or delays.

In summary

Kiplinger’s timely financial advice—paired with strategic estate planning—can help you turn economic uncertainty into long-term security. Gifting undervalued assets, locking in high exemptions, and converting to Roth IRAs are just a few tools you can use in 2025.

The Law Offices of David Knecht can help you implement these strategies in a customized estate plan. Whether you’re planning for growth, protection, or transfer, we’re here to guide you through every twist and turn of the financial landscape. Contact us today at (707) 451-4502.

Why 2025 May Be the Right Year to Update Your Estate Plan in California

If you haven’t looked at your estate plan in a few years—or haven’t created one at all—2025 may be the perfect time to update your estate plan in California. From changes in real estate ownership and family dynamics to the growing importance of digital assets, there are many reasons to revisit your will, trust, and other legal documents this year. Making thoughtful updates now can reduce confusion later, protect your assets, and give your loved ones peace of mind. Here’s why it matters in 2025.

Why California Real Estate Deserves a Second Look in 2025

A properly prepared estate plan is typically designed to withstand fluctuations in real estate values. However, changes in how your property is owned or managed can still impact your planning. You may need to update your estate documents if you’ve:

Bought or sold a home or rental property
Refinanced or changed the property title
Converted a residence into a rental or vice versa
Forgotten to move your property into your trust

In 2025, market shifts are still a real factor. Recent reports suggest California home prices have stabilized in some regions after last year’s declines, while others remain uncertain. According to Norada Real Estate, California home prices have begun to decline in key regions, raising questions about long-term property values. If your estate plan includes strategies based on past valuations—or if you’re considering generational transfers, gifts, or sales of property—now is a good time to make sure those assumptions still hold.

Don’t Overlook Digital Assets

Today, many people store wealth, memories, and essential information online. If your estate plan doesn’t mention digital assets, you may be leaving your executor without the tools to handle:

Email and social media accounts
Banking and investment portals
Cloud photo or document storage
Cryptocurrency wallets and exchanges
Subscription or online business accounts

California has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which allows you to give legal authority to a trustee or executor to access digital information. But this authority must be specifically granted in your trust, will, or power of attorney.

Major Life Changes that Should Trigger and Update

Your estate plan should reflect your current life—not your past. It’s time to update your estate plan in California if any of the following apply:

You’ve gotten married, divorced, or remarried
You’ve had children or grandchildren
A beneficiary has passed away or become estranged
Your financial or health situation has changed
You’ve moved to or from California
You now care for a disabled or elderly family member

Updating your documents ensures your assets go where you intend and that the people you trust are in charge of decisions if something happens to you.

Future-Proofing Your Plan

An estate plan isn’t a one-time task—it’s a living set of instructions that should evolve with your circumstances. And with federal estate tax exemptions scheduled to change in 2026, 2025 is an especially important year to confirm your plan accounts for potential tax law changes. By updating your plan now, you can:

Avoid legal confusion or probate delays
Remove outdated beneficiaries or fiduciaries
Reflect current wishes and relationships
Protect your family from costly disputes

Work With Experienced Counsel

When it comes to estate planning, experience matters. A knowledgeable legal team can guide you through trust funding, digital asset clauses, California probate avoidance strategies, and tax-smart strategies the first time—efficiently and effectively. At the Law Offices of David Knecht, we bring decades of California estate planning experience to every client we serve.

Ready to Update Your Estate Plan in California?

Let 2025 be the year you take control of your legacy. Whether you’re updating a plan from years ago or starting from scratch, we’re here to help.

Contact the Law Offices of David Knecht at (707) 451-4502 to schedule a personalized consultation.

Filed Under: California Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Living Trust , Living Will, Postnuptial Agreement, Power of Attorney, Probate Lawyer, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer

Digital Assets and Passwords: Are They Part of Your California Estate Plan?

When most people think about estate planning, they focus on wills, trusts, and real estate. But in today’s digital world, your estate also includes something less tangible—and often overlooked: your digital assets. If you live in California and haven’t included digital assets and passwords in your estate plan, you might be leaving your loved ones with a confusing and stressful mess.

Here’s what you need to know about planning for your online life.

What Are Digital Assets?

Digital assets include anything that exists online or is stored electronically. This can range from sentimental items to financial tools and even cryptocurrency. Examples include:

Email accounts (Gmail, Outlook, etc.)
Social media profiles (Facebook, Instagram, LinkedIn)
Online banking or investment accounts
PayPal, Venmo, or digital wallets
Cryptocurrency like Bitcoin or Ethereum
Photos and documents stored in the cloud
Domain names, blogs, and monetized websites
Subscription accounts (Netflix, Spotify, etc.)

Some of these may have financial value. Others have emotional or practical value. But if your family doesn’t have access to them—or even know they exist—they could be lost forever.

Why Planning for Digital Assets Matters

Without a plan, your loved ones may:

Be locked out of your accounts indefinitely
Lose access to photos, videos, or personal files stored online
Miss bills or financial assets tied to online-only services
Struggle with legal barriers—many companies will not allow access without proper legal authority

In California, the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) governs how a personal representative (executor or trustee) can access digital assets.

This issue has attracted growing attention nationwide. A recent LA Times roundtable emphasized the importance of updating estate plans to account for everything from social media to cryptocurrency and cloud-based intellectual property.

How to Include Digital Assets in Your Estate Plan

Here are steps you can take to ensure your digital presence is accounted for:

1. Make a Digital Inventory

Start by creating a list of your digital accounts and assets. This doesn’t need to include passwords yet—just the platforms and general purpose (e.g., “Chase Bank online account,” “iCloud photo storage,” “Coinbase wallet”).

Store this inventory in a safe location or encrypted file and update it periodically.

2. Grant Authority in Your Legal Documents

Update your estate plan to explicitly give your executor or trustee permission to access your digital assets. This may include:

Your revocable living trust
Your will
Your durable power of attorney

Make sure these documents reference California’s RUFADAA and clearly state your wishes regarding digital access.

3. Use Password Managers (and Share Access Carefully)

If you use a password manager like LastPass, 1Password, or Bitwarden, consider setting up emergency access for a trusted person. This can make it easier for them to retrieve information when the time comes.

Avoid writing down passwords in plain text. Instead, coordinate with your attorney on safe ways to share or store login credentials.

A student-run digital estate planning clinic at the University of Colorado has encouraged people of all ages to think ahead about how families will access—or be blocked from—photos, finances, and even gaming accounts if no plan is in place.

4. Decide What You Want Shared—or Deleted

You may not want all your accounts accessed. Some people prefer their social media profiles be memorialized or deleted. Others may want their blogs or YouTube channels passed on to someone specific.

Clearly state your wishes in writing and include them in a letter of instruction or digital legacy plan.

What About Cryptocurrency?

Digital currency poses a unique challenge. If your loved ones don’t have access to your wallet, seed phrase, or key, the funds are effectively lost forever—regardless of your will or trust. Binance co-founder CZ has even advocated for “crypto wills” as the next frontier in estate planning, highlighting the difficulty of transferring crypto wealth without proper documentation.

For California residents with crypto holdings, it’s essential to:

Include crypto wallets in your digital inventory
Provide detailed access instructions (privately, not in the will itself)
Work with an attorney familiar with digital asset transfers

What Happens If You Don’t Plan?

Without instructions or legal authority, your executor may have to petition tech companies for access. For families, this can mean lost memories, unpaid bills, and prolonged emotional distress.

Find an Experienced Estate Planning Attorney

If you’re updating or creating an estate plan, don’t overlook your digital footprint. Including digital assets and passwords in your California estate plan ensures that your loved ones won’t be left guessing—or locked out—when it matters most.

At the Law Offices of David Knecht, we take a modern approach to estate planning that considers your full digital and financial life. Contact us today at (707) 451-4502 to schedule a consultation and make sure every part of your legacy is protected.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Power of Attorney, Probate Lawyer, Trust Administration Attorney , Vacaville Attorney

Beneficiary Designations in California: Ensuring Your Assets Align with Your Estate Plan

When planning your estate, it’s essential to understand that beneficiary designations can override the instructions in your will or trust. In California, as in other states, assets like retirement accounts, life insurance policies, and payable-on-death (POD) bank accounts pass directly to the named beneficiaries, bypassing probate. This makes it especially important to regularly review and update your beneficiary designations to ensure they align with your current intentions. According to a New York Times article, confusion over outdated or misaligned beneficiary designations is a growing source of estate-related disputes.

What Are Beneficiary Designations?

Beneficiary designations are legal instructions that specify who will receive certain assets upon your death. These designations commonly apply to:

Retirement accounts such as 401(k)s and IRAs
Life insurance policies
Annuities
Bank and brokerage accounts labeled as payable-on-death (POD) or transfer-on-death (TOD)

These designations typically override what is written in your will or trust. That means if your will says one thing, but your 401(k) beneficiary form says another, the designation will govern.

California-Specific Considerations

California is a community property state, which means spouses generally share equal ownership of assets acquired during marriage. This affects how beneficiary designations are handled:

Naming someone other than your spouse as beneficiary of a community property asset may require spousal consent.
If that consent isn’t documented, it could trigger legal challenges or invalidate the designation.

California also permits the use of Transfer-on-Death (TOD) deeds for real estate. This allows a homeowner to pass real property to a named beneficiary without probate, but the deed must meet specific legal requirements to be valid.

Beneficiary Designations in California: Common Mistakes to Avoid

Estate planners and financial advisors warn against these common errors, many of which are highlighted by Kiplinger and Investopedia:

Failing to update designations after major life events such as marriage, divorce, birth of a child, or the death of a beneficiary
Not naming a contingent beneficiary, which can result in probate if the primary beneficiary has died
Using vague terms like “my children”, which can create confusion in blended families or if a child predeceases you
Naming minors directly as beneficiaries without establishing a trust or custodianship, which may require court intervention to manage the asset
Ignoring retirement account tax implications, especially when naming non-spouse beneficiaries

Coordinating Designations with Your Estate Plan

Beneficiary designations should be treated as an integral part of your estate plan, not an afterthought. Here’s how to make sure everything works together:

Review all designations regularly, especially after major life events
Work with an estate planning attorney to ensure consistency between your trust or will and your beneficiary forms
Consider naming a trust as a beneficiary if you want to control how and when funds are distributed
Keep records of all designations in a secure place, and let your executor or trustee know where to find them

Why This Matters

According to the New York Times, disputes over outdated or inaccurate beneficiary designations have become more common. Even small oversights can lead to big consequences, such as assets going to unintended recipients or triggering unnecessary probate proceedings. Ensuring that your designations are up to date and legally valid is a key part of protecting your estate and your family’s future.

Conclusion

Properly managing your beneficiary designations in California is one of the simplest—and most powerful—ways to ensure your estate plan works the way you intend. These designations can override even a well-drafted will or trust, making it critical to review them often and align them with your broader goals.

At the Law Offices of David Knecht, we help California residents navigate all aspects of estate planning, including the crucial role of beneficiary designations. Whether you’re starting from scratch or reviewing an existing plan, our team can help you avoid costly mistakes and achieve peace of mind. Contact us today, (707) 451-4502, to schedule a consultation and make sure your plan truly reflects your wishes.

Filed Under: California Estate Plan, Digital Estate Plan, Estate Planning, Estates, Fairfield Attorney, Fairfield Lawyer, Living Trust , Living Will, Power of Attorney, Probate Lawyer, Trust Administration Attorney , Vacaville Attorney, Vacaville Lawyer