Estate planning in California can be complex because of its nuances, but 2026 brings specific shifts that demand a second look at your strategy. If you have a high-net-worth estate or significant assets, leaving your plans out of date could leave your family facing unnecessary taxes or other issues you intend to avoid.
Here is what you need to know to stay compliant and protected this year.
Essential documents to have
Secure your estate by preparing these documents early:
- Revocable living trust: Allows you to pass assets to your heirs without going through probate
- Will: Serves as a document to name guardians for minor children
- Advance healthcare directive: Outlines your wishes for end-of-life care and the name of your health care agent who will make medical decisions upon your incapacity
- Durable power of attorney: Grants your appointed individual the power to manage your finances if you become incapacitated
- Digital asset authorization: Gives your executor or trustee access to your social media accounts, online wallets and cryptocurrencies
Drafting these documents is only one part of the estate planning process. You must also stay on top of the federal and state law updates regularly.
Key shifts in estate planning laws
The landscape for estate planning has changed significantly at the beginning of the year. Ever since the One Big Beautiful Bill Act (OBBBA) took effect, the federal estate tax exemption has raised to $15 million per individual and $30 million for married couples. Without a proper plan, your family is at risk of receiving less than what you aimed for.
Moreover, the beneficiary who will inherit your home can trigger a massive property tax reassessment. Unless the property is their primary residence and the value meets specific criteria, they could face a substantial tax hike.
Moving beyond the basics
A checklist is a great start, but a sophisticated estate requires a nuanced hand. Additionally, given the new guidelines from OBBBA, reviewing and updating your estate plan is necessary.
Because California law is becoming increasingly technical, a do-it-yourself approach often creates more problems than it solves. Seeking legal counsel can help in securing your legacy.
