Why do I need a Living Trust in California? (And What is a Living Trust?)

This is a follow up and redux of an earlier post from last year. But it’s important so I want to repeat most of the information from the post. My last post was about why you should have a trust, and why a will is not quite enough in California.

One of the key concerns is probate court — and doing whatever you can to avoid going to probate court. Court is expensive, public, and time consuming (it takes 18-24 months to close out a probate!). A living trust (also called a revocable trust) is often the easy answer for most families. It’s the cornerstone of a comprehensive estate plan. (Also here’s why every family needs a comprehensive estate plan, in case you missed it.)

What Is a Living Trust?

A living trust is a legal document that allows you to determine what happens with your assets during your lifetime and at the time that you die. You place your assets—such as real estate, bank accounts, and investments—into the living trust during your lifetime. You remain in control as the trustee, and you can change or revoke the trust at any time. Upon your death, the assets pass directly to your chosen beneficiaries without going through probate.

Benefits of a Living Trust in California

• Avoid Probate Court – Save your family time, money, and stress. It typically takes 18-24 months to go through the probate process. It’s a public proceeding. And it’s expensive. The cost of probate entails filing fees, publication costs, and then fees for the executor and the attorney that are set by the State of California (and those fees are a percentage of the estate’s gross assets)

• Privacy – Unlike a will, which becomes public record, a trust remains private.

• Flexibility – You can amend or revoke the trust during your lifetime. (You can also change your will at any time.)

• Incapacity Protection – The trust holds your assets during your lifetime, so a successor trustee can step in to manage your assets if you become incapacitated. This avoids having to go to court to get a conservatorship (called a guardianship in other states). It generally allows seamless management of assets during incapacity — even if it’s a temporary incapacity.

• Control Over Distributions – You can delay or condition inheritances (for example, until a child turns 25).

How to Fund Your Living Trust

Creating a trust isn’t enough—it must be funded. This means transferring ownership of your assets into the trust’s name. Common assets to include are:

• Real estate (homes, rental properties, land)

• Bank accounts and brokerage accounts

• Business interests

• Valuable personal property

Failing to fund your trust is a common mistake that can send assets back into probate.

Why a Living Trust Works Best With a Full Estate Plan

While a trust is powerful, it works best when paired with:

• A pour-over will (to capture any assets accidentally left out)

• A financial power of attorney (for money management if you’re incapacitated)

• A healthcare power of attorney (for medical decision-making during incapacity)

Together, these documents create a comprehensive estate plan that protects your family in every scenario.

A living trust in California is one of the most effective tools to avoid probate, protect your privacy, and ensure a smooth transfer of assets to your loved ones — during incapacity and at death. By setting up and properly funding your trust, you can save your family time, money, and stress during an already difficult time.