Sacramento Estate Planning Law Blog

Last week we discussed the importance of being proactive in developing a California estate plan to ensure that your wishes are carried out in the event of a sudden illness or accident. But that is merely the first step in the process. Executing a will and then placing it in a safety deposit box to accumulate dust is not a strong estate plan.

A complete and strong estate plan requires thoughtful monitoring, and when necessary, additions and modifications. Changes in your life may require corresponding tailoring of your estate documents. A divorce, marriage, or an addition of a child through birth or adoption should prompt you to reexamine the documents you have already executed. Failure to do so can lead to expensive and unintended consequences.

Some very large estates have been divided in California courts. But sound estate planning is not just for Hollywood millionaires, titans of industry, and masters of the universe. Every person needs to lay out a detailed plan, so that when the time comes to dispose of one's property, the process can be as free from strife and discord as possible. Most importantly, a strong estate plan will most fully effectuate the intent of the person who created it.

Regrettably, failures in proper estate planning abound. But they provide examples that others can learn from. A case in point is Stieg Larsson, author of The Girl with the Dragon Tattoo. His book has enjoyed significant popularity, and now with its production as a film, it has become quite successful financially. Unfortunately for Larsson, he died intestate--that is, without a will--in 2004. His estate, now worth at least $40 million, has become the subject of a bitter legal battle between his girlfriend and his family.

Sacramento's young professionals may not think they are old enough or rich enough for estate planning, but that mistake could lead to years of heartache and strain for their relatives should an accident happen. For those young people who have taken the initiative to speak with an estate planning lawyer, however, it is most likely they have only created a will. Instead of just making a will, there are other options, including trusts, that may make more sense.

Young parents especially may consider trusts an important addition to their estate planning needs. If something tragic did happen and left their children without a living parent, a trust protects the children's inheritance. Establishing a trust, especially one with clear directions on how money should be spent or used, would prevent children from accessing their money too early or making poor decisions before they ever become adults.

Proper estate planning is very important for California families, as even when a trust is set up while an individual is still alive, legal matters can still arise. The heirs to a California winery are learning this after winding up in court over matters related to trust administration of the family winery. The family has settled the legal dispute, but there may be emotional scars left on the family for some time.

The matter involves the Foppiano wine family from Healdsburg. The winery was family-founded and has been in operation since 1896. The 101-year-old father passed control of the winery to his son in 2005, and named both children as co-trustees in 2009.