Living trust vs will in California
A will and a living trust are not interchangeable. They handle your estate differently, go through different processes after death, and cost different amounts to set up. Here is how to compare them clearly.
What you'll learn
- What a will can and cannot do after you die
- How a living trust avoids probate and keeps your estate private
- Why most California homeowners end up needing both documents
- Which document controls incapacity planning while you are still alive
Step by step
- Understand what a will does. A will names who inherits your assets and who cares for minor children. It takes effect only at death and must go through probate in California if your estate exceeds the threshold. The probate process is public, takes 12-18 months on average, and costs 4-5% of the gross estate in statutory fees.
- Understand what a living trust does. A revocable living trust holds your assets during your lifetime and transfers them to your beneficiaries after death without court involvement. It also names a successor trustee to manage your assets if you become incapacitated, which a will cannot do.
- See where they overlap. Most people with a living trust also have a pour-over will. The will catches any assets you forgot to transfer into the trust and sends them to it at death. Without a will, those stray assets go through intestate succession - California's default inheritance rules.
- Decide based on your situation. If you own California real estate and your estate will exceed the probate threshold, a trust is almost always the better long-term choice. If your estate is smaller or consists mainly of accounts with named beneficiaries, a simple will may be enough. An estate planning attorney can run the numbers for your specific situation.
California's probate fees apply to gross asset value, not equity. A home worth $900,000 with a $600,000 mortgage still triggers fees based on $900,000.
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Keep learning.
Do you need a living trust in California?
A living trust avoids probate, keeps your estate private, and transfers assets without court involvement. Understanding whether you need one is a decision you can work through before speaking with an attorney.
How to avoid probate in California
California probate is expensive, slow, and public. The good news is that most estates can be structured to avoid it entirely with the right documents and account designations. Here is how it works.
What a trustee does in California
If someone has named you as a trustee or successor trustee, you have taken on a legal role with specific duties. Understanding those duties before you need to act makes a difficult time easier.