End-of-Life Planning Checklist for California Residents
End-of-Life Planning Checklist for California Residents
End-of-life planning in California covers six areas: healthcare directives, financial authority, a will or trust, beneficiary designations, funeral preferences, and California-specific property and tax considerations. California combines the living will and healthcare power of attorney into a single document -- the Advance Health Care Directive -- which simplifies the process compared to states that require separate forms.
This is not about anticipating the worst. It is about making sure the people you trust can act quickly when they need to, without a judge's permission.
Part 1: Healthcare Documents
California law provides several instruments for healthcare decision-making. Each serves a different purpose.
Advance Health Care Directive (AHCD)
Cal. Prob. Code Sections 4600-4701 govern this document. It combines two functions into one form: appointing a healthcare agent and stating your treatment preferences.
| Detail | Requirement |
|---|---|
| What it does | (1) Appoints an agent to make healthcare decisions when you cannot, and (2) states your wishes about end-of-life treatment, pain management, organ donation, and disposition of remains |
| Statutory form | Cal. Prob. Code Section 4701 provides an optional statutory form; any written document meeting the requirements is valid (Section 4700) |
| Signing requirements | Signed by you, then either witnessed by 2 adult witnesses present at the same time OR acknowledged before a notary public |
| Witness restrictions | Witnesses cannot be: your healthcare provider, an employee of your healthcare provider, the agent named in the directive, or an operator/employee of a community care or residential care facility where you reside. At least one witness must not be related to you and not entitled to any part of your estate |
| When it takes effect | When your attending physician determines you lack capacity to make healthcare decisions (you may specify immediate effectiveness in the document) |
| Revocation | Revocable at any time while you have capacity -- by signed written revocation, destroying the directive, oral expression of intent in a witness's presence, or executing a new directive (Cal. Prob. Code Section 4695) |
Important: California's AHCD is a combined document. You do not need a separate living will and a separate healthcare power of attorney -- one form handles both.
Agent Restrictions
Your healthcare agent cannot be your supervising healthcare provider or an employee of your healthcare provider, unless they are related to you by blood, marriage, or adoption. The same restriction applies to operators and employees of community care facilities where you receive care (Cal. Prob. Code Section 4659).
POLST (Physician Orders for Life Sustaining Treatment)
Cal. Prob. Code Section 4780 governs the POLST. Unlike the AHCD, the POLST is a medical order, not an advance directive.
| Detail | Requirement |
|---|---|
| What it does | Translates your treatment preferences into immediately actionable medical orders |
| Who should have one | Individuals who are frail, elderly, have a serious illness with approximately one year prognosis, or have a terminal condition -- NOT healthy individuals |
| Signing requirements | Signed by you (or your legally recognized decision-maker) AND your physician, nurse practitioner, or physician assistant. No witnesses or notarization required |
| Identification | Printed on bright pink paper for easy identification in emergencies |
| Relationship to AHCD | Supplements but does not replace the AHCD. If POLST and AHCD conflict, the most recently executed document controls |
Key distinction: A POLST is appropriate for people with serious illness who need specific medical orders to follow them across care settings. Healthy individuals should use the AHCD instead.
Part 2: Financial and Legal Documents
Durable Power of Attorney for Finances
Cal. Prob. Code Sections 4000-4545 govern financial powers of attorney. The Uniform Statutory Form is at Section 4401.
| Detail | Requirement |
|---|---|
| What it does | Authorizes an agent to handle your financial affairs -- real property, banking, investments, taxes, insurance, business operations, government benefits, and more (13 categories in the statutory form) |
| "Durable" meaning | Remains effective if you become incapacitated. The statutory form under Section 4401 is durable by default. Must include language such as "This power of attorney shall not be affected by the subsequent incapacity of the principal" (Section 4124) |
| Signing requirements | Signed by you, notarized (Section 4121), and dated |
| Springing option | May be drafted as a "springing" POA that becomes effective only upon a specified event such as incapacity (Section 4129) |
| Third-party acceptance | Third parties who refuse to honor a properly executed POA may be liable for attorney's fees and damages (Section 4306) |
| Termination | Terminates upon death, revocation, expiration of a specified term, or court order. Divorce terminates authority of a former spouse as agent unless the POA provides otherwise (Section 4154) |
Common mistake: People sign a POA but never distribute copies. Give your agent the original or a certified copy, and file copies with your bank and brokerage in advance.
Will
California Probate Code governs wills. Basic requirements:
| Requirement | Detail |
|---|---|
| Age | Must be 18 or older |
| Mental capacity | Must be of sound mind |
| Formal (attested) will | Signed by you in the presence of two witnesses who also sign |
| Holographic (handwritten) will | Entirely in your handwriting, dated, and signed by you -- no witnesses required |
Why trusts are common in California: California probate fees are set by statute (Cal. Prob. Code Section 10810) and can be substantial. For a $1,000,000 estate, combined statutory fees total approximately $46,000. Many California residents create revocable living trusts to avoid these fees entirely. If you own real property in California, a trust is worth serious consideration.
See our guide on how probate works in California for detail on how property passes.
Part 3: Beneficiary Designations
Beneficiary designations override your will. An account or asset with a designated beneficiary passes directly to that person outside of probate, regardless of what your will says. Review these regularly, especially after marriage, divorce, or the birth of a child.
| Asset Type | Key Details |
|---|---|
| Pay-on-death (POD) bank accounts | Name a beneficiary at your bank; funds transfer at death without probate |
| Transfer-on-death (TOD) securities | Register with your brokerage; securities transfer directly at death |
| Revocable TOD deed | Cal. Prob. Code Sections 5600-5696 allows a TOD deed for real property. Must be recorded before death. Beneficiary must survive you by 120 hours |
| Community property with survivorship | Cal. Civ. Code Section 682.1; both spouses agree in writing; surviving spouse gets full ownership at death |
| Vehicle TOD beneficiary | Name a beneficiary on the title; no probate required |
| Retirement accounts (401(k), IRA) | Name a beneficiary with the plan administrator; spousal consent required for 401(k) if naming a non-spouse (federal ERISA requirement) |
| Life insurance | Name a beneficiary with the insurer; update after life changes |
California-specific note: Without a community property with right of survivorship agreement, the deceased spouse's half of community property goes through probate. With one, the surviving spouse gets everything immediately.
Part 4: Digital Accounts
California has adopted the Revised Uniform Fiduciary Access to Digital Assets Act. Create a secure inventory of all accounts -- email, social media, cloud storage, financial platforms, subscriptions, and cryptocurrency -- and store it separately from your will (which becomes public record).
Access priority: (1) your online tool direction (legacy contacts on Google, Apple, Facebook), (2) your estate planning documents, (3) the platform's terms of service. Use a password manager and share the master credentials with your agent through a secure method.
Part 5: Funeral Preferences
Disposition Authority
Under Cal. Health and Safety Code Section 7100, your healthcare agent named in an AHCD has priority for decisions about autopsy, organ donation, and disposition of remains -- above even your spouse. Make sure your agent knows your wishes about funeral arrangements.
Pre-Need Contracts
Cal. Bus. and Prof. Code Sections 7735-7746 govern pre-need funeral contracts. All pre-need trust funds must be deposited in a trust account. You may cancel at any time and receive a refund. Keep a copy where your family can find it. For pricing, see our California funeral cost guide.
Disposition Choices to Document
Write down your preferences for: disposition method (burial, cremation, alkaline hydrolysis, green burial, body donation), service type, body preparation, and organ/tissue donation (register at donatelifecalifornia.org).
Part 6: California-Specific Considerations
Community Property
California is a community property state (Cal. Fam. Code Section 760). Property acquired during marriage is presumed owned 50/50, and each spouse can only direct their half in a will. Separate property (pre-marriage, gifts, inheritance) follows different rules. A community property with right of survivorship agreement or a revocable living trust avoids probate for these assets.
No State Estate or Inheritance Tax
California has:
- No state estate tax -- your estate is not taxed by California at death
- No state inheritance tax -- your heirs do not pay California tax on what they inherit
The federal estate tax applies to estates exceeding $15,000,000 (as of P.L. 119-21, OBBBA, signed July 4, 2025), with a top rate of 40%. The federal return is Form 706, due 9 months after death.
Step-Up in Basis (Community Property Double Step-Up)
Under IRC Section 1014, inherited assets receive a step-up in basis to fair market value at the date of death. In community property states like California, both halves of community property get the step-up when one spouse dies -- not just the deceased's half. This can save the surviving spouse significant capital gains taxes if they sell inherited assets.
Gift Tax
The federal gift tax exclusion for 2026 is $19,000 per recipient per year. Married couples can combine their exclusions to give $38,000 per recipient.
Medi-Cal Estate Recovery (MERP)
Medi-Cal can recover costs (received after age 55) from a deceased beneficiary's estate. California limits recovery to assets that pass through probate. Recovery is deferred while a surviving spouse, minor child, or blind/disabled child survives. A 5-year lookback period penalizes asset transfers made to qualify for Medi-Cal. Assets passing outside probate (POD, TOD, life insurance, trust, joint survivorship) are generally protected from recovery.
Proposition 19 (Property Tax Reassessment)
When real property changes ownership at death, it may be reassessed to current market value. The parent-child exclusion is limited to a primary residence the child occupies within one year, with a cap on the excluded amount. This can dramatically increase property taxes on inherited property that the heir does not use as a primary residence.
Complete Planning Checklist
Healthcare: Advance Health Care Directive (2 witnesses or notary) with agent + treatment preferences / POLST if you have serious illness (physician-signed) / Discuss wishes with agent and physician
Financial/Legal: Durable Power of Attorney for Finances (notarized, Section 4401) / Will or revocable living trust / File POA copies with bank and brokerage
Beneficiary Designations: POD on bank accounts / TOD on securities / Revocable TOD deed on real property (record before death) / Community property with survivorship (Section 682.1) / Retirement and life insurance beneficiaries / Review after any major life event
Digital: Inventory all accounts / Set legacy contacts on major platforms / Store credentials securely / Grant digital asset authority in POA and will
Funeral: Document preferences / Consider pre-need contract / Register as organ donor / Tell family where documents are
California-Specific: Community property planning / Revocable living trust (if appropriate) / Proposition 19 property tax review / Medi-Cal recovery exposure review / Step-up in basis planning (IRC Section 1014) / Secure document storage with someone who knows the location
Frequently Asked Questions
Do I need a lawyer to create these documents?
No. California provides a statutory form for the AHCD (Section 4701) and the financial POA (Section 4401). You can complete them yourself for straightforward situations. An attorney helps if you have a blended family, significant assets, or want a trust.
Do I need a trust in California?
A revocable living trust is not legally required but is widely used because probate fees are set by statute and can be substantial. For estates with real property, a trust typically saves significant time and money.
How often should I update my documents?
After any major life event: marriage, divorce, birth, death of a named agent or beneficiary, significant asset changes, or a move. At minimum, review everything every 3-5 years.
Where should I store these documents?
Originals in a fireproof safe or with your attorney. Copies to your healthcare agent, financial agent, and executor. Do not put originals in a safe deposit box -- your agents may not be able to access it when needed.
Does my out-of-state advance directive work in California?
Generally yes, if it was valid where executed. But a California-specific AHCD avoids confusion with local providers.
What to Do Next
Kaira organizes every step for your state -- deadlines, forms, and next actions -- so nothing gets missed. See how it works.
Related guides:
- How Probate Works in California
- California Funeral Cost Guide
- Social Security Survivor Benefits in California
- How to Close Bank Accounts After Death in California
Disclaimer: This article provides general legal information about end-of-life planning in California. It is not legal advice. Laws and tax rules change. Consult a licensed attorney and financial advisor for guidance specific to your situation.
Sources: Cal. Prob. Code Sections 4000-4806 (Health Care Decisions Law, Power of Attorney Law); Cal. Prob. Code Sections 5600-5696 (TOD Deeds); Cal. Civ. Code Section 682.1; Cal. Health & Safety Code Section 7100; Cal. Bus. and Prof. Code Sections 7735-7746; IRC Section 1014; P.L. 119-21 (OBBBA).