WHY A LIVING TRUST?

5 Reasons Why You Need a Living Trust in California

1. Probate Avoidance

Probate avoidance is one of the key reasons people want a living trust. In California, when someone dies owning property in their name, those assets could be subject to probate administration. Depending on the complexity of the assets involved, a formal probate proceeding will last 1 - 2 years on average. Smaller estates with assets under $166,250 may qualify for a shorter, less formal process. There are very few places in California, if any, where you can own improved real estate worth less than $166,250. Therefore, if a person dies owning California real estate in their name, a full probate is virtually guaranteed. A valid, properly funded, living trust can help your family avoid probate.

2. Long, Costly Probate Process Can be Difficult on Your Family

As mentioned above, the probate process can last 1 - 2 years. With recent court closures due to COVID-19, the process can take even longer. Whatever inheritance your family is to receive will not be distributed until the end of the proceedings. This delay can cause financial difficulty on your family who may need the funds to put their lives back together. The probate process includes:

  1. Filing a petition with the court
  2. Appointing an administrator/executor
  3. Obtaining a bond
  4. Marshaling and valuation of assets
  5. Handling credit claims
  6. Dealing with final tax obligations
  7. Dealing with Public Entities
  8. Distributing remaining assets to heirs.

With proper estate planning, a valid living trust can be administered much sooner. Your loved ones could begin receiving what you left for them within a few months.

3. Cost Savings

There is a significant cost difference between having a living trust prepared and the cost of a full probate administration in California. A small amount of money spent today can save your loved one’s significant costs later. For example, at the time of this writing you could hire an attorney to draft a complete, standard estate planning for approximately $4000. A standard estate plan in California includes a living trust. However, failure to have an estate plan with a valid living trust in place at the time of your death could cost your family $20,000-40,000 or more in probate court. Here is an example from a recent case:

Vance died owning a California condominium in his name. This condo was his only asset. The value of the condominium was $350,000. After the court appointed an executor over the estate, the condo was sold for $350,000. The cost and fees to probate the estate included:

  1. Statutory Executor fees $9,800.00
  2. Attorney Fees $9,800.00
  3. Court Filing fees $1,090.00
  4. Court Probate Referee $340.00
  5. Executor Bond $1,000.00

Total fees & costs of probate $22,030.00

Cost of Estate Plan $4,000

Savings w/ estate plan & probate avoidance $18,030.00


As you can see from the above example, a standard estate plan with a valid living trust would have saved Vance’s family $18,030.00 in costs.

4. Control of Your Assets

You have worked hard to accumulate your assets over the years. Your living trust allows you to control your assets while you are still living. You can also decide who benefits from your hard work when you move on from this life. Having a valid living trust not only allows you to designate who will handle your affairs, but also which persons will receive your property when you die. If you are married with children, you’re living trust can help ensure your spouse is properly cared for financially, with remaining assets going to your children if your spouse dies. You can leave property to friends or charities to support causes you care about. A person handling your affairs (trustee) must abide by the instructions left in your living trust. Without a valid living trust or will, the State of California will decide who receives your property based on the laws of intestate succession. California law may allow your property to be distributed to persons you did not intend to receive anything from you. Here is another example from a recent case:


Carrie died unmarried, and with no children. Carrie’s parents were also deceased. Carrie and her sister had different fathers. They were very close. Carrie also had brothers on her father’s side whom she did not know. She had no relationship with her brothers who were raised in a different household. Carrie communicated to her sister on several occasions that she wanted her to receive her property if she died. Unfortunately, Carrie never drafted a will or living trust. She died owning real estate worth a great deal of money in Roseville. Under California laws of intestate succession, Carrie’s brothers were entitled to share the estate with Carrie’s sister. Carrie’s failure to have an estate plan benefited her estranged brothers, against her true wishes which Carrie’s sister was unable to prove. An estate plan would have ensured that Marie’s wishes were followed.

5. Privacy

Most civil cases filed in California Superior Courts are public record. This means anyone can access detailed information about cases and their participants. The public can also retrieve copies of documents filed with the court. Probate court is no different. During the probate process, the general public will be able to access information about your estate and your assets while your loved ones are settling your estate. This can lead to so-called investors, advisors, and other shady characters contacting your family while they are dealing with your loss.


A valid living trust is administered in private. There are generally no court proceedings to settle your affairs. This adds another level of protection for your family.

We’re only a message away! Email contact@devereauxestatelaw.com and let us know how we can help.

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