How to Avoid Probate on a House in California 2025

Quick Answer: California real estate ALWAYS goes through probate unless you take specific legal steps to avoid it. Any house, condo, or land solely in your name will cost your family $13,000-$68,000+ in probate fees and 12-18 months of delays. The four proven methods to avoid this: living trust (best), Transfer on Death deed, joint tenancy, or LLC ownership.

Why California Houses Always Go Through Probate

California has one of the most expensive probate systems in the United States, and real estate is the #1 asset that triggers probate. Here's why:

The California Real Estate Probate Rule:

Any real estate solely owned by a deceased person MUST go through probate, regardless of value.

• A $200,000 condo requires full probate (cost: $13,000+)
• A $500,000 house requires full probate (cost: $26,000+)
• A $2 million home requires full probate (cost: $86,000+)
• Even vacant land requires probate if solely owned

What Probate Costs for a California House:

House Value	Attorney Fees	Executor Fees	Total Statutory Fees	Timeline
$300,000	$9,000	$9,000	$18,000	12-18 months
$500,000	$13,000	$13,000	$26,000	12-18 months
$1,000,000	$23,000	$23,000	$46,000	12-24 months
$2,000,000	$43,000	$43,000	$86,000	18-24 months

Plus additional costs: court filing fees ($500+), publication fees ($500+), appraisal fees ($500-$1,000), bond premiums ($500+), and potential real estate holding costs during probate.

Beyond Cost: Other Problems with Probate for Real Estate

• 12-18 month delay: House cannot be sold or transferred until probate completes
• Public record: Your property value, debts, and beneficiaries become public
• Court supervision: Need court approval to sell, mortgage, or refinance
• Family disputes: Contested probate can drag on for years
• Ongoing expenses: Property taxes, insurance, maintenance during probate
• Market risk: Property values can change significantly during 12-18 months
• Beneficiary stress: Heirs wait over a year to inherit or sell

Method 1: Living Trust (Best for Most People)

A revocable living trust is the gold standard for avoiding probate on California real estate. Here's why 70% of California homeowners choose this method:

How a Living Trust Avoids Probate:

1. You create a trust (a legal entity that holds property)
2. You transfer your house from your name to the trust's name
3. You remain trustee (in control) during your lifetime
4. You name a successor trustee (takes over when you die or become incapacitated)
5. Upon death, successor trustee distributes house to beneficiaries without probate

Living Trust Costs for California Real Estate:

Service	Trust Creation	Deed Preparation	Recording Fee	Total Cost
Online with Attorney Review	$400-$500	Included/DIY	$50-$200	$450-$700
LegalZoom/Trust & Will	$599-$999	Included	$50-$200	$649-$1,199
Estate Planning Attorney	$2,000-$5,000	Included	$50-$200	$2,050-$5,200

ROI Analysis: A $500 trust saves $26,000 on a $500,000 house. That's a 5,200% return on investment.

Step-by-Step: How to Transfer Your House Into a Living Trust

Once you've created your living trust, you must transfer (fund) your house into it. Here's the exact process:

Step 1: Prepare the Grant Deed

You need a grant deed that transfers the property from your individual name to you as trustee of your trust.

Example deed language:

For married couples (community property):

Step 2: Complete the Grant Deed Form

Your grant deed must include:

• Property legal description (copy from current deed exactly)
• Assessor's Parcel Number (APN)
• Grantor and grantee (as shown above)
• Signature of grantor(s)
• Notarization (required in California)
• Documentary transfer tax statement (usually exempt for trust transfers)

Where to get the form:

• Your county recorder's website (most have free forms)
• Office supply stores ($5-$10)
• Attorney or online service (included with trust)
• Title company (may charge $50-$150)

Step 3: Complete Preliminary Change of Ownership Report (PCOR)

California requires a Preliminary Change of Ownership Report (form BOE-502-A) when you transfer real estate. When transferring to your own living trust:

• Check the box: "Transfer between an individual and their revocable trust"
• Result: No property tax reassessment (Revenue & Taxation Code §62(d))
• Cost: Free form from county assessor

Step 4: Get the Deed Notarized

All grantors (current owners) must sign the grant deed in front of a California notary public.

• Cost: $15 per signature
• Where: Banks (often free for customers), UPS stores, mobile notaries
• What to bring: Valid government-issued photo ID

Step 5: Record the Deed with County Recorder

The deed must be recorded (filed) with the county recorder's office where the property is located.

Recording fees by county (2025):

County	Recording Fee	Online Available?
Los Angeles	$69 first page + $3 each additional	Yes
San Diego	$90	Yes
Orange	$75	Yes
Riverside	$60	Yes
San Bernardino	$54	Yes
Alameda	$71	Yes
Sacramento	$58	Yes
Santa Clara	$90	Yes

How to record:

• Online: Most California counties accept electronic recording ($5-$10 service fee)
• Mail: Send original notarized deed + PCOR + check for recording fee
• In person: Visit county recorder's office (usually fastest)

Step 6: Notify Your Mortgage Lender (If Applicable)

If you have a mortgage, you should notify your lender that you transferred the property to your trust. Important facts:

• Federal law protects you: Garn-St. Germain Act (12 U.S.C. §1701j-3) prohibits lenders from calling the loan due when you transfer to your own revocable trust
• No lender approval needed: This is your legal right
• Notification recommended: Send lender a copy of deed and trust excerpt showing you're trustee
• Insurance update: Notify homeowner's insurance (change named insured to you as trustee)

Step 7: Update Property Tax and Homeowner's Insurance

Property Tax:

• No change in assessed value (transfer to own trust is exempt)
• No action required from you
• County assessor will update records automatically
• Continue receiving property tax bills in trust name

Homeowner's Insurance:

• Call insurance company
• Request to update named insured to "[Your Name], Trustee of the [Trust Name]"
• No premium change (same person, same property, same coverage)
• Most insurers handle this with a quick phone call

Method 2: Transfer on Death (TOD) Deed

California authorized Transfer on Death (TOD) deeds (officially called "Revocable Transfer on Death Deeds") in 2016. This allows real estate to pass directly to a named beneficiary upon death without probate.

How TOD Deeds Work:

1. You execute a special deed naming beneficiary(ies) who will inherit when you die
2. Record the deed with the county recorder
3. During your lifetime: You retain complete ownership and control
4. You can revoke/change the TOD deed anytime before death
5. Upon death: Property automatically transfers to beneficiary (no probate)
6. Beneficiary files an affidavit and certified death certificate to complete transfer

TOD Deed Requirements (California Probate Code §5620-5698):

• Must use specific statutory TOD deed form
• Must be notarized
• Must be recorded before death
• Only for real property (not other assets)
• Cannot be used for multi-unit properties (5+ units)
• Beneficiaries cannot be changed after owner's death

TOD Deed Costs:

Expense	Cost
TOD deed form (statutory form)	$50-$100 (online) or $150-$300 (attorney)
Notarization	$15 per signature
Recording fee	$50-$200 (county dependent)
Total	$115-$515

When TOD Deed Makes Sense:

• Single property you want to leave to non-family member (no Prop 19 anyway)
• Rental/investment property where Prop 19 exclusion doesn't apply
• You're confident you'll remain mentally competent (no incapacity protection needed)
• Beneficiary situation is simple and unlikely to change
• You want simplest/cheapest option and understand the risks

When Living Trust is Better:

• Leaving house to children (preserve Prop 19 exclusion - potentially worth $100,000+)
• Want incapacity protection
• Have multiple properties
• Want more control over distribution (conditions, timing, etc.)
• Complex family situation
• Want privacy (trust isn't public, TOD deed is recorded publicly)

Method 3: Joint Tenancy with Right of Survivorship

Joint tenancy is the oldest method of avoiding probate on real estate. When one joint tenant dies, their share automatically passes to the surviving joint tenant(s) without probate.

How Joint Tenancy Works:

1. You add someone as a joint tenant on the property deed (usually spouse or child)
2. Both parties own 100% of the property together (not divided shares)
3. Either can sell/mortgage their interest (with the other's consent)
4. When one dies, survivor automatically owns 100% by operation of law
5. Survivor files an affidavit and death certificate to clear title (no probate)

Joint Tenancy Requirements:

Joint tenancy requires the "four unities":

• Time: All joint tenants acquire interest at same time
• Title: All acquire by same deed/document
• Interest: All own equal shares
• Possession: All have equal right to possess entire property

Community Property with Right of Survivorship (Better for Married Couples):

Married couples in California have a better option: Community Property with Right of Survivorship (CPWROS).

Advantages over regular joint tenancy:

• Avoids probate (like joint tenancy)
• Full step-up in basis on both halves when first spouse dies
• Both spouses retain equal control
• Simple deed language: "John and Mary Smith, husband and wife, as community property with right of survivorship"

Why CPWROS beats joint tenancy for married couples: When first spouse dies, both halves of property get new tax basis (not just deceased spouse's half), eliminating capital gains tax on appreciation during marriage.

Joint Tenancy Costs:

Expense	Cost
Deed preparation (quit claim or grant deed)	$0-$200
Notarization	$15 per signature
Recording fee	$50-$200
Gift tax return (IRS Form 709) if applicable	$0 (DIY) or $500+ (accountant)
Total	$65-$915

When Joint Tenancy Makes Sense:

• Married couples: Use "community property with right of survivorship" (better than regular joint tenancy or living trust for simple situations)
• Elderly parent wants to ensure caregiver child inherits and can act during incapacity
• Property value under $500,000 and child will not sell (minimizes capital gains issue)
• Very simple situation with complete trust between parties

When Living Trust is Better Than Joint Tenancy:

• Property has appreciated significantly (step-up in basis issue)
• You have more than one child (can't add all as joint tenants effectively)
• You want to retain complete control
• Joint tenant has creditor or divorce risks
• You want flexibility to change beneficiaries
• You have multiple properties
• You want professional management option

Method 4: LLC for Investment Properties

For investment properties (not your primary residence), transferring ownership to a Limited Liability Company (LLC) can avoid probate while providing additional benefits.

How LLC Ownership Avoids Probate:

1. You create an LLC and transfer property to the LLC
2. You own the LLC membership interest (personal property, not real property)
3. You transfer LLC membership interest to your living trust
4. Upon death, trust distributes LLC interest (personal property) without probate
5. Beneficiaries inherit LLC, which owns the real estate

Why Use LLC Instead of Direct Trust Ownership?

Feature	LLC + Trust	Trust Alone
Probate avoidance	✓ Yes	✓ Yes
Liability protection	✓ Yes (LLC shields personal assets)	✗ No
Lawsuit protection	✓ Yes (tenant sues LLC, not you)	✗ No
Professional appearance	✓ Yes	Neutral
Annual fees	$800/year (CA franchise tax)	$0
Setup cost	$800+ initial filing	$0 (trust already created)
Separate tax return	Maybe (if multi-member)	No

LLC Setup and Costs:

Expense	Cost	Frequency
California LLC filing fee	$70	One-time
Operating agreement	$0-$500	One-time
EIN from IRS	$0	One-time
Deed transfer to LLC	$50-$200	One-time
California franchise tax	$800	Annual
Statement of information	$20	Biennial
First year total	$920-$1,570	-
Annual ongoing	$800-$820/year	-

Recommended Structure for Investment Properties:

When LLC Makes Sense:

• You own rental properties (liability risk from tenants)
• Property value over $500,000 (justifies $800/year cost)
• You own multiple properties (one LLC can hold several)
• You want professional structure for real estate business
• You plan to bring in partners or investors

When Simple Trust is Better:

• Primary residence (no liability protection needed)
• Low-value property (under $300,000 - LLC cost not justified)
• Property has existing mortgage (lender may object)
• You want simplest structure

Proposition 19 Implications for All Methods

California's Proposition 19 (effective February 16, 2021) dramatically changed property tax rules for inherited real estate. Understanding these rules is CRITICAL when choosing a probate avoidance method.

What is Proposition 19?

Proposition 19 replaced the previous parent-child exclusion (Proposition 58) with new, much more restrictive rules:

OLD RULE (Before Feb 16, 2021):

• Children could inherit parent's home and keep parent's low property tax basis
• No requirement to use as primary residence
• Could keep as rental and still avoid reassessment
• First $1 million of value excluded for primary residence (unlimited for any property type)

NEW RULE (After Feb 16, 2021):

• Primary residence only: Exclusion only applies if property was parent's primary residence
• Child must live there: Child must use as their primary residence within 1 year
• Limited exclusion: Only $1 million of assessed value transfers (anything above triggers partial reassessment)
• All other property reassessed: Rental properties, vacation homes, investment property all reassessed to full market value

How Proposition 19 Affects Each Method:

Method	Qualifies for Prop 19?	Notes
Living Trust	✓ YES	Clearly qualifies as inheritance. Full parent-child exclusion available if requirements met.
TOD Deed	⚠ UNCERTAIN	May not qualify because property passes by beneficiary designation, not inheritance. Risky - could trigger full reassessment.
Joint Tenancy	✓ YES	Qualifies, but only for deceased tenant's share. Survivor's original share doesn't get reassessed (but loses some step-up benefits).
CPWROS	✓ YES	Qualifies for married couples. Surviving spouse keeps original basis (no reassessment).
LLC	✓ YES (if LLC interest in trust)	Real property stays in LLC, but ownership (LLC interest) passes through trust. Qualifies if trust inherits LLC interest.

Proposition 19 Parent-Child Exclusion Requirements:

To qualify for Proposition 19 parent-child exclusion when inheriting real estate:

1. Property must be parent's principal residence at time of death or transfer
2. Child must use as principal residence within one year of transfer
3. Child must file claim with county assessor within one year
4. $1 million exclusion: Original assessed value + $1 million is maximum that transfers at old basis
5. Anything above $1 million + assessed value is reassessed to market value

Which Method Preserves Proposition 19 Benefits?

Best (Certain): Living Trust - unquestionably qualifies

Good: Joint Tenancy / CPWROS - qualifies but with partial benefits

Risky: TOD Deed - uncertain whether it qualifies; different counties may rule differently

Not Applicable: LLC - doesn't matter (real property stays in LLC; ownership of LLC transfers)

Property Tax Reassessment Concerns

California property owners worry about triggering property tax reassessment when transferring real estate. Here's what actually happens with each method:

Proposition 13 Baseline Rule:

California's Proposition 13 (1978) limits property tax increases to 2% per year. Property is reassessed to current market value only when there is a "change in ownership" as defined by law.

Transfers That Do NOT Trigger Reassessment:

Transfer Type	Reassessment?	Legal Authority
Transfer to your own revocable living trust	✓ NO reassessment	Revenue & Taxation Code §62(d)
Transfer from your trust back to you	✓ NO reassessment	Revenue & Taxation Code §62(d)
Creating joint tenancy with spouse	✓ NO reassessment	Revenue & Taxation Code §62(p)
Transfer between spouses	✓ NO reassessment	Revenue & Taxation Code §63
Recording TOD deed (while alive)	✓ NO reassessment	Probate Code §5676
Creating LLC and transferring to it	Maybe (see below)	Depends on LLC structure

LLC Transfers - Special Rules:

Transferring property to an LLC may or may not trigger reassessment depending on ownership structure:

NO Reassessment if:

• You are 100% owner of single-member LLC
• You transfer from yourself individually to yourself as sole member of LLC
• LLC is disregarded entity for tax purposes

YES Reassessment if:

• LLC has multiple members
• You transfer more than 50% ownership to others
• LLC is partnership for tax purposes (multi-member)

What to File with County Assessor:

When you transfer property using probate-avoidance methods, file these forms:

Transfer Type	Form Required	Purpose
To living trust	Preliminary Change of Ownership Report (BOE-502-A)	Claim exclusion under §62(d)
From trust back to you	PCOR (BOE-502-A)	Claim exclusion under §62(d)
Between spouses	PCOR + Claim for Reassessment Exclusion	Claim interspousal exclusion
To single-member LLC	PCOR + Legal Entity Ownership (BOE-100-B)	Document no change in control
Parent to child (with Prop 19)	Claim for Reassessment Exclusion (BOE-19-P)	Claim parent-child exclusion

Filing deadline: Within 90 days of transfer (or when first county assessor requests it). File with county recorder when recording deed, or directly with county assessor.

Complete Method Comparison Table

Here's how all four methods compare across key factors:

Factor	Living Trust	TOD Deed	Joint Tenancy	LLC
Avoids Probate?	✓ Yes	✓ Yes	✓ Yes (first death)	✓ Yes (if LLC in trust)
Initial Cost	$400-$5,000	$150-$300	$65-$200	$920-$1,570
Annual Cost	$0	$0	$0	$800
Prop 19 Qualified?	✓ YES	⚠ Uncertain	✓ Yes (partial)	✓ Yes
Tax Reassessment on Transfer?	✓ No	✓ No (until death)	⚠ Maybe (gift issues)	✓ No (if single-member)
Full Step-up in Basis?	✓ Yes	✓ Yes	✗ No (50% only)	✓ Yes
Incapacity Protection?	✓ Yes	✗ No	⚠ Partial	✓ Yes (if LLC in trust)
Retain Full Control?	✓ Yes	✓ Yes	✗ No (50% to other)	✓ Yes (as manager)
Privacy?	✓ Private	✗ Public (recorded)	✗ Public (recorded)	⚠ Semi-private
Liability Protection?	✗ No	✗ No	✗ No	✓ Yes
Multiple Properties?	✓ Yes (one trust)	⚠ One deed per property	⚠ Complicated	✓ Yes
Flexibility to Change?	✓ High	✓ Revocable	✗ Difficult	✓ Moderate
Creditor Protection?	⚠ Moderate	✗ No	✗ No (worse - exposes to joint tenant's creditors)	✓ Yes
Best For	Most people, especially if leaving to children	Simple situations, non-family beneficiaries	Married couples only (use CPWROS)	Rental/investment properties

What NOT to Do: Common Mistakes That Cost Families Thousands

After 20+ years as a California estate planning attorney, I've seen these mistakes cost families huge amounts of money. Avoid these errors:

Mistake #1: Doing Nothing

The Problem: "I'll deal with it later." Later never comes.

The Cost: Your $600,000 house goes through 18-month probate costing your family $28,000+ in fees plus $15,000+ in property carrying costs.

The Fix: Create living trust TODAY. Takes 30 minutes online. Costs $400-$500. No excuse to delay.

Mistake #2: Creating Trust But Not Funding It

The Problem: You paid for a trust but never transferred house into it. 40% of trusts are unfunded at death.

The Cost: Trust is worthless - house still goes through probate. You paid $500-$3,000 for trust and still pay $26,000 probate fees. Total loss: $26,500-$29,000.

The Fix: Immediately after creating trust, execute and record grant deed transferring house to trust. This is THE most important step.

Mistake #3: Using TOD Deed to Leave House to Children

The Problem: TOD deed may not qualify for Proposition 19 parent-child exclusion.

The Cost: Property reassessed at full market value. $1.5M house that was assessed at $100,000 jumps to $1.5M assessment. Property tax increases from $1,200/year to $18,000/year. Over 25 years: $420,000 in extra property taxes.

The Fix: Use living trust instead - definitively qualifies for Prop 19 exclusion.

Mistake #4: Adding Child to Deed as Joint Tenant

The Problem: You add adult child as joint tenant thinking it avoids probate.

The Costs:

• Immediate gift tax: You just gave child 50% of house (taxable gift if value over $18,000)
• Loss of control: Child now owns 50% - can force sale, creditors can attach their half
• Capital gains tax: Child's half doesn't get full step-up in basis (costs $50,000-$150,000 when they sell)
• Medicaid issues: Transfer within 5 years triggers penalty period

The Fix: Use living trust - you retain 100% control, no gift tax, full step-up in basis.

Mistake #5: Putting House in Irrevocable Trust

The Problem: Some people use irrevocable trusts thinking they're "stronger" than revocable trusts.

The Cost: You lose all control - cannot sell, mortgage, or get property back even if you need it. Trigger immediate gift tax and 5-year Medicaid lookback.

The Fix: Use revocable living trust for your home - you retain complete control, can revoke anytime, and still avoid probate.

Mistake #6: Waiting Until You're "Old Enough"

The Problem: "I'm only 50. I'll do it when I'm 70."

The Cost: Incapacity can strike at any age (stroke, accident, dementia). Without trust, family faces expensive conservatorship ($10,000-$50,000) just to manage your affairs. Plus, if you die unexpectedly, probate anyway.

The Fix: Create trust NOW. Age doesn't matter - incapacity and death are unpredictable.

Mistake #7: Thinking Your Will Avoids Probate

The Problem: "I have a will, so I'm fine."

The Cost: Wills DO NOT avoid probate - they guarantee probate. Your house goes through full probate process ($26,000+ for $500K house, 12-18 months).

The Fix: Understand that living trusts avoid probate; wills do not. You need a trust.

Mistake #8: Using Quitclaim Deed Instead of Grant Deed

The Problem: You use quitclaim deed to transfer house to trust.

The Cost: Quitclaim deeds provide no warranties. If there's a title defect, beneficiaries have no recourse. Title insurance may not cover transfers by quitclaim.

The Fix: Use grant deed to transfer to trust - provides warranties and maintains title insurance coverage.

Mistake #9: Not Updating Trust After Major Life Changes

The Problem: You created trust 20 years ago. Since then: divorced, remarried, had kids, kids grew up. Never updated trust.

The Cost: Trust leaves everything to ex-spouse, or minor children who are now 40, or uses outdated tax strategies. Family fights, possible court challenges, unintended beneficiaries.

The Fix: Review trust every 3-5 years and after major life events (marriage, divorce, birth, death). Amend as needed ($200-$500).

Mistake #10: Using Out-of-State or Generic Trust Forms

The Problem: You download free trust form from internet or use form from another state.

The Cost: California has unique laws (community property, Proposition 19, specific probate codes). Generic forms miss these. Trust may be invalid or fail to achieve goals. Probate anyway.

The Fix: Use California-specific trust prepared or reviewed by California attorney. Costs $400-$500 online - worth every penny.

Frequently Asked Questions