For California apartment owners, establishing an estate plan is a crucial step in safeguarding your assets, ensuring your wishes are honored, and protecting your loved ones. However, creating an estate plan is not a one-and-done task. Just as you maintain your property, your estate plan requires periodic attention to remain effective and relevant.

Why Regular Reviews Matter

Life is dynamic. Over time, your family circumstances, asset portfolio, and even the law itself can change significantly. An outdated estate plan can lead to unintended consequences—assets passing to estranged relatives, overlooked beneficiaries, or costly legal disputes. Regular reviews ensure your plan continues to reflect your current wishes, protects your growing (or changing) real estate holdings, and takes advantage of new legal and tax strategies.

Real-Life Examples

Consider these scenarios:

Family Changes: Michelle, a Los Angeles apartment owner, created her estate plan before her divorce. Years later, she remarried and had a child but never updated her plan. When she passed away, her ex-spouse remained a beneficiary, leading to a painful legal battle and her new family being left unprotected.

Asset Growth: A Central California landlord inherited additional properties but didn’t update his trust. Upon his death, some properties were not properly titled in the trust, forcing his heirs into a lengthy and expensive probate process.

Legal Changes: California periodically updates its laws regarding property, inheritance, and taxes. An apartment owner who failed to review their plan missed out on new tax-saving opportunities, resulting in higher estate taxes for their heirs.

When to Review Your Estate Plan

Experts recommend reviewing your estate plan every three to five years, even if nothing major has changed. However, certain events should always trigger an immediate review:

• Marriage, divorce, or remarriage
• Birth or adoption of a child or grandchild
• Death or incapacity of a beneficiary, executor, or trustee
• Significant changes in your assets (buying or selling property, inheriting wealth)
• Retirement or moving to another state
• Major health changes
• Changes in estate or tax laws

How to Conduct a Review

Inventory Your Assets: Ensure all properties—especially new acquisitions—are properly titled and included in your trust or will.

Update Beneficiaries and Fiduciaries: Confirm that the right people are named as beneficiaries, executors, and trustees, and that alternates are in place if needed.

Consult Professionals: Laws and best practices change. Work with a qualified California estate planning attorney to identify new opportunities or address potential pitfalls.

Document and Communicate: Keep your documents organized and let your trusted contacts know where to find them in an emergency.

Conclusion

For California apartment owners, regular estate plan reviews are as essential as property maintenance. By keeping your plan current, you protect your legacy, minimize taxes and legal headaches, and provide peace of mind for yourself and your loved ones. Schedule a review every three to five years—or sooner if life throws you a curveball—to ensure your estate plan remains a powerful tool for your future.

Disclaimer:

The information provided in this article is for general informational purposes only and does not constitute legal advice. Estate planning laws and regulations vary by jurisdiction and individual circumstances. Readers are strongly encouraged to consult with a qualified legal advisor or estate planning professional to obtain advice tailored to their specific situation. The author and publishers of this article disclaim any liability for actions taken or not taken based on the content herein.

Sources – 1. Madison Eubanks writing at www.justvanilla.com/blog; 2. Surprenant, Beneski & Nunes, PC posting at myfamilyestateplanning.com; 3. Botti & Morrison posting at ww.bottilaw.com;  4. www.lawinc.com; 5. stateplaninc.com; 6. daughtreylaw.com

Written by Wesley V. Wellman

Wesley V. Wellman has been active in the financial services field for more than 40 years. His brokerage firm, Wellman Realty Company, specializes in multi-family and commercial investment property. Since the year 2000, Mr. Wellman has sold over $342 million of investment property. He is a Santa Monica apartment industry leader and is frequently quoted in the local press about rental property issues. He is one of the founding directors of the Action Apartment Association, which was formed in 1980. As an advisor, Mr. Wellman draws on a wealth of educational background in real estate, taxation, securities and estate planning.