Adding New Assets to a Will

Emily just lost everything. After meticulously drafting her will ten years ago, she acquired a substantial cryptocurrency portfolio and a vacation rental property. She thought a simple codicil adding these assets would suffice. Unfortunately, the codicil wasn’t properly executed – a missing signature, a technicality, really – and the court invalidated it. Now, her heirs face a protracted and expensive probate battle, potentially wiping out a significant portion of the intended inheritance. This entire ordeal could have been avoided with proactive estate planning.

As an estate planning attorney and CPA with over 35 years of experience, I often encounter clients in similar situations. It’s a common mistake to believe a will is a “one and done” document. Life changes – marriages, divorces, births, deaths, and, crucially, the acquisition of new assets – necessitate regular review and updates. My CPA background provides a unique advantage, allowing me to not only navigate the legal aspects of estate planning but also to optimize tax implications, such as maximizing step-up in basis and minimizing capital gains taxes on inherited property.

What Happens When You Acquire New Assets After Creating Your Will?

Generally, your will governs the distribution of assets you own at the time of your death. Newly acquired assets aren’t automatically included unless your will contains a “catch-all” provision. This is a clause stating that any property not specifically mentioned in the will should be distributed in a certain way – often to your residuary beneficiaries. However, relying solely on a catch-all isn’t ideal, particularly with complex or significant assets. A codicil is designed to modify existing wills, and can be effective for adding minor changes or specific bequests, but as Emily’s case illustrates, even a seemingly small error can invalidate the entire document. If a codicil is invalidated, assets may force full probate; however, for deaths on or after April 1, 2025, estates under $208,850 (per CPC § 13100) may still qualify for simplified procedures. This limit is set until 2028.

How Often Should You Review and Update Your Will?

I recommend reviewing your estate plan every three to five years, or whenever a major life event occurs. This includes changes in marital status, the birth or adoption of children, significant purchases like real estate or businesses, or substantial shifts in your financial situation. Ignoring these changes can lead to unintended consequences, such as assets being distributed in a way you no longer desire or your loved ones facing unnecessary legal hurdles.

What’s Better: A Codicil or a New Will?

The answer depends on the extent of the changes. For minor adjustments, a properly executed codicil can be sufficient. However, if you’ve accumulated significant new assets, experienced major life changes, or if your original will is already heavily amended with multiple codicils, it’s generally wiser to create a completely new will. A fresh document eliminates ambiguity and ensures all your wishes are clearly and legally documented.

What About Digital Assets and LLCs?

Modern estate planning must address digital assets – cryptocurrency, online accounts, and intellectual property. A standard codicil often fails to include the specific RUFADAA language (CPC § 870) required to bypass federal privacy laws, potentially leaving your heirs locked out of crypto-wallets and email accounts. Furthermore, if you’ve formed or acquired an LLC, updating your estate plan is crucial. As of March 2025, FinCEN has exempted domestic U.S. LLCs from BOI reporting; however, foreign-registered entities in the U.S. still face mandatory filing requirements and potential penalties. Failing to address these complexities can create significant administrative burdens for your family.

How Does the Tax Landscape Affect My Will?

The tax laws surrounding estate planning are constantly evolving. The 2026 ‘tax cliff’ was averted by the OBBBA, which permanently increased the Federal Estate Tax Exemption to $15 million per person effective Jan 1, 2026. Old formula clauses should be reviewed to ensure they don’t over-fund trusts under these new limits. As a CPA, I can help you minimize estate taxes and ensure your beneficiaries receive the maximum benefit from your assets. Proper planning can involve strategies like gifting, irrevocable trusts, and utilizing the annual gift tax exclusion.

How do California courts decide whether a will reflects true intent or creates ambiguity?

In California, a last will and testament is reviewed under probate standards that focus on intent, capacity, and execution. Clear drafting reduces ambiguity, limits misinterpretation, and helps families avoid unnecessary conflict during estate administration.

• Preparation: Review future needs regularly.
• Validation: Check statutory rules.
• Parties: Update testator details.

When a will is drafted with California probate review in mind, it becomes a stabilizing roadmap rather than a source of conflict. Clear intent, proper authority, and compliant execution protect both families and estates.

Primary Legal Authorities Governing Probate and Estate Administration

• Probate & Local Court Rules:
  
  San Diego Superior Court – Probate Division
  
  Official Escondido County probate rules, filing procedures, examiner notes, and Local Rule 4.4.5 governing remote appearances and non-evidentiary hearings.
• Attorney Licensing & Ethical Standards:
  
  State Bar of California
  
  The authoritative source to verify attorney license status, disciplinary history, and current ethical rules governing California attorneys and client trust accounts.
• Judicial Council Forms & Self-Help:
  
  California Courts – Wills, Estates, and Probate
  
  State-issued probate forms and guidance, including small estate procedures, primary residence transfers under AB 2016, and executor responsibilities.
• Federal Estate & Gift Tax Law:
  
  IRS Estate Tax Guidelines
  
  Federal rules governing estate and gift tax filing, including the permanent 2026 OBBBA exemption of $15 million per individual.