Can an Estate Plan Protect My Assets from a Wildfire? - Lowthorp Richards

Can an Estate Plan Protect My Assets from a Wildfire?

Our hearts go out to all those affected by the recent wildfires in Southern California. The devastation has been unprecedented, with over 40,000 acres burned, lives lost, and more than 100,000 residents under evacuation orders.

In light of these tragic events, it’s crucial to consider how estate planning can help protect your assets from such disasters. While an estate plan cannot prevent wildfires, it can ensure that your assets are safeguarded and your wishes honored in the aftermath. Here’s how estate planning can help you protect your assets and update your plans to account for wildfire risks.

Preventative Actions in Estate Planning

  1. Ensure Comprehensive Insurance Coverage
    Start by reviewing your homeowner’s and property insurance policies to ensure you have sufficient coverage. Your estate plan should also specify how these proceeds should be handled, particularly if insurance payouts are intended to benefit specific beneficiaries.
  2. Create a Fireproof Estate Plan
    Keep important documents like your will, trust, insurance policies, and property deeds in a fireproof safe or store them digitally. This ensures your estate plan is accessible even if physical copies are destroyed.
  3. Establish a Living Trust
    A living trust can help protect assets by clearly outlining how they should be distributed, even in the event of a disaster. Trusts can also bypass probate, providing quicker access to funds for recovery efforts after a wildfire.

Updating Your Estate Plan After a Wildfire

If your assets or specific gifts mentioned in your estate plan were lost in a wildfire, it’s critical to update these documents to reflect your current situation. Beneficiaries are generally not entitled to insurance proceeds unless explicitly stated in your estate plan or trust. Here are a few steps to take:

  1. Review Your Trust and Will
    If your estate plan includes specific gifts, such as a home, family heirloom, or artwork, and these were lost, update the documents to reflect your revised intentions.
  2. Include Provisions for Insurance Proceeds
    If you anticipate receiving insurance payouts, specify in your trust or will how these funds should be distributed. For instance, you may allocate proceeds to beneficiaries, set aside funds for rebuilding, or donate to wildfire relief efforts.
  3. Reassess Beneficiary Designations
    Ensure your updated estate plan aligns with your current assets and any changes to your financial or family situation caused by the wildfire.

The Importance of Professional Guidance

Estate planning in wildfire-prone areas requires careful consideration of both short-term risks and long-term intentions. By updating your estate plan and trust to account for potential losses and specifying how insurance proceeds should be handled, you can better protect your assets and ensure your wishes are carried out.

If you’re unsure how to update your estate plan or need guidance after a wildfire, consult a trusted estate planning attorney. They can help you navigate the complexities of preserving your assets and safeguarding your legacy.

For personalized legal advice and support with choosing the estate planning strategy that best meets your needs, please contact the skilled attorneys at Lowthorp Richards today by dialing (805) 981-8555 or completing our convenient online contact form. Our legal practitioners are deeply rooted in the California Tri-Counties region, serving Ventura, Santa Barbara, and San Luis Obispo.

NOTE: The information contained herein is not intended to be legal advice and the reader should know that no Attorney-Client relationship or privilege is formed by the posting or reading of this article which is also not intended to solicit business.

Cristian R. Arrieta, Lowthorp Richards McMillan Miller & Templeman, A Professional Corporation, 300 E. Esplanade Drive Suite 850, Oxnard, CA 93036